Government Seeks Explanation From Byju's For Not Filing Audited Financial Report The report says that the delay is due to the multiple acquisitions by Byju's during the financial year and it also plans for further acquisitions in the subsequent financial year

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Byju's Twitter handle

The ministry of corporate affairs, reportedly, has enquired edtech unicorn Byju's to explain why the company hasn't filed its audited financial report of the year ending March 2021. Earlier this month, the ministry had sent a letter to Byju's parent company asking them to explain the reason for seventeen-month delay in filing audited accounts.

A spokesperson, on the condition of anonymity, was quoted in a news report as saying, "The ministry's communication about delay in filing the statutory documents was over a month old. Byju's has already replied to the notice. The delay is due to the multiple acquisitions by Byju's during the financial year and it also plans for further acquisitions in the subsequent financial year. Because of the longer-than-expected time taken for accounting multiple transactions, the financial result got delayed. The ministry has already received this reply from Byju's in July. Now, the work is almost completed. So, the report is likely to be filed by next week."

According to industry experts, an unlisted company has to file its annual accounts within seven months of the financial year-end. If any company failed to submit the report within this time frame, they have to pay an additional fee for each day of delay, in which the firm and its directors are liable for fines as well as prosecution in case of excessive delay in filing annual accounts. The prosecution is filed in terms of delay exceeds two years.

According to an IANS report, in July, Congress MP Karti P Chidambaram, had wrote a letter to the Serious Fraud Investigation Office (SFIO) in order to investigate the finances of Byju's.

As per the report, in the letter, it is stated that, "Byju's has not yet gotten its financial statements for FY20-21 audited from its auditor Deloitte, and will take more time to file the cost audit report to the ministry. This is in clear violation of Rule 6(5) of the companies (cost records and audit) rule, 2014. At a time when Byju's proposes to expand its business and acquire Nasdaq-listed company 2U at a valuation of $2.4 billion, while parallel firing of employees to cut costs, it becomes pertinent to review the company's finances."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Branding

How to Build a Strong Brand Identity for Your Early-Stage Startup

Branding might not be your first priority, but neglecting it can hurt your startup. A strong brand identity early on sets the stage for marketing success.

Business News

Elon Musk's DOGE Is Hiring People Eager to 'Work Long Hours' to Eliminate 'Waste, Fraud and Abuse' in the Government. Here's How to Apply.

The Department of Government Efficiency is hiring U.S. citizens to help cut spending and headcounts in the federal government.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.

Science & Technology

From Data to Destiny — How AI Can Turbocharge Your Business Future

Are you ready to embrace the power of AI with trusted data? Let's transform challenges into opportunities and propel your business into the future.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.