Paytm's parent company, One97 Communications Limited (OCL), has approved the appointment of SR Batliboi and Associates LLP (SRB), commonly known as Ernst and Young (EY), as its new statutory auditor after the completion of PricewaterhouseCoopers' (PwC's) five-year term.
The fintech firm's current auditor, PwC, will continue to audit the company's Q4FY23, Q1FY24, and annual results for the fiscal year 2023 (FY23), with the change in auditor to take place after the annual general meeting.
Under Section 139 (2) of the Companies Act, 2013, listed companies are advised to rotate auditors after a five-year term. The appointment of SRB as the new auditors will be proposed to Paytm's shareholders for approval at the upcoming Annual General Meeting.
Paytm has recently announced operating profitability in Q3FY23, ahead of its September 2024 guidance, with earnings before interest, taxes, depreciation, and amortization (EBITDA) before employee stock ownership plan (ESOP) cost at Rs 31 crore. The company has continued to show sustained growth across all its key businesses, with 6.4 million merchants now paying subscriptions for payment devices, an increase of 0.3 million from February 2023.
In addition, the firm disbursed 7.9 million loans in January and February 2023, with the total value of loans disbursed increasing by 288 per cent year-on-year (YoY) to Rs 8,086 crore.
The change in auditor is routine for listed companies, and Paytm's decision to appoint SRB as its new auditor after the completion of PwC's five-year term is in accordance with the Companies Act. The appointment of SRB is expected to provide a fresh perspective to Paytm's auditing procedures and ensure transparency in the company's financial reporting.
Overall, Paytm's recent performance highlights its continued growth and strong market position in the fintech sector. With the appointment of a new auditor, the company is taking steps to maintain its commitment to transparency and accountability in its financial reporting.
With ANI Inputs