Three Tata companies — Tata Teleservices, Tata Power and Indian Hotels — which faced the blistering attack of Cyrus Mistry, who was ousted as Tata Sons chairman, claimed they have been following all required governance processes and disclosures.
Coming out in support of the Tata group, Tata Teleservices said its board considers risk assessment and management regularly with disclosures as per law. Mistry had alleged that the group’s telecom business has been continuously haemorrhaging.
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The company also clarified that it was not a party to the DoCoMo transaction, which is with its promoter firms Tata Sons and Tata Teleservices Ltd.
“All required governance processes in respect of risk assessment and risk management have been considered by the board of directors and its duly constituted committees from time to time,” Tata Teleservices said.
It further said: “appropriate disclosures have been made by the company, as required under applicable law.”
Stating that it has risk management systems and functions, which are supervised by the audit committee, the company pointed out that there is also a whistle blower policy in place and the same is part of the charter of audit committee.
Tata Power said it has discharged all legal and fiduciary obligations in connection with its Mundra Ultra Mega Power Project (UMPP).
“This (Mundra UMPP) project was bid for in 2006 when the concept of a formal Risk Management Committee was not introduced and all proposals were deliberated and approved by the board,” Tata Power said.
Mistry had denied Tata group’s claim that the board was not properly consulted on Tata Power’s purchase of Welpsun Power in June.
Dubbed by Mistry as one of the Tata group’s ‘legacy hotspots’ that may lead to a writedown of Rs 1.18 lakh crore, Indian Hotels hit back saying its accounts and financial statements present “true and fair view” of the state of affairs.
“The company has from time to time published its accounts and financial statements. We would like to reiterate that all such reports, accounts and financial statements present true and fair view of the state of affairs of the company ..,” it said.