In a marked departure from board proceedings at the Tata group’s Indian Hotels Co. and Tata Chemicals, Monday’s meeting at Tata Motors saw the auto maker’s independent directors opting to remain neutral in their assessment of the company’s performance.“The Independent directors have confirmed that all decisions taken by the Board with regard to the strategy, operations and business of the company have been unanimous and executed by the Chairman and the management accordingly,” Tata Motors said in a filing to the stock exchange after a more than five-hour board meeting.
“The independent directors have further affirmed that the company continues to be governed, supervised and managed under the guidance and direction of the board. The management of the company and its subsidiaries have the full confidence and support of the independent directors,” the statement added.
Commenting on this, J.N. Gupta, MD, Stakeholders Empowerment Services said, “It means the independent directors have not taken anyone’s side. They took collective responsibility.”
Tata Motors Chairman Cyrus Mistry, who was ousted from the helm of Tata Sons last month, and independent director Nusli Wadia, declined comment after the board meeting. Tata Sons, the promoter of Tata Motors, has sought the removal of Mr. Mistry and Mr. Wadia as Directors of the company through an Extra-ordinary General Meeting.
Tata Motors reported second-quarter net profit fell to Rs.848 crore from Rs.1,191 crore a year earlier due to hedging losses at the Jaguar Land Rover (JLR) unit, the company’s cash cow.
Consolidated revenue rose to Rs.67,000 crore from Rs.62,647 crore.
JLR had a profit of 280 million pounds compared with net loss of 92 million pounds.
Source: The Hindu