Mumbai: The independent directors of Tata Motors on Monday reposed their faith in Chairman Cyrus Mistry, while taking up the second quarter results for this financial year.
In a regulatory filing with the BSE, such directors said they reviewed the recent developments in the group pertaining to their company. “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,” the company said.
“The independent directors have further affirmed that the company continues to be governed, supervised and managed under the guidance and the direction of the board. The management of the company and its subsidiaries have the full confidence and support of the independent directors.”
Mistry is Chairman and Non-Executive Director of Tata Motors.
The Tata Motors board has the following independent directors: Nusli N. Wadia, Raghunath Mashelkar, Nasser Munjee, Subodh Bhargava, Vinesh K. Jairath and Falguni S. Nayar.
Other board members are: Ralf Speth, Non-Executive Director; Guenter Butschek, CEO and Managing Director; Ravindra Pisharody, Executive Director (Commercial Vehicles); and Satish B. Borwankar, Executive Director (Quality).
On November 11, the company had informed the stock exchanges that it has received a notice from shareholders representing 26-per cent of the voting rights for the removal of Chairman Mistry and Independent Director Nusli Wadia from the company’s board. Based on responses, if any, from the duo after they are furnished a copy of the notice, the company may have to call an extraordinary general meeting of shareholders for their removal, if they don’t do so on their own.
Tata Sons, the holding company of the Tata Group companies, removed Mistry, 48, as its chairman last month, saying that he had lost the confidence of the board due to several factors and that the trustees were increasingly concerned with the growing trust deficit. Last week, Tata Sons in a nine-page statement said the ousted Chairman should resign from all group companies and deplored the manner in which Mistry has sought the support of independent directors of Indian Hotels to continue as its Chairman.
“Mistry conveniently forgets that he was appointed as the Chairman of the Tata operating companies by virtue of and following his position as the Chairman of Tata Sons,” Tata Sons said in its statement. issued last week.
As regards to the quarterly results, the Indian automobile giant reported a net profit (post profit/loss in respect of joint ventures and associate companies) at Rs 848 crore for the quarter ended September 30, 2016. The company had reported a consolidated loss after tax (post profit/loss in respect of joint ventures and associate companies) of Rs 1,740 crore for the corresponding quarter last year.
The company informed the BSE in another regulatory filing that its consolidated revenue stood at Rs 67,000 crore during the quarter under review, up 6.94 per cent compared to Rs 62,647 crore during the like period of the previous fiscal.