BYJU’s long delay in filing FY21 audit report alarms government and company mother

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BYJU’s long delay in filing FY21 audit report alarms government and company mother

India’s most valuable startup, BYJU, is facing greater government scrutiny as it failed to submit its audited Deloitte financial report for the 2021 financial year, even after more than 17 months.

Inside company sources have told IANS the report is expected soon, possibly next week, but the long delay has now alarmed the Ministry of Corporate Affairs (MCA).

According to sources, the department sent a letter to BYJU earlier this month asking the $22 billion edtech startup to explain the delay in filing its FY21 audit report.

Sources familiar with the development say IPO-linked BYJU has completed business consolidation after “smoothing out the complexities” as the edtech unicorn completed at least 10 acquisitions for a cumulative transaction value of about $2.5 billion last year.

According to them, there are “no compliance issues” as the company filed its FY21 tax returns in a “diligent manner”.

BYJU has not commented on the latest development.

In July, Congressman Karti P. Chidambaram sent a letter to the Serious Fraud Investigation Office (SFIO) to investigate the finances of major edtech BYJUs.

Chidambaram called for an investigation into BYJU for failing to file its 2020-21 (FY21) financial results, which the company had previously said it would file by July 15, saying it had yet to secure capital of 250 million million (around Rs 2,500 crore) from its most recent funding round in March.

The company, which has come under scrutiny over the past two months over several issues ranging from audit delays to layoffs, made several acquisitions in FY21 and each of those acquisitions had a different accounting style and year.

So far, BYJU’s has raised over $6 billion in funding and aims to file for an IPO in the United States through the Special Purpose Acquisition Company (SPAC) route.

The company is also reportedly in talks to raise an additional $1 billion as it expands globally.

BYJU is eyeing Nasdaq-listed U.S. edtech company 2U for nearly $1 billion at $15 a share, according to reports.

The company has already “closed” payments related to its $1 billion acquisition of offline test prep service provider Aakash Educational Services.

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