Byju's AGM: Shareholders greenlight FY22 audited financials; BDO re-appointed as auditor

Edtech major Byju's, grappling with challenges like cash flows and debt repayment, found relief as shareholders approved the audited financials for the fiscal year 2022 at an Annual General Meeting (AGM) held on Wednesday evening.

The AGM cleared other resolutions such as reappointment of MSKA & ASSOCIATES, a member firm of BDO International, as its statutory auditor and approval of remuneration for B Y & ASSOCIATES, the company's cost accountants and auditors, covering the fiscal years 2022, 2023, and 2024.

“Think and Learn, the parent company of BYJU’s, held its Annual General Meeting (AGM) today with close to 60 shareholders in attendance. All the resolutions were passed, including the accounts for FY22. BDO was re-appointed as the statutory auditors of the company. Founder Byju Raveendran opened the AGM with an account of the state of business and its challenges. Nitin Golani, Chief Financial Officer- India, briefed on the audit while India CEO Arjun Mohan provided business updates and plans. The auditor BDO later answered all questions from shareholders before the company wrapped up the interactive three-hour-long meeting,” the company said in a statement.

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 now poised to file the comprehensive standalone and consolidated reports with Ministry of Corporate Affairs (MCA) in the coming weeks.

The Bengaluru-based 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 regulatory deadline for FY23 results has already been missed.

The AGM was held 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.

Meanwhile, the company is in advanced talks to sell its US-based subsidiary Epic to address the current liquidity crunch and to pay off the $1.2-billion Term Loan B (TLB) it has availed from US-based lenders. The TLB, availed at the peak of its growth in 2021 to support an aggressive acquisition spree.