Shares of Anil Ambani-led Reliance Capital and Reliance Home Finance Wednesday tumbled up to 7 per cent after Price Waterhouse & Co Chartered Accountants resigned as statutory auditor of both the companies.
The scrip of Reliance Capital plunged 6.82 per cent to close at ₹87.50 on the Bombay Stock Exchange. During the day, it tumbled 8.83 per cent to ₹85.60 – its 52-week low. Reliance Home Finance shares fell by 4.23 per cent to close at ₹17 on the BSE. During the trade, it dropped 7.88 per cent to ₹16.35.
The PWC put in its resignation earlier today, with effect from June 11, 2019, citing unsatisfactory response to certain observations made by it as part of the ongoing audit for fiscal 2018-19, the two companies said in their respective regulatory filings to stock exchanges.
Both Reliance Capital and Reliance Home Finance said that they do not agree with the reasons given by PWC.
While the board of directors of Reliance Capital has noted and accepted the resignation, Reliance Home Finance said its audit committee and board will meet on Thursday and decide upon the new statutory auditor.
Reliance Capital and Reliance Home Finance said that PWC cited the companies’ failure to convene audit committee meetings within the expected time, despite multiple letters of intent sent to them, as one of the reasons for the resignation.
Seeking to allay investor concerns after stocks of his group firms took a beating on the bourses, Reliance Group Chairman Anil Ambani had Tuesday said that his group was committed to meeting all payment obligations in a timely manner and has already serviced debt worth ₹35,000 crore in the last 14 months.
