Indian companies paid audit fees of Rs 1,727 crore in 2014/15 – Analysis by Prime Database

Sharing an interesting  analysis by Prime Database.

“The Big 4, between them, handled a high 378 assignments of the total 1,450 companies, or 26 per cent of the total. Their dominance was even stronger in the Nifty-500 subset wherein they handled 229 of the 500 audits or 46 per cent of the total

Deloitte has managed to retain its leadership position in India by auditing 149 companies and charging Rs 225.35 crore in fees in 2014/15, according to an analysis by Prime Database.

The other three among the big four—EY, KPMG and EY— emerged as one of the top five auditors in India. While Walker Chandiok jumped to fifth position just behind the big four as far as the number of companies audited was concerned.

While EY audited 108 companies, PwC audited 65 companies and KPMG audited 58 companies. Walker Chandiok audited 39 companies in 2014/15. All the players saw a jump in the number of companies audited from a year before except KPMG, which had audited 60 companies in  2013/14.

However, the total fees charged by the auditors say another story and the rankings go for a toss. In terms of fees Deloitte emerged as top firm followed by EY and KPMG while PwC at 5th position and Walker Chandiok at 7th position. EY on the other hand saw a drop in the fees charged from 130 crore in 2013/14 to Rs 91 crore in 2014/15. KPMG saw a jump in its fees from Rs 49.49 crore in 2013/13 to Rs 81.81 crore in 2014/15. PwC saw a marginal decline in the fees charged from Rs 42.3 crore to Rs 43.37 crore.

Five Indian firms have also managed to remain in the top ten. Firms like Singhi & Co, Chaturvedi and Shah, V Sankar Aiyar, Mehra Goel and T R Chadha were amongst the top 10 Indian audit firms. The total fees charged by the top ten auditors in 2014/15 stood at Rs 626.36 crore of which the Big Four charged Rs 462.5 crore as fees.

“The total audit fee paid out by companies was Rs. 1,727 crore in 2014/15 compared to Rs. 1,607 crore paid out in 2013-14, an increase of 7 per cent. The average Audit Fee was Rs. 1.21 crores,” the Prime Database analysis said.