This refers to the editorial, “Taking cover” (October 15).The issue of unhedged exposure of corporates and others comes up every now and then without arriving at any tangible solution.

The RBI has been flagging this for years now, but corporates, particularly those having exports, gamble on this as they perhaps prefer to keep the forex exposure unhedged to take advantage of the rupee depreciation. Further, the accounting system in vogue does not insist on the need to make transparent the unhedged exposure and the attendant risks.

The major reason for many to avoid hedging may be due to lack of expert knowledge and guidance. As rightly suggested, the Government in consultation with SEBI and the RBI has to take concrete measures to take care of this and make it transparent in the published balance sheet. Banks also need to develop the required expertise to guide their customers in the matter.

TV Gopalakrishnan

Bangalore

Lending is a business

The news item about the Supreme Court rejecting the claim of security on sugar stocks by SBI and PNB is a strange development. This is not a criticism of the judgment but an observation.

While the judgment may be welcome from the farmers’ point of view, lenders will be put to disadvantage as their security gets diluted. It is not the job of lenders to protect the farmers’ interests at the cost of their own business. They will, therefore, look at reducing the limit on stocks, which, in turn would strain producers’ liquidity and lead to long-term problems, both for mills and consumers, besides farmers. A rational decision is needed and perhaps a review by a larger bench of the Supreme Court is called for.

P Krishnan

Email

Good news

The cut in petrol prices by ₹1/litre has come at the right time. The reduction will be more after adding VAT and local taxes. The price of petrol has seen a ‘bear run’ in recent months and the price slash coming close on the heels of a 54 paisa reduction on October 1 means that the fuel will sell at a 16-month low. However, owners of diesel vehicles have to wait for the completion of Assembly polls to see a reduction in prices. The sharp dip in the price of international crude could lead to a reduced oil bill for the country. One hopes the fall in crude prices rubs off on other essential commodities and brings down their prices.

NJ Ravi Chander

Bangalore

Welcome move

The move to introduce a single legislation clubbing 14 labour laws (October 15), is welcome. It will take away the cumbersome procedure of time-consuming registrations and regular compliance. But it is silent about the applicability of other labour legislations like the Gratuity Act, and the Contract Workers (Regulation and Abolition) Act. There is need for clarity and transparency.

D Sureshbabu

Hyderabad

Leave them alone

That the Tamil Nadu government wants to regulate CBSE and ICSE schools in the State by insisting they obtain a recognition certificate from the Tamil Nadu School Education Department once in three years is unacceptable. CBSE and ICSE schools are doing very well, thanks to good administrative mechanisms — less interference and more accountability. Bringing them under partial control of the State government will affect their functioning.

S. Ramakrishnasayee

Ranipet, Tamil Nadu

Help industry

The investment climate in industries is getting cosmetic changes under the new government’s policies, which is a welcome change from policy paralysis. But so many industries that have been closed due to various reasons in the SSI sector or in the large sector, are being ignored. The Government must create a congenial atmosphere for revival of these industries and announce tax concessions for takeover of existing stressed and closed companies. Red-tapism and vindictive trade unionism have led to the deterioration of industrial development.

P Kailasanathan

Bangalore

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