Byju Co-founder Divya Gokulnath Claims Media Coverage Of Its 2021 Financial Results Were Misleading.
September 21, 2022: Byju co-founder Divya Gokulnath said Tuesday that a report on the edtech major’s financial results is sensational to focus solely on the company’s losses after releasing an audited financial report last week. said.
On the professional networking site LinkedIn, Divya Gokulnath compared his Byju findings to the release of the Bollywood film Brahmastra.
She said, “I’m sure you’ve ‘seen’ our results. But have you seen the big picture? Because, just like movie reviews, in this age of sustained attention for his 280-character reading, sensationalism gets more clicks than truth,” Divya Gokulnath wrote in the post.
Divya Gokulnath said there was nothing wrong with the articles written about Byjus (most of the reports were positive), but there was a problem with the headlines.
“But some headlines are another matter. It’s easy to forget that in 18 months of the fiscal year, we turned 21 and Byju grew more than fourfold in that period and was cut in half in 2022,” she added.
Divya Gokulnath also tried to justify her claim by citing examples from five different headlines reported in the media and rebutting what those headlines should be.
ET was the first company to report that Byju’s operating profit for the fiscal year ending March 2021 has been adjusted to Rs 2280 crore.
Year. India’s Most Valuable Startup Byju`s has adjusted its unaudited earnings for fiscal year 21 following two key changes he requested from the official accounting firm, Deloitte Haskins & Sells.
First, the way revenue is recognized has changed. For example, if a company sells its 3-year course, then record all payments as revenue in the same fiscal year.
Auditors said it should be deferred over that period. The figure marks a sharp drop of 48% from a projected revenue of around Rs 4400 crore given in the unaudited results of Think & Learn Pvt Ltd, an ed-tech-run edtech company undergoing heavy scrutiny of its accounting practices.
“While there was an audit delay, the fraudulent account went wrong…as you are implying, there were no false reports…I spoke on the phone with several investors.
But they don’t care so no one cares. When you look at the 2021 numbers, the 2022 and 2023 numbers, they care about it,” Byju Raveendran told ET. Last month, the Ministry of Enterprises (MCA) sent a notice to Byju asking him to explain why financial accounts for FY21 had not been provided until now.
|Are you an
Entrepreneur or Startup?
Do you have a Success Story to Share?
SugerMint would like to share your success story.
We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
Read more Business News at SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn