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ICAI to probe fund inflows into PwC Indias arms
January, 18th 2012

Auditing regulator Institute of Chartered Accountants of India (ICAI) on Tuesday said it will look into reports of money inflows into several Pricewaterhouse-Coopers (PwC) India entities, including the group's audit firms Price Waterhouse (PW) and Lovelock & Lewes (LL).

ICAI president G Ramaswamy said the institute will inquire into the matter, which was highlighted in a report in TOI's Tuesday edition. "We will look into this and whether any external money came into the audit firms," Ramaswamy said. He refused to comment on whether any notice would be served on the PwC India entities. "I cannot say anything specific on this matter at the moment."

Several PwC India entities would have ended 2010-11 with losses had it not been for large amounts of "sundry income" received from undisclosed sources, which amounted to over Rs 200 crore.

But for the money, each of these entities - including consulting company PricewaterhouseCoopers Pvt Ltd (PwCPL) - would have been in the red, presenting a grave risk to their ability to retain their highly-specialized workforce as well as their capacity to operate and service clients comfortably

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