Financial advisory services provider Price Waterhouse Chartered Accountants LLP (PwC) India has stepped down as the auditor of Paytm Payments Services Limited (PPSL), a subsidiary of One97 Communications. This move comes ahead of PwC’s completion of its five-year tenure as the appointed auditor.
Resignation Citing Change in Holding Company’s Auditors
In a letter dated August 7, PwC India stated that the reason for its resignation was the change in auditors at the holding company level. The letter mentioned that, considering the practice to align the auditors of significant subsidiaries with the holding company’s auditor for process consistency, PwC is resigning as the Statutory Auditors of PPSL.
New Auditor Appointed by Paytm
Paytm has swiftly responded by appointing SR Batliboi and Associates as the new auditor for PPSL with immediate effect. PPSL actively contributes to housing the company’s payment gateway services. Therefore, changing the auditor becomes crucial for overseeing the subsidiary’s finances effectively.
Completion of Limited Review and Financial Performance
PwC’s resignation followed its completion of the limited review on unaudited special purpose interim condensed financial statements for Q1 FY2024, which ended on June 30. Paytm reported a notable 39.4% growth in revenue from operations for the same quarter on a year-on-year basis. Additionally, the company managed to narrow its losses to Rs 358.4 crore for the quarter, showcasing improved financial performance.
Leadership Changes in Paytm Parent Company
Vijay Shekhar Sharma, MD and CEO of One97 Communications, bought 10.3% of Paytm’s parent company shares from Antfin (Netherlands) Holdings. This lowered Sharma’s ownership to 13.5%. This purchase changed Paytm’s leadership and ownership.
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