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BDO resigns as auditor of Byju’s due to financial and governance concerns, including delayed financial reporting and insufficient management support.
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The auditor raises concerns about a questionable transaction involving a Dubai-based reseller and doubts about the company’s ability to recover outstanding payments.
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Byju’s faces multiple challenges, including a Supreme Court ruling to recommence insolvency proceedings and allegations of oppression and mismanagement by minority shareholders.
Byju’s auditor, BDO (MSKA & Associates), has resigned amid financial and governance concerns. The auditor cited significant delays in financial reporting, insufficient management support, and doubts about the company’s capacity to recover substantial outstanding payments from a Dubai-based entity.
BDO’s resignation letter also mentioned a questionable transaction involving a Dubai-based reseller and concerns about various ongoing litigations against Byju’s and its board. The auditor noted instances where Byju’s failed to share critical information with the auditing team.
Byju’s is facing a string of challenges, including a recent Supreme Court ruling to recommence insolvency proceedings against the startup. The company’s financials have been under scrutiny, with a consolidated loss of Rs 8,245 crore reported for the fiscal year ending March 31, 2022.
