Health insurance

This refers to ‘Health for all’ (May 14). If more than half of health spending in India is met by patients and as many as two-thirds of our population do not have insurance cover, then it is indeed a sorry state of affairs. The example mentioned in the editorial about Chhattisgarh is not an isolated case. In other States too private hospitals empanelled under PMJAY take patients for a ride. So the need of the hour is to increase public spending in healthcare, accompanied by increasing the health insurance coverage to a wider population. It should be remembered that out-of-pocket expenditure of patients and their families should be bare minimum. Else, it defeats the purpose of providing health cover by the government. It is the poor who need comprehensive insurance coverage.

Bal Govind


Payments to MSMEs

This refers to ‘How to deal with delayed payments to MSMEs’ (May 14). Rotation of funds and timely realisation of receivables are key for any business, and these have an impact on several operating ratios. Poor ratios would deprive the business of the opportunity of getting finance from lending institutions.

It is shocking to note that per Brickworks Ratings, more than ₹8.6 trillion is annually stuck in delayed payments to be made to MSMEs by 760 large corporates. Addressing this chronic issue must be given top priority by the government. Probably, a penalty clause needs to be introduced for large business entities having MSMEs as sundry creditors in their books.

RV Baskaran


Audit fraud

Apropos ‘Curbing audit frauds’ (May 14), the author has rightly stressed on the need for quality audit. The significance of audit reports cannot be overstated in areas such as investment, lending and mergers/acquisitions. Hence the need for veracity in accounting and compliance with standard acceptable practices. The auditor, being the person relied on by various stakeholders, discharges a vital duty and the need for continuous vigil should not be lost sight of.

Jose Abraham

Vaikom, Kerala

Improve credibility

If it is BF Borgers today, it was the leading audit firm Arthur Anderson earlier — touching the nadir of infamy in its Enron accounts. That scandal obliterated the firm and the common investor lost his life’s savings. Globally, policies and oversight were subsequently sought to be overhauled and yet we had our own Satyam and later the IL&FS scam, wherein the bankers and investors were done in by both auditors and the rating agencies who falsely affirmed the creditworthiness of a fraudulent client.

Self-regulation and oversight thereof by apex professional institutions have remained wanting. Time audit practitioners elevated themselves as guarantors of credibility.

R Narayanan

Navi Mumbai

Chabahar port

‘India signs bilateral contract on Chabahar port with Iran’ (May 14) was much-needed for India amid geopolitical tensions in West Asia and the Eastern European region. Although Chabahar port was built by India amid US sanctions on Iran and Chinese interference, this move is a message to the so-called super powers who are themselves facing an economic slowdown. This is also a clear indication to Pakistan to mend its relations with its neighbours.

Rajiv Magal

Halekere Village, Karnataka