Byju's auditor casts going concern doubts

Ed-tech giant Byju's faces "material uncertainty" and doubts on its ability to continue as a going concern, the company's auditor said in its 2021-22 earnings report, as what was once India's most-valued startup struggled in a year that was among the best for India's ed-tech sector.

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Losses at the Byju Raveendran-led company more than doubled to 18,245 crore from ₹4,564 crore a year ago, while consolidated income rose to 5,298.43 crore from ₹2,428.39 crore.

MSKA & Associates, the audit arm of accounting firm BDO Global, pointed to continuing net losses from operations, accumulated losses, debt-related risks resulting from its outstanding $1.2 billion overseas loan; however, it added several disclaimers, finally concluding that Byju's continued to be a going concern in 2021-22.

Byju's total financial liabilities added up to 17,678 crore in 2021-22, up from 3,116 crore in 2020-21, the auditor noted. This largely includes 'non-current liabilities' including borrowings of ₹8,828.65 crore-the amount it borrowed abroad. "These events and conditions cast significant doubt on the company's ability to continue as a going concern," the auditor said in its comments, as part of Byju's 2021-22 filing with the ministry of Corporate Affairs.