Byju's: Revenue Recognition, Delayed Audits and Insolvency

Last updated 30 Oct 2026, with the status of the insolvency process. Facts and figures are taken from court orders and the news reports listed under Sources. Where something is disputed or alleged, it is described as such. This is an educational case study, not legal or investment advice.

Why this case matters

Byju's, run by Think and Learn Pvt Ltd, was one of India's most highly valued startups during the pandemic boom in online learning. Within a few years it faced restated revenue, annual accounts filed many months after the due date, the resignation of two statutory auditors and an insolvency process started by a creditor.

For anyone who prepares, reviews or relies on financial statements, the case shows how revenue recognition, timely closing and auditor relationships connect. When one of them breaks, the others usually follow.

The business model

Byju's sold learning programmes to school students and exam aspirants: app-based video lessons, live online classes, and later offline tuition centres. It grew through heavy marketing and acquisitions, including test-prep and coding businesses.

Two features of the model matter for the accounts:

• Multi-year contracts paid upfront or financed. Many customers bought courses covering a year or more. Some paid through loans arranged with lending partners.
• Subsidies on financing. In some cases the company paid interest to loan partners on behalf of customers.

Both affect when, and how much, revenue should be recognised.

FY21: the revenue recognition change

Byju's reported its FY21 results in September 2022, which Reuters described as a delay of more than 17 months. According to the Indian Express, which read the auditor's notes, two changes were made:

1. Streaming revenue that was earlier recognised fully when a contract began was now recognised rateably over the contract period.
2. Interest paid to loan partners on behalf of customers was reclassified from finance cost and netted against revenue, because those payments were treated as payments to customers.

The company said about 40% of FY21 revenue was deferred to later years under the new approach.

Sources differ slightly on the FY21 loss. The Indian Express reported ₹4,588 crore in one article and ₹4,564 crore (consolidated) in another, and Reuters reported ₹4,564 crore. The Indian Express also reported that the company had spoken in media interviews of expecting about ₹8,000 crore ($1 billion) of FY21 revenue before the audited figure came out.

Why this is an Ind AS 115 question

Under Ind AS 115, revenue is recognised when, or as, the entity satisfies its performance obligations. A two-year streaming subscription is generally a service delivered over time, so recognising it all upfront front-loads revenue. Payments made to customers, or on their behalf, generally reduce the transaction price rather than being treated as an expense. The FY21 changes brought the accounts in line with those principles, at the cost of a large fall in reported revenue.

Accounts filed late

Private companies have to hold their AGM and file audited accounts within the time limits in the Companies Act, 2013. Ordinarily that means the AGM by 30 September after the year end. The Indian Express reported that the FY21 accounts missed that deadline by about 12 months, and that the Ministry of Corporate Affairs sought a response from the company in August 2022.

FY22 accounts came even later. Business Standard and other outlets reported them in January 2024, about 22 months late:

Two auditors resign

Deloitte, June 2023

Deloitte Haskins & Sells, appointed for five years until March 2025, resigned in June 2023. According to the Indian Express, its letter said the FY22 financial statements were long delayed, it had received no communication on resolving the audit report modifications for FY21, and it had not been able to start the FY22 audit. It said this would significantly affect its ability to plan and complete the audit in line with auditing standards. Byju's then appointed MSKA & Associates (a BDO member firm) for five years.

MSKA (BDO), September 2024

Reuters reported in September 2024 that MSKA had also resigned. According to the reports, it cited delays in the FY23 financial statements, lack of adequate support and audit evidence from management, and concerns about recovering certain dues. Byju's disputed this account and said the auditor had sought backdated information after the board was suspended in the insolvency process. Both positions are as reported; neither has been tested here.

Insolvency proceedings

The Board of Control for Cricket in India (BCCI), as an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code for unpaid dues of about ₹158.9 crore. As reported by LiveLaw, NCLT Bengaluru admitted it on 16 July 2024, started the corporate insolvency resolution process, declared a moratorium and appointed an interim resolution professional.

The NCLAT later approved a settlement between the BCCI and the company and closed the proceedings. On 23 October 2024, the Supreme Court set aside that NCLAT order, holding that the settlement route did not follow the IBC's procedure for withdrawal. As reported, it directed that the ₹158 crore paid under the settlement be held in escrow with the Committee of Creditors. Related proceedings continued after that; check the latest orders for current status.

