Price Waterhouse banned for 2 years in Satyam case

Sebi banned Price Waterhouse Network from engaging in audit work with any listed company for two years starting April 2018 for its role in the Rs 8,000-crore Satyam scam that took place in 2009.

Sebi also asked PWC to pay Rs 13.09 crore, along with interest at 12% per annum from January 2009 (approximately Rs 14 crore). Two former PWC partners, S Gopalakrishnan and Srinivas Talluri, have also been barred from issuing audit certificates to listed companies for three years. The two chartered accountants were responsible for auditing Satyam when the fraud came to light. Price Waterhouse Network is auditing arm of PWC India.

“Listed companies and intermediaries registered with Sebi shall not engage any audit firm forming part of the PW Network, for issuing any certificate with respect to compliance of statutory obligations which Sebi is competent to administer and enforce, under various laws for a period of two years,” the order said. The Sebi ban will come into effect from financial year 2018-19 and won’t affect the auditing work for the year 2017-18.