Secret document puts market value of investments at Rs 2000cr
Tata Sons, the principal holding company of the Rs 30,000 crore Tata group, has estimated a marginal rise of 4.6 per cent in its profit after tax for 1996-97. The market value of its investments is being put at Rs 2,000 crore.
According to a confidential Tata Sons prospectus to a private placement of debt, the companys profit after tax is expected to rise to Rs 130 crore during the year from Rs 124 crore in 1995-96. The company has declared a dividend of 150 per cent for the year.
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The financial details of Tata Sons are a closely guarded secret as it is not a public company.
The companys investments rose by 16.15 per cent in 1996-97 to Rs 1050 crore from Rs 904 crore previously. The net current assets of the company also rose marginally to Rs 196 crore during the year from Rs 179 crore in 1995-96. The book value of the quoted investments of the company as on March 31, 1997 stood at Rs 992 crore, while its market value was Rs 2,000 crore.
Tata Sons total income for 1996-97 rose by 27.38 per cent to Rs 800 crore from Rs 628 crore in the previous year. The expenses of Tata Sons rose 32.9 per cent during the year to Rs 650 crore from Rs 489 crore in 1995-96. The companys profit before tax rose to Rs 150 crore during the year from Rs 139 crore in 1995-96. The company provided Rs 20 crore towards tax for the year, up from Rs 15 crore in 1995-96. Tata Sons equity capital remained unchanged at Rs 18 crore during the year. However, the preference capital of the company rose to Rs 73 crore in 1996-97 from Rs 34 crore in the previous year. The reserves and surplus of the company stood at Rs 725 crore during the year, up from Rs 624 crore in 1995-96. Tata Sons unsecured loans dipped to Rs 300 crore from Rs 315 crore in 1995-96. However, secured loans rose to Rs 260 crore during the year from Rs 191 crore in 1995-96.
at 376 crore in 1996-97, up by 16.41 per cent from Rs 1182 crore in 1995-96. The company also raised Rs 50 crore through a non-convertible redeemable debenture issue last month. The proceeds from the issue will be used for normal investment purposes.
The fixed assets of Tata Sons rose to Rs 130 crore in 1996-97 from Rs 99 crore in the previous year.
Along with Tata Industries, Tata Sons has promoted the principal companies established by Tatas in India and abroad. Tata Sons has several operating divisions Tata Consultancy Services, Tata Consulting Engineers, Tata Economic Consultancy Services, and Tata Financial Services.
The company also raised Rs 50 crore through a non-convertible redeemable debenture issue last month.
The proceeds from the issue will be used for normal investment purposes.
The fixed assets of Tata Sons rose to Rs 130 crore in 1996-97 from Rs 99 crore in the previous year.
Along with Tata Industries, Tata Sons has promoted the principal companies established by Tatas in India and abroad. Tata Sons has several operating divisions Tata Consultancy Services, Tata Consulting Engineers, Tata Economic Consultancy Services, and Tata Financial Services.