PWC has put in its resignation, with effect from June 11, citing unsatisfactory response to 'certain observations' made by it.
New Delhi: Shares of Reliance Capital and Reliance Home Finance on Wednesday tumbled up to 7 per cent after Price Waterhouse & Co Chartered Accountants (PWC) resigned as statutory auditor of both the companies.
The scrip of Reliance Capital plunged 6.82 per cent to close at Rs 87.50 on the BSE. During the day, it tumbled 8.83 per cent to Rs 85.60 -- its 52-week low.
Reliance Home Finance shares fell by 4.23 per cent to close at Rs 17 on the BSE. During the trade, it dropped 7.88 per cent to Rs 16.35.
PWC has put in its resignation, 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 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 on Tuesday said that his group was committed to meeting all payment obligations in a timely manner and has already serviced debt worth Rs 35,000 crore in last 14 months.