The quick and the clueless Keep vigil on CAs
With reference to the editorial, “BJP’s knockout punch” (July 27), the alliance between Nitish Kumar and Lalu Prasad and their parties was one of convenience to defeat the Bharatiya Janata Party (BJP) in the Bihar Assembly elections in 2015. Back then, Kumar ignored several cases of corruption against Prasad. However, when Kumar discovered that the contrast between the images of the two leaders was leading to diminishing returns for him, he used the excuse of allegations of corruption against Yadav’s son, Tejashwi Yadav, to break the Grand Alliance. Kumar’s decision was likely made keeping the 2020 Bihar Assembly elections in mind.
Kumar’s action has three important political implications. Even as the popularity of Prime Minister Narendra Modi remains intact, the strength and unity of the Opposition is on the verge of demise. The swift action of the BJP was in stark contrast to the Opposition’s cluelessness. The Congress could have mediated between Kumar and Prasad, but it remained a silent observer. This highlights the leadership vacuum in the Opposition.
As for the BJP, its quick thinking and strategic moves succeeded in making Kumar — who had once refused to share a seat with Modi — agree to form the government with that party. It will make the BJP more dominating in the political arena.
As for Kumar’s Janata Dal-United, the pact with the BJP is fraught with apprehension as Modi would eye exclusive rule for his party in Bihar as much as Kumar does for his party.
In this game of politics, the people of the state have become victims. Their wait for a capable and stable leader continues.
Y G Chouksey Pune the announcement of loan waiver schemes will mitigate it. Credit is indispensable for farmers because there is a wide gap between their duration of earning and spending. Due to several reasons, farmers are not able to repay loans, which is essential for smooth functioning of the credit cycle. The 2011 agriculture census revealed that close to 22.1million of farmers remained dependent on non-institutional sources of credit. This is a matter of great concern. Besides issues such as provision of credit at affordable rates, timely and assured fair price for crops and crop insurance, repayment of credit on time is a challenge.
Instead of implementing loan waiver schemes, steps need to be taken to ensure that farmers are able to repay loans on time. That would be a more fruitful result.
Suman Gill Hisar Apropos the editorial, “Watchdog for accountants” (July 26), despite the multiplicity of checks and controls, banking trade and commerce are not free from fraud. Tax evaders are finding new ways to avoid paying taxes. Shell companies are playing an active role in this.
Accounting frauds cannot take place without the connivance of accountants. Consequently, it leads to significant erosion in the wealth of investors.
Banks are taking account of non-performing assets and periodic checking and auditing are being done to ensure that the quality of the assets have been determined according to the guidelines of the government and the banking regulator. Despite this, during inspection Reserve Bank of India officials point out glaring divergence in asset classification and income recognition. This indicates that the audited financial statements of banks do not show the true picture of their financial position.
Divergence in asset quality will reduce investors' appetite to invest in banks. Lack of transparency will distance depositors from banks, too. This will negatively impact resource mobilisation.
In such a situation, the proposal to establish the National Financial Reporting Authority is a welcome step. It will pave the way for keeping vigil on the actions of chartered accountants, help investors regain confidence and ensure more capital inflows.
V S K Pillai Changanacherry