Now Reading: Ola Electric’s auditor flags Rs 57 crore PLI provision reversal
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Ola Electric’s auditor flags Rs 57 crore PLI provision reversal
Ola Electric's auditor, BSR & Co. (KPMG affiliate), has issued a qualified review of its June quarter results over a Rs 57 crore reversal of a penalty provision under the battery cell…
The Story in Brief
Ola Electric's auditor, BSR & Co. (KPMG affiliate), has issued a qualified review of its June quarter results over a Rs 57 crore reversal of a penalty provision under the battery cell PLI scheme. The reversal helped narrow the company's net loss to Rs 336 crore from Rs 428 crore a year ago. Without it, the loss would have been Rs 393 crore.
Ola missed investment milestones for the scheme, mandating Rs 225 crore per GWh within two years, and created the provision in March 2025 after a government notice. In June, it reversed the amount before receiving a formal waiver from the Ministry of Heavy Industries. The auditor says it cannot determine if the move is justified without ministry approval. Ola says it expects the waiver based on discussions with the ministry.
The Indian Opinion
Ola Electric books a tax-payer-backed incentive as profit before the government has even signed off. The auditor's qualified opinion is a rare public flag, but some will call this prudent cash management. The real test is not the topline spin but whether the Ministry of Heavy Industries actually grants the waiver. If it does not, Ola will have to re-book the penalty, and investors will learn whose confidence was misplaced.
Source: livemint.com
This story was synthesised by AI from the source linked above.
