For the past few months, the education technology company Byju’s has been entangled in difficulties, and the Ministry of Corporate Affairs has ordered an investigation into the company’s accounts. Byju’s has delayed submitting its financial statements, and there are also issues related to corporate governance within the company. The Ministry, responsible for implementing corporate laws, will conduct an investigation into Think & Learn, based in Bangalore, which runs the Byju’s brand.
The company has not finalized its financial statements, leading to the resignation of its auditor. Earlier this month, the Ministry directed the regional director’s office in Hyderabad to conduct the company’s investigation. A senior government official mentioned that once the investigation report is received, further actions will be decided upon. Byju’s has not responded to the questions sent to them about this matter. Think & Learn was established approximately 12 years ago and faced several challenges, including concerns regarding corporate governance practices.
Deloitte Haskins & Sells, the audit firm, resigned as the company’s auditor, citing the delay in financial statements. Additionally, three members of the company’s board have also resigned. These developments indicate increasing troubles for Byju’s. Sources familiar with the matter had previously revealed that Byju’s had promised its investors to complete the audits for the financial year 2022 by September and for the financial year 2023 by December. Recently, Byju Raveendran, the CEO of Byju’s, admitted to past mistakes and reassured shareholders that there will be no further irregularities.
Prior to this, the company had faced accusations of selling learning packages using improper methods. Many parents had complained that Byju’s provided incorrect information to students while selling learning packages and later refused to provide refunds. However, no significant action was taken against the company regarding these complaints.