New Delhi:Edtech major BYJU'S has committed its investor to close the long-pending audit of the financial year 2022 by September and fiscal year 2023 by December, according to sources aware of the development. In a call with shareholders on Saturday, BYJU'S CEO Byju Raveendran admitted his past mistakes and assured shareholders that his learnings far outweigh any missteps.
During the call, Raveendran acknowledged the resignation of board members but said that the company has not yet accepted them and information about their resignation was leaked out prematurely. "Byju Raveendran introduced Group CFO Ajay Goel on the call. Goel has committed to close the audit of financial year (FY) 2022 and FY 2023 by September and December respectively," a person who attended the call told PTI.
Audit firm Deloitte has resigned as auditors of BYJU'S citing a delay in submitting financial statements while almost simultaneously three of its board members resigned which indicated the deepening of the crisis at edutech decacorn. Deloitte Haskins & Sells, which was slated to audit Byju's until 2025, stepped down with "immediate effect" mid-term stating that "the financial statements of the company are long delayed."
BYJU'S board members, including GV Ravishankar, MD of early-backer Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus and Chan Zuckerberg's Vivian Wu resigned and sources said that they were also on the call. All three members on the call said that the resignation of auditors and their resignations were unrelated, another source said. BYJU'S General Counsel Roshan Thomas updated board members on the USD 1 billion Term Loan B dispute.
"Roshan provided an update on the TLB, mentioning that constructive negotiations are ongoing, and the company is hopeful for a quick resolution. He said that further updates will be shared with the shareholders as more information becomes available," the source said. Raveendran during the call updated shareholders that despite the challenges faced, most business verticals are performing well.
"Raveendra during the call highlighted his personal investments in the company, including USD 400 million in the parent company, USD 250 million for the Aakash acquisition, and an additional USD 250 million through pledged secondary shares for the last funding round," the source said. Reassuring the Board and shareholders, Byju Raveendran conveyed his conviction that, despite the challenges faced over the past year, the newly appointed CFO, along with the Group Counsel (GC), is steadfastly focused on strengthening all operational processes within the organization. He also mentioned that all the secondaries done have been invested back in the company at USD 22 billion valuation. An email query sent to BYJU'S on the details of the call elicited no reply. (PTI)
