Byju’s auditor BDO Global resigns after the edtech firm fails to provide requested documents amid insolvency proceedings. Byju’s seeks forensic audit of the resignation.
Bollywood Fever: Indian education technology giant Byju’s announced on Saturday that its auditor, BDO Global, has resigned after the company failed to provide documents requested during ongoing insolvency proceedings.
The embattled startup, valued at $22 billion in 2022, has been grappling with financial turmoil following regulatory challenges and a dispute with U.S. banks over $1 billion in unpaid dues.
Byju’s defended its inability to submit the required documents, explaining that the materials were requested from the company’s board, which had been suspended as part of the insolvency process.
According to Byju’s, BDO’s request was directed to the suspended board instead of the insolvency professional overseeing the firm at the time.
In response to BDO’s resignation, Byju’s called for a forensic audit of the auditor’s decision. The request has been made to the insolvency professional, who was appointed by India’s top court to manage the proceedings.
Byju’s has experienced a steep decline in fortunes, moving from a peak valuation of $22 billion to insolvency proceedings after U.S. banks demanded repayment of $1 billion, leading to a freeze on the company’s assets.
The situation has raised concerns about the future of the once-thriving edtech leader, which is backed by prominent investors such as General Atlantic.
Byju’s ongoing financial troubles and regulatory issues continue to create uncertainty as the company seeks to resolve its legal and financial challenges.
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