Mumbai, April 30: VerSe Innovation, parent company of Dailyhunt and Josh, has received a clean or "true and fair" audit opinion on the company’s standalone financials for FY24 from its statutory auditor Deloitte. The audit comes in the wake of Sandip Basu's resignation as VerSe’s Chief Financial Officer and follows recent filings with the Ministry of Corporate Affairs.

In its report, Deloitte flagged weaknesses in VerSe’s internal control systems that could pose risks of material misstatements in the company’s financial records. These lapses span vendor vetting, purchase approvals, payment workflows, and revenue recognition processes. Notably, the audit highlighted issues in supplier selection, invoice approvals, and potential vulnerabilities in payment processes, which could result in unjustified expenses or misuse of company funds. Deloitte Launches Global AI Simulation Centre of Excellence in Bengaluru as Part of USD 3 Billion Investment in Gen AI, To Help Grow Economy and Create Jobs.

The auditor also expressed concern over VerSe’s handling of digital assets, including deficiencies in customer onboarding, pricing mechanisms, access control, and segregation of duties. Such weaknesses could impact revenue and cost accuracy related to these assets. Furthermore, inconsistencies in the advertising revenue cycle, particularly in the release order process, raise red flags around potential revenue overstatements and inflated receivables.

Deloitte's assessment of IT general controls revealed further shortcomings, including inadequate user access management, poor oversight of system changes, and missing audit logs, all of which contribute to governance and compliance risks. Despite these concerns, Deloitte concluded that the internal control issues did not affect the integrity of the standalone financial statements, thus affirming a clean audit opinion. Stocks To Buy or Sell Today, April 30, 2025: Bajaj Finance, BPCL and Praj Industries Among Shares That May Remain in Focus on Wednesday.

In response, VerSe said it is actively addressing the gaps. The company plans to implement structured supplier management frameworks, enhance access controls for digital asset security, and refine revenue recognition protocols.

VerSe reported operating revenue of INR 1,029 crore in FY24, a sharp decline from INR 21,104 crore in FY23. However, its net loss narrowed to INR 2,889 crore from INR 1,909.7 crore the previous year. Earlier disclosures had placed FY24 revenue at INR 21,261 crore and EBITDA loss at INR 2,710 crore, indicating inconsistencies in financial reporting.

(The above story first appeared on LatestLY on Apr 30, 2025 02:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).