BYJU's crisis: CEO Raveendran admits past mistakes, FY 2022 audit to be completed by September
By Team Newsable | First Published Jun 26, 2023, 6:11 PM ISTByju's crisis: CEO Byju Raveendran admitted past mistakes in a call with shareholders. Admitting facing challenges in the past year, he told shareholders that the company is looking to add more independent Directors.
The $22 billion edtech giant's corporate governance and financial situation have raised worries, and CEO Byju Raveendran acknowledged prior errors in a teleconference with shareholders. The Byju’s founder also assured shareholders that any missteps are far outweighed by his learnings, PTI reported citing sources aware of the development. Byju's pledged to finish the long-overdue audit of the fiscal year 2022 by September of this year at the same call. According to further business commitments, the FY23 audit will be finished by December.
Raveendran also acknowledged the recent resignations of board members in the call. He explained to investors that their resignations had not yet been accepted and that there had been an untimely disclosure of the information.
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According to a person who attended the call informed PTI, the individual said: “Byju Raveendran introduced Group CFO Ajay Goel on the call. Goel has committed to close the audit of financial year (FY) 2022 and FY 2023 by September and December respectively."
Also Read | Big blow to BYJU's as auditor Deloitte, 3 board members resign
Raveendran further assured the shareholders that despite the challenges faced by Byju’s, most business verticals are performing well. The CEO further mentioned his personal involvement in the business, including USD 400 million in the parent company, USD 250 million for the acquisition of Aakash, and an additional USD 250 million through pledged secondary shares for the most recent fundraising round, according to reports.
Deloitte, an auditing company, had previously resigned from its role as Byju's auditors due to a delay in the production of financial results. Deloitte Haskins & Sells, which was contracted to audit Byju's until 2025, announced its resignation with "immediate effect" in the middle of the term, citing "the company's financial statements are long delayed."
Following that, the ed-tech company named BDO as its new auditor, claiming that doing so would help it "uphold the highest standards of financial scrutiny and accountability."
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