Accounting mismatch
This refers to ‘Accounting lessons from IndusInd Bank episode’ (March 20). Accounting mismatch in forex derivative bookings dating back eight years was identified under RBI’s portfolio review. And this has obviously sparked fears about financial integrity of the bank.
This fiasco once again highlights the age-old theory of keeping internal risk control as tight as possible because lapses in it can lead to massive losses for the shareholders and stakeholders. And it also tells other banks that transparency is non-negotiable
ICAI guidelines recommend mark-to-market valuation but the bank was not legally bound to follow them, otherwise this whole situation could have been avoided.
Bal Govind
Noida
Gold always glitters
Apropos ‘Gold’s bull run’ (March 20), gold investments are not comparable with any other investment. Despite all the theories, economic principles and global/domestic market trends, gold has assumed significance as a shock absorber against all economic and political turbulence. Gold has its own dynamics and has never failed investors and central banks too. In India, gold assumes greater significance as we see it as a mark of our prosperity and religiosity.
Vinod Johri
Delhi
Natural farming
Apropos ‘Farming naturally’ (March 20), indeed improving natural farming involves adopting sustainable and ecofriendly practices which could promote soil health, biodiversity and efficient water use. The National Mission on Natural Farming takes special care to promote natural farming through mulching, crop diversity and bio inputs. Further, integrated pest management, practising precision agriculture, adopting renewable energy and using data analytics are strategies to augment productivity in natural farming.
NR Nagarajan
Sivakasi, TN
Incentivise farmers
Farmers need to be made aware of the advantages of natural farming. They should initially be incentivised to shift to natural farming, apart from ensuring availability of bio-inputs, providing efficient extension services and market linkages for their produce and ensuring profitability of natural farming. For a few years, the entire produce from natural farming may be procured by the government at a fair support price that ensures profitability of natural farming.
Kosaraju Chandramouli
Hyderabad
Fiscal prudence
Apropos ‘Should fiscal prudence be an end in itself?’ (March 20), the Centre and every State have a bounden duty to keep the waste or unproductive expenditure under control and use the monetary resources for enhancing capital assets and employment opportunities in the economy. Viksit Bharat is possible only if involuntary employment is zero.
S Ramakrishnasayee
Chennai
