Even as Byju’s announced the appointment of BDO (MSKA & Associates) as its new statutory auditors for the fiscal year starting FY22 and subsequent five years, Deloitte Haskins & Sells, the outgoing auditors, issued a statement stating that despite having audited the long-delayed financial statements for the year ending March 31, 2022, they did not receive any communication from Byju’s promoters regarding the audit, resulting in their inability to proceed with the audit as planned.

Furthermore, the former auditors noted that this led them to quit as the auditors of the company in a statement addressing the board of directors.

‘No communication’

“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 of date.”

Deloitte Haskins & Sells had served as the company’s auditors for the past five years before tendering their resignation. Additionally, in April, Byju’s appointed Ajay Goel, a former executive of Vedanta, as its Chief Financial Officer (CFO).

There were reports of three non-executive board members resigning from the company. However, the company refuted all such news reports, stating, “A recent media report suggesting the resignations of board members from Byju’s is entirely speculative. Byju’s firmly denies these claims and urges media publications to refrain from spreading unverified information or engaging in baseless speculation,” the company spokesperson said.

“Any significant developments or changes within our organisation are shared through official channels and announcements. We request media outlets rely on verified sources and official statements for accurate information regarding Byju’s,” the spokesperson added. businessline could not independently verify whether the directors continue on the board as claimed by Byju’s.

Layoffs

Just three days ago, in another round of layoffs, the company let go of 1,000 full-time employees across the platform, such as brand, marketing, business, product, and tech. Previously, it had reportedly sacked 1,000 employees, mostly in the roles of contractual workers and on-the-ground staff, according to reports, though the company has remained mum on these developments.

Furthermore, the company is facing ongoing financial challenges as it is yet to file its financial statements for FY22 and FY23. Despite repeated assurances that the numbers would be filed, the company has failed to follow through on its commitments. Meanwhile, BYJU’S continues to negotiate its debt with lenders and, as a result, has been facing litigation for the same.

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