Byju’s troubles Increase as Board Members and Auditor Deloitte Resign Amid Ongoing Tensions With Lenders

The troubles of Byju’s increased as a double whammy hit the embattled edtech major amid the company’s disagreement with lenders. As per the reports, the company’s leading audit firm Deloitte has tendered its resignation citing delayed financial statements.

Simultaneously, three of the organization’s board members GV Ravishankar, managing director at Peak XV Partners, Russell Dreisenstock of Prosus, and Vivian Wu of the Chan Zuckerberg Initiative, have resigned from the company as well. Reportedly their resignation was a result of operational differences with founder, Byju Raveendran. However, their resignations have not been accepted yet.

Deloitte’s Statement

 

Deloitte said in a statement that, “The financial statements of the Company for the year ended March 31, 2022 are long delayed. We have also not received any communication on the resolution of the audit report modifications in respect of the year ended March 31, 2021, and 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.”

Following this, the company added that due to the delays, the audit company has not been able to succeed in planning, designing, performing and as a matter of fact, completing the audit in accordance with the applicable auditing standards.

Byju’s on its board members’ resignation

 

Meanwhile, the startup company’s spokesperson said that the reports about the directors’ resignations are speculative. The company further notified that any essential development or alterations within the company are imparted through official channels and announcements.

Byju’s has had a difficult year after revealing irregularities in its revenue recognition procedures in its long-awaited FY21 (2020-21) results. Additionally, the company disclosed a loss of Rs. 4,589 crores in FY21, which was nearly 20 times larger than the adjusted loss from the prior fiscal year. Deloitte had put off approving the results at the time due to worries about revenue reporting.

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