Byju's Auditor Deloitte Resigns; BDO (MSKA & Associates) Appointed As New Auditors

Byju's has recently faced a setback as its auditor, Deloitte Haskins & Sells, has resigned. Citing significant delays in receiving necessary information and explanations from the company, the auditing firm decided to step down from its role.

BDO (MSKA & Associates) has been appointed by Byju's as its statutory auditors, CNBC reported.

Deloitte Haskins & Sells stated in a statement that they have opted to quit with immediate effect due to delays in the financial statements of 2021-22 and the settlement of revisions in the audit report of the financial year 2020-21 impacting their ability to conduct audits on time.

"The financial statements of the Company for the year ended March 31, 2022 are long delayed. In accordance with the Companies Act, 2013, the audited financial statements for the year ended March 31, 2022 were due to be laid before shareholders in the Annual General Meeting by September 30, 2022.," the auditor said in a statement.

He further 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, 2021, 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. As a result, there will be a significant impact on our 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."

Three board members of Byju's reportedly resigned as a result of disagreements with the company's founder Byju Raveendran over important operational difficulties in a related development. But the firm disputed them, calling them speculative.

According to sources with knowledge of the situation, board members Russell Dreisenstock of Prosus, G V Ravishankar of Sequoia Capital (now Peak XV Partners), and Vivian Wu of Chan Zuckerberg Initiative have all tendered their resignations.

Byju's, on the other hand, denied the claim and called it speculative.