BYJU’s, after losing its auditor and three board members within a week, reached out directly to investors on June 24 to assure them that the startup will finally release its long-delayed financials and strengthen its accounting processes.

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In the shareholder meeting, Ajay Goel the Group Chief Financial Officer (CFO), said his primary focus has been to close the audited financials, sources told CNBC-TV18. Goel also provided the reason for appointing BDO MSKA Associates as the auditor for the next five years.

He also committed to closing the audit for FY22 and FY23 by the end of September and December, respectively. Additionally, Goel updated the shareholders that the audit for most subsidiaries for FY22 has been completed.

BYJU'S Founder and CEO Byju Raveendran also expressed his confidence in strengthening all the processes with the help of the general counsel and the newly-appointed CFO.

While talking about the board’s reconstitution, Raveendran mentioned the discussions that have been going on for several weeks. The company is looking to enhance its board, including the addition of independent directors. He clarified that although the board members had tendered their resignations, the company has not accepted them yet.

According to sources, the board members, Naspers and Sequoia, have also confirmed that the resignation of the auditor Deloitte and board members were unrelated. Outgoing independent directors also said auditor Deloitte was causing delays and complications in the results.

Also, Group General Counsel Roshan Thomas provided an update on the Term Loan B, mentioning that constructive negotiations are ongoing, and the company is hoping for a quick resolution. He added that further updates will be shared with the shareholders as more information becomes available.

Meanwhile, Raveendran asserted: “BYJU'S is not my work; it is my life.”

He also highlighted his personal investments in the company, including $400 million in the parent company, $250 million for the Aakash acquisition, and an additional $250 million through pledged secondary shares for the last funding round. Raveendran also said all the secondary sales done have been invested back in the company at the valuation of $22 billion.

Despite the challenges faced, most business verticals are performing well, he stated. They have acknowledged the company's past mistakes and assured shareholders that the learnings far outweigh any missteps, the CEO noted.

Also, BYJU’S has been making PF contributions with a lag of almost 3-4 months, according to data sourced from EPFO by Moneycontrol. In fact, for some employees, the data showed that BYJU’S made PF contributions for December 2022 only in June 2023.

The data obtained from EPFO suggests a delay in payment for most months. Upon reaching out to BYJU’S the company said, “This is to confirm that there are no pending PF payments towards employees. There are no dues.”

However, according to the EPFO data, only about 10,000-13,000 employees have received PF payments for January, February, and March. A majority of the employees are yet to receive their PF payments for the months of April and June.

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According to a Supreme Court ruling in February 2022, an employer is needed to cover damages if an employee’s PF contribution is delayed. Under the PF Act, companies are required to make PF contributions before the 15th of next month and if there is a delay in payments, employees can file a complaint with the EPFO against the employer.

Three directors of the edtech giant on Friday (June 23), resigned from the company’s board over how the business was being run, as per the sources. The three directors who resigned were G.V. Ravishankar of Peak XV erstwhile Sequoia Capital India, Vivian Wu of Chan Zuckerberg Initiative and Russell Dreisenstock of Prosus.

Following this, Deloitte also stepped down as auditor and BYJU’S appointed BDO MSKA Associates as auditor to strengthen "governance."

ALSO READ: Byju's may face a government probe, company says it hasn't got any notice so far

BYJU's leadership was in talks with the three board members who had quit from the company's board to reconsider their decision.

(Edited by : Keshav Singh Chundawat)

First Published:Jun 26, 2023 8:29 PM IST