Deloitte report raised concerns about Byju’s financial controls

livemint.com:

NEW DELHI : Byju’s former statutory auditor Deloitte, in a regulatory filing in June, signalled concerns about alleged weaknesses in internal financial controls within Think & Learn Pvt. Ltd, the company that runs the tutoring service, official documents filed with the registrar of companies (RoC) showed. The digitally signed report from the auditor has only one attachment—the resignation letter shared with the board, and no further reference to any lapses in the company, showed the document accessed by Mint from the government’s website for statutory filings of companies.

The contents of the auditor’s report were previously not reported. However, the resignation letter provides authorities with pointers to probe further the areas of concern highlighted by Deloitte. In the letter, the auditor drew attention to the communication with Byju’s board and its leadership from November 2022 to March 2023.

The communication also includes observations about the alleged weaknesses in the company’s internal financial controls, expressed in the independent auditor’s report for FY21, dated 30 August 2022. The auditor’s report for FY21 is available to the authorities as it is part of the company’s annual returns for that year filed with RoC. The auditor’s report for FY21 highlighted “material weaknesses in the company’s internal financial controls over financial reporting" as of 31 March 2021.