The Reserve Bank of India Governor Shaktikanta Das on Thursday mentioned companies should avoid having an aggressive short-term reward-seeking tradition with out contemplating the build-up of extreme dangers of their steadiness sheets.
Das mentioned doing enterprise entails danger taking. But earlier than taking the danger, the upside and draw back must be rigorously thought of.
“Businesses should avoid aggressive short-term reward-seeking tradition with out regard for the build-up of extreme danger within the steadiness sheet,” Das mentioned whereas delivering a speech on the Iconic Week celebrations, as a part of the Azadi Ka Amrit Mahotsav’, to mark the seventy fifth anniversary of Independence.
The occasion was organised by the Central Board of Indirect Taxes and Customs (CBIC) right here.
The frequent traits of among the inappropriate enterprise fashions or methods which have come to the RBI’s discover contains inappropriate funding construction, constructing asset legal responsibility mismatches, that are extremely dangerous and never sustainable, he mentioned.
Besides, unrealistic strategic assumptions, notably extreme optimism about capabilities, development alternatives and market developments could result in poor strategic choices, he famous.
He mentioned the RBI has mandated a bunch of disclosure for its regulated entities to make sure that they make full disclosure of all materials data of their monetary statements.
Tarun Bajaj, Revenue Secretary and Vivek Johri, Chairman, CBIC have been additionally current on the occasion.
(Only the headline and movie of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
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