Deloitte Haskins & Sells has resigned as the auditor of edtech giant Byju's with immediate effect citing delays in audit modification and release of financial statements. Byju's has appointed BDO (MSKA & Associates) as statutory auditors.

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In a statement, Deloitte Haskins & Sells said delays in financial statements of 2021-22 and resolution of modifications in the audit report of financial year 2020-21 have impacted their ability to complete audits on time and thus they have decided to resign with immediate effect.

“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. 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 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,” the auditor said in a statement.

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In a related development, three board members of Byju’s were reported to have resigned due to differences with founder Byju Raveendran on key operational issues. The company however denied these reports, calling them speculative.

Board members G V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative, Russell Dreisenstock of Prosus, have tendered their resignations, people familiar with the matter were quoted as saying by Moneycontrol.

However, Byju’s refuted the report, saying it was baseless speculation.

“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. Any significant developments or changes within our organization are shared through official channels and announcements. We request media outlets to rely on verified sources and official statements for accurate information regarding BYJU'S,” the company said in a statement.

Peak XV did not confirm or deny Ravishankar's exit from Byju's board to CNBC-TV18. Chan Zuckerberg Initiative was yet to respond to CNBC-TV18 query. Their resignations are yet to be accepted.

First Published:Jun 22, 2023 5:48 PM IST