BYJU’S, the embattled edtech giant, has scheduled its annual general meeting (AGM) on December 20 at 6 PM to address a range of concerns, including seeking approval for its long-delayed financial statements for FY22. The meeting will also involve discussions on critical matters such as the appointment of statutory auditors and remuneration for the company’s cost accountants.
The notice sent to shareholders, accessed by Inc42, stated, “Notice is hereby given that the 11th AGM of the members of Think & Learn Private Limited will be held on Wednesday, 20th day of December 2023 at 6.00 P.M. (IST) through video conferencing or other audio-visual means…”
One of the key agenda items is seeking shareholder approval for the audited financial statements of FY22. Additionally, the company aims to gain approval for the appointment of MSKA & Associates as the statutory auditors for the next five years. BYJU’S will also present a proposal for approving the remuneration of its cost accountants, BY & Associates, for the period between FY22 and FY24.
This move follows recent reports that BYJU’S faced technical glitches leading to the delayed salaries of 1,000 employees for the month of November. However, the company has since confirmed the clearance of payments in the first half of the day.
Bloomberg reported today that BYJU’S CEO Byju Raveendran pledged three properties to pay employee salaries. This development adds to the challenges faced by the edtech giant, including a significant reduction in the valuation of its stake by Dutch investor Prosus, citing multiple challenges faced by BYJU’S.
Prosus’ interim CEO Ervin Tu acknowledged the challenges during an earnings call, expressing the investor’s commitment to getting BYJU’S back on track. The company’s valuation has dropped to under $3 Bn, down 85% from its $22 Bn valuation during the last fundraise.
BYJU’S has been grappling with regulatory scrutiny and disputes, including allegations by the Enforcement Directorate (ED) for violating FEMA rules and a legal tussle with the Board of Control for Cricket in India (BCCI) over sponsorship rights for the Indian cricket team’s jerseys.
Deeper troubles involve heavy losses and a looming debt crisis, with a $1.2 Bn Term Loan B (TLB) and multiple rounds of layoffs and cost-cutting measures to address liquidity challenges. The release of financial statements for FY22 has faced significant delays, adding to the company’s ongoing challenges.
