Peak XV Partners, Prosus confirm resignation of Byju’s board members

After much delay, the board members of Edtech Byju Prosus and Peak XV Partners have confirmed the resignations of their representatives.

On Thursday, Byju denied that any of the board members had resigned. The announcement of the resignation of the members of the Board of Directors came after the resignation of the legal auditor, Deloitte Haskin & Sells, due to the delay in submitting the financial statements.

“We confirm that GV Ravishankar, Managing Director, Peak XV Partners has resigned from the Board of Directors of Think & Learn Pvt Ltd., and we are committed to supporting the company in appointing an independent director in order to strengthen business processes and internal control mechanisms,” said the spokesperson, Peak XV Partners.

Prosus, which owns about 9 percent of the company’s shares, also said in a statement: “Prosus confirms that Russell Dresenstock, Board Representative from MIH Edtech Investments, BV (Prosus entity) on the board of Think & Learn Private Limited, has resigned from The company is required to submit the letter of resignation to MCA in India within the required period of time.”

In a letter to members of the board of directors of Think & Learn Private Limited, Byju’s parent company, Deloitte said: “The company’s financial statements for the year March 31, 2022 have been delayed for a long time… We have not received any communication regarding the resolution of the audit report amendments in respect of the year ending on March 31, 2022, and the status of readiness to audit the financial statements, books, and basic records for the year ending on March 31, 2022, and we were unable to start the audit, and we are on a date.”

Deloitte’s letter said the delay would have a significant impact on its ability to plan, design, perform, and complete an audit in accordance with applicable auditing standards.

Meanwhile, Byju’s, in a statement, said it has appointed BDO (MSKA & Associates) as its statutory auditors for the year commencing FY22 for the next five years.

The resignations of the auditor and members of the board of directors complicate the problems faced by the company. He is already in a legal battle with US lenders. The company filed a case in the New York Supreme Court.

The resignation of the auditor and board member comes at a time when Byju has announced plans to go public with educational services company Aakash by the middle of next year.

A Byju spokesperson said: “Management has engaged with investors in constructive discussions about reconfiguring Byju’s board of directors, including the appointment of independent directors.

The need for restructuring arose as a few investors had to vacate the board seat due to their holdings falling below the minimum required as per SHA.

We want to reassure all stakeholders that we are actively working towards a diverse and world-class board of directors commensurate with the size and scale of the company. Reuters