MUMBAI: Price Waterhouse & Co (PWC), one of the Big Four auditing firms, has resigned as a statutory auditor of two Anil Ambani-controlled companies - Reliance Capital and Reliance Home Finance . The firm said there was an "unsatisfactory response" from the companies to certain observations it had made while auditing for the fiscal 2019. It added that the issues raised by it "might be significant or material to the financial statements" if they were not resolved satisfactorily.The two Reliance group companies informed the stock exchanges about PWC's resignation before markets opened on Wednesday and said they did not agree with the reasons given by the auditor for quitting. Both the companies said that one of the reasons for PWC's resignation was the failures on their part to convene audit committee meetings within the expected timeframe, despite multiple letters of intent sent to them.According to the intimations to the stock exchanges, PWC also said that the companies had told the auditor that they might initiate legal proceedings against the firm. The Reliance group companies, however, countered PWC's statement, saying they had "duly responded to the various queries and letters of PWC" and had convened meetings of their audit committees on June 12 to further respond to the auditor.PWC, in its letter of resignation from the two companies, said that the actions by the Reliance group companies had "prevented it from performing its duties as statutory auditors and exercising independent judgment in making a report to the members of the company, and impaired its independence".Hence, it was not in a position to complete the audit and instead felt "compelled to withdraw from the audit engagement and resign".PWC's resignations were effective June 11. Pathak H D & Associates, which is the other statutory auditor for Reliance Capital, will continue as the sole auditor for the company.On its part, Reliance Home Finance said a new auditor will come in for completing the audit of its books for the fiscal 2019. Its audit committee and the board will meet on Thursday to decide the new statutory auditor.