Letters to the editor dated January 30, 2020

This refers to the editorial ‘Auditing the auditors’ (January 30). In the aftermath of the surging number of frauds persistently affecting the confidence and faith of the investors and other stakeholders, the role of auditors is turning more critical. Financial statements and audit reports are supposed to exemplify the true state of enterprises; however, the rising financial irregularities and frauds denote that auditing has become a formality. Suppression of the window-dressing and financial regularities committed by the entities delude all stakeholders.

It is imperative to rejig audit-related formats with self- and counter-checking systems to plug loopholes. It is essential to ensure full transparency in the audit reports. The auditors or companies who connive with enterprises for personal benefits and material gains are destroying the sanctity of the profession and the standard of the ICAI. The National Financial Reporting Authority must be delegated with more powers to ensure the quality of the auditing and related reports, besides adequate powers to punish the corrupt and errant auditors. The audited financial statements and the related reports need to be reliable and the auditors must ensure no divergence in the figures of the enterprise at a later date.

Kottayam

This is with reference to ‘Budget should generate long-term infra funds”(January 30). Indeed, spurring private investment, increasing demand and consumption and government spending with fiscal prudence are needed to get out of the slowdown. With the private sector’s reluctance at this juncture to invest in infrastructure, the onus shifts to the Government. Nevertheless, banks are avoiding infrastructure finance thanks to the NPA pile-up caused by corporate and other sectors. Hence, the government can develop infrastructure funds by using long-term tax- free bonds. Luring foreign investments will augment both infra funds and technology from other countries. Encouraging NRIs to contribute to the long term stack may also be a viable way.

Sivakasi

This refers to ‘What the taxpayer can expect from Budget 2021’ (January 30). Budgets have become occasions for various categories of citizens to seek ‘sops’ from the government. Rather than tinkering with rates, a more sustainable approach is to use Budgets to unleash reforms. Have fewer slabs, fewer (lower) rates, fewer exemptions (ideally none), etc. Pre-filled ITR forms is a good reform. Income reform is also needed. Why should R&D expenditure have exemptions? R&D is undertaken for a firm’s future profitability; it’s not philanthropy. Such reforms could be politically difficult, therefore are best adopted in early years of a new government.

Pune

It is very unfortunate that bank employees and officers are once again going on strike. I do not understand as to why the IBA and the government are not making sincere efforts to settle the issues faced by bank personnel. The banks carry on all jobs of Central and State governments by serving in both cities and remote areas. Whether it is demonetisation, collecting taxes or distributing pensions, the banks always work sincerely and implement several social welfare schemes in addition to their other businesses. When the Central government employees’ wages have already been revised, why have the issues of wages and pension amounts of bank employees not been taken up? The Central government is the biggest stakeholder in all PSBs, and even if they are facing losses, employees and pensioners should not be made to suffer.

Hyderabad

The slapping of sedition charges against Shaheen School in Bidar by the Karnataka Police for enacting a play against the CAA is not only atrocious application of the sedition and defamation law and underlines the need for its total abolitionk. While the play is alleged to have shown the Prime Minister in a bad light, it in no way justifies charging young students with sedition. The sedition law does not deserve a place in an independent nation where people have every right to question the acts of their elected leaders.

Sholavandan, TN

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