Sept 7 (Askume) – Indian education technology company Byju’s auditor BDO Global has resigned after the startup failed to provide documents requested following the start of bankruptcy proceedings, Byju’s said on Saturday.
Byju is fighting many battles includingincluding bankruptcy proceedings and a $1 billion claim from the Glass Trust in the United States .
BDO was appointed as auditor after Byju’s former auditor Deloitte left the company earlier this year citing several issues in financial reporting.
The auditor said in a letter to the company on Tuesday that management had provided inadequate support to complete the audit despite an “inordinate” delay in submitting financial statements for the year to March 2023.
“We have reason to believe that the company’s management has lacked transparency in providing the auditors with complete information for their consideration and evaluation,” BDO wrote in the letter seen by Askume.
Byju’s defended its inability to provide the documents, saying in a statement that BDO had requested the material from the company’s board, which is suspended due to bankruptcy proceedings. The ad tech company said the letter should have been addressed to the bankruptcy professional who controlled the company at the time.
In an email to its board, BDO said it had sought a detailed forensic review of transactions relating to the Dubai unit.
In a statement to Askume, the auditor said it conducted its audit procedures in accordance with applicable standards and legal requirements and said its resignation was self-evident.
In a statement, Byju’s asked Indian court-appointed insolvency professionals to conduct a forensic audit of BDO’s resignation.
General Atlantic-backed Byju’s, which was valued at $22 billion in 2022, went bankrupt amid multiple regulatory issues and a dispute with Bank of America over paying $1 billion in unpaid dues.
