PwC stated that, in a letter dated April 24, Reliance Capital
disputed the observations highlighted by it and did not convene an audit committee meeting within the expected time. The company also stated that it might initiate appropriate legal proceedings against the firm, as per PwC.
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.
Reliance Capital; however, said the company has furnished all requisite and satisfactory details as required by PwC, especially, including certification and confirmations of the transactions in question on multiple occasions by PwC themselves.
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, it added.
At 09:32 am, the stock of Reliance Capital was trading 4 per cent lower at Rs 90 on the BSE, as compared to a 0.39 per cent decline in the S&P BSE Sensex.
A combined 6 million shares changed hands on the counter on the NSE
till the time of writing this report.