New Delhi, Sept. 5 -- The operating entity of Ola Electric Mobility Ltd did not have the right systems to physically verify the scooters at its retail stores during the last financial year, the company's statutory auditor said.

Ola Electric Technologies Pvt. Ltd is a wholly owned subsidiary and operating entity of Ola Electric Mobility, the listed company. Out of Ola Electric Mobility's Rs.4,645 crore FY25 revenue, almost 99% came from the subsidiary. According to BSR & Co. LLP, statutory auditor for both companies, the inventory issue could result in material inventory misstatements.

The auditor's note comes as a first-of-its-kind rebuke to the company that ushered in India's electric two-wheeler revolution.

BSR & Co. LLP identified 1...