Ola Electric has addressed concerns raised by its statutory auditor, BSR & Co., regarding discrepancies in inventory reporting for FY25. The auditor flagged 19 instances where the scooter counts at stores and customer receivables did not match the quarterly returns submitted to banks. Additionally, the report highlighted gaps in internal controls for physical verification of raw materials and finished goods at stores and distribution centres, which could potentially affect financial reporting.
In response, Ola Electric clarified that the discrepancies arose from a Q4 FY25 restructuring of its network operations, designed to enhance efficiency and reduce costs. During this period, physical verification at its subsidiary, Ola Electric Technologies Pvt Ltd, was not conducted as usual, with the company instead relying on its Enterprise Resource Planning (ERP) system to validate inventory data. Ola Electric emphasised that no inventory was misplaced and that there was no financial impact from these temporary inconsistencies.
The auditor’s report comes amid growing competition in India’s electric two-wheeler segment and ongoing financial challenges for Ola Electric. The company’s share price has dropped approximately 30.4% year-to-date, with a recent decline of 2.3% to ₹58.5 per share.
CEO Bhavish Aggarwal acknowledged the operational challenges but reaffirmed Ola Electric’s commitment to robust internal controls and transparent financial reporting, underscoring the company’s focus on long-term operational efficiency and accountability.
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