Ola Electric Mobility Limited has issued a clarification regarding recent media reports citing its auditor’s remarks on internal financial controls (IFC) related to inventory.
The company explained that the observation pertains to “an isolated case” involving physical verification of inventory at its wholly owned subsidiary, Ola Electric Technologies Pvt. Ltd. The statutory auditors, B S R & Co. LLP, highlighted this in their IFC report, but also issued an unqualified and clean opinion on Ola Electric’s standalone and consolidated financial statements, confirming they present a “true and fair view.”
Ola said that during Q4 FY25, it had redesigned network operations under “Project Lakshya” to enhance efficiency, which temporarily impacted inventory verification. While the physical count could not be conducted during realignment, the company validated its inventory data via ERP systems, reporting no discrepancies.
The company stressed that all units are electronically traceable via unique Vehicle Identification Numbers (VIN), and scooter sales require registration through the Vahan portal, eliminating risks of misplacement.
Ola added that physical verification for other inventories was carried out and no issues were noted. “There is no element of misplacement of inventory and hence, no financial impact on the company,” it said.
The management further assured it is strengthening controls, including investments in technology and systemic changes to ensure robust and consistent inventory checks.
Regarding share price movements, Ola clarified it is unaware of any undisclosed information and reaffirmed that all material disclosures mandated by SEBI regulations have been made.
The company concluded that there is no material impact on its financials from the matter.