Letters to the editor dated October 2, 2020

This refers to the editorial ‘Forensic test’ (October 3). The forensic audit of listed entities is a welcome and a proactive move. The moot point is we have so many forensic auditors of repute to carry out mammoth tasks with a definite timeline, as it cannot be a time-barred exercise yielding any intended benefits. To resolve this the companies ought to be put under various brackets to be audited on a priority basis. The basis of which could be a number of anomalies which are fretted out by various stakeholders time and again but given short shrift.

Noida

As of now, the special investigative audit mechanism is generally exercised by lenders, shareholders or by the government whenever serious irregularities come to light in the operation of companies. The scope was extended further by the introduction of whistleblowing and audit committee provisions in the Companies Act. The directors’ responsibility statements in annual reports warrant mandatory disclosures on these aspects, however, the information on such malice would be available to the shareholders only on the closure of financial year resulting in an irretrievable loss of shareholder wealth.

Bengaluru

Companies and banks initiate such audits whenever they suspect any wrongdoing. However, they also tend to hush up the report, if it were to reveal inconvenient facts, thereby defeating the very purpose of commissioning the said audit.

Against this backdrop, SEBI’s diktat to all listed entities to disclose the initiation of forensic audits, besides making full public disclosure of the final report, along with the management’s comments, if any, is a welcome first step for ensuring transparency in the financial sector. Besides protecting the investor’s interests, it should also lead to an improvement in the risk management processes followed by the firms. Investors do understand that financial transactions carry an element of risk; what they find unforgivable is the attempt at suppressing facts and taking them for a ride.

Chennai

‘Farm Bills need smart implementation’ (October 2) is a well-conceived write up. It is true that the new Farm Bills will lead to four significant changes as stated in the article. In fact the changes in approach by the farmers to their profession will be very significant. There will be an attraction to the profession by many more people employed in other fields. The more important point is that the economy itself will find a boost.

But an important point is that the implementation should be with the strong support of the farming community and should not be as implementing any other bills. It should be considered that a vast population has farming as a means of livelihood. It is necessary that the government sets up a special panel including experts of the field to monitor the implementation of the bills and examine any suggestions of the community if it comes from farmers.

Coimbatore

This refers to ‘Covid beyond data’ (October 2). People should collectively fight against this pandemic. When people, in general, become empathetic towards medical professionals, patients, health workers, Covid infections can be reduced to a large extent. The day people realise that these are not ordinary days and for a short while they have to change their lifestyles, habits, the war can be won.

People should come out of the house only for emergency work, official work and avoid morning walks, sports, functions, etc. which can be definitely postponed for the larger interest of the society. Educating and counselling people in these matters will solve many of the problems related to the disease.

Avoiding cash transactions wherever possible is also a way to reduce infections. When people come together with the sole aim of defeating the pandemic, the world will be a better place to live in.

Thane

COMMENT NOW