Price Waterhouse & Co Chartered Accountants LLP (PWC), on Wednesday, resigned as one the Statutory Auditors of Reliance Capital and Reliance Home Finance
The reason cited by PWC, as per the stock exchange filing, is that as part of the ongoing audit for FY 2018-19, it noted certain observations/transactions which in its assessment, if not resolved satisfactorily, might be significant or material to the financial statements, and that it did not receive satisfactory response to its queries.
PWC has further stated that though it sent a letter dated to Reliance Capital (on April 24, 2019) and Reliance Home Finance (April 18, 2019) in the case under relevant provisions of the Companies Act, the company disputed the same to be in accordance with the provisions of law, notwithstanding a subsequent letter issued by PWC on May 14, 2019 to reiterate the intent of letters issued earlier, and the Companies did not convene an audit committee meeting within the expected time.
Reliance Capital and Reliance Home Finance said they do not agree with the reasons given by PWC for the resignation. The companies said they duly responded to the various queries and letters of PWC and also duly and validly convened a meeting of the Audit Committee on June 12, 2019 to further respond to the letter dated May 14, 2019 from PWC.
Reliance Capital said the other duly appointed auditor, Pathak H.D. & Associates, whose term is valid until conclusion of the AGM for the year ended March 31, 2021 , has confirmed that it will continue as the sole Statutory Auditor.