In stark contrast to the drama that unfolded at the board meetings of other Tata companies, the Tata Power meet was “business as usual“. The mood was also sombre, people present in the meeting told ET. Mistry was restrained and his speech was measured. His chairmanship of the meeting was not opposed by anyone, people aware of the development said.
Homiar Vachha, director, placed on re cord that Mistry had conducted himself as the head of the company with utmost professionalism and offered him heartfelt compliments for his leadership. Nawshir Mirza, the senior most director on board, also thanked Mistry on behalf of the board.
In a notification to the bourses, Tata Power said that that its promoter Tata Sons, which holds 31.05% stake in the company has called for the removal of Mistry from the company’s board. The proposal for this was read out by Tata Sons nominee Sandhya Kudtarkar and was approved by the board while Mistry stepped out briefly during the voting.
“The board meeting was conducted very professionally and company matters were discussed at length. Mistry is a thorough gentleman and there was no friction during the meeting,“ a member of the board told ET.
The firm reported consolidated net pro . 336 crore in the second quarter of fit of Rs 2016-17, as against a loss of Rs 96 crore reported a year ago. The company attributed the profit to to lower mark-to-market losses at its Mundra power project and better performance by its key Indian subsidiaries and Indonesian coal mines.
The company’s consolidated total income declined to Rs 7,208.9 crore in the September quarter from Rs 7,666.3 crore a year ago. “Our subsidiaries continue to perform well despite challenging circumstances. We are confident that our strong growth trajectory will continue into the next quarter,“ said CEO Anil Sardana.
The company has started reporting financial result under the Indian Accounting Standards (Ind-AS) since April and discussion over the new accounting standards and its implication on valuation consumed much of the time in the board meeting.
The Tata Power management provided update on projects, including the ultra mega power project at Mundra in Gujarat. The board also discussed the impact of Ind-AS on the valuation of the recently acquired Welspun Renewables Energy, sources said.
“It was a peaceful affair,“ a board member said. The independent directors, three of whom have been inducted on the board last month, have not met separately to discuss that boardroom battle, but have had conversations over the past few days in the run up to the board meeting.