In a recent development, the esteemed accounting firm PwC has tendered its resignation from the position of auditor for Paytm Payments Services.
This significant decision was communicated by Paytm in an official statement released on Monday, August 7.
Taking its place as the new official auditor is SR Batliboi & Associates LLP, headquartered in Kolkata.
The transition was initiated after Paytm’s announcement earlier in March regarding the proposed appointment of SR Batliboi as the auditor,
following the completion of PwC’s five-year tenure, during Paytm’s upcoming Annual General Meeting (AGM).
In a press release, Paytm clarified,
“We wish to inform you that PwC has formally resigned from its role as the auditor of our subsidiary, Paytm Payments Services. This resignation will take effect as of August 7, 2023.”
The company further disclosed, “Effective from August 7, 2023, SR Batliboi & Associates LLP has been designated as the statutory auditor for Paytm Payments Services.”
PwC released a statement prior to its resignation, stating, “We have successfully concluded the statutory audit for the financial year ending on March 31, 2023, and released our report on May 2, 2023.
Moreover, we have prepared financial statements for the quarter ending on June 30, 2023, and conducted a limited review of unaudited interim financial results, with our report published on July 19, 2023.”
This announcement comes amidst the recent disclosure of the June quarter results by Paytm’s parent company, One97 Communications.
During this period, Paytm experienced a remarkable 39.4 percent surge in revenue. However, its net profit witnessed a decline of 45 percent, settling at Rs 358 crore.
In comparison, during the same quarter the previous year, the company reported a net loss of Rs 645 crore.
Remarkably, Paytm’s overall metrics exhibit better-than-expected improvements, propelled by augmented merchant subscription revenue and an upsurge in net payment margin.
Notably, the company’s payments processing margin also received a boost due to the rise in non-UPI transactions such as cards and EMIs.
Key Takeaways:
- PwC resigns as auditor of Paytm Payments Services; SR Batliboi & Associates appointed as new auditor.
- Resignation effective from August 7, 2023; SR Batliboi & Associates takes over.
- PwC completed statutory audit for FY 2022-23; interim financial results reviewed.
- Paytm’s June quarter revenue up by 39.4%, net profit down by 45%.
- Paytm’s improving metrics attributed to growth in merchant subscription revenue and enhanced payment margins from non-UPI transactions.
