Ministry of Corporate Affairs ordered inspection into BYJU’S: Report
The Ministry of Corporate Affairs has taken cognizance of various corporate governance lapses at edtech unicorn BYJU’S, said a report.
The Ministry of Corporate Affairs reportedly ordered an inspection against edtech majorlast week.
CNBC-TV18 has reported that the Ministry has taken cognizance of various corporate governance lapses at BYJU’S.
However, BYJU'S has denied the media reports.
"Media reports suggesting that MCA has ordered an inspection into BYJU'S are speculative, and denied by us. We have not received any such correspondence from MCA regarding this, and are not aware of any such inspection," a BYJU'S spokesperson told YourStory in response to emailed queries.
YourStory could not independently verify the report.
This report comes after the edtech unicorn was hit by a double whammy, with reports of three of its board members stepping down, and the auditing firm Deloitte Haskins & Sells resigning as BYJU’S and Aakash’s statutory auditor. BYJU’S has denied reports of three board members of the company resigning from their positions.
Deloitte attributed its resignation to the delay in the company filing its FY22 financial statements. BYJU’S has appointed BDO (MSKA & Associates) as its statutory auditor for the year commencing from FY22 for the next five years.
In April, BYJU'S appointed Ajay Goel as Chief Financial Officer amid a delay in filing the FY22 financials with the Registrar of Companies. In FY21, the edtech giant reported a loss of Rs 4,564.38 crore, which was larger than its FY20 loss of Rs 305.5 crore.
Additionally, the edtech major is facing challenges in securing substantial funding and resolving conflicts with creditors regarding a $1.2 billion term loan B (TLB).
BYJU’S has been grappling with escalating losses, workforce reductions, and unresolved loan obligations following the decline of the pandemic-driven edtech surge. Earlier this week, the edtech firm initiated yet another wave of job cuts, affecting over 1,000 individuals.
(Disclaimer: This article was updated with BYJU'S statement.)
Edited by Affirunisa Kankudti