PwC resigns as auditor of Paytm Payment Services

PwC India resigned as the auditor of One97 Communications subsidiary Paytm Payment Services Limited. SR Batliboi and Associates LLP will step in as the new auditor.

PwC resigns as auditor of Paytm Payment Services

Monday August 07, 2023,

2 min Read

Financial advisory services provider Price Waterhouse Chartered Accountants LLP (PwC) India resigned as the auditor of Paytm Payments Services Limited, a subsidiary of One97 Communications ahead of completing its five-year tenure. 

In September 2021, PwC India was appointed the auditor of PPSL for a period of five years, starting FY 2022 to FY 2026. In a letter dated August 7, the firm cited the change in auditors at the holding company level as the reason for resignation. 

“..we understand that there has been a change of auditors at the holding company level. Consequently, keeping in mind your understandable practice to align the auditors of PPSL, a material subsidiary, with the auditor of the holding company, to bring in synergies and maintain consistency in the process of the Group, we hereby tender our resignation as the Statutory Auditors of PPSL,” said the letter. 

Paytm has appointed SR Batliboi and Associates as the new auditor of PPSL with immediate effect. PPSL houses the company’s payment gateway services.

PwC in its letter also said that it had completed the limited review on unaudited special purpose interim condensed financial statements for Q1 FY2024, ending June 30, and had submitted its report on July 19. 

Paytm earlier reported a 39.4% growth in revenue from operations for Q1 FY 2024 on a year-on-year basis. The company narrowed its losses to Rs 358.4 crore for the quarter ending June 30, down from Rs 645.6 crore in the corresponding quarter last year. 

Earlier in the day, Vijay Shekhar Sharma, MD and CEO of One97 Communications, entered into an agreement to buy 10.3% shares of the company from Antfin (Netherlands) Holdings, a subsidiary of China’s Ant Group, paring down its stakes to 13.5% in the Paytm parent. 

Edited by Kanishk Singh