Byju's account books on radar as Centre orders inspection: Report
edtech startup Byju's. It has sought a report in six weeks, the Bloomberg News reported, citing people familiar with the matter. A media report (Hindu Business Line) on July 8 said the SFIO, a multi-disciplinary organization under the Ministry of Corporate Affairs (MCA), has begun its probe against Byju's.
The ministry has already examined the legalities and the procedures for making a reference to SFIO over the last few days, one of the people cited above said on condition of anonymity. However, the company has denied the report that the Serious Frauds Investigation Office (SFIO) is probing into its alleged financial reporting compliance failures and governance lapses.
"Byju's has not received any communication from the SFIO to date," the firm told Mint. The report added that the move arrived after CA Institute’s Financial Reporting Review Board (FRRB) undertook a review of Byju’s financial statements for two financial years: 2019-20 and 2020-21. Meanwhile, in June, three directors — GV Ravishankar of Peak XV Partners (Sequoia Capital India), Russel Dreisenstock of Prosus, and Vivian Wu of Chan Zuckerberg Initiative — stepped down from Byju’s Board. They cited differences with founder Raveendran.
While the statutory auditor of Byju’s -- Deloitte, Haskins & Sells -- resigned on the same day. Byju's had now decided to set up a Board Advisory Committee (BAC) to mitigate the backlash on corporate governance issues.
The BAC was formed to advise Byju Raveendran, on Board composition and governance structure. On Wednesday, Raveendran said to shareholders at an emergency Extraordinary General Meeting that the BAC will serve as a working group consisting of independent directors who have relevant experience from diverse
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