One of the largest audit companies in the world, Deloitte, has tendered its resignation as Byju’s statutory auditor, adding to a lengthy list of difficulties for the most valuable startup in India.
“The Company’s financial statements for the year ended March 31, 2022 are far behind schedule. We have not yet been able to start the audit because we have not yet received any information about how the audit report modifications for the year ended March 31, 2021 will be resolved, nor have we heard anything about the financial statements’ and underlying books and records’ readiness for an audit as of yet.
“As a result, there will be a significant impact on our ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards. In view of the aforesaid, we are tendering our resignation as statutory auditors of the Company with immediate effect,” Deloitte added.
Byju’s appointed BDO (MSKA & Associates) as Deloitte’s replacement and as the company’s statutory auditors for the year commencing from FY22 for the next five years. BDO will also be the statutory auditor of the consolidated group and will audit IPO-bound Aakash Educational Services.
Deloitte’s resignation occurs at the same time that important Byju’s board members have also submitted their resignations from the organization’s board of directors due to disagreements with firm founder Byju Raveendran on crucial operational concerns.
Byju’s is left in limbo as a result of Deloitte’s resignation since the edtech company’s FY21 (2020-21) results revealed a number of anomalies with regard to its revenue recognition procedures. According to Deloitte’s recommendations, Byju’s also had to postpone around 40% of its FY21 income to succeeding years.
Due to Covid-19’s stay-at-home regulations, which greatly boosted online learning, Byju’s reported a surprising fall in FY21 income. Despite this, the year was monumental for edtech companies in India and around the world. Additionally, Byju’s losses reached above Rs 4,500 crore in FY21.
Source- Moneycontrol
