Byju’s crisis Deepens As BDO Resigns Over Financial Issues

Byju’s crisis has deepened with the resignation of its second auditor, BDO, highlighting ongoing financial issues within the embattled edtech company. BDO, which took over auditing duties from Deloitte last year, cited significant problems including delays in financial reporting and insufficient management support as reasons for its departure. This resignation follows Deloitte’s exit, which was also attributed to governance concerns.

The resignation letter from BDO’s subsidiary, MSKA, detailed a lack of cooperation from Byju’s in providing necessary financial records and audit evidence for the fiscal year 2022-23. The firm also accused Byju’s of not adhering to proper procedures and making unethical requests, including pressures to backdate reports. Byju’s, however, refutes these claims, alleging that BDO’s resignation stems from disagreements over backdating documents and unethical practices.

The company, now in insolvency proceedings since July 16, 2024, due to a legal dispute with the Board of Control for Cricket in India (BCCI), has seen its board suspended. Byju’s had initiated a forensic audit to address historical transactions with a Middle Eastern partner, but insolvency proceedings hindered its completion. The company is challenging the insolvency order and remains mired in controversy, affecting its $22 billion valuation and operational stability.