Price Waterhouse and Co (PwC) has resigned as auditor of Reliance stating there is a fraud in the companies.
“We did not receive a substantive/satisfactory response to our queries in light of our observations.” stated by PwC in a letter to MCA.
- (PwC) have resigned as one of the statutory auditors of Reliance Capital and Reliance Home Finance with effect from 11 June 2019.
- The Board of Directors of Reliance company has accepted the resignation.
- Pathak H.D. and Associates has confirmed that it will continue as the sole statutory auditor of the company
PwC’s side of the story
According to PwC, they were compelled to withdraw from the audit of the company’s fiscal year 2018/19 accounts after not receiving “satisfactory response” to its queries on certain observations in its assessment and did not convene an audit committee meeting within the expected time. Moreover, Reliance Capital also stated that it might initiate appropriate legal proceedings against the firm creating an intimidation threat for the audit firm thus prevented them from performing their duties as statutory auditor.
Reliance in its defence after PwC claims
As per the statement issued by Reliance, they said they have duly responded to the various queries and letters of PwC and hence they don’t agree with PwC.The Company also organized a meeting of the audit committee, on 12 June 2019 expecting PnC to join it, not resigning on the eve thereof.