Conduct Of Byju's Auditor Found To Be 'Non-Satisfactory', Says ICAI Chief

The conduct of Byju's independent auditor has been found to be "non-satisfactory,"  according to the head of India's regulatory body for chartered accounts.

Separately, the Institute of Chartered Accountants of India is also planning to inspect the financial reports of crisis-hit Paytm, Ranjeet Kumar Agarwal, president at the ICAI, said on the sidelines of the Confederation of Indian Industry’s conference on 'Financial Reporting & Governance Framework: Building Trust'.

In Byju's case, the three-tier review system of the ICAI "found the conduct of the chartered accountant not satisfactory,"  Kumar said. The matter is now with the disciplinary committee of the ICAI, under which the financial reports of the edtech major will be analysed.

“…the conduct of the charter will be analysed; they (auditors) will be called for information and then action will be taken accordingly," he said.

In June 2023, Deloitte Haskins and Sells resigned as the statutory auditor of Byju's, citing the delay in finalising financial statements for FY22. Byju's then-appointed BDO's audit arm is MSKA & Associates.

Byju's released its audited financial statements for the 2022 fiscal in February, reporting a consolidated net loss of Rs 8,245 crore and a revenue of Rs 5,015 crore.

In February this year, shareholders of Byju's unanimously voted to remove the company’s founder and Chief Executive Officer, Byju Raveendran and his family members from the board, alleging mismanagement. However, the company said that the voting was invalid and ineffective.