Almost two days after he was removed as the chairman of the Tata group, Cyrus Mistry has written a letter saying he was “shocked beyond words” at what happened in the October 24 board meeting. In the letter he wrote that emotional reasons did not allow the company to shut down Tata Nano project which was running through loss. He also alleged that Nano project supplied equipment to a company that Ratan Tata had a stake in.
He added that the replacement of chairman without explanation is unique in annals of corporate history and because of that not all kinds of speculation were doing rounds, but also his as well Tata group’s reputations were affected.
In the letter Cyrus Mistry further said he could not believe that he was removed for poor performance as the net worth of the company rose to Rs 42,000 crore from 26,000. Stressing that he was pushed into the position of a ‘lame duck’ chairman, he further said that except LRPR & Tetley, has left large debt overhang and Tata Chemicals still needed to take the tough decision about its Its UK & Kenya Operations. Writing further, Cyrus Mistry said that the forensic probe revealed fraudulent transactions worth Rs 22 Cr In AirAsia, the CNBC TV 18, has said. The channel has said it has not verified authenticity of the letter.
Cyrus Mistry went on to say that the original Tata Docomo deal structure raises many questions about its prudence and also that Tata Powers aggressively bid for the Mudra project, which accounts for 40 percent of Tata Power’s capital employed.
Read here for blow by blow account of his letter to directors
* I Was Pushed Into The Position Of A ‘Lame Duck’ Chairman
* Tata Motors Finance Extended Credit With Lax Risk Assessment To Shore Up Sales
* Any Turnaround Plan For Tata Nano requires Tata Motors to Shut It Down; Nano Has Consistently Lost Money, Peaking at Rs 1,000 Cr
* Was Forced To Circulate A Note On Corporate Governance
* Such Behaviour Created Risk Of Violating Insider Trading Norms
* Nitin Nohria & Vijay Singh Left A Board Meet Once To Take Instructions Fm Tata
* A Realistic Assessment Of 5 Tata Cos Can Lead To A Near-$18 Bn Write Down
* Nano Proj Supplies Equipment To A Company Where Ratan Tata Has A Stake In.
* Emotional Reasons Have Kept Us From Closing Down The @tatanano_tweets Project
* Original Tata Docomo Deal Structure Raises Many Questions About Its Prudence
* Passion for Sector Has Led Ratan Tata To Continue His Involvement With Airlines
* Without ‘The Benefit Of Time & Experience,’ Had To Accept Tata-SIA JV
* Was Promised Tata Sons Investment In Air Asia Would Be Capped To 30% Of Equity
* I Had Made My Objection Known On The Airline Venture W/AirAsia
* Forensic Probe Revealed Fraudulent Transactions Worth Rs 22 Cr In AirAsia
* During My Term, Operating Cash Flows Of The Grp Have Grown At 31% CAGR
* Indian Hotels Had To Write-down Nearly Its Entire Net Worth Over Past 3 Years