BYJU’S plans to hold AGM to discuss audited FY22 financials, other matters

BYJU'S has planned to conduct an Annual General Meeting (AGM) later this month to deliberate on audited financials of the fiscal year 2021-22 (FY22) and discuss other matters.

The Bengaluru-based firm has informed the members/shareholders of Think & Learn Private Limited, the parent company of BYJU’S, about the scheduled meeting on December 20, according to a note to shareholders. YourStory has seen a copy of the note.

The edtech company’s audited financial statements, both standalone and consolidated, for FY22, along with the report of the board of directors and auditors, will be considered during the meeting, as per the note.

Last month, BYJU’S released specific financial figures related to its core business as part of the audited financial results for FY22. The company has not revealed the net loss from its core business, and didn't disclose the consolidated revenue and profit/loss figures for FY22 either.

Apart from reviewing the financials for FY22, BYJU’S intends to discuss the appointment of MSKA & Associates as the statutory auditors for the company, covering a five-year term until FY 2026-27, according to the note.

Additionally, there are plans to address the remuneration of B Y & Associates—the company's cost accountants and cost auditors—spanning from FY22 to FY24.

YourStory has reached out to BYJU’S for comments.

In June, auditing firm Deloitte Haskins & Sells stepped down as BYJU’S and Aakash’s statutory auditor, attributing the resignation to the delay in the company filing its FY22 financial statements. Subsequently, BYJU’S appointed BDO (MSKA & Associates) as its statutory auditor for the next five years, starting from FY22.

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BYJU’S challenges

BYJU'S would hold the AGM meeting at a time when the company is fighting various challenges, including a liquidity crunch.

On Saturday, BYJU’S acknowledged a delay in the processing of salary for some of its employees due to an “unexpected technical glitch”. 

“The issue is being rectified over the weekend and payment will be processed by Monday,” a BYJU’S spokesperson had said in response to YourStory’s queries.

The edtech firm is said to have credited pending November salaries to about 1,000 employees on Monday.

BYJU’S Founder and Chief Executive Officer Byju Raveendran has reportedly pledged his home as well as those owned by his family members to raise money for paying employees.

Pledging two homes owned by Raveendran’s family in Bengaluru, along with his under-construction villa in Epsilon, the edtech borrowed $12 million and utilised the funds to pay salaries to 15,000 of its employees on Monday, Bloomberg reported.

Earlier on Monday, the National Company Law Tribunal (NCLT) issued a notice to BYJU’S parent in response to a petition filed by the Board of Control for Cricket in India (BCCI), which claims dues of Rs 158 crore under Section 9 of the Insolvency and Bankruptcy Code, 2016.

BYJU’S received the order on November 28 and the next hearing is slated for December 22.

The NCLT order noted, “It is stated that the General notice was issued to BYJU’s vide email dated 06.01.2023 and the default amount of Rs.158 Cr. excluding TDS...”

It added, “...Two weeks is granted to the Respondent [BYJU’S] to file reply and one week thereafter is granted to the Applicant [BCCI] to file rejoinder, if any, after duly serving the copy on the other side.”

BYJU’S, which rapidly grew through strategic acquisitions, has encountered significant challenges post the pandemic-led edtech boom. It has also come under the scanner of the Enforcement Directorate.