The Central Government has ordered an inquiry into the Accounts Book of Education-Technology Company (EdTech) Byju. According to Bloomberg’s report, people with knowledge of the matter have told this. Last month, the company’s auditor and three board members resigned. The Ministry of Corporate Affairs has sought a report in six weeks. The information is not public, so the people told Bloomberg on condition of anonymity.
The government will take further steps based on the results of the investigation.
After this investigation, there will be an internal assessment of the company’s affairs and based on what comes out in the inspection, the government will decide whether there is a need to take the matter to the Serious Fraud Investigation Office.
This investigation is a new difficulty for Byju. The company was valued at $22 million in the last funding round. It had re-opened talks to restructure its $1.2 billion term loan after breaching certain terms of the debt agreement.
At one time wanted to know the company as a good example among the startups of the country. But now the company has cut thousands of jobs. With this, the company is preparing to raise more than one billion dollars to get out of the financial crisis.
Trouble continues for the company
According to the report, Byju’s spokesperson did not respond to e-mails and messages seeking comments. Along with this, an email sent to the Ministry of Corporate Affairs was also not immediately answered.
Deloitte Haskins & Sells had resigned as the auditor of Byju’s last month. He told the reason behind this was the delay in releasing the financial statement. Three influential board members Peak XV, Prosus NV and the Chan-Zuckerberg Initiative left the board this week. It also shows the rapidly decreasing trust inside the company.