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Big churn for Deloitte, EY, others as 984 listed firms to rotate auditors

The rotation is likely to benefit smaller audit firms as they are likely to gain new accounts vacated by the Big Four and other large firms

N Sundaresha Subramanian  |  New Delhi 

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Big are likely to feel the most severe impact yet of rotation of auditors, mandated by the new company law three years ago, as a majority of listed are complying this year. As many as 984, or 58 per cent, of NSE-listed are rotating auditors in 2017-18, according to an estimate by Prime Database. This is close to five times the rotations recorded in the previous year. Around 206 saw rotation in FY17. The rotation is likely to benefit smaller as they are likely to gain new accounts vacated by the and other large firms.

Data released by Prime showed that among the Big Four, the group saw its audit fees come down by around Rs 30 crore, or 12 per cent, in FY17 to Rs 220.98 crore. The network, which includes firms such as AF Ferguson, SB Billimoria and Haskins and Sells, however, increased the number of audited to 162 from 156 and remained on the top in terms of both fee earned and the number of audited. While and saw both fees and clientele go up, saw the fee earned in 2016-17 fall marginally to Rs 50 crore. The Big Four, among them, handled 420 assignments out of the total 1,589 companies, or 26 per cent of the total, in 2016-17. Their dominance was even stronger in the subset, wherein they handled 253 of the 500 audits, or 51 per cent of the total. The top 10 accounted for of as many as 575 companies, or 36 per cent of the total. Leading the league table was the group with 162 companies, followed by Group (117), Group (84), and Group (73). On an overall basis, as many as 854 audited the 1,589 NSE-listed in 2016-17. This implies that, on an average, an audit firm audited 1.86 Going forward, in line with the regulations around auditor rotation, which kicked in from April 1, 2017, the tenures of 145 auditors in 139 shall expire in 2018-19, 123 auditors in 121 in 2019-20, 132 auditors in 128 in 2020-21, and a huge 889 auditors in 868 in 2021-22. Ranking by Audit Fees

Rank Auditor Name or Group Total Audit Fees (Rs in crore) in FY17 Total Audit Fees (Rs in crore) in FY16 Change (Rs in crore)
1 GROUP (HASKINS & SELLS, HASKINS & SELLS LLP, A F FERGUSON & CO, C C CHOKSHI & CO, FRASER & ROSS, P C HANSOTIA & CO, S B BILLIMORIA & CO 220.98 251.57 -30.59
2 GROUP (S R B C & CO LLP, S R BATLIBOI & ASSOCIATES LLP, S R BATLIBOI & CO LLP, S V GHATALIA & ASSOCIATES LLP) 120.56 98.83 21.73
3 GROUP (B S R & ASSOCIATES LLP, B S R & CO LLP, B S R & COMPANY, B S R AND ASSOCIATES, B S R AND CO, B S R AND COMPANY) 110.08 87.62 22.46
4 SINGHI & CO 62.20 54.29 7.91
5 GROUP (, & CO, & CO CHARTERED ACCOUNTANTS LLP, & CO BANGALORE, PRICE WATERHOUSE, BANGALORE, DALAL & SHAH, LOVELOCK & LEWES) 50.24 52.97 -2.73
6 WALKER CHANDIOK & CO LLP 41.45 30.18 11.27
7 G D APTE & CO 31.61 12.88 18.73
8 B RATTAN & ASSOCIATES 30.34 11.38 18.96
9 GROVER LALLA & MEHTA 30.34 11.38 18.96
10 CHATURVEDI & SHAH 29.02 36.86 -7.84
Source: Prime Database

First Published: Wed, November 08 2017. 17:30 IST
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