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Byju Raveendran
Byju's, a prominent edtech company, has announced its plans to file its financial statements for the fiscal year ending March 31, 2022 (FY22) by September. This comes shortly after Byju's previous statutory auditor, Deloitte Haskins, resigned due to delays in the process.
According to the reports, the edtech giant has now appointed BDO (MSKA & Associates) as its new auditor.
Despite facing multiple challenges, Byju's has assured its investors that it will meet the September deadline for filing its FY22 financials. The company's founders and CEO, Byju Raveendran, and CFO, Ajay Goel, recently provided an update to their 75 shareholders, stating their intention to also file the financials for the following fiscal year, ending March 31, 2023 (FY23), by December of this year.
The decision to set a deadline for FY22 financials comes in the wake of Deloitte Haskins' departure.
In a statement, Deloitte expressed their concerns, saying, "We have not received any communications on the resolution of the audit report modifications in respect of the year ended March 31, 2022, the 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."
Byju's has previously faced delays in filing its financial statements, with the FY21 statements being submitted in September 2022, 18 months after the fiscal year had ended. Despite the challenges posed by these delays, the company aims to maintain a similar timeframe for filing its FY22 financials.
The delay in completing the FY22 financials has had consequences for Byju's, particularly with its lenders. The lenders involved in the edtech's USD 1.2 billion Term Loan B (TLB) have interpreted the delay as a technical default, further straining the relationship between Byju's and its lenders.
In addition to these challenges, Byju's is currently engaged in two legal battles in the United States. One lawsuit has been filed against the edtech by its lenders in Delaware, while Byju's has filed another lawsuit against one of its lenders in the New York Supreme Court.
Byju's will need to work diligently to meet its upcoming deadlines and address the concerns raised by its lenders and auditors. The company's ability to navigate these challenges and successfully file its financial statements will be crucial in maintaining its standing within the edtech industry.
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