Letters to the editor dated July 23, 2020

| Updated on July 23, 2020

Work culture

This has reference to ‘Reinventing the meaning of work’ (July 23). The Covid problem has certainly brought major changes in the work culture, affecting both employment and consumption statuses. The concept of working from home, which was previously known only to IT employees, is now prevalent in many sectors.

This has brought out many new opportunities and companies have started downsizing their office space as more and more employees work from home. Only few services like postal and banking, retail shops, hospitals and logistics need on-site presence, and the terms of employment and remuneration in future are likely to be related only to key responsibility areas. Many employees are likely to leave cities, and WFH has got many economic benefits. Besides this, there are other advantages such as improved efficiency and output due to lesser commute, reduced pressure on urban areas, fewer office space requirements and resultant cost control, increased economic activity in upcountry locations and decreased pollution. This may also spread out wealth as more people move across the country. The net effect of all these will result in a package based on potential and performance, which is welcome.

M Raghuraman


Financial recovery

This refers to ‘The economic scenario is set to get worse’ (July 23). Safeguarding the financial sector, particularly the banking segment, from the impending deterioration in asset quality is important to enable lenders to continue the flow of credit, lest the ongoing execution of the economic reforms does not bear fruit. With the pandemic impacting all activities, it is vital to explore different pragmatic measures to to keep the wheels running. Dwindling earnings due to unemployment, higher personal tax and loan rates, and decreasing interest rates on savings are inhibiting demand for goods and services. Raising the income of consumers is imperative, for which the government must initiate reforms in the income distribution system to reduce inequality between the haves and have-nots.

As the quality of assets created by banks are deciding factors for the financial strength of the lenders, and also affect the borrowers’ eligibility requirements, it is now an absolute necessity to find ways to prevent the assets from turning bad due to the pandemic-induced crisis. Micro-credit plays a significant role in promoting micro and small economic activities; the small shadow banks that occupy more space in this segment must be strengthened to ensure smooth flow of micro-credit at reasonable and affordable rates. Political parties, irrespective of their position in the government, must maintain political stability to execute more radical reforms and relief packages.

VSK Pillai


IL&FS scam

Apropos ‘NFRA bars ex-Deloitte CEO for 7 years, slaps ₹25-lakh penalty’ (July 23). Disciplinary action by the NFRA against the former Deloitte chief for professional misconduct was necessary but not sufficient. Hopefully, it acts as a deterrent for auditors and they are now forced to discharge their duties with utmost due diligence. However, the retribution is disproportionate to the financial scam, and exemplary action was required by way of blacklisting the firm and not just singling out an individual. Moreover, the culture of quid pro quo between auditor and auditee is the principal cause of malaise, as it disincentives auditor from providing an adverse report. A mechanism is required wherein selection of auditor for any company is done by the regulator and not by the entity to be audited.

Deepak Singhal


Delhi case count

Last month in New Delhi, where Covid cases were surging at an exponential rate, many people had said that the city’s count would cross five lakh by the end of July . But now, the national capital is exhibiting signs of control over the pandemic. The appreciable fall in daily cases is encouraging. Measures such as ramped-up testing, augmentation of critical care facilities, and home quarantine systems helped increase testing and proper monitoring of recovering patients. But given the unpredictable ways of the coronavirus, the Delhi administration and its people cannot afford to let down their guard.

M Jeyaram

Sholavandan, Tamil Nadu

Published on July 23, 2020

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