Sat Sep 07 11:26:23 UTC 2024: ## Byju’s Loses Second Auditor in a Year Amidst Financial and Governance Concerns

**Bengaluru, India** – Embattled edtech startup Byju’s has been dealt another blow as its statutory auditor, MSKA & Associates (BDO), resigned with immediate effect. This comes just over a year after Deloitte, the company’s previous auditor, stepped down, citing problems with financial reporting.

BDO’s resignation was prompted by concerns over “financial” and “governance” issues, including delays in financial reporting, lack of management support, and concerns over recovering outstanding dues from a Dubai-based entity.

Byju’s claims that BDO’s real motive was its refusal to backdate financial reports, while BDO allegedly recommended a firm capable of facilitating such an illegal activity. BDO has also highlighted a suspicious transaction involving More Ideas General Trading LLC, a Dubai-based reseller, and reported it to the corporate affairs ministry.

The company is currently facing insolvency proceedings initiated by the Board for Control of Cricket in India (BCCI) over unpaid dues. Despite a settlement attempt, the Supreme Court stayed the order, allowing the constitution of a committee of creditors.

Byju’s has defended itself, claiming that a forensic audit was initiated to address BDO’s concerns but was interrupted by the insolvency process. The company has also criticized BDO’s lack of communication with the insolvency resolution professional.

The loss of its second auditor in a year further intensifies the scrutiny surrounding Byju’s financial transparency and governance practices, adding to the challenges the company faces as it navigates through insolvency proceedings.

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