Deloitte, the auditor of VerSe Innovation, has expressed its opinion on the company's standalone financial statement for FY24. Despite the control lapse in FY24, VerSe Innovation has got a clean audit chit from Deloitte. Recently, after the resignation of VerSe's Chief Financial Officer sandeep Basu, the company has given its opinion on the audit. Let us tell you that VerSe Innovation is the parent company of content aggregator Dailyhunt and short-video platform Josh.
Deloitte expressed concern over these shortcomings
Deloitte's audit has revealed serious flaws in internal control in various operational functions of VerSe. Many deficiencies have also come to the fore regarding the selection and verification of suppliers, approval process for orders and invoices for purchasing and the payment workflow of the company.
Deloitte has also raised concerns over VerSe's methods of handling virtual assets. The auditor has also found flaws in user access management regarding customer acceptance protocols, pricing controls, division of responsibilities and transfer of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital assets. Due to this, there may be discrepancies in the data of both revenue and cost related to these assets.
These were also highlighted in the clean audit chit
Apart from this, concerns were also expressed about how VerSe keeps track of its revenue from advertising. Deloitte said that interruptions have also been found in the consistent functioning of the internal controls that release orders received from customers. This leads to a mess in the data related to revenue and orders. The report also gave information about the problems seen in VerSe's general IT controls. Deloitte also noted the absence of proper audit logs.
Let us tell you that in FY 2024, VerSe Innovation's revenue from operations was Rs 1,029 crore. The net loss of the company has come down from Rs 1,909.7 crore to Rs 889 crore in the financial year 2023. During this period, EBITDA loss was recorded at Rs 710 crore.
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