Wednesday, January 7, 2009

Companies Audited by PWC(Satyam AUDITORS)

Hi All,

India always got an Overweight Rating as compared to its Emerging Market Peers from FII's Backed by its good corporate Governance(!!!).But the Biggest scandal(so called event from Satyam) among the indian corporates raised major questions about the auditing practices and principles that they were following at the moment.Moreover these auditing works are carried out by Auditing Giants like E&Y,PwC,KMPG,S&P,CRISIL,ICRA,FITCH etc........

PWC is the auditor for Satyam - here are the co's where they will have a screw ball
There are some big names in their list of clients

Apar Inds.
Apeejay Tea
APW President
Arshiya Intl
Assam Carbon Pr
Automotive Stamp
Bayer CropScien
Beeyu Overseas
Bimetal Bearings
Blue Dart Exp.
Bosch Rexroth
California Soft.
Century Enka
Chemplast Sanmar
Colgate Palmoliv
Coromandel Fert
Cummins India
Denso India
Dynamatic Tech.
Elpro Intl.
English Ind.Clay
Entertainment Nt
Gabriel India
Gateway Distpark
Gillanders Arbut
Glaxosmit Pharma
GlaxoSmith C H L
Glenmark Pharma
GMR Inds.
GMR Infra.
Goodyear India
Graphite India
Great Eastern En
Guj Gas Company
Harr. Malayalam
HCL Infosystems
HCL Technologies
Hinduja Ventures
Holman Climax
Honeywell Auto
Hooghly Flour
HTMT Global
IFGL Refractor
Ineos ABS (India
Info Edge (India
Infotech Enterpr
Jagran Prakashan
Kanumanek Trad.
Kennametal India
Kesoram Inds.
Lanco Infratech
Maruti Suzuki
Max India
Mcleod Russel
Millennium Beer
Morganite Crucib
Moser Baer (I)
Motherson Sumi
Nicco Parks
NIIT Tech.

Northgate Techno
Orissa Extrusion
Parry Agro Inds
Perfect Circle I
Phillips Carbon
Piramal Health
Piramal Life
PVP Ventures
Rain Calcining
Rain Commodities
Rane (Madras)
Rane Brake Lin
Religare Enter
Religare Global
S.N. Sunderson
Saint-Gob. Sekur
Samtel Color
Sanderson Inds.
Saregama India
Satyam Computer
Schrader Duncan
Simplex Infra
South Asian Fin.
Sparsh BPO
Spentex Inds.
Stewarts & Lloyd
Subhkam Capital
Sulzer India
Swaraj Mazda
Swojas Energy
T.V. Today
Tinplate Co.
Trigyn Techno.
Tudor India
United Breweries
United Spirits
Usha Martin
UTV Software
Vijay Inds.
Warren Tea
Welspun India
Zensar Technolgs

Comments are Welcome........


Anonymous said...

- Ban PwC from taking further audit work in IT/ ITes space
- Prepare a task force to investigate professional ethics within the company
- Random audit of the books of their clients by ICAI, SEBI and Ministry of Corporate Affairs

Rajesh Purohit said...

why ban just on IT/ITeS? Is it okay to cook book for say Telecom and/or petroleum companies?

Namit said...

I am a CA myself though not in the practice of auditing and I must say that I am disgusted with the auditors of this company. I am sure the CA board will be investigating the role of PwC and the outcome would be an interesting read. I just hope that they take strictest of action, not just against the member who signed off on the BS of Satyam but the entire firm, if found negligent in discharging their duties as auditors.

Unknown said...

I do not understand how can people talk about barring the auditor from further audit. First let us have the explanation from the auditor and then only draw a conclusion.

All these guys who make a comment without knowing even the slightest of the fact should be put behind the bar.

Abhishek said...

I agree with the above.But just for the sake of the argument,the current information which has been made public(the association of pwc with satyam for resonably long tenor,cooking of books since a long time,statement of satyam chairman that bs should be revaluated by auditors) gives the human mind an impression that pwc may be at fault.The larger issue to be resolved here should be avoidance of a enron-arthur anderson fiasco.we have to take action immediately (which means the reguatory bodies have to set an example here,the indian judicial sytem has to truly and swiftly impart justice ,and media should stp sensationalizing this so as to protect the brand value OF investing in Indian companies).

Unknown said...

