New Delhi. Byju's, which is grappling with several issues, has got embroiled in a new controversy as its auditor BDO has resigned with immediate effect. He has highlighted several issues with the crisishit edtech firm, including delays in financial reporting and inadequate management support.
Last year, Byju's former auditor Deloitte resigned citing governance issues at the company.
In the resignation letter, BDO subsidiary MSKA said, “We have received inadequate support from the management of the company in providing us with the ledger accounts, information and clarifications sought by us and sufficient appropriate audit evidence to enable us to complete the audit for the financial year 202223.”
A Byju's spokesperson in a statement raised serious concerns about unethical requests made by the audit firm and “failure to follow proper procedures.”
“Several call recordings exist in which BDO representatives clearly suggested to backdate these documents, which Byju's refused to do. Byju's strongly believes that this is the main reason for his resignation,” the edtech firm said.
Byju's entered bankruptcy proceedings on July 16, 2024, due to a legal dispute with the Board of Control for Cricket in India (BCCI). This resulted in the appointment of an insolvency resolution professional (IRP), which in turn led to the suspension of the company's board.
According to the edtech firm, on July 17, BDO sent an email to Byju's suspended board, seeking certain clarifications regarding an earlier transaction Byju's had entered into with a Middle Eastbased partner.
Regarding the transaction with its Middle East partner, the edtech firm said, “We would like to clarify that the suspended board and management of Byju's, prior to their email on July 17, had taken the proactive step of arranging for a forensic audit, monitored by BDO, to ensure that there were no issues in a fully transparent manner.”
However, the forensic investigation could not be completed due to the commencement of bankruptcy proceedings on July 16. Byju's said that the suspended board cannot be held responsible for the failure to complete the forensic audit. The company hopes that the Supreme Court will soon cancel the bankruptcy admission order.
Byju's, once India's most valuable startup with a valuation of $22 billion, is currently surrounded by many controversies.
–
– /
Image Credit: KhasKhabar.