Tatas Complete WTO Audits Of 10 Group Cos

Mumbai, September 25: | Updated: Sep 26 2002, 05:30am hrs
The Tata group is gearing up to face the World Trade Organisation (WTO) regime and has completed the WTO audits of 10 group companies. The audits are being conducted by the Department of Economics and Statistics (DES), Tata Services Ltd, which, as of March 2002 had completed audits in these 10 companies.

According to the in-house Tata group magazine, Tata Review, Group Executive Office (GEO) member R Gopalakrishnan is targetting a total of 5,000 executives to be trained in WTO norms and requirements by March 2003. The Tata group currently has trained 2,500 executives in policies of the regime.

According to the Tata Review, the WTO audits are an exercise initiated by the Tata WTO Cell in the DES which is the Tata group think tank. Unlike in the case of general financial audits, stock audits, energy audits etc. the WTO audit does not have any pre-established techniques or methodology norms for assessment, the Review states.

DES has evolved a rating mechanism to highlight each companys WTO compatibility.

The audit primarily focuses on the compatibility parameters, comprising overall levels of awareness about WTO issues, strategic approach and deployment. It also covers the implications of WTO norms on industry, products and processes.

It also tries to guage the price and cost competiveness of each company, particularly on account of changes in duty structures, which in-turn effect the entire value chain. These audits also determine growth parameters and potentials in the event of a libralised trade regime.

The score by these audits are also understood to be health reports on the companies studied. It gives a comprehensive score of global competitiveness in the WTO regime. It helps the company to identify the areas of concern and strategise accordingly, it said.

The group set up the WTO cell in November 1999, as the central resource for WTO-related activities.