Byju's Auditor BDO Resigns After Start Of Bankruptcy Proceedings, Company Says
(MENAFN- Khaleej Times)
Indian education technology company Byju's' auditor BDO Global has resigned after the startup did not provide documents requested following the start of insolvency proceedings, Byju's said on Saturday.
Byju's is fighting several battles including the insolvency proceedings and a $1 billion claim from U.S.-based Glas Trust.
BDO was appointed auditor earlier this year after Byju's' former auditor, Deloitte, left the company, citing several issues with the company's financial reporting.
The auditor said in a letter to the company dated Tuesday that despite "inordinate" delays in filing its financials for the year ended March 2023, management had provided inadequate support to complete the audit.
"We have reasons to believe that the management of the company lacks transparency with respect to providing full information to the auditor for their consideration and evaluation," BDO wrote in the letter, seen by Reuters.
Byju's defended its inability to provide the documents, saying in a statement that BDO had requested the materials from the firm's board, which has been suspended due to the insolvency proceedings. The letter should have been addressed to the insolvency professional in control of the firm at the time, the edtech firm said.
BDO in its email to the board said it had sought a detailed forensic review of transactions involving a Dubai-based subsidiary.
The auditor, in a statement to Reuters, said that it performed auditing procedures in accordance with the applicable standards and legal requirements, adding that its resignation letter is self-explanatory.
In its statement, Byju's called for a forensic audit of BDO's resignation by the insolvency professional, who was appointed by an Indian court.
Backed by General Atlantic, Byju's was valued at $22 billion in 2022, but it has seen its fortunes plummet due to many regulatory issues and more recently a dispute with U.S. banks demanding $1 billion in unpaid dues, triggering the company's insolvency, which led to an assets freeze.
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