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Tata Engg writes off Rs 1,180 cr

Our Bureau

MUMBAI, Feb. 20

THE board of Tata Engineering on Wednesday approved a Rs 1,180-crore write-off from the value of investments and fixed assets. This will be adjusted against the surpluses in the Securities Premium Account.

The approval is part of a financial restructuring proposal approved by the company. The company currently has a balance of Rs 1,702 crore in its Securities Premium Account, which will now stand reduced to Rs 522 crore with the proposed write-off.

However, this balance would increase to Rs 874 crore as on March 31, 2002 on conversion of the fully convertible debentures issued by the company, a company release said.

"The board has approved a proposal to set off against the balance to the credit of the Securities Premium Account, an amount aggregating to Rs 1,180 crore being carried in the balance sheet on account of `miscellaneous expenditure' (to the extent not written off or adjusted), impairment in value of part of its fixed assets and diminution in value of certain financial investment," it added.

The proposal is subject to approval of shareholders and the High Court, the release said. According to the company, the proposed initiative will enable the balance sheet to represent better the operational results of the company in the future years and the true shareholder value.

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