In the FY22 filings, BYJU’S auditor said a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern
The situation for BYJU’S is further complicated by the fact that it had a lengthy list of dues even back in FY22 which have only grown since then
Part of the dues are from subsidiaries which have borrowed large sums from the parent, while others are potential statutory dues owed for missing PF payments and more
Nearly two years after the end of FY22, BYJU’S finally showed its financial picture for that fiscal year. The irony, given the losses of nearly $1 Bn in FY22 (INR 8,245 Cr to be precise), is that the company has had an even worse time of it.“These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” M S K A & Associates said in the filings.“Total loan amount granted INR 2,292.90 crores and balance outstanding as at balance sheet date INR 2,292.90 are prejudicial to the Company’s interest on account of the fact that loan has been granted at an interest rate of 6.25% per annum which is lower than the prevailing yield of 7.20% per annum,” as per the auditor.Referring to non-compliance with Section 42 of the Companies Act, BYJU’S auditor said that the company raised funds through a private placement offer but the monies received were not deposited in a separate bank account.
In the past nearly 24 months, we have seen and reported about issues such as: