BY VINOD MAHANTA & SACHIN DAVE , ET BUREAU | UPDATED: JUN 14, 2017,
MUMBAI: KPMG seems to have closed the gap with its peers in the race for fresh audit mandates, adding TCS, Mahindra &Mahindra and HDFC to its list of marquee clients, with the Big 4 together securing about half the business from India’s top 500 listed firms at the end of the auditor rotation cycle mandated by the Companies Law.
With most leading companies in the country announcing their new auditors in the last three months (some have decided but not announced yet), the two top audit firms — Deloitte and EY — have won just about enough mandates to compensate for the number of clients they lost due to the mandatory rotation.
The mandated change hit the audit business of professional firms, as they lost some of their anchor clients they had been servicing for decades. The big fight for prestigious audits was between the Big 4 — EY, KPMG, Deloitte and PwC — as most audit committees of larger companies chose to just swap the firms, or replace an Indian firm with one of the multinational audit firms.
With most leading companies in the country announcing their new auditors in the last three months (some have decided but not announced yet), the two top audit firms — Deloitte and EY — have won just about enough mandates to compensate for the number of clients they lost due to the mandatory rotation.
The mandated change hit the audit business of professional firms, as they lost some of their anchor clients they had been servicing for decades. The big fight for prestigious audits was between the Big 4 — EY, KPMG, Deloitte and PwC — as most audit committees of larger companies chose to just swap the firms, or replace an Indian firm with one of the multinational audit firms.
Starting out on a low base, KPMG has made net additions to its list of top mandates: From 36, its client base among the top 500 companies has risen to 52, with 16 exits being replaced by twice as many additions.
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