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Informist, Tuesday, Sept. 9, 2025

NEW DELHI – Ola Electric Mobility Ltd. Tuesday clarified that it has already reported observations made by auditors regarding physical verification of inventory by its wholly-owned arm, Ola Electric Technologies Pvt. Ltd., and that it does not expect recent media reports related to the issue to have any material impact on the company.

"We wish to inform you that the information pertaining to Internal Financial Controls is already disclosed in the Consolidated Independent Auditor's Report issued by M/s B S R & Co. LLP, Statutory Auditors, which forms part of the Annual Report of the Company and was duly submitted to the Stock Exchanges on July 31, 2025," the company said in a notice to the stock exchanges.

Media outlets over the weekend reported that Ola Electric "lacked adequate internal controls for physically verifying scooters at its retail outlets and state distribution hubs." This, the reports claimed, resulted in material weakness at Ola Electric Technologies. Ola Electric said this represents an isolated case, where its arm could not conduct a physical verification of the inventory due to an ongoing realignment of inventory processes.

"The Company always had a practice of conducting physical verification that has already been stated in audit reports pertaining to earlier years where there was no comment on IFC (Internal Financial Controls) given by the Statutory Auditors," Ola Electric said. The company further said there is no element of misplacement of inventory, and hence sees no financial impact on the company because of this observation.

For the quarter ended June, the company had reported a consolidated net loss of INR 4.28 billion on a revenue of INR 8.28 billion. At 1344 IST, shares of the company were down 0.2% at INR 60 on the National Stock Exchange.   End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Anand JC

Edited by Ashish Shirke

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