The comments from the corporate affairs minister criticised the rating agencies Standard & Poor's as well as Fitch where they have downgraded India's credit outlook to negative, citing corruption and lack of reforms.
The minister said he doesn't believe in the system being followed by the global agencies and he doesn’t think that a comment or a reflection on the leadership of a respective country can be a subject matter of the credit rating agencies which should keep themselves confined to the economic parameters.
Talking about the New Companies Bill, the minister said that he is hopeful that it will come up in the monsoon session of the parliament.
He said that the Parliamentary Standing Committee has submitted its report to the speaker who is yet to forward it to the corporate affairs ministry, which will work on it as soon as it arrives. However, he denied to comment as to what all recommendations are contained there in.
Sharing his views on the corporate social responsibility (CSR) obligations provisions to be incorporated for the first time in any enactment, company law anywhere in the world, Veerappa Moily said that he is not aware of any kinds of amendments that are there and until it comes to him, he will not be in a position to give a call as to whether the CSR will continue to remain voluntary or not.
“We’ve worked out a very acceptable formula on the CSR, the one which is acceptable to the corporate bodies, all the industries and the country as a whole. At the same time, we are also providing a cushion in order to ensure that the compliance of CSR will also form the part and parcel of the responsibilities of the respective companies,” said Moily.
On being quizzed about his views on Competition Commission of India (CCI) attracting criticism for being an anti-industry and imposing harsh penalties on certain industries, the minister said that if the Governance, Risk Management & Compliance (GRC) norms are followed in totality by all industries and corporate bodies, perhaps they will not get into these contingencies.
Acknowledging that the government is facing certain setbacks in terms of the economic growth, the corporate affairs minister said that economic slowdown in India is a temporary phenomenon caused by certain international and domestic developments and the government is aggressively working to restore the growth trajectory back on its rising path, besides, there is a wider consensus that Indian economy has strong fundamentals to face these challenges. He assured that within next two-three months things will certainly turn around.”
Standard & Poor's, Moody's, Fitch are some of the leading global rating agencies that rate the countries across the world on the basis of their economic performance.
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