Ratan Tata, chairman of Tata Engineering today defended the company's decision last fiscal to write-off around Rs 1,180 crore worth deferred investments, which has been a subject of fresh criticism of late in the media. Speaking at the company's 57th annual general meeting (AGM) here today, Tata said the company's decision was "very much in the interest of the shareholders".
"Had this amount of amortisation been carried in each of the subsequent 4-5 years, we would have had an overhang for all those years, and the shareholders of the company would have been paid a very meagre dividend. What has been done, has been done in a transparent manner. We did not hide any comment," he said.
"I feel offended about being compared to some companies which have siphoned off money from their companies. We were as transparent as we could be and had gone to the shareholders and courts for approval," he added.
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He also said that subject to the conversion of the warrants with the non-convertible debentures subscribed during the company in its recent rights issue, the promoters stake in Tata Engineering was likely to go up to around 35 per cent from over 32 per cent currently.
Referring to the possibility of roping in a strategic partner for the company's passenger cars business unit, Tata said, "We don't want to lose our identity. We want to exchange products, but not any sub-ordination to any other company."
He stressed that the company currently did not have a brand abroad, and sooner or later, if it were to be very successful, would have to set up an assembly plant abroad. He re-confirmed that Tata Engineering was talking to the UK-based MG Rover group for exporting the Indica.
He, however, denied that the domestic financial institutions had approached the Tata group with regards to Daewoo India.