Deloitte quits, Byju’s appoints BDO as statutory auditors
Deloitte’s exit comes even as three board members from key investors Sequoia Capital India, the Chan-Zuckerberg Initiative and Naspers Ventures have resigned from the board
NEW DELHI: Byju’s on Thursday announced the appointment of BDO (MSKA & Associates) as its statutory auditors for the year commencing from FY22 for the next five years. This marks the end of the edutech brand’s six-year association with Deloitte Haskins & Sells as auditor.
Deloitte, which was slated to audit Byju’s until 2025, has quit with “immediate effect” mid-term, due to “long-delayed” financial statements by the company, according to the auditing firm’s resignation letter filed to the regulator. Deloitte’s exit comes even as three board members from key investors Sequoia Capital India, the Chan-Zuckerberg Initiative and Naspers Ventures have resigned from the board, three sources familiar with the matter said. The three board members include GV Ravishankar, Russell Dreisenstock and Vivian Wu, as per an agency report.
Byju’s has expressed its gratitude to the outgoing auditors, Deloitte Haskins & Sells, for their invaluable professional support over the last six years. The meticulously planned transition timeline ensures seamless integration of the new auditor into the existing audit framework, affirming a comprehensive and independent examination of Byju’s financial statements.
The audit of most subsidiaries has already been completed, setting a positive precedent for the ongoing collaboration with the new auditors.
BDO’s extensive experience working with multi-national clientele underscores their expertise in navigating the complexities of consolidation, particularly relevant to Byju’s given its multiple global acquisitions in the past three years.
Under this appointment, BDO will cover the holding company -- Think and Learn Pvt Ltd, its material subsidiaries such as Aakash Education Services Limited as well as the overall group consolidated results. This comprehensive audit coverage will provide a holistic view of Byju’s financial performance and ensure transparency across the organisation. The selection of BDO as Byju’s auditors was finalised after a rigorous selection process by the new group CFO, Ajay Goel, who joined the company a month ago.