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Byju’s faces government inspection amid financial and governance concerns
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By Nithya Bose in Business News, posted July 19, 2023
The Ministry of Corporate Affairs has ordered an inspection of the leading ed-tech company Byju's, according to a senior government official.
The Bengaluru-based Think & Learn Pvt Ltd, operating under the brand Byju's, faces mounting challenges, including delayed submission of financial statements and corporate governance concerns.
The ministry is responsible for implementing company laws and will inspect responses to various developments.
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It includes Byju's failure to finalize its financial statements and the resignation of its auditor, the official told PTI.
Recently, the ministry directed the Regional Director's office in Hyderabad to initiate an inspection of the company registered in Bengaluru.
The course of action will be determined after receiving the inspection report.
Despite attempts to obtain comments from Byju's regarding the inspection, the company has yet to respond.
Read More: Byju’s faces mounting troubles as auditor and directors resign
Think & Learn Pvt Ltd was established on November 30, 2011, with its most recent Annual General Meeting held on September 19, 2022, based on available information from the ministry.
In recent months, Byju's has encountered multiple challenges, particularly concerning its corporate governance practices.
Audit firm Deloitte resigned as Byju's auditor, citing delayed submission of financial statements.
Additionally, three board members resigned, further intensifying the crisis within the edtech firm.
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Deloitte Haskins & Sells, originally appointed as the company's auditor until 2025, abruptly stepped down, stating that "the financial statements of the company are long delayed."
Sources said last month that Byju's has committed to its investors to conclude the long-pending audit for the fiscal year 2022 by September and for the fiscal year 2023 by December.
During a recent shareholder call, Byju's CEO Byju Raveendran admitted his mistakes and assured shareholders that his experiences and knowledge far outweigh any missteps.
Byju's announced the addition of former SBI chief Rajnish Kumar and IT industry veteran T V Mohandas Pai to its Advisory Council.
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