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The embattled Indian edtech giant, Byju's, is facing a growing crisis with its CEO, Byju Raveendran, alleging that the company's former auditors, BDO, pressured them to backdate reports. This accusation comes amidst Byju's ongoing insolvency proceedings triggered by a legal dispute with the Board of Control for Cricket in India (BCCI). The company's management claims that BDO's resignation was a direct consequence of their refusal to comply with these alleged backdating requests.
Raveendran states that BDO, the audit firm, insisted on backdating multiple reports, a practice considered unethical and potentially illegal. He asserts that Byju's rejected these requests, maintaining they have nothing to hide. He further alleges that BDO, despite being aware of the insolvency proceedings, did not inform the court-appointed insolvency resolution professional (IRP). This omission, according to Raveendran, highlights the questionable conduct of BDO during this critical period.
Byju's management further emphasizes the ethical and legal implications of BDO's alleged actions. They assert that multiple call recordings exist, substantiating BDO's suggestions for backdating documents. They view this as the primary reason behind BDO's resignation. The company's statement also underscores BDO's lack of communication with the IRP despite the ongoing insolvency proceedings. They find this lack of communication 'surprising and suspicious.'
The allegations against BDO paint a stark picture of the challenges faced by Byju's. The edtech company, once a rising star in the Indian startup ecosystem, is now battling a myriad of issues, including financial struggles, legal disputes, and now, accusations of unethical behavior from its former auditors. The company's ability to navigate these complexities and emerge from this crisis remains uncertain.
Source: Auditor Suggested Backdating Reports, We Didn't Agree: Byju's CEO