Interesting question

Originally posted by : Amit Jain
	PricewaterhouseCoopers Pvt. Ltd. See Link  (www.pwc.com/india)

 If you check the above link properly then you will find that its Pricewaterhousecoopers India and no where Pvt. Ltd mentioned.

Mr Sudhanshu I never said E& Y Pvt Ltd is the stat auditor for any entity. E&Y is distinct from E&Y Pvt Ltd

Depending on the nature of the company (PUBLIC OR PVT) the provisions of the Act will vary and differ. But obviously the foremost requirement would be to check the Memorandum of the Company.

Dear Aneesh,

I am not commenting on your view but im adding my view in it. In practical i haven't seen the auditor report issued by E & Y Pvt. Ltd.

Dear Aneesh,

I had always said that co can not be statuatory auditor. Statutory laws like Co Act, IT Act,etc  specifically require the indiviual to sign the report.

U can refer my earlier comments.

PricewaterhouseCoopers Pvt. Ltd. was formed in 1998 from a merger between Price Waterhouse and Coopers & Lybrand. It is one of the world's largest professional services firms. The company provides accounting, audit, consulting, financial advisory and tax services to private companies, governments, banks and private equity houses and non-profit organisations.

Check site: https://info.shine.com/company/PricewaterhouseCoopers-Pvt-Ltd/289.aspx

Hope it clears your question, unless of course you want to challenge the integrity of the site itselg

dear freind company can carry professional work except attestation works.....(profeesionals)

i donno much about it..

but i hope,

whether a co can carry a professional work or not is entirely dependent on its memorandum of association

& as far as i remember, carrying any other activity ultra vires its memoranum..  

I got ur point Mr Sudhashu

N Mr Ashish i've seen the previous posts.

I want to tell you that a comapny can be a partner in a firm.

Now come to the case of Satyam. The audit was conducted by PWC and the auditors signed the audit report was held responsible and they are now in legal proceedings. Under this case i haven't seen corporate veil was lifted by the court otherwise we must have studied it a case law. Instead they were directly held responsible. Moreover, if PWC is a comapny then how the partners (members, if comapny) can be liable for the conduct of the company.??? because company is responsible for all his acts.

Mr Sudhanshu,

The corporate veil will be lifted only in the case of a corporate not of a firm. Sorry but i just wanted to remind you of that fact. Price Waterhouse Coopers is a firm and not a  corporate body. If it had been then it would've disqualified for appointment under the provisions of the Companies Act. In the Satyam saga, the partners were held personally liable because they were acting on behalf of the firm.

friends

this is the case only with the indian professionals, who can set up only partenership firms not companies. then what drived the statutes of foreign companies to allow their professionals to set up corporate entities.....

Mr. Ashish If  Company Carry Prof Work then i think  it Can't undertake Manfucturing Activites becoz ts does not have Hand too...

HUh....

Tough Conjusted & HOT Environment

let me try to make it simpler from the very beginning......

1. A company (Pvt/Pub) can carry Professional work

e.g. Tata Consultancy Services Ltd (TCS) providing software consultancy services to its clients, & other similar consultancy companies can be referred.

Even my principal has recently formed a pvt ltd company to provide Tax consultancy to its clients

2. A company provide these professional services through its Employess & Officers as per the terms of agreement between them.

3. The work performed should be Inta-vires & NOT THe ULTRA-VIRES to both the comapny & the employee or the officer of the company.

4. For works Intra-Vires to the employee the company will be held responsible and suit may be filed by third person against the company.

5. For works Ultra-Vires to the Employee/Officer of the company but Intra-Vires the Company :

(i). Third Party can claim suit against the company.

(ii). The company can recover damages from the employee(s)/officer(s) concerned & responsble for the work performed.

6. For works Ultra-Vires the company Both the company & every Officer(in personal capacity) of the comapny who is in default, shall be punishable :

(i). Third party or simply the client can file the suit against both the comapny and the officer in default (ii). The company can recover damages from the emlpoyee/officer in default if the work is Ultra-Vires that employee/officer.

In the cases of default, Comapny & the officers shall be liable as decided by the Law or the Court though Officers in default will be liable in Personal Capacities(subject to the points mentioned above)

7. A Company if limited by shares or by guarantee or by both can not carry out Comapny Audits as well as Tax Audits.

8. Though a practicing Chartered Accountant holding COP & having employment in that company can carry out Company Audits & tax Audits "in his own" prfoessional Capacity (as decided by the Cuncil of ICAI in this regard) PROVIDED he fulfills all other requirements to conduct such a Audit as per the related Law & terms of Professional Ethics.

However, for such Audits carried out by such Chartered Accountant(s) shall be liable as per The comapnies Act,1956 or as decided by any other Law or by the ICAI.

E.g. 1. PWC : Provides tax & Finance Consultancy to its clients. Employee-CAs of PWC holding COP carries the work of Audit under the name as agreed among them BUT they can't use the name & liabilities of The Comapny in whic they are in employment. Satyam's Case: Auditors were found guilty of their Professional duty & were held responsible,

However the company is still working on the same lines as before the declaration of their misconduct.

Additionally, Such Comapnies provide another relaxation to Such employee-CAs that they can form a partnership with Other CAs(may or may not be Employee of that company), though this clause varies from company to comany and as per thier therms of employment.

9. Such a CA shall be held responsible for Audit works conducted by him in his own professional capacity and aslo for the works Ultra-Vires to him against the Company.

Additionally, this is not a issue that the company is a separate leagal entity and separate from its employees & officers

Though it adds Benefit that

the INSIDER itself can WORK As OUTSIDER AT THE SAME POINT OF TIME

A copany though being separate from its Employees and Officers, bound to the works performed by them provided such works are Intra-Vires the company AND NOT Leading to the "Lifting of Corporate Viel, which is a statutory matter and varies from case to case & entirely depends on circumstances.

Again in the case of Satyam,

The work performed by the Auditors of PwC were in theior own profesional capacity hence the comapmy was not bound to thier work as restircted by its Artciles and other Statutory requireements HENCE The Corporate Viel was not lifted

Another reason for non-lifting of Corpoarate Viel was Such Auditors were niether holding the management nor the Stakes in that Company.

The Reason for non-lifting of Corporate Viel in case of Satyam itself being the findings that the Comapny & its other Shareholders & officers excluding tjose found Guilty in fraud were not aware of that fraud and such Fraud was Concealed by the deafulters from others in an intelligent manner such that it would not amount to taking benefits 7 defrauding or cheating public because of" Separate Legal entity".

"the queries/suggestions/comments & replies are welcomed....."

Any mistake committed unknowingly is expected to be corrected.. by other members....:)

regards,

Dear Anurag,

You have written so many things. You are talking about TCS, tax consultancy etc. but these are cosultancy services and not profession. I am talking about profession. Its not only about CA/CS but i have not seen any doctor also who is doing the profession under any company name.

Moreover, Section 11 of Companies Act which talks about Illegal association. There is only the word used is business and not business or profession. If any body can tell me any provision (mention section) in whole companies act which is applicable to profession.