In an exclusive newsbreak, CNBC-TV18 lists out the 10 reasons why Mistry was replaced as Chairman, as noted by sources.
The Tata Sons-Cyrus Mistry spat is turning uglier by the day. The conglomerate today issued a statement stating it's beneath their dignity to engage in a public spat and claiming Mistry was given a free hand and he failed to show results.
— Sources say Mistry submitted a note in Oct 2010, setting out vision for Tata Group. However, after 5 years, hardly any of Mistry's management rejig plans were implemented. Even existing structure of Group was 'consciously' dismantled.
— Operating companies drifted further away from the parent & majority owners.
— Tata Sons failed to show up desired results despite Mistry having enough time to work on it.
— dividend from non-TCS group companies declined from Rs 1,000 crore in FY13 to Rs 780 crore in FY16.
— All operating companies besides TCS have been declining during the last 4 years.
— Despite a planned list of divestment there has been little or no profit on sale of investments.
— Impairment provisions on the books increased from Rs 200 crore in FY13 to Rs 2,400 crore in FY16.
— Without TCS' dividend & impairment provisions, Tata Sons shows operational losses over last 3 years.
— Revenue of Tata Sons is stagnant at Rs 2,200 crore while expenses have risen sharply.
— Tata Sons’ total dependence is now on one single company, TCS – which is a source of concern.
A panelist of experts on the subject also gave CNBC-TV18 their take on the feud.
Source: Moneycontrol.com