BYJU'S to close long pending 2022 audit
The edtech CEO has admitted his past mistakes and assured shareholders that his learnings far outweigh any missteps
image for illustrative purpose
New Delhi Edtech major BYJU’S has committed its investor to close the long-pending audit of the financial year 2022 by September and fiscal year 2023 by December, according to sources aware of the development.
In a call with shareholders on Saturday, BYJU’S CEO Byju Raveendran admitted his past mistakes and assured shareholders that his learnings far outweigh any missteps. During the call, Raveendran acknowledged the resignation of board members, but said that the company has not yet accepted them and information about their resignation was leaked out prematurely.
“Byju Raveendran introduced Group CFO Ajay Goel on the call. Goel has committed to close the audit of financial year (FY) 2022 and FY 2023 by September and December respectively,” a person who attended the call said.
Audit firm Deloitte has resigned as auditors of BYJU’S citing a delay in submitting financial statements, while almost simultaneously three of its board members resigned which indicated the deepening of the crisis at edutech decacorn. Deloitte Haskins & Sells, which was slated to audit Byju's until 2025, stepped down with immediate effect mid-term stating that the financial statements of the company are long delayed.
BYJU'S board members, including GV Ravishankar, MD of early-backer Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus and Chan Zuckerberg's Vivian Wu resigned, and sources said that they were also on the call. All three members on the call said that the resignation of auditors and their resignations were unrelated, another source said.
BYJU'S General Counsel Roshan Thomas updated board members on the $1 billion Term Loan B dispute. "Roshan provided an update on the TLB, mentioning that constructive negotiations are ongoing, and the company is hopeful for a quick resolution. He said that further updates will be shared with the shareholders as more information becomes available," the source said.
Raveendran during the call updated shareholders that despite the challenges faced, most business verticals are performing well. "Raveendran during the call highlighted his personal investments in the company, including $400 million in the parent company, $250 million for the Aakash acquisition, and an additional $250 million through pledged secondary shares for the last funding round," the source said.
