Dilip Pendse, former Tata Finance managing director, in his affidavit has given the break-up of the Rs 480 crore advanced by Tata Finance to its erstwhile subsidiary Niskalp.
Of the Rs 480 crore, Rs 201 crore was investment in quoted shares. According the affidavit, J E Talaulicar, the former chairman of Niskalp, had taken a conscious decision of investing in then ICE (information, communication, and entertainment) stocks as the yield was expected to more than 40 per cent.
This business plan for Niskalp was discussed at the board meeting on July 21, 2001 Niskalp had further invested Rs 43 crore in unquoted shares of Tata group companies such as Tata Finance Securities, Tata Share Registry and other group companies.
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Also a sum of Rs 32 crore was invested in other unquoted shares and debentures. A sum of Rs 99 crore was outstanding from Telco dealers (advances and non-convertible debentures).
Further, Rs 45 crore was outstanding on account deposits and loans to Integrated Call Services Pvt Ltd (ICML) as on June 30, 2001. Niskalp had advanced Rs 130 crore to ICML by way of loan for the purpose of securitising the receivables of Global Tele-system.
However, ICML had honoured the obligation and paid back Rs 130 crore in instalments together with interest thereon to Niskalp.
According to the affidavit, at the Tata Finance board meeting on October 30, 2000, it was decided to take over the securitisation with ICML having a net financial exposure of Rs 70 crore on its books from the books of Niskalp so as to reduce the borrowings of Niskalp from Tata Finance.
Meanwhile, Rs 77 crore was the net amount of loans advanced outstanding due and payable by Niskalp to Tata Finance in respect of wind mills business. However, the wind mills business was owned by Niskalp as on June 30, 2001.
The affidavit also hinted that Niskalp owned aircraft and other assets of Rs 16 crore and Rs 25 crore in inter-corporate deposits (ICDs) placed with others. Hence, Rs 480 crore worth of liability was arrived at after netting this amount (Rs 41 crore).