Tata Teleservices (Maharashtra) today said its board considers risk assessment and management regularly with disclosures as per law, days after ousted Tata Sons Chairman Cyrus Mistry alleged that the group's telecom business has been continuously haemorrhaging.
The company also clarified that it was not a party to the the DoCoMo transaction, which is with its promoter firms Tata Sons and Tata Teleservices Ltd.
"...All required governance processes in respect of risk assessment and risk management have been considered by the board of directors and its duly constituted committees from time to time," Tata Teleservices (Maharashtra) or TTML said in a clarification to BSE.
It further said: "...Appropriate disclosures have been made by the company, as required under applicable law."
Stating that it has risk management systems and functions, which are supervised by the audit committee, the company pointed out that there is also a whistle blower policy in place and the same is a part of the charter of audit committee.
A day after he was replaced on October 24, Mistry had written to the board members of Tata Sons that of all the companies in the portfolio, the group's telecom business "has been continuously haemorrhaging".
In his letter, Mistry said: "If we were to exit this business via fire sale or shut down, the cost would be four to five billion dollars. This is in addition to any payout to DoCoMo of at least a billion plus dollars."
He had also raised questions over the "appropriateness" of the original structure of the DoCoMo transaction from a commercial or a prudential perspective within the then prevailing Indian legal framework.
Tata Teleservices (Maharashtra), however, said in its clarification that it had no role to play in the DoCoMo transaction.
"At the outset...The DoCoMo transaction...Is not with Tata Teleservices (Maharashtra) but with our promoter companies Tata Sons Ltd and Tata Teleservices Ltd," the company said.
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