Jobaaj Stories
Last week, India’s corporate affairs ministry reportedly ordered an inspection of the education startup Byju’s, as stated by CNBC -TV18, citing insider sources. According to the news channel's report, the ministry has taken note of many Byju's corporate governance failures.
Concurrently, three board members of Byju's, G V Ravishankar of Sequoia Capital, Vivian Wu of Chan Zuckerberg Initiative, and Russell Dreisenstock of Prosus, have reportedly resigned. Additionally, the company's statutory auditor, Deloitte Haskins, and Sells, has distanced itself, stating that Byju's has delayed filing its financial results for FY22.
“The financial statements of the company for the year March 31, 2022, are long delayed. We have not received any communications on the resolution of the audit report modifications in the respect of the year ended March 31, 2022, status of the audit readiness of the financial statements and the underlying books and records for the year ended March 31, 2022 and we have not been able to commence the audit as on date. In view of the above. we are tendering our resignation as statutory auditors of the company with immediate effect,” Deloitte said in a statement.
Byju's, on the other hand, has dismissed the reports of board member resignations as speculative. The company strongly denies these claims and asserts that any significant developments or changes within the organization are communicated through official channels.
In addition to these challenges, Byju's is also facing a dispute with lenders who allege that the company concealed $500 million, leading to a lawsuit by lender Redwood Management. The situation remains dynamic, with ongoing developments and conflicting statements from different parties involved.
— Harshita Kumar
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