Byju’s Ropes In New Auditor After Deloitte Resigns
Audit firm Deloitte has resigned as the auditor of edtech company Byju’s, citing a significant delay in the submission of financial statements. Deloitte had been scheduled to audit Byju’s until 2025 but stepped down, stating that the delays would impact its ability to perform the audit according to standards. Byju’s has appointed BDO as its new auditor, emphasizing its commitment to maintaining high standards of financial scrutiny and accountability.
Simultaneously, three board members of Byju’s, including GV Ravishankar of Peak XV Partners, Russell Dreisenstock of Prosus, and Vivian Wu of Chan Zuckerberg, have resigned. The reasons for their resignations are not immediately known. Currently, the Byju’s board consists of the founder family members, including CEO Byju Raveendran, his wife Divya Gokulnath, and brother Riju Raveendran.
Byju’s is facing a $1.2 billion loan payment issue and recently skipped a $40 million repayment, leading to a lawsuit against its lenders over alleged harassment in loan recovery.
Deloitte’s resignation comes as a result of a long delay in Byju’s financial statements for the fiscal year ending March 31, 2022. Deloitte had been in contact with Byju’s management but had not been able to commence the audit, leading to the decision to resign.
Byju’s has clarified that media reports about the resignations of board members are speculative and has urged reliance on official sources for accurate information. The company has appointed BDO as its new auditor, which will conduct a comprehensive audit covering the holding company and its subsidiaries to ensure transparency and financial performance assessment.
Ajay Goel, Byju’s new group CFO, joined the company recently, and the audit process is expected to start soon. Byju’s expressed confidence in BDO’s capabilities and expertise in auditing globally diversified large-scale companies.
BDO is currently known as one of the top five global audit firms in terms of turnover and provides audit services to companies like ICICI, Cisco, and IndusInd Bank.
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