 "Prosus, Peak XV Partners, CZI confirm stepping down from Byju's Board")
After much delay, edtech player Byju’s board members Prosus and Peak XV Partners confirmed the resignations of their representatives.
On Thursday, Byju’s had denied that any of the board members have resigned. The announcement of the board members resignation also came as its statutory auditor, Deloitte Haskin & Sells also resigned due to delays in filing financial statements.
“We confirm that GV Ravishankar, MD, Peak XV Partners has resigned from the board of Think & Learn Pvt Ltd. We are committed to supporting the company for bringing on board an independent director in order to strengthen business processes and internal control mechanisms,” said spokesperson, Peak XV Partners.
Prosus, which holds about 9 per cent stake in the company also in a statement said: “Prosus confirms that Russell Dreisenstock, the representing Board Director from MIH Edtech Investments, B.V. (a Prosus entity) on the board of Think & Learn Private Limited, resigned from his position. The Company is required to file the resignation letter with the MCA in India within the required time period.”
A statement from Chan Zuckerberg Initiative (CZI) also confirmed the resignation in a statement. "We confirm that Vivian Wu of the Chan Zuckerberg Initiative has resigned from the board of Think & Learn Private Limited.”
Byju's too in a late Friday night statement confirmed the resignations. The company said that it has been engaging with investors in constructive discussions on the reconstitution of the board.
Also Read
"The need for reconstitution arose as few investors had to vacate the board seat due to their shareholding falling below a minimum required threshold as per our SHA," said a statement from Byju's spokesperson.
"We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale," said the statement.
In a letter to the board members of Think & Learn Private Limited, the parent company of Byju’s, Deloitte said: “The financial statements of the Company for the year March 31, 2022 are long delayed…we have not received any communications on the resolution of the audit report modifications in the respect of the year ended March 31, 2022, status of the audit readiness of the financial statements and the underlying books and records for the year ended March 31, 2022 and we have not been able to commence the audit as on date.”
Deloitte’s letter said the delay will have a significant impact on its ability to plan, design, perform and complete the audit in accordance with the applicable auditing standards.
Meanwhile Byju’s, in a statement said, it has appointed BDO (MSKA & Associates) as its statutory auditors for the year commencing from FY22 for the next five years.
The resignations by the auditor and board members complicate the troubles that the company is facing. It is already in a legal battle with lenders in the US. The company has filed a case in the New York Supreme Court.
The auditor and board member resignation come at a time when Byju’s have announced IPO plans for Aakash Educational Services by mid-next year.
Byju's spokesperson said “the management has been engaging with investors in constructive discussions on the reconstitution of the board at Byju's, including the induction of independent directors.
The need for reconstitution arose as few investors had to vacate the board seat due to their shareholding falling below a minimum required threshold as per our SHA.
We want to reassure all stakeholders that we are actively working towards constituting a diverse and world-class board commensurate with the company’s size and scale. Reuters