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PwC quits as statutory auditors of Reliance Capital


Reliance Capital's & Co Chartered (PwC) has resigned with effect from Tuesday.

PwC said that as part of the ongoing for 2018-19, it did not receive a satisfactory response to its queries following certain observations and transactions. If not resolved satisfactorily, they might be significant or material to the financial statements, said the firm.

PwC said disputed the observations highlighted by it and did not convene an committee meeting within the expected time. The company also stated that it might initiate appropriate legal proceedings against the firm.

According to PwC, these actions by the company prevented it from performing its duties as and exercising independent judgment in making a report to members of the company. This impaired its independence and hence it is no longer in a position to complete the audit, and instead feels compelled to withdraw from the engagement and resign.

Reliance Capital's board of directors accepted the resignation. "The other duly appointed Pathak HD & Associates, whose term is valid until conclusion of the annual general meeting for the year ended March 31, 2021 has confirmed that it will continue as the sole statutory auditor," the company said in a statement.

did not agree with the reasons given by PWC for the resignation. "The company has duly responded to various queries and letters of PwC and has also duly and validly convened a meeting of the on June 12 to further respond to the letter dated May 14 from PwC," said in a statement.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 12 2019. 11:34 IST