Letters

Tariff framework

| Updated on August 22, 2019 Published on August 21, 2019

 

This is in reference to ‘Channel churn’(August 21). The primary reason why TRAI introduced this tariff framework is to ensure that the service tax on channel services are fully accounted for. In riding the GST bandwagon to augment revenue, TRAI was perhaps rushed into working out the tariff framework. This has, however, thrown up an opportunity for media aggregators. But cable operators are now beset with high TV channel tariffs on one side and competition from aggregators on the other. This has ended up in burdening the consumer. The scheme needs to be reshaped and reworked in the interest of viewers.

R Narayanan

Mumbai

Risk assessment

This refers to ‘Reforming the credit rating industry in India’ (August 21). The authors have clearly brought out the shortcomings in the approach adopted by credit rating agencies (CRAs) and specific measures required to make the role of CRAs more effective. The formation of “a specific fund” for payment of rating fee is a welcome suggestion. Right from the 2008 global credit crisis to the recent IL&FS fiasco, one could see rating agencies fail in their role by giving exaggerated ratings, leading to creation of false confidence in the minds of investors. With the global financial industry exposed to various types of risk, it is imperative that CRAs make ‘risk assessment’ mandatory as part of the credit rating process.

Srinivasan Velamur

Chennai

Financial fraud

With one more company, CG Power, crashing, the financial sector bares another incident of lack of supervision at the macro-level, as well as the poor standards of our audit firms. One may recall the Satyam Computers saga, where deposits were pledged to raise new deposits from the same funds to project higher assets by fraudulent means.

Now with CG Power also following the same path through another method, it brings out that the persons responsible to take care of public money did not fulfil their responsibilities. Others like DHFL are also not far behind in indulging in such practices. It is surprising that the audit firms also could not trace the wrongdoings of such massive scale for such a long period. It is time that SEBI took immediate steps to utilise the services of independent, responsible auditors to re-audit all the listed mid- and large-cap companies and save the general public from routing their investments to the wrong companies.

KC Varghese

Kottayam

Industry slowdown

This refers to ‘Auto sector crisis has hit 5 lakh workers in Pimpri Chinchwad belt’ (August 21). The automobile, retail , airline and other industries are currently undergoing a crisis. Seven segments of the Indian industry show reduced and contracted growth. The implementation of the GST and demonetisation have caused a severe blow. The results of which can be seen in the falling GDP numbers in the past four quarters. The IL&FS scam led to the NBFC credit crunch. Tariff wars between the US and China also affected Indian industry. The macro-environmental factors of taxes, tight monetary and fiscal policies, political unrest, and tariff barriers have led to a fall in the rupee value. All of these have contributed to the slowdown in the automobile industry.

Harsha Sheelam

Hyderabad

Kashmir imbroglio

US President Donald Trump’s readiness to mediate on the issue of Kashmir and his engagement with the Prime Ministers of both India and Pakistan over the phone is understandable. With Pakistan now making concrete steps to internationalise the Kashmir imbroglio, no stone should be left unturned to ensure Kashmir and its people enjoy constitutionally guaranteed freedoms without any excuses. Prolonged detention of the leaders in Kashmir, restrictions on the movement of people and shut down of communications would do more harm than good.

M Jeyaram

Sholavandan

Send your letters by email to [email protected]hindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

Published on August 21, 2019
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