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Tata Motors seeks shareholders’ nod for borrowings, remuneration

LiveMint logoLiveMint 28-05-2014 Shally Seth Mohile

Mumbai:Tata Motors Ltd, India’s largest automaker by sales, has sought shareholders’ approval for issues including remuneration of directors, borrowing powers of the board and raising funds via non-convertible debentures on a private placement basis.

Tata Motors is scheduled to report earnings for the fourth quarter of fiscal year 2013-14 on 29 May. A Bloomberg poll of brokerages estimate the standalone entity to report a net loss of `911 crore and net sales of `8,427 crore.

“It shows that the company acknowledges the weakness in the domestic operations,” said an analyst who declined to be identified.

As part of the specific resolution, the company sought approval for payment of minimum remuneration for its directors in case of inadequate profits and ratification of the excess remuneration paid for the financial year ended 31 March. These include Ravi Pisharody, executive director for commercial vehicles, Satish Borwankar, executive director (quality) and the late Karl Slym, managing director.

In a separate item, the company also sought an enabling resolution for creation of charges on the company’s properties. This bestows special powers to the company to hypothecate and mortgage its assets should it need to. However, the loan amount at any time shall not exceed the limit of `30,000 crore.

The company also sought shareholders’ consent for issue of non-convertible debentures on a private placement basis, in one or more tranches, such that the aggregate amount does not exceed `3,500 crore during a period of one year from the date the resolution is passed. It mandated the borrowing to be within the overall borrowing limit of the company.

Tata Motors shares fell 1.74% to Rs.428.85 on a day the BSE’s benchmark Sensex ended barely changed at 24,556.09 points.

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