RCap, Reliance Home drop up to 7% on concerns over accounting irregularities

INSUBCONTINENT EXCLUSIVE:
Waterhouse - Co (PwC) informed the ministry of corporate affairs about certain alleged irregularities in the books of accounts of the two
AGAG group firms
Shares of Reliance Capital fell 5.37 per cent to hit a low of Rs 82.80 on BSE
Reliance Home Finance stock fell 6.74 per cent to a low of Rs 15.90
Sources told ET that the irregularities involved alleged diversion of funds and transactions between the two firms and other group
companies
The matter came to light while PwC was auditing the books of the two companies for the first quarter ending June 2019, two persons close to
the development said. Reliance Capital, however quashed such claims
Reuters report. PwC has quit as the auditor and informed the ministry of corporate affairs (MCA) about the reasons behind its departure,
these persons said
This was conveyed to MCA on June 11 by Vivek Prasad, partner at PwC
People close to the development said the auditor had raised the issues with the company a few months back and discussions had been taking
place between the two
Specifically, there appears to have been an issue with certain related-party transactions and the RCap management was willing to give a
management letter.