Byju’s in a bind

This refers to ‘Learning from Byju’s’ (June 26). As things unfold, Byju’s seems to be getting entangled in deeper problems, especially on issues related to corporate governance.

The edtech company which had made its mark during the Covid pandemic was too ambitious in its growth, roping in several venture capitalists and private equity funds to invest at a rapid pace. It was caught unawares when the demand for online courses waned post Covid, impacting its cash flows.

The legal action undertaken by llenders put Byju’s into deeper financial trouble.

The resignation of the auditor of Byju’s was the final nail in the coffin. The aggressive approach for rapid expansion through inorganic route by acquiring more than 17 companies across geographies and its failure to adhere to accounting and ethical standards in pursuit of growth should have led to the present sordid state of affairs.

Srinivasan Velamur

Chennai

Diverting PF money

It’s shocking to note that edtech unicorn Byju’s has not deposited the PF money (employer’s contribution) for their employees in the Employees Provident Fund (EPF) account for months. It’s always trust that keeps employer-employee relations in tact and the wheels of business moving smoothly.

Not fulfilling statutory obligations by Byju’s sends a wrong signal to the ecosystem as a whole.

S Ramakrishnasayee

Chennai

Restore credibility

This refers to ‘Byju’s needs to re-boot and learn from its mistakes’ (June 26). Auditors resigning from any company raises more than a few eyebrows. The erstwhile auditors had valid grounds to resign, but appointment of BDO as the next auditor does not end the problem. There is a long way to go before restoring credibility. The time has come for Byju’s to look beyond investors and focus deeper on sustainability and better cash flows, otherwise sooner or later it will have to shut the doors.

Bal Govind

Noida

Biodegradable material

‘Growing biodegradable packaging in a sustainable way’ (June 26) comes as a whiff of fresh air in a suffocating and thickly polluted space. As the bio-fabricated end-product is said to be biodegradable within 60 days, it is quite promising and needs to be focussed on with further research to make the material as versatile as the plastic and thermocol it seeks to replace. That the raw material required for the production of the new alternative packaging material happens to be paddy straw, which is available in plenty in the country, augurs well. However, the question that arises is whether the technological process involved in the production of the new material can be easily replicated to a scale and whether the new material can be made really as useful and convenient as plastic.

Kosaraju Chandramouli

Hyderabad

Monitor loans

Refers to ‘Unsecured loans handed out to NBFCs come under RBI scanner’ (June 26). While banks are aggressively expanding their loan books to NBFCs, the end use of these loans is pivotal to sustaining the quality of those assets. As most of the last-mile borrowers take the loans more for personal needs, the availability of underlying securities is practically absent and the NBFCs have to depend on the incomes of those borrowers for getting back the principal and interest.

VSK Pillai

Changanacherry, Kerala

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