BYJU’S Likely To Finalise FY21 Financials Around September 6: Report

In the second deadline in as many weeks, edtech major BYJU’S is reportedly going to finalise the financial reports for FY21, around September 6.

The development comes after the Ministry of Corporate Affairs (MCA) questioned the edtech giant about the 17-month delay in filing its financial reports for the year ended March 31, 2021.

Per an ET report, BYJU’S had told its debt investors that it is likely to finalise its audited financial report for FY21 around September 6. It is prudent to mention that the auditor for the company, Deloitte, has approved the financial reports and BYJU’S reportedly communicated the same to the debt investors as well.

During the next week, BYJU’S is expected to hold a board meeting after receiving the final report. Incidentally, the edtech major has also reportedly indicated that the financials will be without any qualification. This means there will be no observations on the audited numbers.

The edtech decacorn has provided several deadlines over the last year and a half, missing all of them so far. BYJU’S most recent deadline for releasing its financials came earlier this month. On August 16, it was widely reported that the edtech major will be releasing its financials ‘within a week’. Before that, the edtech major was expected to release its audited financials on Independence Day.

In July, reports emerged that BYJU’S would release its financials within 10 days.

According to its last financial statement, filed in FY20, BYJU’S made a net profit of INR 51 Cr and revenue of INR 2,434 Cr, with its losses reaching INR 262 Cr. Earlier this year, cofounder Byju Raveendran said the company aims to close FY23 with a revenue of around INR 17,000 Cr.

There have been several reasons that BYJU’S and media reports have cited for the continued delays in filing FY21 financial statements.

Raveendran has repeatedly stated that consolidating the accounts of all the acquisitions BYJU’S made over the last two years is causing the delays. Over the fiscal the delayed reports are concerned with, the edtech major made three major acquisitions; WhiteHat Jr, Scholr and LabinApp for a collective amount exceeding $480 Mn.

On the other hand, during FY22, BYJU’S spent at least five times more than the amount spent in FY21 to make thrice as many acquisitions. It acquired the likes of Aakash Educational Services Limited (AESL), Great Learning, Toppr, Epic, Tynker and four other startups and companies for more than $2.3 Bn, or 10% of its valuation.

Media reports seem to corroborate Raveendran’s statements; BYJU’S and Deloitte had a disagreement over the edtech’s revenue recognition for acquired companies, which saw the US-based auditor delay signing off the reports till very recently.

BYJU’S has been able to fund its investments by raising funds aggressively since 2021. Last year, it picked up $1.2 Bn in a term loan, while in March this year, the company secured another $800 Mn in funding, led by Raveendran who chipped in $400 Mn.

It is also prudent to mention here that according to Company Laws, a delay in filing account statements of more than 180 days after the end of the fiscal year results in a penalty that is charged per day. Therefore, BYJU’S also has accumulated over 14 months’ worth of penalties so far.