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The Department of Corporate Affairs has reportedly asked edtech unicorn Byju’s to explain why the company has not filed its audited financial report for the year ending March 2021. Earlier this month, the department sent a letter to Byju’s parent company asking them to explain the reason for the seventeen month delay in filing the audited accounts.
A spokesperson, speaking on condition of anonymity, was quoted in a report as saying: “Communication from the ministry regarding the delay in filing statutory documents dates back over a month. Byju’s has already responded to the notice. The delay is due to multiple acquisitions by Byju’s during the fiscal year and it also anticipates further acquisitions in the following fiscal year. Due to the longer than expected time for accounting for several transactions, the result has been delayed. The Ministry has already received this response from Byju’s in July. Now the work is almost complete. Therefore, the report should be tabled by next week.
According to industry experts, an unlisted company must file its annual accounts within seven months of the end of the financial year. If a company does not submit the report within that time, it must pay an additional fee for each day of delay, in which the company and its directors are liable to fines as well as prosecution for excessive delay in filing the reports. annual accounts. . The charge is filed in terms of delay in excess of two years.
According to an IANS report, in July Congressman Karti P Chidambaram wrote a letter to the Serious Fraud Investigation Office (SFIO) to investigate Byju’s finances.
According to the report, in the letter, it is stated that “Byju’s has not yet had its financial statements for the financial year 20-21 audited by its auditor Deloitte, and will take more time to file the cost audit report. to the Ministry.This is in clear breach of Rule 6(5) of the Companies (Cost Records and Audit) Rule, 2014. At a time when Byju’s is proposing to expand its business and acquire the listed company 2U Nasdaq for a valuation of $2.4 billion, while the parallel layoff of employees to cut costs, it becomes relevant to review the company’s finances.”