Auditor flags Ola entity's internal financial control

The operating entity of Ola Electric Mobility Ltd did not have the right systems to physically verify the scooters at its retail stores during the last financial year, the company's statutory auditor said.

- Ayaan Kartik & Varun Sood

Ola Electric Technologies Pvt. Ltd is a wholly owned subsidiary and operating entity of Ola Electric Mobility, the listed company. Out of Ola Electric Mobility's 4,645 crore FY25 revenue, almost 99% came from the subsidiary. According to BSR & Co. LLP, statutory auditor for both companies, the inventory issue could result in material inventory misstatements.

The auditor's note comes as a first-of-its-kind rebuke to the company that ushered in India's electric two-wheeler revolution.

BSR & Co. LLP identified 19 cases where the scooter count at stores and money owed by customers to Ola Electric Technologies, as per its books, did not match the company's own quarterly returns filed with banks in FY25.

For example, Ola Electric's inventory totalled ₹369.50 crore in the December quarter, according to the company's books of accounts. However, when it filed a return to Axis Bank, it reported that its inventory was ₹344.22 crore.

In another instance, it reported ₹1,186.94 crore as money owed by customers as per its books in the December quarter. But when it filed its return with Yes Bank, it reported ₹1,220.85 crore.

BSR also noted that Ola has not corrected the returns filed with the banks after the auditor highlighted the difference.