The Institute of Chartered Accountants of India (ICAI) has sent the matter concerning the education-technology (edtech) startup Byju's to its disciplinary committee for further action, a report has said.
ICAI’s Financial Reporting Review Board (FRRB), which was looking into Byju's financial statements, flagged certain issues, which the disciplinary panel would examine.
“Some issues were felt to need further investigation. There are questions on three-four points, which will be examined by the disciplinary committee,” a source told the Business Standard newspaper.
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Moneycontrol couldn't verify the report independently.
Byju’s has been tackling a host of issues, including a tussle with its lenders, and resignations of its directors and its auditor, even as it has come under the scanner of government authorities like the EPFO and Enforcement Directorate.
In June, Deloitte Haskins & Sells resigned as the statutory auditor of Byju’s. Deloitte, which audited the company for five years, cited the failure of the once India’s most-valued startup to release the audited statements for the financial year ending March 31, 2022 as the reason for its decision.
The delay led to the financial information coming under the purview of ICAI. The Ministry of Corporate Affairs, too, has reportedly opened an investigation against the company.
FRRB is empowered to review the general purpose financial statements and auditor's reports of enterprises. It has examined Byju's balance sheet, profit and notes on account among other things, the report said.
If the disciplinary panel discovers the auditor guilty of professional misconduct, it can impose a fine of up to Rs 5 lakh on the auditor and even ban them.
Also Read: Byju's biggest investor Prosus says poor corporate governance prompted board exit
ICAI can take action against the auditor under the Chartered Accountants Act but not against the audit firm.
Deloitte and Byju's didn't respond to queries sent by emails, the report said.
Also Read: Byju's, lenders agree to complete loan amendment by August 3
Byju’s has assured investors that it will submit its audited earnings for FY22 by September 2023 and those of 2023 in December.
In FY21, the results of which too were submitted late, Byju’s reported a loss of Rs 4,588 crore, 19 times more than the previous financial year. Its income was Rs 2,428 crore, the report said.
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