Byju’s auditor BDO resigns after bankruptcy proceedings begin, company says

Byju’s logo is seen in this picture taken on June 22, 2023. File photo | Photo credit: Reuters

Education technology company Byju’s auditor BDO Global has resigned after the startup failed to provide documents sought following the commencement of insolvency proceedings, Byju’s said on Saturday.

Byju’s is fighting multiple battles, including bankruptcy proceedings and a $1 billion claim from US-based Glass Trust.

BDO was appointed as auditor earlier this year after Byju’s former auditor Deloitte left the company citing several issues in the company’s financial reporting.

The auditor said in a letter to the company on Tuesday that despite the “inordinate” delay in filing financial statements for the year ended March 2023, the management had provided inadequate support to complete the audit.

“We have reasons to believe that the company’s management lacked transparency with respect to providing the auditor with complete information for his consideration and evaluation,” BDO wrote in the letter. Reuters,

Defending its inability to provide the documents, Byju’s said in a statement that BDO had requested the material from the firm’s board, which has been suspended due to the bankruptcy proceedings. The edtech firm said the letter should have been addressed to the insolvency professional in control of the firm at the time.

BDO said in its email to the board that it has sought a detailed forensic review of transactions involving its Dubai-based subsidiary.

The auditor did not respond to requests for comment about his resignation on Saturday.

In its statement, Byju’s sought a forensic audit of BDO’s resignation by an Indian court-appointed insolvency professional.

Byju’s, backed by General Atlantic, had a valuation of $22 billion in 2022 but its fortunes have seen a steep decline due to multiple regulatory issues and more recently a dispute with US banks seeking $1 billion of unpaid dues, which pushed the company into bankruptcy, leading to a freeze on its assets.