Tata Group today said that the financial statements of the company present ‘a true and fair view’ of the state of affairs after bourses sought clarification following the disclosures by Tata Sons ousted chairman Cyrus Mistry that the group firms could face a potential USD 18 billion (Rs 1.20 lakh crore) write-down.
The company said that it has always made all relevant disclosures and have no comments on Mistry’s allegations.
“The financial statements of the company are prepared on a going concern basis and present a true and fair view of the state of affairs of the company. As part of preparation of financial statements, the value-in-use of the assets of the company is tested for impairment as per accounting standards,” Tata Steel and Indian Hotels Company said in a filing to BSE.
These comments come against the backdrop of the high-profile Tata-Mistry case, with stock exchanges seeking clarifications from various group companies, including Tata Steel and Tata Power, after purported disclosure of around USD 18-billion possible write-down at the firms.
"The financial statements are considered by our audit committee and unanimously approved by the chairman and the board of directors of the company... the company has currently nothing further to comment or disclose," Indian Hotels said.
In an explosive communication to Tata Sons board members, Mistry levelled a series of allegations against Ratan Tata and contended that he was pushed into a position of "lame duck" chairman, and changes in the decision-making process created alternative power centres in the Tata group.
He warned that the salt-to-software conglomerate may face writedowns because of five unprofitable businesses he inherited.
Mistry further said he inherited a debt-laden enterprise saddled with losses and went on to single out Indian Hotels Co, passenger-vehicle operations of Tata Motors, European operations of Tata Steel, part of the groups power unit and its telecommunications subsidiary as "legacy hotspots".
With PTI Inputs
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