More trouble for Reliance ADAG (Anil Dhirubhai Ambani Group) as PwC (PricewaterhouseCoopers) resigned as one of the statutory auditors of two of its companies- Reliance Capital and Reliance Home Finance.
According to a Reliance Capital stock filing, PwC said that it did not receive a satisfactory response to certain observations made as an auditor on the ongoing audit for the fiscal year 2018-19, and made submitted its resignation with effect from 11 June.
“According to PWC, these actions by the Company 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, and hence, it is no longer in a position to complete the audit and instead feels compelled to withdraw from the audit engagement and resign,” the filing said.
The two ADAG companies said they do “not agree with the reasons given by PWC”.
Following the stock exchange filing on Wednesday, shares of Reliance Capitalfell as much as 7 percent to Rs 87.40 apiece, while Reliance Home Finance’s shares slipped about 10 percent to an intraday low of Rs 16.05 on NSE.
The board of directors of Reliance Capital have noted and accepted the resignation, while Reliance Home Finance said that its audit committee and board will be meeting on Thursday to decide upon the new statutory auditor.