https://www.equitymaster.com/ht/detail.asp?date=11/22/2016&story=2&title=Tata-troubles-Corporate-Philosophy-Corporate-Governance&utm_source=HT&utm_medium=mail&utm_campaign=e-letter&utm_content=HT&pst=y#acmt
Ajit Dayal runs Quantum Mutual fund & holds high values.
He's ardent proponent of Biz-ethics & states outright, HDFC, Tatas & Infosys are on par with gold to trust with.
First time, I dared to write to him. Indeed, a moment to cherish for me.
Dear Ajit,
my son used to insist I read your letters. I've started reading off late & this one, I had to reply today.
You missed the most touching humane aspect of Tata Group. 26/11/2008.
Inspite of heavy loss incurred,( just for having built an iconic hotel & a proud symbol of India), Tata group paid for all the folks, who were dependent on that Tata property. Hand cart pullers, people on roads too were given the largesse, to rebuild their lives. This was the true Jamshedji spirit. That act would make any die-hard capitalist get a lump in his throat.
2 objections.
"In my view, the Independent members of the Board should remember who appointed them."
In 1 sentence, you whitewashed the role of Satyam Board & all such scams. If board members must toe the line of CMD/MD/Chairman, what's independence about? Seat on board becomes a means to earn sitting fees. Sorry, this is utterly un-acceptable. See the role Jagdish Sheth played for Wipro or Omkar Goswami & Rama Bijapurkar played for Infosys. Truly independence exhibited, more like conscience-keeper (borrowing ex-CAG's words).
Ratan Tata effectively mortgaged TCS to bankroll Tata group's global foray. How different is it from UPA misusing dividend policy to milk the PSU Cash cows to finance money-guzzling welfare schemes?
Cleanup act was being performed by Cyrus & was halted mid-way. Just like how poor the Tata-Docomo signal is compared to Airtel, the transactions of TTSL, Dishnet DSL acquisition, sale to Docomo (time when Radia Tapes got leaked), ... all these lessened the halo around "Apro Chairman" (Gujarati for our chairman). Cyrus Mistry was throwing the law book on Docomo & partners.
No one grudges that Tata group is different,very ethics-based & has philanthropy as it's mantra. Indeed, every second company emulates Tata Spirit, when doing CSR. (Ajim Premji university, Infosys Foundataion, BV Jagadish Foundation.....) Values stay values when applied to all, irrespective of last name. They become words, when they aren't applied equally to all.
How prudent is it for India to incur loss of 10 lakh pounds each day? (You get it, Isn't it)
-Thanks for the wisdom you willingly share,
Siddappa Jalageri.'
