Ousted Tata Sons chairman Cyrus Mistry has taken issues with the 2017 annual report of Indian Hotel Company. He said the report “seeks to call some of my observations or facts asserted in ongoing proceedings, incorrect and careless”.
Ousted Tata Sons chairman Cyrus Mistry has taken issues with the 2017 annual report of Indian Hotel Company. He said the report “seeks to call some of my observations or facts asserted in ongoing proceedings, incorrect and careless”. In a statement issued from his office on Monday evening, Mistry said, “Therefore, it is important to set the record straight on such issues. I have indeed raised questions regarding the appropriateness of the unfettered global strategy in the past, proposed by the management and people in control of the IHCL. The comments made by me are based on detailed and specific facts, backed by documentary proof as form part of the record in ongoing proceedings”. The 2017 annual report of IHCL has been signed by N Chandrasekaran who became Tata Sons chairman after Mistry was sacked from the position. Taking a swipe at him, Mistry has said, “I think it is the new chairman N Chandrasekaran and the board that should exercise proper care while making statements to ensure that they are responsible”.
Mistry has said it is pertinent to note that a company may make strategic errors as part of their journey. “But when one has a consistent pattern of value destroying strategic decisions, all being defended blindly with vague assertations, it is indeed time for shareholders to question”. He has said over the last ten years the fact is the following strategic decisions have destroyed economic value: Sea Rock, Pierre, BJets, Taj air, Taj Boston, Taj Campton place, IHMS, South Africa, Orient Express Hotel, and Ginger.
“The company has faced a near death experience and over the last four years has had to take write downs amounting to nearly its entire net worth. Dividends to the shareholders have been impacted and these decisions have put the welfare of the employees at risk. Today, I understand the company will approach the shareholders for a further capital infusion. I raise these issues with a view to ensure such decisions in the future are taken with due regard to the consequences on all stakeholder,” Mistry has said.