The statements were due to be laid before the shareholders in the Annual General Meeting by September 30, 2022.
“We have also not received any communication on the resolution of the audit report modifications in respect of the year ended March 31, 2021, 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,” Deloitte Haskins told the board of the firm in a letter today.
Due to the delay, “there will be a significant impact on their ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards,” the auditor noted.
Following the resignation, Byju’s said it had appointed BDO (MSKA & Associates) as its statutory auditors for the year commencing from FY22 for the next five years. Further, BDO will cover the holding company Think and Learn Pvt Ltd, its material subsidiaries such as Aakash Education Services Limited, and also the overall group consolidated results.
“We have chosen BDO as our auditors with great confidence following a well-structured selection process. Their exceptional capabilities and expertise in providing audit services to globally diversified large-scale companies make them the perfect fit for our organisation,” said newly-appointed group chief financial officer Ajay Goel.
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Byju’s also mentioned that the audit of most of its subsidiaries has already been completed, “setting a positive precedent for the ongoing collaboration with the new auditors”.Earlier in the day, ET reported citing sources that early backer GV Ravishankar, managing director at Peak XV Partners (formerly Sequoia Capital India), had resigned from the company’s board along with board members Russell Dreisenstock of Prosus (previously Naspers) and Chan Zuckerberg’s Vivian Wu, signalling the downward spiral now facing the once-most-valued privately held Indian startup.