Byju's Auditor BDO Resigns Amid Bankruptcy Proceedings, Company Reveals
Byju's auditor, BDO Global, resigns post insolvency proceedings initiation. Concerns raised over management's lack of transparency in providing essential information for audit. Byju's calls for forensic audit of BDO's resignation by insolvency professional.
Byju's stated on Saturday that the startup failed to furnish requested documents following the initiation of the insolvency process.
The company is currently embroiled in a number of legal battles, including insolvency proceedings and a significant US$1 billion claim from Glas Trust, based in the United States. BDO took over as auditor earlier this year after Byju's previous auditor, Deloitte, resigned over multiple concerns about the company's financial disclosure.
In a letter dated Tuesday, BDO expressed frustration with significant delays in submitting financial reports for the fiscal year ending March 2023, citing inadequate management support to facilitate the audit process. The auditor expressed concern about the company's lack of transparency in providing necessary information for assessment.
Byju's defended its failure to provide the requested documents, stating that BDO had sought materials from the board, which was inactive due to the insolvency proceedings. Byju's clarified that the correspondence should have been addressed to the insolvency professional in charge of the firm during that period.
In an email to the board, BDO requested a comprehensive forensic examination of transactions involving a Dubai-based subsidiary. In a statement to Reuters, the auditor affirmed adherence to auditing standards and legal obligations, claiming that the resignation letter speaks for itself.
Byju's requested a forensic audit of BDO's resignation by the appointed insolvency professional, as required by an Indian court. Despite being valued at US$22 billion in 2022 and backed by General Atlantic, Byju's has faced a number of setbacks, including regulatory challenges and a recent dispute with US creditors demanding US$1 billion in outstanding payments, which resulted in the company's insolvency and asset freeze.
Byju's auditor, BDO Global, resigns post insolvency proceedings initiation
Concerns raised over management's lack of transparency in providing essential information for audit
Byju's calls for forensic audit of BDO's resignation by insolvency professional
Source: REUTERS