Dailyhunt parent VerSe Innovation gets clean chit from Deloitte on FY24 financials

Content platform Dailyhunt and short-video app Josh’s parent company VerSe Innovation has received a clean chit on the company’s financial year 2024 (FY24) financials from audit firm Deloitte.

In an MCA filing, Deloitte said, ““We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the Consolidated Financial Statements of the Company for the year ended March 31, 2024, and these material weaknesses do not affect our opinion on the said Consolidated Financial Statements of the Company (our report on the Consolidated Financial Statements includes Emphasis of Matter paragraph in respect of retrospective adjustments made in the corresponding figures for the year ended March 31, 2023).”

The recent exit of Sandip Basu, VerSe’s chief financial officer (CFO), coincides with the clear audit conclusion.

What was the matter?

Deloitte identified problems with the company’s payment workflows, purchase order and invoice approval procedures, and supplier selection. The research claims that these flaws raise the possibility of “material misstatements” in trade payables and expenditure entries, and they may even lead to unauthorised payments or financial mismanagement. 

The auditor also showed concerns over company’s virtual assets. It brought to light laspses in pricing controls, client acceptance procedures, responsibility segregation, and user access management concerning the transfer of digital assets. 

A look at VerSe Innovation FY24 earnings

The company’s total revenues were Rs 1,261 crore with an additional Rs 232 crore from non-operating income. It reported a 51 per cent year-on-year reduction in EBITDA burn, from Rs 1,448 crore in FY23 to Rs 710 crore in FY24 (excluding non-cash expenses).

VerSe Innovation’s cost of services reduced 17 per cent from Rs 1,389 crore in FY23 to Rs 1,155 crore in FY24.