As per Kotak Institutional Equities, Bharti Airtel and Vodafone Idea Limited (VIL), must disclose the workings which highlight the areas of difference between their self-assessed adjusted gross revenue (AGR) dues and the Department of Telecommunications (DoT) estimates for the same.
As per the telcos, their self-assessed AGR dues to the government are less than half of estimates provided by the DoT.
According to Bharti Airtel and VIL, their self-assessed AGR dues stand around Rs 130.04 billion and Rs 215.33 billion, whereas, DoT is seeking over Rs 350 billion and Rs 530 billion, respectively.
Further, Kotak added that Bharti and VIL made higher provisions for the dues in their second quarter of financial year 2020 earnings as they may not have had enough time post the Supreme Court’s October 24, 2019 order to complete their self-assessments and adopted a conservative stance.
Kotak in its report has suspected the telcos for staying confident of winning the case. As per Kotak, telcos never verified the earlier demands of the DoT or went into its detailed assessment.