PwC’s Indian unit has been banned coming from auditing listed companies For just two years, over one of the country’s biggest corporate scandals.
cost Waterhouse was auditor for Satyam computers when company owner Ramalinga Raju admitted to inflating earnings.
The ban by Indian market regulator the Securities in addition to Exchange Board (Sebi) will come into effect on 31 March.
cost Waterhouse has said that will This kind of will appeal the decision in court.
This kind of added that will “there has been no intentional wrongdoing by [PwC] firms from the unprecedented management perpetrated fraud at Satyam”.
In January 2009, Raju stunned the corporate world by admitting to accounting malpractices to inflate earnings in addition to assets for years.
cost Waterhouse’s Indian arm, PW Bangalore, was Satyam’s auditor during This kind of period.
The collapse of Satyam Computers in 2009 cost shareholders more than $2bn in addition to rocked India’s This kind of industry.
Analysts said This kind of was the biggest fraud at a listed company in India.
- India Satyam Computers: B Ramalinga Raju jailed for fraud
- Satyam ‘padded employee numbers’
The group’s audit functions are under the brand cost Waterhouse in India. The broader PwC entity handles consulting, tax advisory in addition to some other businesses.
Auditing services constitute around 40% of its overall business in India.
Analysts say the Sebi order is usually a big setback for the firm which never quite recovered coming from the fallout of the case.
This kind of could very well lead some of the firm’s 70-plus listed clients, which include corporate giants like Tata Steel, to shift their business.
that will could mean not only a loss of revenues however This kind of could also impact the jobs of some 2,500 workers.
cost Waterhouse lost its leadership position from the Indian market soon after Raju’s confession in addition to This kind of has struggled to compete with some other global companies like Deloitte.