Byju’s Slams BDO’s Resignation: Calls Auditor’s Exit ‘Escapist and Legally Untenable

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Byju’s Hits Back at BDO’s Resignation: Calls Auditor’s Exit ‘Escapist and Legally Untenable

Kolkata, India – September 7, 2024 – In a dramatic turn of events, edtech giant Byju’s has responded forcefully to the resignation of its auditor, BDO, branding the exit as “escapist and legally untenable.” This development comes amid a series of escalating challenges for the company, which has been grappling with financial instability and legal battles.

The Resignation

**Title:** "Byju’s Hits Back at BDO’s Resignation: Calls Auditor’s Exit ‘Escapist and Legally Untenable’" — **Title:** “Byju’s Hits Back at BDO’s Resignation: Calls Auditor’s Exit ‘Escapist and Legally Untenable’”

BDO, which was appointed as Byju’s auditor in 2023 following the resignation of Deloitte, cited a lack of transparency and cooperation from Byju’s management as the primary reasons for its departure. The firm claimed that Byju’s failed to provide necessary documents and responses, particularly concerning transactions in its Middle Eastern operations. BDO’s resignation notice was sent on July 17, 2024, a day after Byju’s entered insolvency proceedings.

Byju’s Response

Byju’s founders, Byju Raveendran and Divya Gokulnath, have hit back at BDO’s resignation, accusing the firm of procedural failures and an “escapist” move. In a strongly worded statement, they questioned the legality of BDO’s resignation, given the company’s insolvency status and the suspension of its board at the time the resignation was tendered.

“Blaming the suspended board for not taking action on a notice sent after the insolvency process has started is baseless, escapist, and legally untenable,” the founders stated. They emphasized that the board was not in a position to accept the resignation or appoint a new auditor until the insolvency process was in place.

Broader Implications

The resignation of BDO and the subsequent response from Byju’s highlight significant issues in corporate governance and transparency within the company. This ongoing crisis has raised concerns among investors and stakeholders about the future of Byju’s and its ability to navigate through these turbulent times.

Corporate Governance: The resignation points to potential lapses in corporate governance at Byju’s, which could have long-term implications for the company’s reputation and operational integrity.

Investor Confidence: The public spat between Byju’s and its auditor is likely to shake investor confidence, making it more challenging for the company to secure future funding and support.

Future of Edtech: As one of the leading players in the edtech sector, Byju’s struggles could have a ripple effect on the industry, influencing investor sentiment and regulatory scrutiny across the board.

Conclusion

Byju’s response to BDO’s resignation underscores the deepening crisis at the edtech giant. As the company navigates through insolvency proceedings and attempts to restore its credibility, the broader implications for corporate governance, investor confidence, and the future of the edtech sector remain to be seen.

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