Byju's Auditor BDO Quits Amid Bankruptcy Proceedings, Firm Confirms

Embattled edtech firm Byju's has responded strongly to the resignation of its former auditor, BDO (MSKA & Associates), which cited financial discrepancies and governance concerns.

Byju's countered by accusing BDO of unethical practices, including allegedly suggesting the backdating of financial reports.

The company stated, "Multiple call recordings exist, where BDO representatives explicitly suggest backdating these documents, which BYJU'S refused to do."

Byju's claimed its refusal to comply with such practices was the actual reason behind the auditor's resignation, rather than the concerns BDO publicly raised.

Earlier, BDO expressed doubts over Byju's ability to recover Rs 1,400 crore from a Dubai-based reseller, More Ideas General Trading LLC, and pointed to delays in financial reporting, inadequate management support, and ongoing litigation and liquidation proceedings as warning signs.

In response, Byju's criticised the auditor for requesting clarifications from the company's suspended board shortly after insolvency proceedings began on July 16, 2024.

According to Byju's, BDO failed to engage with the appointed Insolvency Resolution Professional (IRP), stating, "BDO's lack of communication with the IRP is surprising and suspicious."

Byju's further elaborated that it had initiated a forensic audit into its transactions with the Dubai-based partner prior to BDO's concerns, though the audit was paused due to insolvency proceedings.

Despite ongoing legal and financial struggles, Byju's reiterated its commitment to transparency and ethical conduct, asserting its readiness to support any future audit under the IRP's oversight.