BYJU’S To Release FY21 Financials Tomorrow, Audited Revenue May Be Lower Than Projections

After a delay of more than 18 months, edtech major BYJU’S is set to release its financial statements for the fiscal year ended March 31, 2021, on Wednesday (September 14), sources told Inc42. The edtech was expected to release the statements today (September 13) but has delayed the same by one more day.

The development comes after media reports emerged that the edtech major’s audited revenue might be lower than initially projected. It is prudent to mention here that earlier this year, cofounder Byju Raveendran said the company aims to close FY23 with a revenue of around INR 17,000 Cr.

It was widely reported at the end of last month that it has received ‘unqualified’ financial statements from its auditor, Deloitte. It was also reported that the edtech major will also be finalising its financial statements by around September 6.

An ET report citing sources noted that there is a difference between the projected revenue and the audited revenue. The same has been reported to shareholders and board members at the edtech major.

BYJU’S is running 18 months late for filing its FY21 financial statements with the Ministry of Corporate Affairs (MCA). While media reports suggest that the audited statements have been shared with the stakeholders and board members, the Bengaluru-based edtech giant is yet to file the same with the MCA.

A person was cited in the above report stating that Raveendran has been talking with all the investors and explaining the difference between projections and actual figures. The person added that the difference has been chalked up as an accounting policy change, enforced by Deloitte.

The development confirms the speculation that there had been differences between BYJU’S and Deloitte over accounting practices, specifically over how the edtech recognised revenue. 

These disagreements have been cited as the major reason for the extraordinary delay on BYJU’S part to file its financial statements, along with the acquisitions that the edtech made over the last couple of years.

Interestingly, the issue was related to the edtech’s subscription programme. BYJU’S reportedly put down the revenue for a subscription programme in the same fiscal year it was bought. However, Deloitte has reportedly successfully argued that the revenue should be divided across all the financial years for which the subscription was bought.

For instance, if a person bought a three-year subscription in FY19, the revenue would be divided across FY19, FY20 and FY21.

It should be noted that the edtech giant was questioned by the MCA over the much-belated filing last month. According to Company Law, 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.

According to its last financial statement filed for 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.