The regulatory filings for FY23, which were appended with Deloitte’s remarks, revealed that Dunzo’s losses had increased by 288 per cent to Rs 1802 crore
When auditing Dunzo’s financial statements for the FY23, Deloitte raised significant doubts regarding the startup’s capacity to operate as a “going concern.” Dunzo’s substantial high operating expenses for expanding its customer base is the main reason why its current liabilities exceeded by Rs 325.8 crore, Deloitte stated.
A company that has sufficient resources and income streams to maintain its viability and minimise the risk of bankruptcy is referred to as a “going concern” in accounting terminology. To put it plainly, Deloitte made a suggestion that there are serious doubts about Dunzo’s ability to bring in enough money to stay in business in the future.
Dunzo’s auditor Deloitte raised concerns about the business’s capacity to function as a going concern. The regulatory filings for FY23, which were appended with Deloitte’s remarks, revealed that Dunzo’s losses had increased by 288 per cent to Rs 1802 crore.
Dunzo will not be able to pay its creditors in the event of bankruptcy because its total liabilities exceed its total assets. The availability of additional funding and improvements in business operations are critical to the group’s ability to continue as a going concern. These developments, in addition to other issues, suggest that there is a material uncertainty that could seriously impair the group’s ability to continue as a going concern, according to Deloitte.