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1. Club Head– Rahul Jalan Associate Club Head– Unnat Udeshysa
The Finance Club
JUNE EDITION

2. The Finance Club
Another Bank Fraud?
Yes! Rupees 34,615 crores is the amount this time. DHFL is
involved in taking loan from a consortium of 17 banks lead
by Union Bank of India. The housing finance lead by Mr.
Wadhawan started defaulting on its debt repayment from
May 2019 onwards. The bank claims that its books were
over-valued for the purpose of taking loan. DHFL is a
company that provides finance for home purchase. The
fraud came to lime light when CBI raided 50 premises
linked to DHFL on a FIR filed by the UBI.
Author: Rahul Jalan
Ethics- The books of accounts of DHFL were falsified for the purpose of taking loan. It may be said that the
auditor who signed the books lacked integrity and ethics.

3. The Finance Club
Why Byju’s is planning to acquire 2U?
Author: Aparna Singh
Byju’s, whose parent company is and formally known as Think & Learn Pvt has been doing aggressive acquisitions to eliminate rivalry and
strengthen its presence. It is now planning to acquire 2U which is an American edtech company for $2.4 billion in the largest acquisition in this
space. Byju’s is seeking to capitalize on a worldwide market rout and build its business through acquisitions.
Below are the reasons of the potential acquisition:
1) Byju’s and 2U are having reciprocal synergies: Byju’s
is seeking to expand in the US market using the
customer base and infrastructure of 2u. Prioritizing
the US makes some sense given the massive business
opportunity there. It is a lucrative market, presumably
with higher ARPU (average revenue per user)” than
India.
2) 2U has intermediate Nature of resources: When it
comes to 2U's financial history, the company is
currently valued at $717 million and about $1 billion
in debt and other liabilities. Since 2U have a medium
degree of resources, acquiring 2U is simple for Byju’s
4) Degree of Market uncertainty for edtech
industry is medium: The education
industry is quite traditional and has been
sluggish to incorporate new technology.
But things are beginning to alter since the
Covid 19 pandemic came into picture.
Today's rapidly evolving global edtech
landscape necessitates organizations
making quick adjustments and Byju’s did
not want to miss this opportunity.
Since Byju's specialises in K–12 online
learning and engages with students
directly (B2C), this shift would involve
more than just a change in location.
3) Both share high extent of redundant resources: Both Byju's and 2U
work in the edtech sector, provide their client institutions with a cloud-
based software-as-a-service platform and support online degree and
non-degree programs. By acquiring 2U, Byju's can cut costs and increase
benefits by reaching a larger audience.

4. The Finance Club
Understanding Zomato’s acquisition of BlinkIT
Author: Aviral Singh
Zomato, the online food aggregator, proposed acquiring Blinkit, a hyperlocal delivery company, and the company's board finally
approved the acquisition of the quick delivery platform in an all-stock deal worth Rs 4,448 crore. Quick commerce, as opposed to e-
commerce, refers to delivering groceries/FMCG products to customers in 15 to 20 minutes.
Zomato will gain access to Blinkit's 400
dark stores as a result of this
acquisition. When a customer places an
order online, the staff at the dark stores
picks and packs the items to be shipped
directly to the customer's location.
Notably, dark stores are typically closer
to delivery locations. The dark store's
delivery radius is typically less than 2
kilometres, allowing for quick product
delivery.
This acquisition mainly serves to compete with
Swiggy, one of Zomato's main rivals, who is
succeeding following the pandemic by Swiggy
Instamart. There existed a gap, and Zepto, a recently
established rapid commerce, arrived to fill it
Currently, it takes just 10 minutes
to deliver 3,500 products across
11 cities.
Zomato’s share drops 14% in just
two days following the Blinkit
acquisition. The payment will be
settled through issue of around
629 million Zomato shares. Due
to their substantial financial
investments, their profitability is
delayed and it is the primary
cause of the share price fall.

