BYJU's to file FY22 financials after more than a year's delay

Beleaguered edtech company BYJU’s will report its financial results for the year through March 2022 this week, after more than a year’s delay, a company spokesperson said on Monday.

The edtech company has completed the audit of all its group companies and subsidiaries, the spokesperson noted.

“The audit of all the group subsidiaries have been completed and adopted. Think and Learn Private Ltd, the parent, is expected to adopt the consolidated results this week to factor in certain positive developments in the company,” BYJU’s spokesperson said.

Chief Financial Officer of the company,  Ajay Goel, had previously promised the audited figures for the year before last by the end of September. The company had last filed its audited financial statements for FY 2020-21. The delay in filing subsequent financials with the Ministry of Corporate Affairs drew scrutiny from regulators. Furthermore, the company has yet to announce financial results for the year through March 2023 as well.

As per its last financials, BYJU’s revenue from operations for FY21 was at Rs 2,280 crore. The company incurred massive losses of Rs 4,588 crore, up from just Rs 262 crore in the previous fiscal.

The delay in filing of financials also led to the stepping down of BYJU’s auditor, Deloitte Haskins & Sells. The auditor was slated to audit the edtech company until 2025, but stepped down with "immediate effect" mid-term stating that "the financial statements of the company are long delayed." 

Not just the auditors, BYJU'S board members, including G.V. Ravishankar, Managing Director of early-backer Peak XV Partners (erstwhile Sequoia Capital India), Russell Dreisenstock of Prosus and Chan Zuckerberg's Vivian Wu resigned due to corporate governance issues at the company.

The company is also facing scrutiny from investors. BYJU's raised $250 million in structured debt from Davidson Kempner, a US-based investor AMC. The edtech defaulted on the loan, prompting Davidson Kempner to seek control of Aakash, against whose cashflows the loan was taken. BYJU's was only able to raise about $95 million of the committed $250 million, as Davidson Kempner withheld the balance following the default. Business Today reported on Monday that the company plans on bringing Aakash's promoter Aakash Chaudhry back as CEO of the coaching classes after a share swap deal.