PWC resigned as legal auditor of Reliance Capital, Reliance Home Finance
NEW DELHI: Anil ambani -led Dependency capital & Reliance Home Finance on Wednesday he said that Price Waterhouse u0026 Co Chartered Accountants (PWC) resigned as legal auditor of both companies. PWC submitted its resignation, effective June 11, 2019, citing an unsatisfactory response to certain observations made by it as part of the ongoing audit for the 2018-19 fiscal year, the two companies said in their respective regulatory filings. of actions. exchanges
Both Dependency capital & Reliance Home Finance said they do "not agree with the reasons given by PWC".
While the board of directors of Dependency capital has noted & accepted the resignation, Reliance Home Finance said its audit committee & board will meet on Thursday & will decide upon the new statutory auditor.
Dependency capital & Reliance Home Finance said that PWC 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 also stated that the companies said they could initiate appropriate legal proceedings against the firm, according to the documents filed.
According to PWC, these actions by the companies "have prevented it from performing its duties as statutory auditors & exercising independent judgment in making a report to the members of the company, & impaired its independence, & hence, it is no longer in a position to complete the audit; & instead feels compelled to withdraw from the audit engagement & resign," both the companies said, elaborating on the reasons behind the resignation.
The companies, however, stated they duly responded to the various queries & letters of PWC & have convened meetings of their audit committees on June 12, 2019, to further respond to the letters from PWC.
Both companies said they expected PWC to have participated in the meetings of the audit committees & not resigned on the eve thereof.
The companies said they have also duly furnished all requisite & satisfactory details as required by PWC, especially including certification & confirmations of the transactions in question on multiple occasions by PWC themselves.
With regard to legal proceedings, the firms had clearly stated that the same would be initiated "only if so legally advised, that too if required to protect the interests of all stakeholders, & it is hard to see how PWC has taken exception to this approach," the two companies added.
Shares of Reliance Home Finance were trading 0.85 per cent lower at Rs 17.60 apiece on BSE. Shares of Dependency capital were trading 2.24 per cent lower at Rs 91.80 apiece on BSE.
Meanwhile, trying to dispel investor concerns after the shares of his group's firms received a beating on the stock exchanges, the president of the Reliance Group Anil ambani Tuesday said his group was committed to meet all payment obligations in a timely manner & has already serviced debt worth Rs 35,000 crore in last 14 months.
In a conference call with reporters, he said, despite challenging conditions & no financial support from financiers, the group has repaid the principal of Rs 24,800 crore & made interest payments of Rs 10,600 crore between April 1, 2018, & May 31, 2019.
The Rs 35,000 crore worth of payments made relates to debt of Dependency capital , Reliance Power & Reliance Infra, & their respective affiliates.