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The Hindu Business Line - - THINK -

Quar­terly re­port­ing

This has ref­er­ence to ‘Quar­terly re­port­ing oner­ous for cor­po­rates’ (Oc­to­ber 12). Quar­terly re­port­ing is an im­por­tant tool for mon­i­tor­ing by in­vestors, banks and an­a­lysts and it should not be done away with or com­pro­mised. On the other hand, non-avail­abil­ity of such a re­port where it not manda­tory is a hand­i­cap.

The re­cent cases where rat­ings slipped to de­fault from ‘AAA’ in a few months will be­come more ram­pant if quar­terly re­port­ing is done away with. The need of the hour is more trans­parency, with in­vestors and all stake­hold­ers get­ting qual­i­ta­tive in­for­ma­tion like dis­hon­our of high-value cheques and non-pay­ment of statu­tory dues.

The quar­terly re­port­ing for­mat should also be mod­i­fied to cover debt-eq­uity po­si­tion so that peo­ple do not sud­denly stum­ble upon debts of the size of ₹90,000 crore. Even though some pain and costs are in­volved in the process, the ben­e­fits out­weigh them.

M Raghu­ra­man


The manda­tory com­pli­ance was in­sisted upon in the list­ing agree­ments of stock ex­changes with a view to es­tab­lish trans­parency in cor­po­rate gov­er­nance and pro­vide suc­cinct in­for­ma­tion about the lev­els of per­for­mance, growth, man­age­ment ini­tia­tives, etc., for in­formed de­ci­sion-mak­ing by share­hold­ers at shorter in­ter­vals. No doubt, in the era of ad­vanced in­for­ma­tion tech­nol­ogy, a num­ber of IT com­pa­nies are able to gen­er­ate the re­ports by the click of a but­ton any time with­out much strain and loss of qual­ity time.

How­ever, re­cent trends of poor par­tic­i­pa­tion of share­hold­ers in the gen­eral meet­ings of most listed com­pa­nies de­pict the lack­adaisi­cal at­ti­tude of in­vestors. It is ad­vis­able to con­tinue the time­tested MIS tool at least for the ben­e­fit of the man­age­ment to make pe­ri­od­i­cal re­views and take pro­gres­sive steps for busi­ness growth. Si­taram Pop­uri


Boost­ing liq­uid­ity

This refers to the ed­i­to­rial ‘Tem­po­rary prop’. It is in­deed a win-win si­t­u­a­tion for NBFCs and SBI, as NBFCs will get much-needed liq­uid­ity, at least for the short to medium term, while the bank will get to in­crease its as­set base with­out dirty­ing its hands. But SBI, on its part, must do due-dili­gence for the port­fo­lio pur­chases.

Though the bank is not buy­ing se­cured port­fo­lios for the first time, it will be pru­dent for it to be more dili­gent than be­fore. But for the big­ger prob­lem of as­set-li­a­bil­ity mis­match, there is no sub­sti­tute for a strong bond mar­ket.

Bal Govind


The move by the RBI, SBI and NHB to re­fi­nance and ac­quire the se­cured port­fo­lio of NBFCs will ad­dress the gov­ern­ment’s ob­jec­tive of in­clu­sive fi­nanc­ing and devel­op­ment of the na­tion. NBFCs and mi­cro-fi­nance in­sti­tu­tions play an im­por­tant role in ru­ral devel­op­ment, auto fi­nanc­ing and pro­vid­ing crop loans, thus min­imis­ing the in­flu­ence of moneylen­ders, who charge ex­or­bi­tant in­ter­est rates.

No doubt it is a high-risk mea­sure given the huge NPAs plagu­ing the sys­tem. How­ever, planned pur­chase of se­cured port­fo­lios would par­tially off­set the risk and sus­tain devel­op­ment.

Vikram Sun­dara­murthy


Dig­i­tal ad­dic­tion

Dig­i­tal or in­ter­net ad­dic­tion is on the rise among teenagers. This is a big con­cern even in In­dia, with many young­sters hooked on to the vir­tual world. Ac­cord­ing to a re­port, one in ev­ery five teenagers has some form of dig­i­tal or in­ter­net ad­dic­tion, and this may vary from chat­ting on­line, ex­ces­sively shop­ping on­line, watch­ing pornog­ra­phy or gam­ing.

Watch­ing the screen for long hours can not only cause phys­i­cal prob­lems like eye strain and neck pain but even psy­cho­log­i­cal is­sues like ag­gres­sive or de­pres­sive be­hav­iour. Also, in­ter­net ad­dic­tion has been doc­u­mented and in­cluded in di­ag­nos­tic and sta­tis­ti­cal man­u­als. It is time for par­ents to keep an eye on their chil­dren and find out the rea­sons for the overindul­gence in gam­ing and the in­ter­net. Is­mail An­sari


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