Price Waterhouse on Wednesday moved the Securities Appellate Tribunal (SAT) challenging Sebi’s order against the audit major and its network entities in the multi-crore Satyam scam. After finding the audit major guilty in the Satyam fraud, the markets regulator last week barred Price Waterhouse’s network entities from issuing audit certificates to any listed company in India for two years.
A Price Waterhouse confirmed that it has moved the tribunal against the Sebi order.
In a detailed order, dated January 10, Sebi also directed disgorgement of over Rs 13 crore wrongful gains by the audit major and its two erstwhile partners who worked on the IT company’s accounts.
On January 11, Price Waterhouse said there has been no intentional wrongdoing by its firms in the Satyam case and expressed confidence of getting a stay on the Sebi order.
Sebi has imposed a two-year ban on entities/ firms practising as chartered accountants in India under the brand and banner of PW from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with the regulator.
According to the regulator, the order would not impact audit assignments relating to the financial year 2017-18 undertaken by the firms forming part of the PW network.
Further, the two erstwhile partners — S Gopalakrishnan and Srinivas Talluri — were restrained from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with Sebi for three years.
The scam came to light in January 2009 after Satyam Computer’s then chairman B Ramalinga Raju admitted to large scale financial manipulations in the company’s books of accounts.