Indian education technology company Byju’s has announced that its auditor, BDO Global, has resigned. The resignation followed the startup’s failure to provide requested documents amid ongoing insolvency proceedings.
Byju’s faces multiple challenges, including the insolvency case and a $1 billion claim from U.S.-based Glas Trust. Earlier this year, BDO replaced Deloitte as the company’s auditor. Deloitte had left due to issues with Byju’s financial reporting.
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In a letter dated Tuesday, BDO cited delays in filing financials for the year ending March 2023. The firm claimed that Byju’s management provided inadequate support for completing the audit.
BDO expressed concerns about a lack of transparency from Byju’s management. The auditor said it had reasons to believe that full information was not being provided.
Byju’s responded by explaining that BDO requested documents from the suspended board. The company stated that the letter should have been addressed to the insolvency professional overseeing the firm.
BDO also requested a detailed forensic review of transactions involving a Dubai-based subsidiary. The auditor did not comment on its resignation on Saturday.
Byju’s has called for a forensic audit of BDO’s resignation by the insolvency professional appointed by an Indian court. Backed by General Atlantic, Byju’s was valued at $22 billion in 2022. However, it has faced regulatory issues and a dispute with U.S. banks over $1 billion in unpaid dues, leading to insolvency and an asset freeze.
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