5. The Finance Club
Inflation!!
CPI is on a rise at steady pace. UK data is
out for May with inflation at 9.1%. US at
8.6%. India at 7%. In UK it’s even expected
that inflation would cross 11% mark by
October. All thanks to the Russia-Ukraine
war and various sanctions on it. At times
India used to import crude to an extent of
3% yearly from Russia but all thanks to
Brent Crude crossing every limit that our
import has crossed 10% for a month. RBI
MPC will be meeting on August to tame
inflation further as market sentiment
suggest and WPI also at >15%.
No export promoted hereafter!
Author: Rahul Jalan
Petrol, Diesel and ATF (Air Turbine Fuel) has faced government ire
on exports. Export duties have been imposed on the fuels. A duty
of Rs.6/ltr on export of petrol and ATF and Rs.13/ltr on export of
diesels.
Why?- Private and Govt players such as RIL, Nayara, ONGC were
exporting more fuels because of higher margin provided by the
foreign countries, that are facing fuel shortages due to the ongoing
war. These players were cutting the domestic supply and as a result
many pumps dried up in different states due to lack of fuel.
Impact? - The shares of these companies saw biggest fall post
announcement. RIL fell by 7%. Oil India by 15%. ONGC by 13%.

6. The Finance Club
WTO Highlights
Author: Unnat Udeshya
Agreement of WTO 12th ministerial Conference came into being in 1995. The WTO is the successor to the General
Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. Its objective is to
help trade.
12th Ministerial Conference held at Geneva:
1) It would curb ‘harmful’ subsidies on illegal, unreported and unregulated fishing for the next four years, to better
protect global fish stocks
2) They committed to work towards having a well-functioning dispute settlement system accessible to all members
by 2024
3) Members agreed to a binding decision to exempt food purchased by the UN’s World Food Programme (WFP) for
humanitarian purposes, from any export restrictions
4) All members agreed to continue the long standing moratorium on custom duties on e-commerce transmissions
until the subsequent Ministerial Conference or until 31st March 2024, depending on whichever comes first 5, all
members agreed to continue the long standing moratorium on custom duties on e-commerce transmissions
until the subsequent Ministerial Conference or until 31st March 2024, depending on whichever comes first.

7. The Finance Club
What are Crypto 'Fixed Deposits’?
Author: Sahil Jain
Fixed deposits or fixed-income products are no longer the
preserve of the fiat world with crypto platforms adding
these to their suite of offerings
• Assures users of a "fixed" return along with the principal
back in full. Usually higher than bank FDs
• Example : “Fixed Income Plans” offered by Indian crypto
Exchange BitBNS
• These “FDs” or “Fixed Income Plans” lay down a minimum
deposit in fractions of the coins, lock that in for 30 days
and offer an annualised rate of 10-40% depending on the
scheme.
• Platform allows you to place tokens in a fixed deposit for 30
days and says that it will offer you principal plus interest at
the end of it.
Understanding the Product
Idea of fixed returns from a volatile asset class like
cryptocurrencies may seem antithetical. But let us try to
understand the product before dismissing it :
• Tokens collected via the fixed-income product are on-lent to
those who may want to borrow them at a certain interest.
• That interest, after deductions for exchange's costs and fees,
is what is used to pay out the fixed interest.
How does the exchange ensure the interest to be
paid out given the sharp volatility that
cryptocurrencies tend to see?
• Certain minimum collateral that borrowers of
tokens have to maintain, which, for them, is 110%
or 150% of the amount being borrowed
• If the collateral falls below that, the exchange
liquidates it to ensure that the principal and
interest is paid back
Concerns
• Anyone investing in this product should
be aware that the value of the token,
and hence the interest (which is also
paid in the same token), may be subject
to volatility in fiat price terms
• Custody of tokens is also a major
concern for which exchanges usually tie
up with third party custodians but again
the trust factors kicks in , due to the
non-traceability and recoverability factor
of cryptocurrencies this risk factor
becomes quite high.
Designed by Aviral Singh