Think and Learn Pvt Ltd, the parent company of the edtech firm Byju’s, has announced plans to convene a board meeting during the second week of October to seek approval and adoption of its fiscal year 2022 results. This development first reported by Moneycontrol holds significant importance as the delay in reporting financials has been a source of concern for various stakeholders.
According to the Moneycontrol report, Byju’s has issued a statement indicating that the board of directors, in conjunction with the advisory council and select invitees, will formally endorse the audited financial accounts. It’s worth noting that the company’s current board is composed solely of its founders and their family members, namely Byju Raveendran, Divya Gokulnath, and Riju Raveendran, following the departure of investor board members. Subsequently, the company established an advisory council consisting of industry veterans, including Mohandas Pai and Rajnish Kumar.
While the audit of its financials has already been completed by its newly appointed auditor, BDO, and presented to the management, the formal adoption and approval of these results will occur during the expanded meeting in the second week of October. Special invitees are expected to include representatives from some of its major investors.
Byju’s statement regarding its FY22 financials comes several months after its previous auditor, Deloitte, resigned, citing prolonged delays in the financial statements for the year ending March 31, 2022. Deloitte also expressed concerns about unresolved audit report modifications for the year ending March 31, 2021, and the status of audit readiness for the financial statements and underlying records for the year ending March 31, 2022.
Deloitte’s resignation followed the departure of key board members (representatives from Peak XV, Prosus, and Chan Zuckerberg) who cited differences with founder Byju Raveendran on crucial operational matters.
In response, Byju’s appointed BDO (MSKA & Associates) as Deloitte’s successor and statutory auditors for the fiscal year commencing from FY22 for the next five years. BDO will also serve as the statutory auditor for the consolidated group and will audit Aakash Educational Services, which is preparing for an IPO. Additionally, the company brought in Ajay Goel, a veteran from Vedanta, as CFO, to expedite the audit process.
Recently, Byju’s named Arjun Mohan as the CEO of its India operations and unveiled a restructuring initiative that will affect over 4,000 employees.
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