Byju’s statutory auditors, Deloitte, quit

23 Jun 2023 , 01:47 PM

Deloitte, one of the world’s largest audit firms, resigned as the statutory auditor of ed-tech platform Byju, adding to a long list of problems for India’s most valuable startup.

Deloitte quoted, “The company’s financial statements for the fiscal year ended March 31, 2022, are several months late. We have also not received any information on the resolution of the audit report modifications for the fiscal year ended March 31, 2021, or the status of audit readiness of the financial statements and underlying books and records for the fiscal year ended March 31, 2022, and we have not been able to begin the audit as of date.”

“Due to the aforementioned circumstances, our ability to adequately strategize, devise, execute, and finalize the audit in adherence to the relevant auditing standards will be significantly affected. Consequently, we are submitting our resignation as the statutory auditors of the company with immediate effect,” said Deloitte.

Consequently, Byju’s has appointed BDO (MSKA & Associates) as Deloitte’s replacement and the company’s statutory auditors for the fiscal year beginning in FY22 and continuing for the next five years. BDO will also serve as the consolidated group’s statutory auditor and shall audit the IPO-bound Aakash Educational Services.

Deloitte’s resignation comes at a time when key board members of the company have also resigned from the board due to disagreements with founder Byju Raveendran on key operational issues.

Deloitte’s resignation puts Byju’s in an impasse, as the edtech company’s FY21 (2020-21) results revealed several irregularities in revenue recognition practices.

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