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

The Corporate Affairs Ministry has ordered an investigation into the books of Byju’s, an edutech company that has been in trouble for the last few months. Byju’s has delayed filing financial statements and the company is also facing corporate governance issues. This ministry, which enforces the Companies Law, will investigate Bengaluru-based Think & Learn, which runs the Byju’s brand.

The company has not finalized its financial statements and its auditor has resigned. Earlier this month, the ministry closed the office of the Regional Director in Hyderabad. company Instructed to investigate. A senior government official said that further action will be decided after receiving the investigation report. A query sent to Byju’s regarding this did not receive a response. Think & Learn was started about 12 years ago. Its last Annual General Meeting was held in September last year. It is facing many issues. This includes concerns about corporate governance practices.

Audit firm Deloitte Haskins & Sells had resigned as the company’s auditor, citing delays in financial statements. Apart from this, three of the company’s board members have also resigned. This indicates increasing problems for Byju’s. Sources with knowledge of the company had said last month that Byju’s has promised its investors to get the audit done by September for the financial year 2022 and by December for the financial year 2023. Recently, Byju’s CEO, Byju Raveendran admitted his past mistakes and assured shareholders that there would be no further irregularities.

Earlier, this company was also accused of selling learning packages through unfair means. Many parents had complained that Byju’s sells learning packages to students by giving wrong information and later the company refuses to give refunds. However, no strict action was taken against the company regarding this.