Byju’s Update: Edtech company Byju’s troubles are about to increase. The Central Government has ordered the Ministry of Corporate Affairs to investigate Byju’s accounts. It has been asked to submit the report of the investigation within six weeks. Earlier it was reported that the SFIO (Serious Fraud Investigation Office) has also started an investigation against Byju’s, although the company denied it.
According to the Bloomberg report, there was a competition of resignations in Byju. From the company’s auditor to three board members had resigned last month. The Ministry of Corporate Affairs has decided to investigate Byju’s accounts after the findings of the company’s internal assessment came to the fore. After this, the government will decide whether there is a need to investigate with SFIO as well or not.
No statement has come from Byju’s on the investigation of the Ministry of Corporate Affairs. The Ministry of Corporate Affairs has also not said anything so far. However, due to this investigation, Byju’s trouble may increase as the company is preparing to negotiate afresh to restructure the term loan of $ 1.2 billion after violating some terms of the debt agreement.
Last month, Deloitte Haskins & Sells resigned as auditor due to delayed submission of Byju’s financial statements. Apart from this, representatives of Peak XV, Prosus NV and Chan-Zuckerberg Initiative resigned from the board of Byju. Due to these resignations, the image of Byju’s has got a big blow.
Byju is working on a plan to raise one billion dollars to come out of the financial crisis. But most of the company has been in discussion about the layoffs done in recent times. Last month’s news came that Byju’s is preparing for Layoffs. About 500 to 1,000 full-time employees are estimated to be affected in this retrenchment. Due to slowing down of growth and tough macroeconomic conditions, the company is trying to reduce expenditure. In October last year too, Byju’s had said that it may lay off 2500 employees to cut costs.
Read also
a href ="https://www.abplive.com/business/income-tax-department-informed-about-2-crore-itr-filing-till-11-july-said-it-is-a-milestone-2450630">Income Tax Return: So many crore income tax returns were filed till July 11, this milestone was touched 9 days ago
