Opinion - Letters to the Editor   

Fiscal indiscipline

Sir, __ Fiscal indiscipline as also functional ineptitude of operators and chronic reluctance of investors to learn from the bitter experiences constitute the bane of our financial system — be it banking or non-banking. A scanning of the reports appearing in the press would confirm this.

The Kerala Transport Development Finance Corporation, a State Government non-banking institution engaged in hire purchase business had recently come out with an advertisement soliciting deposits.

The regulatory stipulation makes it obligatory for the corporation to furnish in the advertisement important financial data as per the last two audited annual accounts.

In this case, the latest data pertained to March 31, 2000 i.e. a period as much as 30 months prior to the advertisement.

That the accounts of a financial institution sustained by household savings are not audited for more than two years is a matter of concern.

P.R.R. Nayar,

Thiruvananthapuram

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