True and fair

“Corporates too are responsible for corruption” ( Business Line , August 23) rightly pointed out that “black money, used to grease the palms of the powerful, is raised by large companies to get national assets at least possible value”. Along with the neta-babus, the company directors are equally responsible for corruption, as bribe-givers.

Essentially, post-Satyam, there is indeed a strong case for ensuring radical change in the scope of the Auditor's Report format, far beyond the existing prosaic ‘True and Fair', when the accounts attested by auditors are neither truly fair nor fairly true.

One is yet to see any auditor reporting that the accounts do not show a true and fair view. Even after a series of qualifications either in italics or bold print, the Auditor's Report ends “Notwithstanding the above, we report that the accounts show a true and fair view”! So much for objectivity and independence of auditors!

Nagesh Kini, Mumbai

Tackling fiscal deficit

The recommendation of the author in “Right time for RBI to sell gold” ( Business Line , August 24) is a pretty ordinary reaction of a bystander.

Imagine, if you say that your land has gained 500 per cent in value in the last five years, any ordinary person will ask you to sell it and make a profit. They can give you 100 ways of investing the profits.

The author also has done that. He has made simple calculations of book profit and tried to show his intelligence in proposing how the profits can be used.

He forgets to understand that once used to contribute to reduce fiscal deficit in any particular year, it will give relief to that year only, while the gold is gone permanently.

The theory is also against our traditional, conventional Indian rationale that we don't buy gold to make profit but to provide stability.

Gold in the Reserve Bank of India's coffers is better than dollars or any relief for fiscal deficit.

Altaf Rahman, e-mail

COMMENT NOW