NEW DELHI: Statutory auditors of Anil Ambani-led Reliance Capital and Reliance Home Finance — Pricewaterhouse & Co Chartered Accountants — announced its resignation on Wednesday. According to the auditing firm, its reasons for quitting, with effect from June 11, 2019, was due to an unsatisfactory response to “certain observations” made by it as a part of the ongoing audit for FY19.
However, in exchange filings, both Reliance ADAG firms said they do “not agree with the reasons given by PWC”. While the board of directors of Reliance Capital has noted and accepted the resignation, Reliance Home Finance said its audit committee and board will meet on Thursday and decide upon a new statutory auditor.
According to the filings made by the Reliance firms, PwC has cited the companies’ failure to convene audit committee meetings within the expected time, despite multiple letters of intent sent to them, as one of the reasons for the resignation. PwC has also stated that the companies said they might initiate appropriate legal proceedings against the firm.
These actions, PwC held, “have prevented it from performing its duties as statutory auditors and exercising independent judgment in making a report to the members of the company, and impaired its independence”.
“Hence,” PwC said, “it is no longer in a position to complete the audit; and instead feels compelled to withdraw from the audit engagement and resign”. Both Reliance firms, have stated they duly responded to the various queries and letters of PwC and have convened meetings of their audit committees on June 12.