The board of Reliance Capital, which met on Thursday to review allegations of Price Waterhouse & Co., noted that there were no violations by the company.
PwC had informed the Ministry of Corporate Affairs about certain irregularities in the books of accounts of Reliance Capital and Reliance Home Finance, and resigned as the auditor of the company.
Other views
“The board took note of the views of the other joint auditors, who have been auditors of the company for the last 3 financial years and continue as the sole statutory auditors of the company, confirming that there are no violations as alleged by PwC under Section 143(12) of the Companies Act, 2013,” Reliance Capital said in a statement.
The board of Reliance Capital also noted the independent legal opinion from a senior counsel reconfirming that there were no violations, and concluded that the PwC letter was devoid of any rationale or basis, and was invalid.
The board further noted that PwC’s allegations were themselves grossly inadequate, and did not even point to a single specific instance of alleged fraud.
It said that PwC audited the accounts for the financial year 2017-2018, as also a limited review of financial results of three consecutive quarters ended December 2018, without any qualifications or raising any concerns.
“Reliance Capital’s board reaffirmed to take all appropriate steps to safeguard the interests of all stakeholders,” the statement said.