Key Points
The deflation of Byjus, held up till recently for its top unicorn billing, is emblematic of broader woes in Indias startup sector, which has gone from heroic status to a tale of much regret..
The value of listed firms such as Paytm and Nykaa has seen gyrations, while unicorn-chasing investor money has been in fizzle-out mode..
For pandemic year 2020-21, it posted a loss of over 4,500 crore, twice its revenue, an eye-popper sought to be pinned not on high cash-burn to obtain a dominant chunk of a hot pie, but the quirks of this sectors accounts (like students paying slowly)...
As reported, its mandate is to watch the statutory auditors of listed companies, banks, insurers, power utilities and large unlisted public limited firms, but not the kind of businesses that abound in the startup sector..
While privately held businesses have a valid case against excessive intrusion in private affairs, and auditors of such firms do have an eye kept on them by the institute that certifies their credentials, the Byjus case suggests it is time for us to broaden our definition of public interest to include stakeholders who need not be owners of a firm in any way to be hurt by its collapse..
You might be interested in
Byju’s exposes gap in NFRA mandate
30, Jun, 23Regulator’s oversight extends to listed firms, banks, insurers
NFRA flags documentation gaps in some Big Four firms
23, Dec, 23India Business News: NFRA released the first inspection reports of Big Four audit firms, pointing to gaps in audit work, violations of the Companies Act, and inadequate au
NFRA imposes penalty on auditors of Coffee Day Enterprises arm
21, Aug, 23NFRA imposed a monetary penalty of ₹1 crore on audit firm Sundaresha & Associates and debarred it for four years from being appointed as an auditor or internal auditor of any company, showed the order posted on the regulator's website
Education loan: Private banks vs PSU banks. Where to bet to fund your higher studies
02, Jun, 23Education loans have emerged as a viable solution to finance higher studies. Public sector banks offer lower interest rates, while private lenders provide convenience and quicker disbursal
Annual transparency reports by large firms’ auditors from FY23
17, Mar, 23Bringing more transparency in the functioning of auditors of large listed firms, the government is set to make it obligatory for them to file annual transparency reports.
For next 3-4 years, PSU banks can be a good bet: Sunil Subramaniam
17, Feb, 24Sunil Subramaniam prefers good quality in portfolio, whether PSU or private sector, due to capital adequacy and government ownership ensuring governance. He sees value in TVS, M&M, Tata Motors, Maruti. Two-wheelers and entry level passenger cars expected to bounce back. Bullish on commercial vehicles due to capex and election cycle. Ample liquidity in market, mid and smallcaps attracting investment.
High capacity usage, fresh borrowings & new orders — why FY25 could be a big year for pvt investment
06, May, 24Companies are borrowing more from banks and public. Economists say high capacity utilisation & growing new orders could set stage for renewed investment push by India Inc.
NFRA's first annual inspection of key audit firms to start by April
17, Feb, 24The regulator will also gauge the Big Five's compliance with the suggestions made in its December 2023 reports in which it had flagged deficiencies in their work processes, including on non-audit services that they provide to the same companies of which they are the statutory auditors, one of the persons said.