BYJU’S is facing multiple types of challenges, including a delay in submitting its financial statements and concerns over corporate governance, according to a senior government official, and the corporate affairs ministry has ordered an inspection of the company’s books.
The inspection will be conducted against Bengaluru-based Think & Learn Pvt Ltd, which controls Byju’s. The inspection will be done by the ministry, which is in charge of carrying out the law regarding companies.
Byju’s has been dealing with various types of challenges, such as the departure of three board members, issues with its auditor, and concerns about corporate governance.
The BYJU’S auditors, Deloitte Haskins, and Sells, resigned in June due to delays in submitting its financial statements. In addition, board members Vivian Wu of the Chan Zuckerberg Initiative, Russell Dreisenstock of Prosus, and GV Ravishankar of Peak XV Partners (Sequoia Capital India) all announced their resignations.
Challenges Mount for Byju’s Amidst Inspection Report’s Significance and Ongoing Investigations
The Hyderabad Regional Director’s office recently received a request from the Ministry of Corporate Affairs to inspect the Bengaluru-registered company.
The officer said that the inspection report would be used to determine any additional steps. According to earlier reports, Think and Learn Pvt. Ltd. anomalies could be investigated by the Serious Fraud Investigation Office (SFIO).
In addition to ongoing lawsuits with lenders over a $1.2 billion loan, a growing shareholder gap, board resignations, delayed financial reports, and an ongoing Enforcement Directorate investigation into possible FEMA violations, Byju’s has been facing a multitude of challenges.
Byju’s has announced the formation of a new Advisory Council in an attempt to strengthen governance.
Former State Bank of India chairman Rajnish Kumar and former Infosys CFO TV Mohandas Pai have joined the council, which will be crucial in guiding and mentoring Byju’s board and CEO Byju Raveendran.
“The founders of Byju’s are pleased to announce that Rajnish Kumar and TV Mohandas Pai have accepted their invitation to join the company’s newly constituted Advisory Council. This council will play a pivotal role in advising and mentoring Byju’s Board and its CEO, Byju Raveendran, on crucial matters that shape the company’s future,” Byju’s said in a statement.
In a press statement, Pai said, “Byju and Divya are among the most impressive entrepreneurs I have worked with from the start-up ecosystem. Since our first contact more than a decade ago, they have built the largest tech company globally and amongst the largest start-ups in India. I see in them the drive to build the group into a successful corporation, and to ensure they deliver upon their mission in this sector as a category creator and market leader.”
Both council members expressed hope for the future of the company and a commitment to improving governance and financial reporting standards. They believe Byju’s will continue to flourish and make a significant contribution to the field of education with the guidance of experienced advisors and professionals.
