Byju’s auditor BDO resigns after start of bankruptcy proceedings, firm says | Company News

Byju’s, an Indian education technology business, announced on Saturday that its auditor, BDO Global, has resigned. The reason for the resignation was that the startup had failed to deliver necessary documentation after the insolvency procedures began.
Byju’s is engaged in a number of legal disputes, including the bankruptcy process and a $1 billion lawsuit brought by the US-based Glas Trust.
Deloitte, Byju’s previous auditor, left the company earlier this year, alleging multiple problems with the company’s financial reporting. BDO was then appointed auditor.
In a letter dated Tuesday, the auditor informed the company that, in spite of “inordinate” delays in submitting its financial statements for the quarter ending in March 2023, management had not given enough assistance to finish the audit.

“We have reasons to believe that the management of the company lacks transparency with respect to providing full information to the auditor for their consideration and evaluation,” BDO wrote in the letter, seen by Reuters.
In a statement, Byju’s justified its incapacity to deliver the records, claiming that BDO had asked the materials from the company’s board, which has been put on hold because of the bankruptcy procedures. The edtech company stated that the letter ought to have been sent to the insolvency specialist in charge of the company at the time.
As stated in its communication to the board, BDO requested a thorough forensic examination of transactions pertaining to a subsidiary with its headquarters in Dubai.
Requests for comment regarding the auditor’s resignation on Saturday went unanswered.
In its statement, Byju’s demanded that the insolvency specialist—who had been appointed by an Indian court—do a forensic audit of BDO’s departure.
Byju’s, which was backed by General Atlantic, was estimated to be worth $22 billion in 2022. However, due to several regulatory problems and, more recently, a disagreement with US banks over outstanding debt of $1 billion, the company’s value has drastically declined, resulting in an asset freeze.

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