Ministry Of Corporate Affairs Orders Inspection Against Edtech Major Byju's: Report

The Ministry of Corporate Affairs reportedly ordered an inspection against edtech major Byju's last week. 

According to media reports, Ministry has taken cognizance of various corporate governance lapses at BYJU’S. However, BYJU'S has denied the media reports.

This report comes after the edtech unicorn suffered a double blow, with reports of three board members stepping down and the auditing firm Deloitte Haskins & Sells resigning as Byju's and Aakash's statutory auditor. Byju's has rejected speculation that three of the company's board members had resigned.

Deloitte ascribed its departure on the company's failure to file its FY22 financial results on time. Byju's hired BDO (MSKA & Associates) as its statutory auditor for the fiscal year beginning in FY22 and continuing for the next five years.

Following a delay in completing the FY22 financials with the Registrar of Companies, Byju's appointed Ajay Goel as Chief Financial Officer in April. The edtech giant posted a loss of Rs 4,564.38 crore in FY21, which was higher than the loss of Rs 305.5 crore in FY20.

Furthermore, the edtech giant is having difficulty acquiring significant finance and resolving disputes with creditors regarding a USD 1.2 billion term loan B (TLB).

Following the decline of the pandemic-driven edtech surge, Byju's has been dealing with growing losses, employee reductions, and unresolved debt liabilities. Earlier this week, the edtech company announced yet another round of layoffs, affecting over 1,000 people.