The Ministry of Corporate Affairs has ordered that books a ok’s, a government official said Monday as edtech faces a number of challenges, including delays in submitting financial information and concerns about corporate governance.
The supervision of Bengaluru-based Think & Learn, which operates under the Byju’s brand, will be done by the ministry, which implements the corporate law.
The ministry decided to conduct the inspection after finding out what had happened, including that the company had failed to complete its financial statements and that the auditor had resigned, the official told PTI.
Earlier this month, the ministry asked the Regional Director’s office in Hyderabad to show the company, which was registered in Bengaluru, the official said.
The official said that action will be taken after receiving the inspection report.
A query sent to Mr Byju seeking comment on the transport was not answered.
Think & Learn Pvt Ltd was incorporated on November 30, 2011. The last Annual General Meeting of the company was held on September 19, 2022, according to the information obtained by the ministry.
In recent months, the edtech giant has been grappling with a number of challenges, including concerns about its governance structure.
Audit firm Deloitte has resigned as Byju’s auditor over delays in submitting financial statements while three board members have resigned indicating a growing crisis at the edtech company.
Deloitte Haskins & Sells, which was supposed to evaluate Byju until 2025, downgraded it “immediately” in the interim period saying that “the company’s financial situation is delayed.” Last month, sources familiar with the development said Byju had committed to its investor to close the audit for financial year 2022 by September and financial year 2023 by December.
In a call with shareholders last month, Byju CEO Raveendran acknowledged his past mistakes and assured shareholders that the lessons learned outweighed any mistakes.
Last week, the company said that former SBI CEO Rajnish Kumar and IT TV veteran Mohandas Pai will join the Advisory Council.