Byju’s calls AGM on Dec 20 to approve FY22 financials amid cash flow and debt concerns
Scheduled for December 20, the primary agenda of the meeting is to seek the approval of the audited financials for the fiscal year 2022.
- Dec 4, 2023,
- Updated Dec 4, 2023 11:50 PM IST
Grappling with mounting challenges in cash flows and debt repayment, Byju’s has called for an Annual General Meeting (AGM). Scheduled for December 20, the primary agenda of the meeting is to seek the approval of the audited financials for the fiscal year 2022.
The AGM will include considerations on appointing MSKA & ASSOCIATES as statutory auditors, the company informed its shareholders in a letter, a copy of which has been reviewed by Business Today. Shareholders will also discuss approval of remuneration for B Y & ASSOCIATES, the company's cost accountants and auditors, covering the fiscal years 2022, 2023, and 2024.
Also Read: 'Always fully compliant': Byju Raveendran to shareholders on FEMA compliance
In early November, Byju’s announced the closure of its year-long delayed audited financial accounts for FY22, marking a crucial milestone in its efforts to address criticism and stage a comeback. The embattled edtech major reported a 2.3x growth in revenues for FY22 for its core business, encompassing K12 learning programmes. While revenues surged to Rs 3,569 crore in FY22 from Rs 1,552 crore in FY21, operating loss narrowed to Rs 2,253 crore in FY22, from Rs 2,406 crore in FY21. However, the company did not release the numbers for its subsidiaries. With a portfolio of over 30 entities, Byju’s is poised to submit the comprehensive standalone and consolidated reports in the weeks ahead, pending approval at the AGM.
The Byju Raveendran-led firm was under immense pressure from investors and regulators for the delay. Its audited numbers for FY21 were also filed after a year-long delay, in September 2022, while the FY23 results have already missed the regulatory deadline.
The call for AGM arrives at a crucial juncture, as the company navigates through a series of challenges, including being dragged to the National Company Law Tribunal (NCLT) by The Board of Control for Cricket in India (BCCI) and a delay in November salary payments for a segment of its employees.
The BCCI has filed a request with the NCLT in Bengaluru, seeking to commence corporate insolvency proceedings against Byju’s. The petition is in connection with a defaulted payment of Rs 158 crore, as specified in the contractual terms for sponsoring the jerseys of the Indian cricket team. The NCLT has allowed Byju’s a two-week window to submit a response in the case, followed by an additional week for the BCCI to file a rejoinder.
“We are in discussions with BCCI to settle the matter and we hope to achieve that soon,” a Byju’s spokesperson said.
Meanwhile, the company delayed the payment of November salaries for a segment of its employees, which it has attributed to an "unexpected technical glitch" in the payroll system. As per a Bloomberg report, Byju's founder Byju Raveendran pledged his under-construction villa and his family members' homes worth Rs 100 crore to pay salaries to employees. Two homes owned by Raveendran's family in Bengaluru and his under-construction villa in Epsilon — the most exclusive gated community in the city — were offered as collateral to borrow $12 million (approx Rs 100 crore). The startup used the funds to pay salaries to 15,000 employees in Byju's parent firm, Think & Learn Pvt, on Monday, the report said.
Grappling with mounting challenges in cash flows and debt repayment, Byju’s has called for an Annual General Meeting (AGM). Scheduled for December 20, the primary agenda of the meeting is to seek the approval of the audited financials for the fiscal year 2022.
The AGM will include considerations on appointing MSKA & ASSOCIATES as statutory auditors, the company informed its shareholders in a letter, a copy of which has been reviewed by Business Today. Shareholders will also discuss approval of remuneration for B Y & ASSOCIATES, the company's cost accountants and auditors, covering the fiscal years 2022, 2023, and 2024.
Also Read: 'Always fully compliant': Byju Raveendran to shareholders on FEMA compliance
In early November, Byju’s announced the closure of its year-long delayed audited financial accounts for FY22, marking a crucial milestone in its efforts to address criticism and stage a comeback. The embattled edtech major reported a 2.3x growth in revenues for FY22 for its core business, encompassing K12 learning programmes. While revenues surged to Rs 3,569 crore in FY22 from Rs 1,552 crore in FY21, operating loss narrowed to Rs 2,253 crore in FY22, from Rs 2,406 crore in FY21. However, the company did not release the numbers for its subsidiaries. With a portfolio of over 30 entities, Byju’s is poised to submit the comprehensive standalone and consolidated reports in the weeks ahead, pending approval at the AGM.
The Byju Raveendran-led firm was under immense pressure from investors and regulators for the delay. Its audited numbers for FY21 were also filed after a year-long delay, in September 2022, while the FY23 results have already missed the regulatory deadline.
The call for AGM arrives at a crucial juncture, as the company navigates through a series of challenges, including being dragged to the National Company Law Tribunal (NCLT) by The Board of Control for Cricket in India (BCCI) and a delay in November salary payments for a segment of its employees.
The BCCI has filed a request with the NCLT in Bengaluru, seeking to commence corporate insolvency proceedings against Byju’s. The petition is in connection with a defaulted payment of Rs 158 crore, as specified in the contractual terms for sponsoring the jerseys of the Indian cricket team. The NCLT has allowed Byju’s a two-week window to submit a response in the case, followed by an additional week for the BCCI to file a rejoinder.
“We are in discussions with BCCI to settle the matter and we hope to achieve that soon,” a Byju’s spokesperson said.
Meanwhile, the company delayed the payment of November salaries for a segment of its employees, which it has attributed to an "unexpected technical glitch" in the payroll system. As per a Bloomberg report, Byju's founder Byju Raveendran pledged his under-construction villa and his family members' homes worth Rs 100 crore to pay salaries to employees. Two homes owned by Raveendran's family in Bengaluru and his under-construction villa in Epsilon — the most exclusive gated community in the city — were offered as collateral to borrow $12 million (approx Rs 100 crore). The startup used the funds to pay salaries to 15,000 employees in Byju's parent firm, Think & Learn Pvt, on Monday, the report said.