Byju’s assures shareholders, says it will file financial statement by September

Beleaguered edtech firm Byju’s has informed investors that it will file its much delayed financial year 2022 earnings by September, said people in the know. The company intends to file its financial year 2023 results by December. Founder and chief executive Byju Raveendran and chief financial officer Ajay Goel, with other leadership members, briefed about 75 shareholders on Saturday, addressing their concerns about the company’s financial affairs, these people said.

Byju’s statutory auditor Deloitte Haskins tendered its resignation on Thursday with immediate effect citing a long delay by the company in furnishing audited financial statements for the year ending March 31, 2022. Byju’s also saw its three key directors on the company board resign as reported first by ETtech. After issuing a denial about their departure, Byju’s confirmed their exit on Friday.

GV Ravishankar, managing director at Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus (previously Naspers) and Chan Zuckerberg Initiative’s Vivian Wu stepped down from the board.

A shareholder told ETtech, on condition of anonymity, that the company said the exits of Deloitte and three board members were not coordinated. “The call was intended to pacify the shareholders after the resignations. They were working with their new auditor to finalise the financial statements,” the person added.

Byju’s financial statements were due to be filed and presented before the shareholders in its annual general meeting by September 30, 2022.

Deloitte noted in a letter to the board that due to the delay, “there will be a significant impact on their ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards.”

“We have not received any communication on the resolution of the audit report modifications in respect of the year ended March 31, 2021, the status of audit readiness of the financial statements and the underlying books and records for the year ended March 31, 2022, and we have not been able to commence the audit as on date,” the letter read.

Following the resignation, the edtech major appointed BDO (MSKA & Associates) as statutory auditors for the year starting FY22 for five years.

Byju’s said BDO will audit the holding company Think and Learn Pvt Ltd, its subsidiaries such as Aakash Education Services Limited, and also the overall group consolidated results.

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