MUMBAI: Price Waterhouse & Co (PWC), probably the most Big Four auditing firms, has resigned as a statutory auditor of two Anil Ambani-controlled companies - Reliance Capital and Reliance Home Finance. The company mentioned there was an "unsatisfactory response" from the firms to positive observations it had made whilst auditing for the fiscal 2019. It added that the problems raised by it "might be significant or material to the financial statements" if they weren't resolved satisfactorily.
The two Reliance crew companies knowledgeable the inventory exchanges about PWC's resignation sooner than markets opened on Wednesday and mentioned they did not agree with the reasons given by the auditor for quitting. Both the firms mentioned that probably the most reasons for PWC's resignation was the disasters on their phase to convene audit committee meetings within the anticipated timeframe, in spite of a couple of letters of intent despatched to them.
According to the intimations to the inventory exchanges, PWC also mentioned that the firms had advised the auditor that they could start up criminal lawsuits towards the company. The Reliance crew companies, on the other hand, countered PWC's statement, announcing that they had "duly responded to the various queries and letters of PWC" and had convened meetings in their audit committees on June 12 to additional reply to the auditor.
PWC, in its letter of resignation from the two companies, mentioned that the movements by the Reliance crew companies had "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, it was no longer able to complete the audit and instead felt "compelled to withdraw from the audit engagement and resign".
PWC's resignations had been effective June 11. Pathak H D & Associates, which is the opposite statutory auditor for Reliance Capital, will proceed as the sole auditor for the company.
On its phase, Reliance Home Finance mentioned a new auditor will come in for completing the audit of its books for the fiscal 2019. Its audit committee and the board will meet on Thursday to come to a decision the new statutory auditor.
The two Reliance crew companies knowledgeable the inventory exchanges about PWC's resignation sooner than markets opened on Wednesday and mentioned they did not agree with the reasons given by the auditor for quitting. Both the firms mentioned that probably the most reasons for PWC's resignation was the disasters on their phase to convene audit committee meetings within the anticipated timeframe, in spite of a couple of letters of intent despatched to them.
According to the intimations to the inventory exchanges, PWC also mentioned that the firms had advised the auditor that they could start up criminal lawsuits towards the company. The Reliance crew companies, on the other hand, countered PWC's statement, announcing that they had "duly responded to the various queries and letters of PWC" and had convened meetings in their audit committees on June 12 to additional reply to the auditor.
PWC, in its letter of resignation from the two companies, mentioned that the movements by the Reliance crew companies had "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, it was no longer able to complete the audit and instead felt "compelled to withdraw from the audit engagement and resign".
PWC's resignations had been effective June 11. Pathak H D & Associates, which is the opposite statutory auditor for Reliance Capital, will proceed as the sole auditor for the company.
On its phase, Reliance Home Finance mentioned a new auditor will come in for completing the audit of its books for the fiscal 2019. Its audit committee and the board will meet on Thursday to come to a decision the new statutory auditor.
PWC quits as auditor of 2 Anil Ambani group cos
![PWC quits as auditor of 2 Anil Ambani group cos]()
Reviewed by Kailash
on
June 13, 2019
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