Edtech giant Byju's trouble deepens, Deloitte resigns as statutory auditors

In rising trouble for edtech major Byju’s, its statutory auditors Deloitte Haskins & Sells resigned due to the delay in the company's filing of financial results.

In a letter to the board members of Think & Learn Private Limited, the parent company of Byju’s, Deloitte said: “The financial statements of the Company for the year March 31, 2022 are long delayed…we have not received any communications on the resolution of the audit report modifications in the respect of the year ended March 31, 2022, status of the 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 further added that this delay will have a significant impact on their 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,” said the company.

Deloitte was appointed as the auditors for a period of 5-years starting from April 1, 2020 to FY Mach 31, 2025.

Meanwhile, Byju’s in a statement said that they have appointed BDO (MSKA & Associates) as its statutory auditors for the year commencing from FY22 for the next five years. Bad news at Byju’s seems to be never ending. Along with Deloitte resigning, three of its board members also have resigned the company.

These include, G V Ravishankar of Sequoia Capital, Vivian Wu of Chan Zuckerberg Initiative, Russell Dreisenstock of Prosus.

In an email response to Business Standard response Byju’s said: “BYJU'S firmly denies these claims and urges media publications to refrain from spreading unverified information or engaging in baseless speculation.”

These resignations add to the ongoing legal tussles with its lenders in the US. The company has filed a case in the New York Supreme Court.