Mohandas Pai Slams OYO over 'Fake Accounting', Company Says Numbers as per Audited Financial Statements
IANS 20 September 2022
Former Infosys director TV Mohandas Pai slammed Ritesh Agarwal-run Oyo for allegedly misleading investors via 'fake accounting' as the hospitality major reported its maiden positive EBITDA (earnings before interest, taxes, depreciation and amortisation) during the first quarter of the current fiscal.
Softbank-backed Oyo claimed (adjusted) EBITDA-level profitability of Rs10.6 crore for the June quarter.
In a tweet, Mr Pai who is currently Chairman of Manipal Global Education (Manipal University), said: "This is fake accounting! There is nothing like an adjusted ebitda. They are trying to mislead investors by such fake accounting. Regulators and stock exchanges should stop such misreporting in india."
The allegations came after Oyo filed an addendum to its earlier submitted draft red herring prospectus (DRHP), filed in October 2021 for its IPO, to the Securities and Exchange Board of India (SEBI).
The company is now eyeing early 2023 for its IPO, amid volatile global market conditions.
Abhishek Gupta, Oyo's group chief financial officer (CFO), replied to Mr Pai, saying that the EBITDA is 'clearly reported'.
"EBITDA is clearly reported & is higher Rs 10.57 cr for Q1FY23 than Adj EBITDA of Rs 7.26 cr. Other Income not included in EBITDA & Adj EBITDA. All numbers are from audited signed financial statements. Global non-GAAP metrics are defined transparently," Mr Gupta tweeted.
The company said the revenue for FY21-22 was Rs4,905 crore, a growth of 18% from Rs4,157.3 crore reported in FY20-21.
Oyo managed to halve its losses for FY21-22 at Rs1,892.2, from Rs3,382.5 crore in FY20-21.
Monthly gross bookings value per hotel, saw a 47% growth in Q1 FY22-23 to Rs3.25 lakh vs Rs2.21 lakh for fiscal 22, as travel recovered after the pandemic.
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1 year ago
Hotel industry is cash industry .. news indicate sports persons actors prefe hotel industry for investment. If accounts are adjusted it should not come as surprise
1 year ago
Has anybody noticed that IITians owner / management startups are overwhelmingly involved in such misrepresentation . Twitters' Agarwal similar story why Musk reject his inflated Twittter bots "user base". Psycologically its proven excess analytical = selfish and money primed. Very Poor creative like IIM IIT .Whats the hoopla about ??
Kamal Garg
Replied to vekbhardwaj comment 1 year ago
Fully agreed. And it is a shame on IIM/IITians of our country who have been found to indulge in such non-acceptable and near to illegal financial reporting in the companies they manage/started-up.
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