The Ministry of Corporate Affairs (MCA) reportedly ordered an inspection against an Indian multinational educational company, BYJU’S last week. According to various reports, the Ministry has taken notice of significant corporate governance failures committed by the BYJU’s.
The Edtech suffered a huge blow when the auditing firm Deloitte Haskins & Sells resigned as BYJU’s and Aakash’s statutory auditor. Deloitte Haskins & Sell, one of the largest auditing firms, has stepped down from major Edutech Company Byju’s – Think and Learn Private Limited. On 22nd June 2023, the auditing firm submitted their resignation before the Board of Directors with immediate effect.
According to the statement of Deloitte “The financial statements of the company for the year ended March 31st 2022 are long delayed.” Also stated that “We have also not received any communication on the resolution of the audit report modifications in respect of the year ended March 31, 2023, 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 on date.”
Read More: Deloitte Resigns from Byjus’s Think and Learn as Statutory Auditors citing delay in Financial Statements of FY 2022; appoints BDO as Auditor
Following a delay in completing the Financial Year 2022 with the Registrar of Companies, BYJU’s recruited Ajay Goel as Chief Financial Officer in April. Byju’s faced a loss of Rs 4,564.38 crore in Financial Year 2021, which was reportedly higher than the loss of Rs 305.5 crore in Financial Year 2020. The company is having difficulty acquiring significant finance and settling disputes with creditors involving a $1.2 billion term loan B (TLB).
In August 2022, it was reported that the Ministry of Corporate Affairs has sent a letter to Byju’s asking them to explain the non-filing of its audited financials for the year ending March 2021. Having missed the deadline by over 17 months, Byju’s reasoned the delay was due to the challenge of consolidating the accounts of its acquisitions during that year.
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