Satyam Chairman has accepted his fradulent act. For a third party an auditors(both internal and external) are watchdogs for not only protecting "shareholders interest", it also has a responsibility to the government, employees, creditors & corporate community at large.

Even if a member of the board or employee is commiting a fradulent act, it is also the responsibility of the auditor to act in a professional manner and to detect any instances of fraud or any system or procedure that may help or support in a fradulent act.

PwC has a brand repute therefore not only companies pay the premium for retaining their services, the third party trusts them for their due deligence. Also, we forget that a firm in it own is a shell...its the individual in the company that provides the name and fame. These individuals draw a flat salary....for?? Do we not penalise the individuals because even if we ban the companies these individuals will join another firm and make the same mistakes or breach ethics professionally? There has to be penalty and not gentle but severe consumerate with the seniority of the individual.

There is another aspect that we need to ponder upon. Today most of the firms don't reward their employees for their professional or technical skills (they do but the importance is relatively small). The individual getting better salary or increments are individuals who market their firm in a better fashion. Do they market the firm on "facts" (has to be correct??)? We all have experience of such marketing "tactics" but we all fall prey. So we ourselves need to be disciplined and be transparent for being a "whistle blower" as an employee or a third party being associated with the company.

kalashnikov63 said...

I agree. The Big 4 have never been in a position to raise the flag, ever! Neither in Lehman nor in Madoff (where the audit of the fund was by one of the Big 4) was any inkling available to the general public, or oversight agencies or to anyone.

PwC grabbed the biz of AA post Enron and was a key participant in promulgating SOX act. Over the recent years, it was the major beneficiary in ensuring compliance with SOX by earning 'expert' fees. But has it helped in the 'Subprime' and 'CDS' and other crises which engulfed the entire world over the last 6 months.

The so called 'Process' enhancement, expertiese across domains of such Big 4 has not delivered to anyone, except to themselves in the form of fat fees.

I agree to the observation that the major portion of the fees is taken by the partner who markets the brand and gets the contract. But such skewed distribution of the fees is a contributory factor for the riskiness of deficient service delivery.

I think there should be anti trust laws in place for Big 4 audit firms.

Is there any other product or service rendered across the world wherein 90% market share is with only 4 companies??

The same is the case with CRA's who have miserably failed to protect the public, but have protected themselves with disclaimers in their contract.

I suggest that rhere should be rotation of auditors of select/chosen companies based on mcap/revenues/share capital, and rotation can be once every 3 years. This will help in ensuring arms length transaction, and the auditors need not keep quiet, as knowing that they will be away in 3 years, they have no axe to grind for continuance. Such a policy has been implemented for PSU' by C&AG and found pretty useful. You have not yet come across any big scams prima facie due to audit failure at any of the PSU, though some surprises may have come out of internal audits owing to collution amongst the perpetrators.

I invite comments from learned members of the forum.


SKK said...

I would say it is better to ban the partner rather than firm. Since the partner will sign on that. He should verify all aspects. Verificatin of bank & cash is a routine procedure. If the auditors say that they could not find any thing cash and bank verification or signed after due information facts. Then he dont have a right to practice. It is not only me I have contacted couple of my friends are also ( all we are CAs) are in the same impression. The name PWC does not mean every thing is correct. Every one know the facts of GTB India and Enron issue. Now the India inc is comparing it as Indian enron. I dont think only the CEO is responsible for this, Even though he announced the same. With out the knowledge of CFO, ED finance, S&D director or Auditor do you think it will happen. I dont think so. Raju may be right on saying other board members dont have idea on it. Every know that he himself put in the situation of scape goat and I personally beleive he may not have used the situation for his personal benefit. But now who is responsible for investors? Before blaming SEBI or some other origanisation, It is the auditor who is supposed to do the job. He can't simply keep himself busy counting his remuneration. I would say he has not done his job for what he paid for. I am asking all those folks, who has told "he should not be banned or we need to hear from his point of view", why he should not be banned? If your money is invested in it then you would know the pinch.

Unknown said...

I have worked in Big 4 years ago as an article. I am not surprised. All they do is prepare jazzy documents and staff of big4 will move around like jokers at client locations asking irrelevant questions. I was once a financial controller later and had one Big 4 as audit and we were so frustrated with the audit that we wanted the firm removed. The entire audit profession is a disgrace and is a waste of time and money. CA firms will now need to become the hunted. Enough of giving artificial respect to these jokers and time to teach these 3rd grade audit people a lesson