PwC’s Indian unit has been banned from auditing listed corporations for 2 years, over one of many nation’s largest company scandals.
Worth Waterhouse was auditor for Satyam computer systems when firm proprietor Ramalinga Raju admitted to inflating earnings.
The ban by Indian market regulator the Securities and Alternate Board (Sebi) will come into impact on 31 March.
Worth Waterhouse has stated that it’ll attraction the choice in courtroom.
It added that “there was no intentional wrongdoing by [PwC] companies within the unprecedented administration perpetrated fraud at Satyam”.
In January 2009, Raju surprised the company world by admitting to accounting malpractices to inflate earnings and belongings for years.
Worth Waterhouse’s Indian arm, PW Bangalore, was Satyam’s auditor throughout this era.
The collapse of Satyam Computer systems in 2009 price shareholders greater than $2bn and rocked India’s IT business.
Analysts stated it was the most important fraud at a listed firm in India.
The group’s audit features are underneath the model Worth Waterhouse in India. The broader PwC entity handles consulting, tax advisory and different companies.
Auditing companies represent round 40% of its general enterprise in India.
Analysts say the Sebi order is an enormous setback for the agency which by no means fairly recovered from the fallout of the case.
It may very nicely lead a few of the agency’s 70-plus listed shoppers, which embrace company giants like Tata Metal, to shift their enterprise.
That will imply not solely a lack of revenues however it could additionally affect the roles of some 2,500 employees.
Worth Waterhouse misplaced its management place within the Indian market quickly after Raju’s confession and it has struggled to compete with different international corporations like Deloitte.