Amid escalating regulatory scrutiny, the Institute of Chartered Accountants of India (ICAI) has called out the auditors of edtech giant Byju's for "gross negligence," igniting concerns over financial integrity. <o:p></o:p>

ICAI president Ranjeet Kumar Agarwal&nbsp;has expressed his&nbsp;institution's disapproval of Byju's auditors' practices during a recent event. <o:p></o:p>

This comes after&nbsp;the resignation of Deloitte Haskins and Sells as Byju's statutory auditor in June 2023 on grounds of delayed financial statements&nbsp;for FY22. Subsequently,&nbsp;BDO's audit arm MSKA &amp; Associates assumed the auditing responsibilities. <o:p></o:p>

The ICAI's scrutiny has, however, uncovered glaring irregularities, prompting a rigorous three-tier review process. <o:p></o:p>

Agarwal emphasised that the disciplinary committee of ICAI will scrutinise the conduct of Byju's auditors, potentially leading to punitive measures. <o:p></o:p>

In a bid to address mounting concerns over financial accountability, Byju's released its audited financial statements for the 2022 fiscal year in February, revealing a staggering consolidated net loss of Rs 8,245 crore ($994 million) alongside revenue of Rs 5,015 crore ($605 million). <o:p></o:p>

This disclosure further fuelled apprehensions regarding the company's financial stability and governance practices.<o:p></o:p>

Meanwhile, shareholders of Byju's, unanimously voted to oust founder and CEO Byju Raveendran and his family members from the board in February, citing alleged mismanagement, as reported by NDTV Profit.<o:p></o:p>

However, Byju's refuted the legitimacy of the voting process, dismissing it as "invalid and ineffective," adding to the ongoing tumult surrounding the company's leadership and corporate governance.

Paytm also faces scrutiny

In parallel, the ICAI's deliberations extended to the crisis-ridden payments behemoth Paytm, as regulatory authorities intensify efforts to uphold financial transparency and accountability. <o:p></o:p>

With the Reserve Bank of India (RBI) barring Paytm Payments Bank from conducting business from March 15, the scrutiny over its financial affairs amplifies.<o:p></o:p>

As regulators&nbsp;tighten their&nbsp;grip on corporate entities, industry stakeholders stress the importance&nbsp;of increasing public trust in financial reporting and governance frameworks. <o:p></o:p>

Ajay Bhushan Prasad Pandey, the chairman of the National Financial Reporting Authority, has highlighted the pivotal role of auditors in fortifying corporate governance. He also emphasised&nbsp;the need for strong mechanisms to ensure transparency and accountability across all levels of corporate operations.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

Amid escalating regulatory scrutiny, the Institute of Chartered Accountants of India (ICAI) has called out the auditors of edtech giant Byju's for "gross negligence," igniting concerns over financial integrity.

Amid escalating regulatory scrutiny, the Institute of Chartered Accountants of India (ICAI) has called out the auditors of edtech giant Byju's for "gross negligence," igniting concerns over financial integrity. ICAI president Ranjeet Kumar Agarwal has expressed his institution's disapproval of Byju's auditors' practices during a recent event. This comes after the resignation of Deloitte Haskins and Sells as Byju's statutory auditor in June 2023 on grounds of delayed financial statements for FY22. Subsequently, BDO's audit arm MSKA & Associates assumed the auditing responsibilities. The ICAI's scrutiny has, however, uncovered glaring irregularities, prompting a rigorous three-tier review process. Agarwal emphasised that the disciplinary committee of ICAI will scrutinise the conduct of Byju's auditors, potentially leading to punitive measures. In a bid to address mounting concerns over financial accountability, Byju's released its audited financial statements for the 2022 fiscal year in February, revealing a staggering consolidated net loss of Rs 8,245 crore ($994 million) alongside revenue of Rs 5,015 crore ($605 million). This disclosure further fuelled apprehensions regarding the company's financial stability and governance practices. Meanwhile, shareholders of Byju's, unanimously voted to oust founder and CEO Byju Raveendran and his family members from the board in February, citing alleged mismanagement, as reported by NDTV Profit. However, Byju's refuted the legitimacy of the voting process, dismissing it as "invalid and ineffective," adding to the ongoing tumult surrounding the company's leadership and corporate governance. Paytm also faces scrutiny In parallel, the ICAI's deliberations extended to the crisis-ridden payments behemoth Paytm, as regulatory authorities intensify efforts to uphold financial transparency and accountability. With the Reserve Bank of India (RBI) barring Paytm Payments Bank from conducting business from March 15, the scrutiny over its financial affairs amplifies. As regulators tighten their grip on corporate entities, industry stakeholders stress the importance of increasing public trust in financial reporting and governance frameworks. Ajay Bhushan Prasad Pandey, the chairman of the National Financial Reporting Authority, has highlighted the pivotal role of auditors in fortifying corporate governance. He also emphasised the need for strong mechanisms to ensure transparency and accountability across all levels of corporate operations. (With inputs from PTI)

Byju's regulatory scrutiny: Auditors accused of 'gross negligence' amid doubts on financial integrity

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Byju's regulatory scrutiny: Auditors accused of 'gross negligence' amid doubts on financial integrity