Letters to the editor dated Aug 24, 2020

This refers to the editorial ‘Calling to account’ (August 24). The National Financial Reporting Authority’s (NFRA’s) audit quality reviews are well-timed. We have been witnessing the tyranny of the Big-Four accounting firms, and on many occasions the statutory audit reports, which are considered as independent professional opinion, have been compromised by their sheer greed.

The Companies Act, as also the various legislation on valuation, place utmost importance to an objective audit report. I am a registered valuer with the IBBI and we consider the statutory report as sacrosanct. If these audit reports are biased, the valuation reports that are prepared from these are worth only the paper they are written on. The prohibition of three or four audit partners serves only as a palliative. There is a dire need to blacklist such audit firms in their entirety. It is hoped that the NFRA is not viewed as another piece of legislation, but given professional independence and empowered to call a spade a spade.

Hyderabad

Apropos ‘Taking on Chinese firms calls for a strategy’ (August 24), banning 59 Chinese apps is one thing and taking on the manufacturing hub of the world is altogether another. We are living in a truly globalised world where complex transactions are routine. In such a business environment, it is not feasible to throw every Chinese company or investment out of our country. In this case of IPL sponsorship, it is rather amusing that the BCCI has avoided one Chinese company only to on-board another one from that country. It is good to strive for self-reliance, but before that a sector-wise analysis of our strengths and weaknesses is required. And based on that a micro-level cluster-specific strategy is needed.

Noida

Democracy cannot survive without a strong opposition. A lot of Congress leaders are worried that due to multiple power centres within the party, crucial decisions are delayed. In a democracy, the opposition has a big role to play in ensuring that the government in power functions properly and within its limits. It is time the Congress elected a strong leader, as this will also help in the growth of a healthy democracy.

New Delhi

This refers to ‘Delhi government requests Centre to allow re-opening of metro services' (August 24). It was intriguing that the Delhi Chief Minister has requested the Centre to allow re-opening of the Delhi metro in a phased manner as the situation in the national capital is improving .

But the situation on the ground reveals a different story, more so when as many as 1,450 fresh corona positive cases, highest in August, were reported on Sunday. One just shudders to imagine whether the Delhi government's ‘tryst’ with bringing the economy of the national capital on track, could be more important than effectively containing Covid-19.

Bengaluru

This has reference to ‘Smart supply chains’ (August 24). The lockdown has brought to light the weaknesses in supply chain management of many companies and in spite of the assurances by the government, there was difficulty in procuring some materials and medicines. Generally, companies have a limited pipeline and this practice may have to be revisited in order to manage situations better in future.

The supply chain management has shifted from national level to regional level post Covid and any company which is able to make available its products continuously at the shortest time will succeed via-a-vis its competitors. Professionally run corporates will go for supplier risk rating and hence timely supply becomes important. For taking care of all these requirements, technology will play an important role in supply chain, logistics and inventory management and the companies have to customise a software best suited to them.

Mumbai

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