Several Pricewaterhouse Coopers India entities, including the group's audit firms, would have ended 2010-11 with losses had it not been for large amounts of "sundry income" received from undisclosed sources. According to reports accessed by TOI, PwC India entities-audit firms Price Waterhouse (PW) and Lovelock & Lewes (LL) and consulting company PricewaterhouseCoopers Pvt Ltd (PwCPL) - received "sundry income" of over Rs 200 crore in the previous fiscal, all of which has been unexplained in the accounts.
But for the money, each of these entities would have been in the red, presenting a grave risk to their ability to retain their highly-specialized workforce as well as their capacity to operate and service clients comfortably.
Consider the facts: PwCPL had sundry income of Rs 111.73 crore in 2010-11, an amount almost seven times as large as its reported profit-after tax (PAT) of Rs 16.19 crore, which incidentally was down by 51% from the previous year. PwCPL's revenue from operations was Rs 1,013.17 crore, up by a marginal 2.3%. In audit firm PW, sundry income was Rs 68.51 crore, more than three times the PAT of Rs 22.47 crore and more than 40% of its fee income of Rs 167.88 crore. In LL, the other audit firm, the sundry income was Rs 28.99 crore, almost double the PAT of Rs 15.43 crore and about one-third of the reported fee income of Rs 86.80 crore.
But for the money, each of these entities would have been in the red, presenting a grave risk to their ability to retain their highly-specialized workforce as well as their capacity to operate and service clients comfortably.
Consider the facts: PwCPL had sundry income of Rs 111.73 crore in 2010-11, an amount almost seven times as large as its reported profit-after tax (PAT) of Rs 16.19 crore, which incidentally was down by 51% from the previous year. PwCPL's revenue from operations was Rs 1,013.17 crore, up by a marginal 2.3%. In audit firm PW, sundry income was Rs 68.51 crore, more than three times the PAT of Rs 22.47 crore and more than 40% of its fee income of Rs 167.88 crore. In LL, the other audit firm, the sundry income was Rs 28.99 crore, almost double the PAT of Rs 15.43 crore and about one-third of the reported fee income of Rs 86.80 crore.
By CA AMRESH VASHISHT, FCA, LLB,DISA(ICAI)
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