Byju’s Crisis: Edtech Platform Auditor BDO Resigns After Seeking Forensic Audit; Check Details
Byju’s auditor, BDO (MSKA & Associates) has reportedly resigned after requesting a forensic audit amid ongoing financial and governance issues, following Deloitte's earlier resignation, while Byju's founder Byju Raveendran alleged blackmail tactics in response.
New Delhi, September 7: Byju’s auditor has reportedly resigned amid escalating financial and governance issues. BDO (MSKA & Associates), the firm appointed as auditor for Byju’s and Aakash Educational Services last year, asked for a forensic audit. The development has added to the existing troubles for Byju's and its founder, Byju Raveendran. The resignation follows Deloitte's earlier departure citing irregularities.
As per a report of Money Control, Byju's auditor, BDO, resigned after seeking a forensic audit. BDO (MSKA & Associates), appointed in June 2023 after Deloitte’s resignation, stepped down amidst financial and governance concerns, as per a report of Business Today. Byju Raveendran, the founder of Byju's, alleged blackmail tactics in response to BDO’s actions. The firm had requested a forensic audit on July 17, a day after Byju's insolvency admission. According to statutory requirements, BDO could resign within 45 days if unsatisfied with the company’s response. Nepal Lifts Ban on TikTok: Nepal Telecommunications Authority Directs Internet, Mobile Providers To Restore Access to Short-Video App; Here’s Why.
BDO was appointed when Byju's was facing difficulties because they had delayed filing financial reports for the year 2022, which caused Deloitte to raise concerns and quit. Byju Raveendran, the CEO of Byju's, reportedly said that they cooperated with BDO's requests, except for those that would go against ethics and the law. He also mentioned that BDO confirmed there was no evidence of fraud in Byju's international transactions during a virtual board meeting. However, BDO's resignation comes at a time when Byju's is dealing with insolvency proceedings, employee and vendor dues, and other legal battles. Swiggy Files Legal Complaint Against Ex-Junior Employee for Embezzling Over INR 33 Crore.
As per reports, BDO wrote a letter to Byju's board and mentioned lack of transparency and cooperation from the company. BDO mentioned that ongoing litigation with lenders resulted in Byju’s losing control over some subsidiaries, hampering the preparation of consolidated financial statements. BDO's resignation letter also mentioned the filing of Form ADT 4, indicating fraudulent activities at Byju's.
(The above story first appeared on LatestLY on Sep 07, 2024 10:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).