1. Ratan Tata said to review performances across Tata Group in the next two months

Ratan Tata said to review performances across Tata Group in the next two months

Tata Group's interim chairman, Ratan Tata will be conducting an in-depth performance evaluation across the group.

By: | Updated: October 27, 2016 11:52 AM
Ratan Tata, Tata group, tata group evaluation, tata shares, tata stocks, Ratan Tata chairman of the group, Ratan tata news, Cyrus Mistry, Cyrus Mistry news, Cyrus Mistry latest news, tata news, tata latest news Former Tata Group chairman, Cyrus Mistry who was recently ousted, had earlier claimed that financial condition of many companies within the group was weak and that the Tata Group were looking at a big write-down of billions. (Reuters)

Tata Group’s interim chairman, Ratan Tata will be conducting an in-depth performance evaluation across the group. According to CNBC, sources have said that the performance review will span across to months. The review will include the assessment of balancesheet, the management structure and eventually a strategy will be laid out for high debt-laden companies, CNBC reported. According to the report, the focus of the review will be on Tata Steel, Indian hotels, Tata Chemicals, Tata telecom and Tata Global Beverages. Former Tata Group chairman, Cyrus Mistry who was recently ousted, had earlier claimed that financial condition of many companies within the group was weak and that the Tata Group were looking at a big write-down of $18 billion. Tata reportedly said that the claims were unsubstantiated. Tata Steel had clarified that the financial statements presented by the company depicted the actual state of affairs, Bloomberg reported. Meanwhile, after the replacing of Cyrus Mistry at the helm, Tata stocks got hammered down.

Cyrus Mistry showed how feeble Tata Group’s financial weakness is and the companies might make a write-off of a massive Rs 1.18 trillion over the years based on a “realistic assessment” of the fair value of some businesses, according to a letter written by Mistry to Tata Sons board. In the letter with the date of October 25, addressing the Director of Tata Sons, Mistry names Indian Hotels, Tata Power Mundra, Tata Motors, Tata Teleservices ‘legacy hotspots’. He wrote, “The capital employed in those five companies has risen from Rs 1,32,000 crore to Rs 1,96,000 crore (due to operational losses, interest and CapEx). This figure is close to the net worth of the group, which is at Rs 1,74,000 crore.”

Also read | Tata Steel responds to BSE, NSE on 18-billion dollar ‘write-down’

Mistry added, ” As is public knowledge, the foreign acquisition strategy, with the exceptions of JLR and Tetley, had left a large debt overhang. The European steel business faced potential impairments in excess of $10 billion, only some of which has been taken as of date.”

Please Wait while comments are loading...

Go to Top