MUMBAI: Troubled education technology (ed-tech) company Byju's founder and CEO Byju Raveendran has informed the shareholders that the company will be constituting a board advisory committee (BAC) to provide strategic advice to the CEO on matters related to the governance structure.

As Byju's investors and shareholders are getting anxious about the company's rising troubles Raveendran said that in the next EGM in three weeks will give details about BAC’s members and composition.

Raveendran told shareholders that Byju’s is much larger than any individual and that decisions made will be in the best interest of the company. Raveendran had organised an extraordinary general meeting (EGM) on July 4, following the resignations of three key directors and the departure of Deloitte as the auditor of the company. 

This is the second meeting of Raveendran with shareholders, the last one was on June 26th, when the EGM was called to discuss issues like Aakash IPO timeline, audit timeline, Term Loan B (TLB) resolution and fundraising for the company. 

After Deloitte resigned from the post of statutory auditor last month and with three board members representing Peak XV PArtners, Prosus and Chang Zuckerberg Initiative stepping down, shareholders had become very concerned and had raised questions on the very future of Byju's as a going concern.

Along with it, the tussle Byju's is having with its lenders in the US has made shareholders and investors concerned.

Raveendran has informed the shareholders that negotiations are continuing with lenders for Term Loan B and the management is expected to have a favourable outcome. He is said to have stated that, active and constructive discussions have taken place, and there are reasons to be optimistic about a mutually acceptable resolution.

According to those who attended the call with shareholders, Ajay Goel the chief financial officer of Byju’s said that an audit of some group subsidiaries was completed for FY 2022 and that the timeline for the completion of the FY 2022 audit is end of September, while for the FY 2023 audit, it was expected to be concluded by the end of December.

The management that addressed the virtual meeting with Raveendran and Goel along with group general counsel Roshan Thomas has reiterated to the shareholders that the audit for Aakash, WhiteHat Jr, and Think & Learn is currently underway and it was being done with the objective of optimizing the timelines. According to reports quoting PrivateCircle data, Raveendran along with Divya Gokulnath and Riju Ravindran now hold a 21.2 per cent stake in Think & Learn, the holding company.