The Editor
Business Line
Dear Editor,
The questions areI am not writing this letter to be published, but I am writing more because of the questions asked by Ms.Aarati Krishnan are very relevant and needs to be answered.
1. UB Holdings extended guarantees and collaterals worth Rs.8,800 Crore to associate firms. Is it done at fair value?
2. Reliance infrastructure earned Rs.5900 Crore in revenues from EPC Contracts from group entities. Is the margin consitent with market trends are is it excessively loaded to boost the profits of the EPC arm at the cost of the consumer who has to pay costs to service the overvalued capital asset built using these “billing tactics”?
3. JSW steel brought goods and services worth Rs.2,800.00 Crore from associates. Is it at fair value?
Why Business Line or some other journal or other magazine do an extensive investigative story on these stories and bring out the lacuna either in the reading of the law or the loop holes in the law or plain disobeyance / disregard of (for) law which has happened in these transactions.
You must in my opinion, dedicate a page in your paper once a week at least, dedicated to the issues that affect stakeholders interest through such manipulations of the existing guidelines by big corporates. Such informed discussions will help the Sr. Executives working in large organisations remind that they are not beyond scrutiny and run the risk of being exposed, even though they may believe in the false protection offered by the so called highly influential corporates.
I am sure that some of the people who have spent time in Tihar from one of the corporates named in this article would agree with me.
With regards,
V.BALAKRISHNAN
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