Status in 2026: no new accounts, insolvency continuing

Filings. We found no audited financial statements for Think and Learn Pvt Ltd after FY22 (year ended 31 March 2022). News reports in 2024 said the company had not filed its FY23 or FY24 accounts, and we found no filed accounts for FY25 or FY26. That is why this case study has no FY26 figures: none have been published that we could verify. The Ministry of Corporate Affairs said in June 2024 that its proceedings against the company under the Companies Act were "still ongoing" and that no final conclusion should be drawn.

Insolvency. As of October 2026, the corporate insolvency resolution process was still running:

• The IBBI's public records list invitations for resolution plans issued by the resolution professional in September, November and December 2025, and news reports in October 2026 said the invitation for expressions of interest had been issued again.
• In August 2026, NCLT Bengaluru ordered status quo over certain auctioned assets after a group company disputed who owned them. As Business Standard reported, the tribunal did not decide ownership.
• The Kerala High Court refused to stay the insolvency process, as reported by LiveLaw, while admitting a review petition that alleges a document used by a lenders' trustee was forged. That allegation has not been decided.

What went wrong, in finance terms

• Revenue policy was out of step with the model. Selling long contracts and subsidising customer financing calls for over-time recognition and net revenue. Fixing that later meant a large restatement.
• The close process couldn't keep up with growth and acquisitions. Consolidating many newly acquired subsidiaries, each with its own systems, takes discipline. Late accounts were reported for several years in a row.
• Auditor issues were not resolved. Audit modifications that stay unaddressed tend to lead to wider disagreements.
• Working capital and creditor management. The insolvency case itself began with an operational creditor's unpaid dues, a reminder that liquidity, not just reported profit, decides survival.

Finance, accounting and audit lessons

1. Match revenue to delivery. For subscriptions and courses, identify each performance obligation and recognise revenue over the period it is delivered.
2. Treat payments to customers carefully. Subsidised interest, cashbacks and discounts usually reduce revenue under Ind AS 115.
3. Make the statutory calendar non-negotiable. Board approval, audit sign-off, AGM and MCA filings have legal deadlines. Missing them invites regulatory attention and damages lender confidence.
4. Respond to audit modifications in writing and on time. An auditor's request for evidence is a signal, not a negotiation.
5. An auditor's resignation is a red flag for every stakeholder. Lenders, investors and employees read it that way. Under the Companies Act, a resigning auditor has to file a statement with the reasons, which becomes a public record.
6. Watch the small creditors. A dispute over ₹158.9 crore started a process affecting the whole company.

Key takeaways

• About 40% of FY21 revenue was deferred after the revenue recognition change, and reported revenue fell to ₹2,428 crore.
• FY21 and FY22 accounts were filed many months late. The FY22 loss was reported at ₹8,245 crore.
• Deloitte (June 2023) and MSKA/BDO (September 2024) both resigned, citing delays and audit-evidence issues that the company disputed in MSKA's case.
• A creditor's Section 9 petition led to insolvency admission in July 2024. The Supreme Court set aside the NCLAT's closure of the case in October 2024, and the process was still running in October 2026.
• No audited accounts after FY22 could be found, so there are no FY26 figures to report.

Frequently asked questions

Sources

1. The Indian Express: Byju's FY21 loss rises 17x; revenue calculation method changed
2. The Indian Express (Explained): How Byju's losses rose in delayed FY21 results
3. Reuters: Byju's fiscal 2021 loss swells to $574 mln (Sept 2022)
4. The Indian Express: Byju's auditor (Deloitte) quits (June 2023)
5. Business Standard: Byju's FY22 losses widen to ₹8,245.2 crore
6. LiveLaw: NCLT Bengaluru admits BCCI's insolvency plea against Think and Learn
7. Supreme Court of India: judgment in Civil Appeal No. 9986 of 2024 (23 Oct 2024)
8. Reuters: Byju's auditor BDO resigns (Sept 2024)
9. IBBI: resolution process records for Think & Learn Pvt Ltd
10. Business Standard: NCLT orders status quo on auctioned assets (Sept 2026)
11. LiveLaw: Kerala High Court refuses to stay Byju's insolvency
12. The Indian Express: MCA says proceedings against Byju's still ongoing (June 2024)
13. Inc42: MCA refutes reports of clearing Byju's; FY23 and FY24 accounts not filed

General information only, not professional advice. Rules change; check the current law and your facts before acting.