Byju’s in Big Trouble over Financial Issues, Government Orders Investigation Against Company

The Corporate Affairs Ministry has ordered an inquiry into the books of edutech company Byju’s, which has been in trouble for the past few months. Byju’s has delayed submission of financial statements and there are corporate governance issues with the company. Bengaluru-based Think & Learn, which runs the Byju’s brand, will be investigated by the ministry, which enforces the Companies Act.

The company has not finalized its financial statements and its auditor has resigned. earlier this month ministry Office of the Regional Director at Hyderabad company An inquiry was ordered. A senior government official said further course of action would be decided after receiving the report of the probe. A query sent to Byju’s went unanswered. Think & Learn was started almost 12 years ago. Its last Annual General Meeting was held in September last year. It is facing many issues. This includes apprehensions about corporate governance practices.

Audit firm Deloitte Haskins & Sells had resigned as the company’s auditor citing delay in financial statements. Apart from this, three of the company’s board members have also resigned. This portends trouble for Byju’s. Sources in the know of the company told last month that Byju’s has promised its investors to get the audit done by September for FY2022 and by December for FY2023. Recently, Byju’s CEO, Byju Raveendran acknowledged his past mistakes and assured the shareholders that there would be no more wrongdoings.

Earlier this company was also accused of selling learning packages in wrong ways. Many parents have complained that Byju’s sells learning packages to students with false information and later the company refuses to refund them. However, no strict action was taken against the company regarding this.