LETTERS TO THE EDITOR
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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.
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
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.
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.
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