Verse Innovation Financials Audit by Deloitte for FY24
Deloitte has released an audit opinion on Verse Innovation’s consolidated financial statements for FY24, affirming that the financials accurately reflect the firm’s financial standing and performance, as stated in a company press release. This assessment comes as a significant reassurance for VerSe Innovation, especially after facing scrutiny regarding its internal control systems in FY23, when material weaknesses in financial operations had come to light.
Previously, Deloitte pinpointed concerns regarding revenue recognition, expense management, and internal controls, which raised doubts about the integrity of the company’s financial reporting. However, the recent FY24 report from Deloitte confirmed that although these control deficiencies were acknowledged, they did not alter the overall opinion on the company’s financial statements, according to the company’s announcement.
A representative from VerSe Innovation remarked that the assessment underscored that, despite some internal control challenges, the financials truly and fairly depict the health of the company.
The Bengaluru-based company is determined to rectify these internal control issues and maintains confidence in its prospects to achieve break-even by H2 FY25. Deloitte’s latest report elaborated that while material weaknesses were acknowledged, they did not influence the audit opinion. The audit also highlighted retrospective adjustments made to figures from FY23, recognising the company’s dedication to enhancing its financial reporting.
Verse Innovation reported total revenue of Rs 1,261 crore for the fiscal year ending March 2024 and successfully reduced its EBITDA loss by 51% year-on-year, now amounting to Rs 710 crore. The company forecasts over 75% revenue growth for the fiscal year concluding in March 2025.
The spokesperson added that VerSe Innovation is on track to reach break-even by H2 2025, supported by product innovation and a strategy focused on AI-led expansion. The company’s commitment to financial discipline and operational efficiency will aid in overcoming the challenges within the digital landscape and fostering long-term value for stakeholders.