Big 4 Companies in Valuation in India

The Big 4 audit firms service a third of India’s listed companies audit business by value.

1) PwC (price waterhouse coopers)

2) Deloitte

3) KPMG (Klynveld Peat Marwick Goerdeler)

4) EY (Ernst & Young)

Four global audit giants have grabbed the lions share of India’s audit business over a decade and half

The market value of the companies audited by Big 4 in India is 60% of total market capitalisation of all companies listed on NSE

Banks paid significantly higher fees compared to non-banking companies

The 40 listed banks paid an overall fee of Rs 1045 crore, that’s 55% of the total fees paid by all listed companies

Total fees paid in crores by SBI-307, BOI-72.58, PNB-70.25, CANARA-68.23, BOB-66.18

Global presence of Big 4 companies are anywhere between 120-160 countries

Foreign firms are not allowed here in auditing, but global auditors operate through network firms that do not use the multinationals brand name

The current travels of the MNC auditors could present Indian audit firms with an unparalleled opportunity to rise the occasion, analysts says

Big 4 term is used because of their huge size, good reputation and the worldwide reach in this field

Advantages of Big 4

1) As various services are being offered by the big fours in different areas, it gives the opportunity to the employees and potential employees to work in the diversified areas, and also they can find a specialty in working with the same company

2) these accounting firms provide different types of services to the clients, so the claint can avail the different services at the same place

3) there is a large base of clients with these firms, they can provide more informed decisions than others using their past experience to their clients

4) offering a wide range of services helps the company in catering to a diverse group of employees

Disadvantages of Big 4

1) Despite the fact they have various resources and the inside access to the companies, these Big 4 were involved in the massive frauds which have caused huge pains to the shareholders of companies along the investors of funds

2) Sometimes, these firms don’t ask too many questions and don’t report the suspected things in their report in fear of loosing the clients

PwC attributes

1) whole leadership – the ability to lead, to make a difference and deliver results

2) the ability to build, trust based relationships

3) Business acumen, the ability to bring business knowledge and awareness

4) Technical capabilities, which creates value clients and PwC

5) Global acumen, transcending boundaries of geography, politics, race and culture

Highlights of PwC

1) founded on 1998

2) Headquarters – London, United Kingdom

3) service areas
Assurance
Advisory
Tax advisory
Tax controversy
Strategy consulting
Data & analysis
Management consultancy
Financial advisory
Actuarial
Legal

4) number of employees 2,76,000 (year 2019)

Attributes of Deloittee

1) integrity – deportees believe that nothing is more important than our reputation, and behaving with the highest levels of integrity is fundamental to who we are

2) Outstanding value to markets and clients

3) Commitment to each other

4) Strength from cultural diversity

Highlights of Deloittee

1) founded on 1845

2) headquarters – London, United Kingdom

3) Services
Audit
Management consultancy
Financial advisory
Risk advisory
Tax
Legal

4) Number of employees – 3,12,000 (year 2019)

Attributes of KPMG

1) workflow management, real time visibility and control through a pre-defined process framework, roles and responsibilities

2) Document management

3) Reporting

Highlights of KPMG

1) founded on 1987

2) headquarters – Amstelveen, Netherlands

3) Services
Post acquisition
Integration
Restructuring
Expansion
Divestment
IPOs and public financing private financing
Refinancing
Rationalization
Business change
Development
Innovation
Actuarial
Assurance