Corporate Governance -top of the mind questions

1)Corporate governance in State owned Public sector companies needs to be looked into

For e.g TASMAC is the largest Retailer in terms of Sales revenue of more than Rs.35k Cr per annum

of Liquor in TN.This is TN State Marketing Corporation Ltd ,a Pvt Ltd co. which is wholly owned by

Govt of TN but does not have requirement for appointment of any Independent Director as it is a Pvt

Limited Co.

Its AR after Fy 16-17 is not available in its website ,because it is Pvt Ltd?Its Auditors’ Report(FY 16-

17)is full of qualifications and non-compliance.Even its Sale booking is not in order.It makes huge

losses every year and has negative networth.What is its condition as at 31.3.21 is not known through

its website.

There is no effective Audit Committee as there is no Independent Director to question as it is

considered as Pvt Ltd Co.(see Page 5 of AR)

Since it is Pvt Ltd Co.,No KMPs who are responsible for proper reporting even though it is one of the

biggest retailer in the Co.and I am told even bigger than Reliance Retail’s annual turnover.

What kind of Corporate Governance is this?

This may not be an isolated case. Whether MCA has data as to how many more state entities are

Moribund and rotten like this.

2)As per MCA 21 database a)how many cases under various Sections of Cos.Act 2013 have been

identified

b)And how many are of serious nature like criminal offences

c)How many involve other serious Acts like FEMA violations, Narcotics etc.

d) What are forums before which these cases are lying and the age of the cases and the amount

involved/locked up due to these cases.

e)What are the cases or issues under what sections of Cos. Act come up before Cos end up with

IBC litigation in NCLT.

AI/ML & Data analytics will be useful for this.

3) Research Studies on Related Party Transactions(RPT) will have to go beyond official data sources

to identify a) “Circular Transactions within single Business Group and b) Round-tripping

transactions which lead to fake transactions, volume boosting activities and also used for money-

laundering.

4) Feasibility of Forming advance ruling authorities for all important statutes incl Cos. Act (like

existing for Income Tax and GST), so that entrepreneurs may minimize the statutory risks of business

decisions taken based on their interpretation of the law / regulation, in good faith

Comments

Hanuman and Ganesha!

The two major loved deities of the Hindu pantheon are Hanuman and Ganesha. Let us dwell into the concepts and significance of these two dieties. Ganesha, the son of Parvati and Shiv, is worshipped first before starting any new job or work. Even if you want to start writing or reading , you invoke the blessings of Lord Ganesha who goes under various names- Ganapathi, Vigneshwar, Vinayak, and Pillayar in Tamilnadu. Ganesha Gayathri, Pancharatnam are some of the important Ganesha mantras and hymns. Adi Ganesha idol is in a Temple near Tiruvarur in Tamilnadu with a human face.The mythological story says that Shiv slew His head and then fixed the head of the animal that He saw first after this beheading of His son. Ganesha after that with the elephant head is worshipped as the wisdom god by Hindus. Why only Hindus. He is worshipped in Indonesia where He finds Himself in their currency notes. He is considered the destroyer of evil in Japan. In Mexico, Ganesha idols were said to h...

Indian Economic Momentum is likely to remain on track next 3 to 6 months!

The dashboard on Indian Economic Momentum presents key indicators that highlight the current economic landscape based on Lead and Lag indicators: - **Consumer Price Index (CPI)**: There has been a recent uptick to 3.4% in March 2026. - **Trade Data**: The trade deficit has narrowed to $21 billion in March, although projections indicate a potential widening due to oil volatility. - **GST Collections**: A significant milestone has been reached with gross revenue of ₹2.0 lakh crore. - **PMI (Manufacturing & Services)**: Recent moderation has been observed, influenced by Middle East geopolitics and the ongoing repercussions of the Ukraine war on Russian oil. - **IIP & Core Industry**: Trends in industrial production growth are being tracked. These indicators collectively provide a comprehensive view of the economic momentum in India.

How to prepare for the consequences of Iran war

The COVID-19 pandemic has taught us valuable lessons about resilience in business. One key takeaway is the importance of conserving cash and other resources that may become scarce during challenging times. Businesses must prioritize financial prudence to sustain operations and navigate uncertainties effectively. This approach not only helps in weathering immediate crises but also positions organizations for long-term stability and growth. Reflecting on these lessons can guide future strategies and enhance preparedness for any unforeseen events.

We are what we are !!

Search This Blog