Ministry of Corporate Affairs ordered inspection into Byju’s

The Ministry of Corporate Affairs(MCA) has reportedly ordered an inspection against edtech major BYJU’S last week. According to media reports, the Ministry has taken notice of significant corporate governance failures at BYJU’s.

This revelation comes after the edtech unicorn suffered a double blow, with reports of three board members leaving down and the auditing firm Deloitte Haskins & Sells resigning as BYJU’s and Aakash’s statutory auditor. BYJU’S has rejected rumours that three of the company’s board members had resigned.

Deloitte ascribed its departure on the company’s failure to file its FY22 financial results on time. BYJU’S has engaged BDO (MSKA & Associates) as its statutory auditor for the financial year beginning in FY22 and continuing for the next five years.

Following a delay in completing the FY22 financials with the Registrar of Companies, BYJU’s recruited Ajay Goel as Chief Financial Officer in April. The edtech giant posted a loss of Rs 4,564.38 crore in FY21, which was higher than the loss of Rs 305.5 crore in FY20.

Furthermore, the edtech major is having difficulty acquiring significant finance and settling disputes with creditors involving a $1.2 billion term loan B (TLB).

Following the fall of the pandemic-driven edtech surge, BYJU’s has been dealing with growing losses, employee cutbacks, and unresolved debt liabilities. Earlier this week, the edtech business announced yet another round of layoffs, affecting over 1,000 people.