Investors Urge Byju's CEO To Furnish Transparent Financials At AGM
Investors have urged Byju”s founder, Byju Raveendran, to furnish clear-cut communication regarding company financials, audited FY2023 results, and the state of affairs in order to reinforce their trust in the company, the Economic Times reported, citing an investor amid the recently held Annual General Meeting (AGM).
The meeting passed the resolutions with regard to the Byju’s audited financials for fiscal 2022 and the reappointment of auditor BDO. “I think the message was clear. Be transparent, and do not hide things anymore. There are people willing to support the company. The team management did listen to the feedback from investors, including officials from audit firm BDO,” ET reported, quoting an investor. Sixty shareholders took part in the AGM.
At the AGM, the chief financial officer of India, Nitin Golani, briefed the shareholders on the audit functions, while India CEO Arjun Mohan provided business updates and plans.
According to the report, Byju”s parent company, Think & Learn, has reported a loss of around Rs. 8200 crores, as much as half of which was derived due to the writing off of the Whitehat Jr. subsidiary, which Byju”s bought for $300 million in 2020, and a revenue of Rs. 5000 crores.
The operations of Whitehat Jr., which is a code teaching unit, have been in a dormant state over the past year, even though it has not been officially closed down. Moreover, Think & Learn still has to submit the FY22 numbers to the Registrar of Companies with final changes.
Byju”s had published the delayed financial results for FY22, which showed the company marginally narrowed its net loss despite the post-pandemic boom. The Bengaluru-based online tutoring firm reported a net loss of Rs. 22.5 billion ($271 million) for the financial year ending March 2022, compared to a loss of Rs. 24 billion in the previous year. The company’s revenue doubled to Rs. 35.7 billion.
Earlier, it was reported that the cash-strapped Edutech firm was struggling to provide salaries to the employees. Byju’s has been reeling under severe organisational problems, including a cash crunch and lawsuits. There are reports that, in order to overcome the issues, the company may sell its subsidiaries, including the US-based kids’ digital reading platform, for about $400 million.
It also looks to resolve a legal battle with creditors over a missed interest payment on a $1.2 billion term loan.
