1. Auditors deny Cyrus Mistry’s charges on Tata Motors Finance for not following stringent risk-evaluation processes

Auditors deny Cyrus Mistry’s charges on Tata Motors Finance for not following stringent risk-evaluation processes

Denying the charges of accounting lapses at the Tata Motoors, Auditors had told that the management have the complete authority to decide whether the company will spread the losses over the life of the asset or deduct it one time.

By: | New Delhi | Published: November 1, 2016 3:58 PM
Cyrus Mistry, Cyrus mistry appointment, Cyrus Mistry resigns, Ratan Tata, Ratan Tata chairman of the group, Cyrus Mistry replaced, Cyrus Mistry news, Cyrus Mistry tata group, Tata, Tata Group, Tata Group Chairman, Shapoorji Pallonji, Tata sons, Tata Elxsi On October 24, the Tata sons replaced Cyrus Mistry as the chairman of the group, with former chairman Ratan Tata. (Source: AP)

Denying the charges of accounting lapses at the Tata Motors, Auditors had told that the management has the complete authority to decide whether the company will spread the losses over the life of the asset or deduct it one time.

Earlier, citing practices that led to bad loans for the group, ousted Tata Sons chairman, Cyrus Mistry, through an e-mail, told the directors of the group that there had been bad loans of more than 4,000 crore as stringent risk-evaluation processes were not followed by the Tata Motors Finance.

Last Thursday the Tata Motors had clarified the issue at the Bambay Stock Exchange (BSE) saying, “The company’s accounting policies as prescribed and appropriate to present true and fair view are reviewed by audit committee and presented in its annual financial statements. Provisions and write-offs as appropriate are being made in our audited financial statements after evaluating useful life, volumes and alternate usages….The statements are considered by the Audit Committee and approved by the chairman and all directors…”

The Tata Motors annual report shows that the consolidated product development/engineering expenses were 3,480 crore in 2015-16 and ₹2,875 crore in 2014-15.

On October 24, the Tata sons replaced Cyrus Mistry as the chairman of the group, with former chairman Ratan Tata.

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