New Delhi: Byju’s, the Indian education technology giant has announced that its auditor, BDO Global has resigned. The decision came after the company failed to provide the necessary documents following the start of insolvency proceedings, Byju’s said on Saturday. This marks another challenge for the startup as it navigates ongoing financial difficulties.
The Edtech firm is currently facing multiple challenges, including insolvency proceedings and a 1 billion dollar claim from US-based Glas Trust. BDO’s resignation follows the exit of its previous auditor, Deloitte, who speed down over a year ago due to concerns about Byju’s financial reporting.
In a letter sent on Tuesday, BDO Global stated that despite “inordinate” delays in submitting financials for the year ending March 2023, Byju’s management did not provide enough support to complete 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,” According to the letter seen by Reuters, BDO stated its concerns.
Byju’s explained that it couldn’t provide the requested documents because BDO had asked the company’s suspended board due to the insolvency proceedings. The edtech firm stated that the letter should have been addressed to the insolvency professional managing the company at that time.
In an email to the board, BDO stated it had requested a thorough forensic review of transactions related to a Dubai-based subsidiary. The auditor did not respond to inquiries about its resignation on Saturday.
Byju’s has requested a forensic audit of BDO’s resignation by the insolvency professional appointed by an Indian court. Once valued at 22 billion dollars in 2022 and backed by General Atlantic, Byju’s has faced a sharp decline due to regulatory challenges and a recent dispute with U.S. banks over 1 billion dollars in unpaid dues, leading to its insolvency and an asset freeze.
