The Ministry of Corporate Affairs ( MCA ) has tasked the Registrar of Companies ( ROC ) of Hyderabad to check the financial records of the Byju’s amid insolvency proceedings. This is a situation where the legal proceedings were still on even after the fall of the edutech giant.
The ROC was directed to submit the report within 1 year. This March, the ICAI president revealed that the auditors of Byju’s committed grave audit lapses. The same was under the review of the Financial Reporting Review Board ( FRRB ).
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Byju’s app was developed by Think and Learn Pvt. Ltd, a company which was established by Byju Raveendran in 2011. It’s been 13 years since the formation of the company and it has plummeted to zero valuation. The company witnessed a huge boom in its revenue during the Covid 19 period when people were locked up.
Since 2017, the Byju’s has acquired many other companies including TutorVista, WhiteHat Jr, Aakash Educational Services Ltd and many other International companies. It has invested huge amounts just for making acquisitions. The highest acquisition in amount is of the Aakash’s which was about 950 Million US Dollars.
The new examination on the Byju’s is to check whether it has diverted any funds. Recently, the Byju’s founder was accused of tampering with witnesses in the US court. The company is facing legal fights both in India and the USA. Last month, the Supreme Court of India overturned a bankruptcy tribunal’s ruling that had permitted Byju’s to negotiate debt settlements with a major creditor.
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