Review financials of Byjus: Lok Sabha member tells ICAI

Lok Sabha member Karti Chidambaram has asked chartered accountants apex body ICAI to review the financials of edtech firm Byjus.

In a letter to ICAI President Debashis Mitra, the Parliamentarian said there are various red flags in the companys financials for 2020-21 period.

On the expenses front, the letter said that 60 per cent of the costs related to employees have been recognised as capital expenses rather than as operational costs.

“If these costs were counted as a direct expense, instead of a capital expense Byjus total loss for FY2021 would have gone over Rs 5,000 crore. Such irregular accounting practices fail to give a clear picture of Byjus income, expenses and losses,” the letter, dated October 14, said.

Citing various media reports, the Lok Sabha member said the company is not in a sound state of financial health and urged the ICAI to review its financial statements in the interest of consumers and employees.

The ICAI is the Institute of Chartered Accountants of India.

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)