Paytm Payments Services' auditor Price Waterhouse resigns, SR Batliboi & Associates appointed

One97 Communications Limited informed the exchanges on Monday that Price Waterhouse Chartered Accountants LLP (PwC) has officially resigned as the statutory auditors of its wholly-owned subsidiary Paytm Payments Services Limited (PPSL), and it has appointed S.R. Batliboi (SRB) & Associates as its auditor. Both decisions come into effect from August 7, 2023, the company stated in the regulatory filing.

It also informed that the statutory auditors have not raised any concern or issue and in fact this is aligned with the holding company OCL’s appointment of S.R. Batliboi & Associates as its auditor. 

As per the company’s filing, the Board of Directors of PPSL has noted their resignation and placed on record its appreciation for M/s Price Waterhouse Chartered Accountants LLP for their contribution. 

PwC in its letter, presented to the exchanges as an attachment alongwith PPSL's exchange filing, wrote, “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 auditor of PPSL, being a material subsidiary, with the auditor of the holding company in order to bring in synergies and maintain consistency in the audit process of the Group, we hereby tender our resignation as the statutory auditors of PPSL.”

The company had informed the exchanges in March that SRB would be the new auditors after completion of five-year term of their statutory auditor PwC. Under Section 139 (2) of the Companies Act, 2013, a listed company is recommended to rotate auditors after completion of a term of five years. 

Earlier in the day, One97 Communications informed the bourses that its founder, managing director, and CEO Vijay Shekhar Sharma, will purchase a 10.3 per cent stake in the company from Antfin (Netherlands). The regulatory filing said, "Antfin will transfer 65,335,101 shares of the company to an entity 100 per cent owned by Mr. Sharma, Resilient Asset Management B.V. ("Transaction")." With this acquisition, Sharma’s shareholding in Paytm will increase to 19.42 per cent, whereas Antfin’s shareholding will decrease to 13.5 per cent. The total deal value is estimated to be $62.8 crore.

Also Read - Vijay Shekhar Sharma to buy 10.3% stake in Paytm from Antfin; stock zooms 11%

(With Agency Inputs)