Mumbai: The Anil Ambani-led Reliance Capital Ltd on Thursday termed audit firm Price Waterhouse & Co's (PWC) observations as baseless and unjustified. In a statement issued here, the company said: "PWC's observations are completely baseless and unjustified. PWC has acted prematurely without even statutory discussions with the Audit Committee."
According to the company, its continuing auditor Pathak H.D. & Associates has been mandated by the Audit Committee to submit its independent report on PWC's observations within 15 days. The company said it was confident that the independent report of the continuing auditor will establish that there are not irregularities.
The PWC resigned as one of Reliance Capital's statutory auditors on Tuesday. Refuting PWC's charges of funds diversion, Reliance Capital said: "There is no question of 'diversion'; zero loans and/or liquidity have been provided by any lender in the PWC audit period. Reliance Capital is by law required to fund only group entities, being a Core Investment Company (CIC)." The company said all resources have been utilized to support group debt servicing of Rs 35,000 crore in the past 14 months.
