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Byju's, an Indian education technology company, announced on Saturday that its auditor, BDO Global, had resigned. The reason for the resignation was that the startup had failed to provide requested documents after the insolvency proceedings began.
The reason to resign
The materials were requested from the firm's board, which has been suspended because of the insolvency proceedings, Byju's said in a statement, defending its inability to provide them.
The education technology company claimed that BDO's email requesting documents was sent to a suspended board rather than the insolvency specialist in charge of the company at the time.
BDO's appointment
In light of financial and governance issues, BDO (MSKA & Associates), which was named Byju's and Aakash Educational Services' auditor last year, has left the troubled edtech company. Following Deloitte's departure from the company due to multiple concerns regarding the financial reporting of the organization, BDO was appointed for a five-year term.
Byju's demand for forensic review of resignation
Byju's also demanded that the insolvency expert, who was chosen by India's apex court, conduct a forensic review of BDO's resignation.
Supported by General Atlantic, Byju's was estimated to be worth USD 22 billion in 2022. However, the company has seen a sharp decline in value as a result of numerous regulatory problems and, more recently, a disagreement with US banks over unpaid debt that resulted in the company's insolvency and an asset freeze.
Lawsuits against Byju's
The US-based creditor Glas Trust Company LLC's appeal against the NCLAT's ruling has been scheduled for an early hearing by the Supreme Court. The NCLAT had earlier authorized Byju's Rs 158.9 crore dues settlement with the BCCI and halted the insolvency proceedings against the ed-tech company.
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Senior attorney NK Kaul, representing BYJU's, urged a bench made up of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra to expedite the case's hearing.
The US-based creditor's senior attorney, Kapil Sibal, also asked for an early hearing.
