INSUBCONTINENT EXCLUSIVE:
PWC also said that the companies didn't convene an audit committee meeting within the expected time.The auditor of tycoon Anil Ambani's
shadow bank and its unit resigned citing lack of satisfactory responses to its questions, adding to concerns about the last stronghold of
the wider Reliance Group.Price Waterhouse - Co Chartered Accountants quit as one of the statutory auditors of Reliance Capital and its unit
Reliance Home Finance, saying that it didn't receive satisfactory response to certain observations and transactions, the Reliance Group
companies said in exchange filings.The auditor said that those issues "might be significant or material to the financial statements" if not
PWC also said that the companies didn't convene an audit committee meeting within the expected time.The development adds to the mounting
list of woes faced by Anil Ambani as he struggles to meet the companies' loan repayments
Capital and its two lending units by the end of June."According to PWC, these actions by the company have prevented it from performing its
duties as statutory auditors and exercising independent judgment in making a report to the members of the company," the companies said in
"It is no longer in a position to complete the audit and instead feels compelled to withdraw from the audit engagement and resign."Reliance
Capital and Reliance Home Finance disagreed with the reasons given by PWC for the resignation, saying they had responded to the various
queries and letters, and also convened a meeting of the audit committees on June 12 to further respond to a letter from the auditor.The
tycoon's woes came to the fore in March when his elder brother Mukesh Ambani stepped in just in time to settle an overdue payment and save
him the embarrassment of a stint in jail
His businesses have been straining since a government crackdown on bad loans.In the latest string of credit rating cuts, Reliance Capital
was downgraded to BBB from A in May by CARE Ratings, while Reliance Home Finance was cut to C in April from BBB+.
