Deloitte has resigned as the auditor of Byju’s and Aakash Educational Services. They didn’t produce financial statements for March 2022. Deloitte couldn’t start the audit due to lack of communication on audit readiness.
- Byju’s has appointed BDO (MSKA & Associates) as its new statutory auditor. BDO will audit the company’s financial statements for the year commencing from FY22 for the next five years.
- The resignation of Deloitte is a setback for Byju’s. It faces scrutiny from investors and regulators. The company is accused of aggressive growth tactics and financial irregularities.
The impact of Deloitte’s resignation on Byju’s IPO plans is uncertain. Byju’s filed preliminary papers with SEBI in July 2022 but faced regulatory delays.
The resignation of Deloitte highlights challenges at Byju’s. It must address investor and regulator concerns for a successful IPO.
The resignation of Deloitte board members could be a huge blow for the firm. It is already struggling due to unfortunate incidents and is running out of excuses. The departure of long-time board members will have a negative impact. The resignation does not reassure the founder’s supporters.
Plans crucial for the firm’s survival, like Aakash Educational Services’ IPO, may be endangered by the parent company’s issues.
