Education technology company Byju’s on Tuesday rejected reports of a Rs 9,000 crore notice. Some media reports had claimed that the Enforcement Directorate (ED) has issued this notice in case of Foreign Exchange Management Act (FEMA) violation. FEMA was created in 1999 to control the flow of foreign currency.
In April this year, ED had raided three offices of Byjus in Bengaluru. Documents and digital data were seized during the search. According to the investigating agency, the company has received foreign direct investment (FDI) worth Rs 28,000 crore between 2011 and 2023. Apart from this, the company also sent money to different countries in the name of FDI.
Orders to probe the account books of Byju’s
Recently, the Central Government had ordered to probe the account books of Byju’s. Based on what comes out of this, the government will decide whether the case needs to be taken to the Serious Fraud Investigation Office or not.
After coming under the scanner of investigation, the auditor had resigned.
After coming under the scanner of regulatory investigation, Deloitte, one of the largest audit companies in the world, had resigned as the legal auditor of Byju’s. Deloitte had said that the company’s financial statements for the financial year ending March 31, 2022 are long pending.
Apart from this, due to no communication regarding the financial year 2020-21, the audit has not started yet. Byju’s had appointed BDO (MSKA & Associates) as the company’s legal auditor in place of Deloitte.
Byju’s faces loss of ₹ 2,250 crore in financial year 2022
Byju’s has suffered a loss of ₹ 2,250 crore in the financial year ending 31 March 2022. Whereas a year ago (FY 2021) the company had suffered a loss of Rs 2406 crore. However, the company’s income increased from ₹1,552 crore to ₹3,569 crore.
Byju’s had given information about this on Saturday 4 November. The company is under regulatory scrutiny for various reasons including delay in releasing financial results.
Byju’s value is only Rs 42,000 crore.
In June 2023, Dutch company Prosus had said that according to it, the current valuation of Byju’s is $ 5.1 billion i.e. about Rs 42,000 crore. Byju’s value in October 2022 was $22 billion i.e. about Rs 1.8 lakh crore.
Byju Ravindran said – Financial year 2022 taught us a lot.
Founder and CEO Byju Ravindran had said after the release of the results of financial year 2022, ‘The year full of ups and downs has taught us a lot. This year we have made 9 acquisitions, which highlight the potential of education technology in India.
A lot has changed in the world after the Corona epidemic, it has taught us a lot. Byju’s will move forward with sustainable and profitable growth in the coming years.