Mumbai: In a partial relief to Price Waterhouse (PW), the Securities Appellate Tribunal (SAT) on Friday allowed it to continue current auditing assignments for the financial year ending 2017. It also allowed existing assignments already undertaken in financial year of April 1,2017 to March 31, 2018 to be completed within reasonable time.
The tribunal made it clear that PW "shall not take any new assignment with any clients and also with existing clients with obligation beyond December 31, 2018". They can also complete "various kinds of certification work with them as on date".
PW, a partnership firm registered with the Institute of Chartered Accountants of India, and Price Waterhouse Bangalore had moved SAT to challenge a January 10, 2018 order passed by market regulator Securities and Exchange Board of India (Sebi), banning them for two years from doing any audit or certification, because of an alleged involvement in the Satyam scam. The regulator also passed disgorgement orders directing Price Waterhouse Bangalore and two of its partners to pay Rs 13 crore with a 12% annual interest from January 2009.
PW counsels Janak Dwarkadas, Shyam Mehta and Somasekhar Sundaresan essentially argued that the Sebi order is actually against the brand and not against individual chartered accountants.
Dwarkadas sought a stay of the Sebi order while Shiraz Rustomjee, counsel for Sebi, opposed grant of a blanket stay. The SAT order observed that Rustomjee "fairly stated that the order itself makes it clear that assignment pertaining to financial year 2017-18 will not be affected".
The SAT clarified that "audit assignments already undertaken by Price Waterhouse pertaining to financial year ending 2017 will not be affected. Similarly assignments of existing clients already undertaken in financial April 1, 2017 to March 31, 2018 won't be affected and can be brought to a logical end within a reasonable time". SAT members Jog Singh and C K G Nair directed that a list of existing clients be made and placed the matter for final arguments on February 13.
Source: TOI
Source: TOI
