Reliance Capital Ltd Board of Directors in their special review meeting here noted legal opinion from a reputed law firm confirmed that there was no violation attracting Section 143 (12) of the Companies Act as alleged by audit firm, Price Waterhouse &a Co to the Ministry of Corporate Affairs (MCA).
Mumbai:
Section 143 of the Companies Act deals with “Powers and duties of auditors and auditing standards” and subsection (12) says that if the “auditor of a company, in the course of the performance of his duties as auditor, has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company, he shall immediately report the matter to the Central Government within such time and in such manner as may be prescribed.”.
Reliance Capital, in a statement, said “The Board noted the independent legal opinion from reputed law firm confirming that there was no violation attracting Section 143(12) of the Companies Act, and which concluded that the PwC letter is devoid of any rationale or basis and is invalid,” the statement said.
Section 143 of the Companies Act deals with “Powers and duties of auditors and auditing standards” and subsection (12) says that if the “auditor of a company, in the course of the performance of his duties as auditor, has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company, he shall immediately report the matter to the Central Government within such time and in such manner as may be prescribed.”.