In response to the ongoing crisis, Indian ed-tech firm Byju’s has assured shareholders that they will establish a board advisory committee to provide guidance and advice to the company’s CEO, Byju Raveendran, on various matters.
The company made this announcement during the extraordinary general meeting (EGM) held on July 4, which was convened specifically to address pressing concerns related to the company’s financial challenges and operations.
During the EGM, crucial matters were discussed, including ongoing negotiations with debt holders, updates on the timeline for completing the audit, and the proposal to establish a Board Advisory Committee (BAC), as reported by sources familiar with the development to Business Today.
CEO Byju informed shareholders that the Board Advisory Committee (BAC) would be established as a working group comprising independent directors.
The BAC, consisting of members with credible backgrounds and diverse corporate expertise, will provide valuable advice and guidance to the CEO on matters such as board composition and appropriate governance structures that align with BYJU’S scale, size, and performance aspirations.
Raveendran further stated that the company would soon establish a “world-class board” that aligns with BYJU’S ambitious goals. He mentioned that the details regarding the members and composition of the Board Advisory Committee (BAC) would be deliberated upon during the upcoming EGM, scheduled to take place in approximately three weeks.
New Auditor to troubleshoot auditing
Following the departure of Deloitte as the statutory auditor, the edtech company has appointed BDO (MSKA & Associates) as its new statutory auditor. Ajay Goel, the company CFO, stated that the new auditor would oversee the audit for Aakash Educational Services, WhiteHat Jr, Think & Learn Pvt. Ltd. (the parent company of Byju’s), as well as the entire group as a whole.
The resignation of Deloitte triggered debates and discussions regarding the financial condition and performance of the company. Furthermore, there were news reports indicating that the Ministry of Corporate Affairs has reportedly initiated an investigation into Byjus’ corporate practices, specifically related to governance guidelines and structures.
The company denied any ongoing investigation by the Ministry of Corporate Affairs (MCA) into its corporate governance practices.
CFO Goel confirmed that both the BDO and BYJU’S teams are actively involved in the audit process, which has already begun. The audit for most subsidiaries for the fiscal year 2022 has been completed successfully. However, the audit for Aakash, WhiteHat Jr, and Think & Learn Pvt. Ltd. is currently in progress, being conducted simultaneously, with the goal of optimizing the timelines.
The appointment of a new auditor brings the expectation that the market can anticipate the release of the company’s annual returns for the financial year 2022. Earlier, concerns of a potential collapse were raised due to significant delays in the release of financial statements for FY 2021. The Ministry of Corporate Affairs (MCA) had taken action as the company failed to meet several deadlines for finalizing the annual return.
