The Supreme Court on Monday stayed a direction in the order of Securities Appellate Tribunal (SAT), which stopped market watchdog Sebi, from barring the auditors from auditing listed companies. In January 2018, the Securities and Exchange Board of India slapped a two-year ban on Pricewaterhouse (PwC), an arm of PricewaterhouseCoopers India, from auditing any listed company for its role in the Rs 7,800 crore Satyam scam. The SAT, however, quashed the two-year ban.
The SAT, in its order which set aside the ban on audit firm Price Waterhouse (PwC), had noted that SEBI does not have the power to bar auditors. Earlier, the SEBI had challenged SAT's decision to quash a two-year ban that was imposed on PwC in connection with the Rs 7,800 crore Satyam fraud.
Tom Velema, EY’s alliances leader for EMEIA, who was in India recently, told ET that the shift in strategy had been initiated almost a decade ago but got a sharper focus only in the last few years. “This is an ecosystem play we adopted, which started with a global partnership with SAP. This is also a reflection of the market and embracing the drive to digital,” Velema said.
Consultancy firms used to operate on fixed-pay models for projects or assignments, which companies had to either take it or leave it. Now payment models of management consultancies have undergone a drastic change with adoption of the result-oriented approach. Now there is a stronger emphasis on outcomes, given the fast pace of change, and returns on investment.
Infosys hired PwC to investigate two whistle-blower complaints alleging financial malfeasance against chief executive and finance chief. The company has already roped in law firm Shardul Amarchand Mangaldas (SAM) to look into the legal side of the complaints and asked its internal auditor, EY, to probe its revenue recognition practices.
8K Miles is a cloud computing company and has been under regulatory radar and legal knots as the company claimed a broker forged promoter’s signature to offload pledged shares triggering a police complaint and cases in various judicial fora.
The third largest mortgage lender had sought a Rs 15,000-crore lifeline from the lenders as they finalise the resolution plan, which may also include picking up 51 percent equity in the company by converting their debt into equity.
Online tax returns filing platform Cleartax and early-stage audio streaming platform Dose FM further plans to create an engagement platform for their business customers to file their GST returns. A four member team will be joining Cleartax.