What is Adjusted Gross Revenue (AGR)
Telecom operators are required to pay licence fee and spectrum charges in the form of ‘revenue share’ to the Centre. The revenue amount used to calculate this revenue share is termed as the AGR. According to the DoT, the calculations should incorporate all revenues earned by a telecom company – including from non-telecom sources such as deposit interests and sale of assets profit on sale of any asset ,Interest Income received on fixed deposits or any other form of Income .
Who Can Perform the AGR Audit of Telecom Company
As per the Department of Telcommunication the AGR Audit can only be performed by the Statutory Auditors of the company as the company is required to submit some certifcates to DoT and these certficates are to be issued by the Statutory auditors of the company and no other person can certify these certficates .
Why Adjusted Gross Revenue is Calculated
The Adjusted Gross revenue is calculated by the company as the telecom company is required to pay "License Fees" to the departement of telecom on a quartely basis ,and the License fees is calcuated as a % of Adjusted gross revenue .
License Fees as % of Adjusted Gross Revenue (For Major Telecom Services )
Process for Calculating Adjusted Gross Revenue and License Fees
Requirement List for AGR Audit :
1. Audited Balance Sheet
2. Audited Profit and Loss Statement
3.Profit and loss Reconcilation Statement Preapred by the Company .
4. Copy of License Agrrement the Company owns like - National Long Distance (NLD) , International Long Distance (ILD) etc.
5. Challans of Fees paid to DoT (Departement of Telecom)
6. Bank Statements for checking the deduction claimed by the company
7. Dedcution Statement Preapred by the Company for each license separately .
8. Details of Total no of licenses granted to the company by DoT