Account-keeping for each VNO license Service
The Unified License (VNO) holder must draw, keep and furnish independent accounts for each service and service area. Also, they must fully comply with any order, direction, or regulation as issued by TRAI and by the Licensor from time to time.
Compilation and Maintenance of Records
The VNO licensee must compile and maintain accounting records to show and explain its transactions in each completed quarter. They can also show the accounts for lesser periods as the Licensor may specify.
The accounting records must present the costs, including capital costs, revenue, and financial position of the VNO Licensee’s business. This must include a reasonable assessment of the assets employed in and the liabilities attributable to the following:
- Licensee’s business
- Revenue Quantification
VNO Licensee Auditor Report
The VNO license holder must procure a report from its Auditor in the format prescribed by the Licensor. The report must be in respect of all the accounting statements prepared for a complete financial year by the Licensee. The report must state an inter-alia of the following:
- Whether the statement is adequate for the purpose
- If it can deliver to the Licensor a copy of each of the accounting statements
The Unified License VNO holder must submit the report not later than three months at the end of the accounting period.
CCAs/DoT statement
The VNO licensee must send the CCAs/ DoT certified statement on an affidavit by their authorized representative. The statement must contain a complete revenue account for each quarter separately, along with the quarter’s payment.
Inter-Operator accounts settlement
The VNO license holder must furnish the Licensor with complete detail of inter-operator settlement of accounts. These details include the following:
- Pass through charges
- Usage of network and facilities
- Domestic and International roaming
- Settlement details regime through accounting rate or any other mechanism
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Authority Compliances
The Licensor (CCAs, DoT, and TRAI) has a right to call for, and the Licensee must oblige to supply and provide for examination any books of accounts. Furthermore, the Licensee must maintain such Information regarding the business carried on.
Records Preservation by VNO license holder
The VNO license holder must preserve all billing and all other accounting records, both electronic as well as hard copy. In addition, the Licensee must maintain the records for a period of three years from the date of publishing of duly audited & approved Accounts. The Licensor will treat any dereliction as a material breach independent of any other breach. It will give him sufficient cause for cancellation of the Unified license of Virtual Network Operator.
Independent Verification
The records of the VNO Licensee will be subject to such scrutiny as per the Licensor. This will facilitate independent verification of the amount due to the Licensor as its revenue share.
Misleading Information by the VNO license holder
The CCAs, as well as the DoT, can order an Audit of the Licensee’s accounts by appointing an Auditor at the Licensee’s cost if the statements or accounts submitted are inaccurate or misleading. Such an auditor will have the same powers as the company’s statutory auditors. Also, the VNO licensee will have to bear the Auditors’ remuneration, as fixed by the Licensor.
Special Audit by the Licensor
The CCAs, as well as the DoT, can also conduct a ‘Special Audit’ of the Licensee’s accounts and records by Special Auditors. In addition, the payment for such audit, which is fixed at a rate by the Licensor, will be borne by the Licensee. This nature of auditing is described in the VNO License Act. The Licensor will also provide the Special Auditors with the same facility and have the same powers as the companies’ auditors.
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