SEBI vs PWC

Expressing satisfaction over the Bombay High Court order, ICAI said Sebi is the right authority to probe allegations of irregularities against audit firm Price Waterhouse in the multi-crore Satyam scam.

"ICAI, as institute, cannot proceed against any firm. SEBI has the authority to do it, in the interest of shareholders," Institute of Chartered Accountants in India (ICAI) President Amarjit Chopra told media while commenting on the Bombay High Court ruling that dismissed the petition of Price Waterhouse.

The Bombay High Court on Friday ruled that the Securities and Exchange Board of India (Sebi) can proceed with its inquiry against audit firm Price Waterhouse for its alleged role in Satyam scam.

Price Waterhouse had moved the High Court challenging Sebi's jurisdiction over the audit firm as it has nothing to do with the securities market.

"Price Waterhouse is caught in its own web. They wanted to wriggle out, but they are caught...We welcome the ruling," Chopra said.

PWC, which had been associated with Satyam for several years as auditors, had contended that only Institute of Chartered Accountants of India can hold enquiry with regard to its professional conduct.

Price Waterhouse had said that it would consider various options, including filing an appeal in the Supreme Court, against the order of the High Court.

"...further proceedings of Sebi have been stayed by the HC for four weeks. We await receipt of the HC written order, to decide our next course of action, including the option of filing an appeal in the Supreme Court," it said.

Sebi had issued a showcause notice to Price Waterhouse asking it to explain why it had kept quiet about murky financial dealings of Satyam, although it was associated with the company for several years.

Sebi's lawyer argued that auditors have a "direct, fiduciary relationship with shareholders" and shareholders incurred losses for decisions taken by them based on Satyam's balance sheet.

Noting that prima facie Sebi had found evidence of violation of accountancy norms, court said that it has the jurisdiction to regulate markets and to protect investors' interest.

Further, judges noted that Sebi does not intend to bar PWC from chartered accountancy profession, but only wants to enquire into the Satyam issue.

However, if the auditor is found guilty, Sebi can ask listed companies not to use PWC's services, the court observed.

Source - the economic times

Additional disclosures on credit quality of financing receivables

To read the full article, click on the following link Receivables

With Non-performing assets for banks still rising for some of the US banks, the FASB issued further guidance requiring additional disclosure on credit quality of financing receivables.

“The global financial crisis highlighted the need for additional information about a company’s financial instruments, including loans and other financing receivables,” FASB Chairman Robert Herz said in FASB's press release

The additional disclosures required include:

1. Aging of past due receivables,
2. Credit quality indicators,
3. Nature and extent of troubled debt restructuring
4. Modifications of any troubled debt done in the past 12 months which have resulted in losses again, and
5. significant sale and purchases of receivables

Convocation - 2010 - (05-08-2010)

The Convocation for the newly enrolled Members for the period from September, 2009 to February, 2010 will be held as per schedule given below with a view to inculcate a sense of belongingness and attachment with the Institute.

Date & Day Region City [Place of function] 12th August, 2010 [Thursday] Eastern Kolkata [whole of Eastern Region] 14th August, 2010 [Saturday] Northern Ludhiana [for whole of Punjab, Jammu & Kashmir, Himachal Pradesh, Chandigarh and some parts of Haryana] 23rd August, 2010 [Monday] Southern Chennai [for members belonging to the States of Andhra Pradesh and Tamil Nadu] 25th August, 2010 [Wednesday] Southern Bangalore [for members belonging to the States of Karnataka and Kerala] 29th August, 2010 [Sunday] Western Mumbai [for members belonging to States of Maharashtra and Goa] 30th August, 2010 [Monday] Western Baroda [for members belonging to the State of Gujarat]

Details like venue and timings are being finalized and would soon be communicated to the members separately by the Decentralised Office concerned. Date(s) of convocation for the Central Region would soon be hosted on website.

Members who enrolled as Associate members from 01st September, 2009 to 28th February, 2010 would be eligible to receive their membership certificate in person at the Convocation. However in case of Eastern Region, it would be from November, 2009 to February, 2010.

Members are requested to wear the Royal Blue Colour Blazer /Navy Blue Colour Blazer respectively and female members may wear saree / business suit while attending the Convocation and receiving the membership certificate. A tie and a lapel pin, saree pin in case of female members will be presented by the Institute at the convocation.

With a view to maintain uniformity in dress, members are advised to attend in the prescribed dress code.

Associate Members enrolled during the period as stated above are cordially invited to attend the convocation function on the respective date as per the schedule stated above.

CA. Amarjit Chopra President

05th August, 2010