- Wealth PMS (50L+)
Everything suffered this week including Nifty 50, S&P 500, Gold & Silver while USDINR held still at 82.
NSE 500 was down only 1% this week and every sectoral index was in red except financial services. We’ve marked the best performing indices for the given periods in green.
BYJU’S courses are super expensive, which often encourages parents to take loans from its partner banks and NBFCs. BYJU’S used to offer a guarantee that it would cover the payment if the parents failed to repay the loan (a.k.a First Loan Default Guarantee).
However, in Feb 2023, the RBI said FDLG cannot be done with non-regulated entities like Fintechs, P2P lenders etc.
With banks and NBFCs no longer willing to extend loans, BYJU’S decided to lend to its own customers.
But there’s a catch: Let’s ay, BYJU’S lends 1.2 lakhs to a parent to purchase a course, to be repaid in 12 equal instalments.
BYJU’S would then recognise the entire 1.2 lakhs as revenue. It’s like taking money from one pocket and putting it in another. “Is it even valid?” you ask. This question is on everyone’s mind, including BYJU’S auditor, Deloitte.
Deloitte has resigned as the auditor of BYJU’S, stating that the company has not resolved audit report modifications from FY 2021.
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