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

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