Byju S: Byju’s troubles reaches ‘board level’, what the resignation letter says – Times of India

Edtech major Byju’s troubles continue. Three members of the company’s board, as well as its official auditor Deloitte, have reportedly resigned. According to a report in Economic Times, early backer GV Ravishankar, who is managing director at Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus (previously Naspers) and Chan Zuckerberg Initiative’s Vivian Wu, have stepped down from the board, these people said.The development comes at a time when the Bengaluru-based edtech has been engulfed by court cases with lenders, loan defaults, valuation markdowns by existing investors and a much-delayed filing of its financial results for the year ending March 31, 2022.
The resignations are yet to be accepted by the company, the sources said.
Following Deloitte’s exit, Byju’s said it has appointed BDO (MSKA & Associates) as its statutory auditor for five years from fiscal year 2022. BDO will cover holding company Think and Learn, its subsidiaries such as Aakash Education Services as well as the overall group’s consolidated results.
On Thursday, a Byju’s spokesperson said a media report suggesting the resignations of board members from the company is entirely speculative. “Byju’s firmly denies these claims. Any significant developments or changes within our organisation are shared through official channels and announcements,” the statement added.
Upset over Byju’s financial statements’ delay
In a letter dated June 22, Deloitte noted that Byju’s financial statements for fiscal year 2022 are long delayed. “In accordance with the Companies Act, 2013, the audited financial statements for the year ended March 31, 2022, were due to be laid before shareholders in the annual general meeting by September 30, 2022,” the note said. “We have also not received any communication on the resolution of the audit report modifications in respect of the year ended March 31, 2021, status of 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. As a result, there will be a significant impact on our ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards.”

“In view of the aforesaid, we are tendering our resignation as statutory auditors of the company with immediate effect,” Deloitte informed the board of directors of Byju’s.
ET claims to have seen the letter. “All three investors have collectively decided to resign…There are ongoing discussions between the company and shareholders, but the move signals the growing rift between shareholders and the company,” said another person in the know of the matter.