India to hire Deloitte, SBI caps to help LIC prepare for IPO
The coronavirus pandemic has prompted the administration to boost market borrowing as revenue slumped following a nationwide lockdown.
BUSINESS Updated: Aug 22, 2020 09:59 IST
The government will soon invite bids seeking firms to value LIC, the people said asking not to be identified citing rules on speaking to the media.(REUTERS)
India is poised to hire Deloitte Touche Tohmatsu India Ltd. and SBI Capital Markets Ltd. to help Life Insurance Corp. of India prepare for an initial share sale, people with knowledge of the matter said.
The advisers will help evaluate the capital structure of India’s biggest insurer as well as aid the company in reworking its financial statement, according to a tender document issued in June. The government will soon invite bids seeking firms to value LIC, the people said asking not to be identified citing rules on speaking to the media.
Prime Minister Narendra Modi’s government is keen to go ahead with the initial public offering -- potentially India’s biggest -- to help plug a widening budget gap. The coronavirus pandemic has prompted the administration to boost market borrowing as revenue slumped following a nationwide lockdown.
A spokesperson for the Ministry of Finance couldn’t immediately be reached outside business hours.
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In light of the above-mentioned report, we, the resigning ex-employees would like to appeal to the external auditors to examine whether LIC of India accounts for the amounts it repudiates in respect of the Wage Revision Arrears, as well as the difference in Statutory Retirement Benefits payable like Provident Fund and Gratuity; in its Balance Sheet; every time that a wage revision takes place in the Corporation.
LIC of India repudiates these payments through insertion of a Clause 31B in the Wage Revision Charter. This clause has been declared to be 'Ultra vires' by the Supreme Court in its judgment in 2007, yet LIC of India, in gross CONTEMPT OF COURT, keeps including it in all its Wage Revision Charters!
An Accounts Officer in the Corporation had nonchalantly told me that since these amounts aren't payable, as per the Charter, they are not at all accounted for, in the Statements of Accounts of the Corporation!
This is a clear case of omission and commission!
For LIC of India, it is a matter of 'Out of sight, out of mind and out of the Books of Accounts too!' as far as the resigning ex-employees are concerned!
This means that the repudiated amounts of several crores of rupees have conveniently been omitted in the Liabilities section of the Balance Sheet of the Corporation since 1st August, 1997, more than two decades, since when LIC of India has been illegally repudiating the arrears payments.
In effect, the Assets would appear to be wrongly inflated. This skewed Balance Sheet will not give a true picture of the finances of the Corporation, if provisions have not been made for these liabilities.
Interestingly, LIC of India didn't give me any information regarding the amounts repudiated or the number of employees who have been unjustly and illegally deprived of their dues; in response to my RTI appeal.
Had LIC of India accounted for it, it could have given me the information!
A thorough investigation is needed before the IPO of LIC of India is announced.
The repudiated dues must be paid with interest to all of us at the earliest.
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