Dailyhunt under scanner after Deloitte flags lapses in its financials
What's the story
Deloitte has flagged internal irregularities at VerSe Innovation, the parent firm of Dailyhunt and Josh, as per the Economic Times.
The audit firm flagged issues including weaknesses in internal controls, supplier selection, purchase order approvals, and unexplained invoices for FY24.
On the financial front, VerSe reported a net loss of ₹889 crore for FY24. Operating revenue also dipped slightly to ₹1,029 crore during the same period.
Audit
A look at Deloitte's concerns
In a regulatory filing, Deloitte raised concerns that the internal control deficiencies at VerSe could result in "material misstatement in the company's trade payables and expense account balances and preferential payments to suppliers including misappropriation."
The audit firm also pointed out that VerSe did not have sufficient controls to review the completeness of expense provisions at reporting dates.
Statement
Here's what VerSe had to say
Deloitte flagged a ₹35 crore claim pertaining to unexplained invoices from a supplier, which VerSe has not acknowledged as a trade payable.
Addressing the issues, VerSe said it is strengthening its processes by "creating an end-to-end order-to-cash process via a well-documented framework encapsulating supplier selection, approval process, invoicing, and payments."
This comes as Sandip Basu reportedly resigned as Chief Financial Officer at VerSe.
Revised figures
A look at VerSe's financials
VerSe has restated its financials after Deloitte's audit. The company posted a net loss of ₹889 crore in FY24, 54% lower than the previous year.
Its operating revenue for FY24 stood at ₹1,029 crore against ₹1,104 crore in FY23 (revised numbers).
Total expenses dropped to ₹2,148 crore from ₹3,263 crore, with costs such as materials consumed at ₹1,154 crore and employee benefits at ₹502 crore.