Paytm Payments Services Gets New Auditor as PwC India Steps Down
- ByStartupStory | August 8, 2023
PwC India has resigned as the auditor for Paytm Payments Services, a decision communicated by the payments aggregator on August 7. In response, Paytm has appointed SR Batliboi & Associates LLP, based in Kolkata, as the new official auditor.
This transition follows Paytm‘s earlier statement in March, indicating its intention to propose SR Batliboi as the new auditor at the upcoming annual general meeting (AGM). The proposal came after the completion of PwC’s five-year tenure as the incumbent auditor.
“We wish to inform you that Price Waterhouse Chartered Accountants LLP, Statutory Auditors of a material subsidiary, i.e., Paytm
Payments Services Limited (PPSL), has resigned with effect from August 7, 2023,” stated the regulatory filing made today.
“S.R. Batliboi & Associates LLP has been appointed as the Statutory Auditors of PPSL with effect from August 7, 2023,” it further added.
Prior to the resignation, PwC noted, “We have completed the statutory audit for the year ended March 31, 2023, and issued our reports on May 2, 2023. Further, we have completed the limited review of unaudited special purpose interim condensed financial statements for the quarter ended June 3, 2023, and issued our report on July 19, 2023.”
A regulatory filing released today conveyed the details: “We wish to inform you that Price Waterhouse Chartered Accountants LLP, Statutory Auditors of the material subsidiary,i.e., Paytm Payments Services Limited (PPSL), has resigned with effect from August 7, 2023.” The filing also confirmed the appointment of S.R. Batliboi & Associates LLP as the Statutory auditor of PPSL, effective August 7, 2023.
PwC’s prior contributions were acknowledged, as they stated, “We have completed the statutory audit for the year ended March 31, 2023, and issued our reports on May 2, 2023. Further, we have completed the limited review of the unaudited special purpose interim condensed financial statements for the quarter ended June 30, 2023, and issued our report on July 19, 2023.”
The decision coincides with the recent financial results announcement by One97 Communications, Paytm’s parent company, for the quarter ending June 30, 2023. The period saw Paytm Payments Services achieve a 39.4 percent revenue growth while narrowing losses by 45 percent to Rs 358 crore in Q1 compared to Rs 645 crore reported in the corresponding period of the previous fiscal year.
Notably, Paytm has displayed improved performance metrics, particularly in net payment margin and payment processing margin. The rise in merchant subscription revenues and growth in non-UPI transactions contributed to these improvements.
Additionally, founder and CEO of One97 Communications Limited, Vijay Shekhar Sharma, along with Antfin, entered into an agreement wherein Sharma’s entity, Resilient Asset Management B.V., fully owned by him, will acquire a 10.3 percent stake in Paytm. Following this, Sharma and his promoter entities will become the largest shareholders in Paytm. This move spurred Paytm’s share price to surge over 10 percent from the previous close, reaching Rs 851 on the National Stock Exchange.
On August 7, Paytm’s shares closed 6.95 percent higher at Rs 850.75 apiece on the BSE.
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