BDO (MSKA & Associates) has resigned as the auditor of Byju’s, nearly 14 months after its appointment, citing inadequate support from the management in providing the books of accounts for the financial year ended March 31, 2023. It also alleged potential fraud at Byju’s Middle East arm.

The edtech firm hit back at the audit firm saying that it made “unethical requests’’ and failed to adhere to proper procedures.

“The real reason for BDO’s resignation is Byju’s firm refusal to backdate its reports, while BDO went to the extent of recommending a firm that could facilitate such an illegal activity. Multiple call recordings exist, where BDO representatives explicitly suggest backdating these documents, which Byju’s refused to do. Byju’s strongly believes that this is the main reason for their resignation,” it said.

It was in June 2023 that Byju’s had appointed BDO as its statutory auditor for the year commencing from financial year 2021-22 for the next five years. The appointment followed the resignation of Deloitte, which had cited a delay in submission of financial statements.

In a letter sent to the board of Think & Learn, the parent of Byju’s, BDO said that financial statements for 2022-23 have been long delayed and that in accordance with provisions of the Companies Act, 2013, the audited statements should have been placed before its shareholders in the annual general meeting by September 30, 2023.

“Inspite of these delays, there has been inadequate support from the management in providing us the books of account, explanation sought by us and sufficient appropriate audit evidence to enable us to complete the audit for 2022-23’’.

The audit firm added that it requested audit information from the management through multiple communications including emails.