One97 Communications Limited on Tuesday told the exchanges that its wholly-owned subsidiary Paytm Payments Services has appointed S.R. Batliboi & Associates as its auditor. 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.
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As per the company’s filing, the board of directors of PPSL have noted their resignation and placed on record its appreciation to M/s Price Waterhouse Chartered Accountants LLP for their contribution.
PwC in its letter to the company 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.”
With this, S.R. Batliboi & Associates became the company’s official auditor from August 7.
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Earlier in March, in an exchange filing, the company had informed that it will propose SRB as the new auditors after completion of the five year term of their current statutory auditors PwC to its shareholders for approval in upcoming AGM. 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.
Meanwhile, One97 Communications founder and CEO Vijay Shekhar Sharma will acquire a 10.30 per cent stake in Paytm from Antfin (Netherlands) Holding BV through an off-market transfer in a no-cash deal. The deal turns One97 Communications, which operates under Paytm brand name, into a majorly Indian-owned company from being majorly owned by Chinese entities.
Antfin will continue to hold the economic rights of the stake that is being transferred to Sharma.
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As per the deal, Sharma will purchase 10.3 per cent shareholding in Paytm from Antfin through his 100 per cent owned overseas entity Resilient Asset Management BV which will make him the largest shareholder in the company with a total stake of 19.42 per cent.
