Audit firm Deloitte has cleared VerSe Innovation, the parent company of Dailyhunt and Josh, on its FY24 financials, despite flagging certain operational shortcomings.

Deloitte Approves FY24 Financials

In a filing with the Ministry of Corporate Affairs (MCA), Deloitte confirmed that its audit tests for VerSe Innovation’s consolidated financial statements for the year ending March 31, 2024, were unaffected by identified weaknesses.

The firm stated: “We considered the material weaknesses… but these do not impact our opinion on the Consolidated Financial Statements.” However, Deloitte added an Emphasis of Matter for retrospective adjustments made in the previous year’s figures (FY23).

CFO Exit Coincides with Audit Completion

The departure of VerSe Innovation’s CFO, Sandip Basu, happened around the time the audit findings were released. While no direct link was made, the timing has raised eyebrows in industry circles.

Deloitte’s audit revealed deficiencies in payment workflows, purchase order approvals, and vendor selection processes, raising concerns over potential “material misstatements” in trade payables and company expenses. The audit also flagged the risk of unauthorized payments or financial mismanagement.

Concerns Over Digital Asset Management

The auditor also pointed out lapses in VerSe’s handling of digital assets, highlighting issues in pricing controls, client onboarding, segregation of duties, and access management for digital transactions.

VerSe Innovation’s FY24 Financial Performance

Despite internal process flaws, VerSe Innovation reported strong financial progress in FY24:

Revenue: ₹1,261 crore from operations, plus ₹232 crore in non-operating income

EBITDA Burn: Reduced by 51% year-on-year, from ₹1,448 crore in FY23 to ₹710 crore in FY24 (excluding non-cash items)

Cost of Services: Dropped 17%, from ₹1,389 crore in FY23 to ₹1,155 crore in FY24

While Deloitte has cleared VerSe Innovation’s FY24 books, the audit highlights serious internal control weaknesses, particularly in procurement and digital asset management. Despite this, the company has made significant progress in reducing costs and improving financial efficiency.