As per recent reports, India sought reasons from Byju’s, it being the country’s most valuable startup backed by Tiger Global Management, for not yet filing its audited financial accounts for the year ended march 2021.
Earlier this month, India’s ministry of corporate affairs is known to have sent a letter to Byju’s parent company, simply asking them to explain the seventeenth-month delay in filing audited accounts, officials said, asking not to be named as the information is private.
In addition to this, the overall delay in filing is due to consolidating the accounts of several companies that Byju’s acquired during the said accounting year, the company said.
Moreover, the online education provider which is also said to be backed by Mark Zuckerberg’s Chan initiative had been on an accelerated expansion spree globally, purchasing several startups in the United States and elsewhere.
As noted in a report by bqprime, An unlisted company has to file its annual accounts within seven months of the financial year-end, beyond which they have to pay an additional fee for each day of delay, said Ved Jain, former president at the Institute of Chartered Accountants of India, and founder of Ved Jain And Associates. A delay of more than 17 months to make the filing is rare and prompted the letter from MCA.
“In case of excessive delays in filing annual accounts, the company and its directors are liable for fines as well as prosecution,” Jain said. “Normally, the prosecution is filed when the delay exceeds two years.”
Lastly, the Bengaluru-based edtech pioneer, formally referred to as Think & Learn Pvt., has a valuation of 22 billion dollars, as per market researcher CB insights. Chief Executive Officer Byju Raveendran, 41, a teacher himself and the son of school teachers, founded the education startup in 2015.
Reading so far, I hope you must have gotten a fair insight into the government of India seeking Byju’s reply on the delayed filing of audited accounts, and by now I believe you will be able to decide on your own whether or not you think it was the right thing to do and what do you think will be their next step!
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