After Cyrus Mistry’s disclosures Tata Steel says Financial statements is true and fair view
Mumbai, Oct 27 : Tata Steel on Thursday said 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 P. Mistry.
“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 the preparation of financial statements, the value-in-use of the assets of the company is tested for impairment as per the Accounting Standards,” Tata Steel said in a statement.
The steel maker also said it had “currently nothing further to comment or disclose”.
The stock exchanges on Wednesday had sought clarification from Tata group’s Tata Motors, Tata Steel, India Hotels, Tata Teleservices and Tata Power “with respect to news appearing on Bloomberg on October 26”.
In a letter to the Tata Sons board and the group’s trustees, the 49-year-old Mistry on Wednesday said: “The capital employed in these companies had risen from Rs 132,000 crore to Rs 196,000 crore, due to operational losses, interest and capex. This figure is close to the networth of the group, which is at Rs 174,000 crore.”
Market watchdog Securities Exchange Board of India is also reported to be looking into Mistry’s disclosures to verify if there was any breach of corporate governance, violation of listing norms and regulations by the Tata group or its listed firms and financial or other irregularities.