A Reliance Capital spokesperson on Thursday termed auditing firm Price Waterhouse & Co's observations as completely "baseless and unjustified" and said that the auditor's decision to resign was "driven by fear-psychosis after Sebi debarment and IL&FS aftermath."
Price Waterhouse & Co Chartered Accountants LLP on Tuesday resigned as one of the statutory auditors of Reliance Capital and Reliance Home Finance.
Reliance Capital, in the exchange filing, on Wednesday said M/s Pathak HD & Associates will continue as the sole statutory auditor until the conclusion of the AGM for the year ended March 31, 2021.
"PwC acted prematurely without even statutory discussion with audit committee," said the Reliance Capital spokesperson.
PwC, in a letter dated April 24, had stated that Reliance Capital disputed the observations highlighted by it and did not convene an audit committee meeting within the expected time.
The company spokesperson said that there was no question of diversion and added that there were zero loans from any lender in the PwC audit period.
"All resources were utilised purely to support group debt servicing of Rs 35,000 crore in the past 14 months," said the company.
On Tuesday, chairman of the group, Anil Ambani, said Reliance Group is committed to meet all payment obligations in a timely manner and has already serviced debt worth Rs 35,000 crore.
Despite the challenging environment, the group has repaid principle due worth Rs 24,800 crore and interest payments of Rs 10,600 crore from April 1, 2018, till May 31, 2019, he added.
First Published: Jun 13, 2019 9:15 AM IST
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