The government has ordered a review of Byju’s account books, a titan of education technology that was recently rocked by the resignations of its auditor and three board members, according to the sources.
The people, who asked to remain anonymous since the material is private, claimed that the Ministry of Corporate Affairs had requested a report within six weeks. The government will determine whether the matter needs to be escalated to the Serious Fraud Investigation Office based on the inspection’s findings after an internal evaluation of the company’s state of affairs.
Byju’s, which was valued at $22 billion in the most recent funding round, will have to deal with the inspection as it reopens talks to restructure its $1.2 billion term loan after breaking some of the terms of its debt agreement. The company, which was once a shining example of India’s vibrant startup industry, has eliminated thousands of jobs and is now looking to raise more than a billion dollars to get by during tough times financially.
Byju’s auditor, Deloitte Haskins & Sells, resigned last month, claiming a holdup in providing financial results. Peak XV, Prosus NV, and Chan-Zuckerberg Initiative representatives all resigned from Byju’s board of directors in the same week, highlighting a dramatic decline in trust among employees.
Thousands of jobs have already been eliminated by the corporation, which is now looking to raise more than a billion dollars to get by during tough times financially.
In an effort to address persistent business concerns, Byju’s founder Byju Raveendran called an extraordinary general meeting (EGM) last week.
He informed the stockholders that the company will establish a Board Advisory Committee (BAC) to advise the CEO on issues relating to the makeup of the board and the best governance model for Byju’s.
The BAC will serve as a working group consisting of independent directors with credible backgrounds and relevant experience from diverse corporate fields, Raveendran said in a statement to shareholders.
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