MCA to inspect edtech giant Byju’s

NEW DELHI: Compounding trouble for edtech major Byju’s amid multiple headwinds, including delay in submitting financial statements and concerns over corporate governance issues, the Ministry of Corporate Affairs (MCA) ordered an inspection of the books of Bengaluru-based unicorn.

The ministry decided to carry out the inspection of Think & Learn Pvt Ltd, which operates under the brand Byju’s, after taking note of the developments, including that the company has been unable to finalise its financial statements and that its auditor has resigned, said a senior government official.

Earlier this month, the Ministry asked the office of the Regional Director in Hyderabad to conduct an inspection of the company, the official said, and added that the further course of action would be decided after receiving the inspection report. A query sent to Byju’s seeking comments remained unanswered.

Think & Learn Pvt Ltd was incorporated on November 30, 2011. The last Annual General Meeting of the company was held on September 19, 2022, as per data available with the ministry.

In recent months, the edtech giant has been grappling with multiple issues, including concerns over its corporate governance practices. Deloitte Haskins & Sells, which was slated to audit Byju’s until 2025, stepped down with “immediate effect” citing delay in submitting financial statements while simultaneously three of its board members resigned, indicating the deepening of the crisis.

Last month, sources said Byju’s has committed to its investor to close the long-pending audit of the financial year 2022 by September and fiscal year 2023 by December. In a call with shareholders last month, CEO Byju Raveendran admitted his past mistakes and assured shareholders that his learnings far outweigh any missteps.

Last week, the company said former SBI chief Rajnish Kumar and IT industry veteran TV Mohandas Pai will join its Advisory Council.