Kolkata, Sep 25: The founder of Usha Martin has expressed concern over the lack of transparency and management accountability in the use of funds following a business agreement between the current management of the company and Tata Steel.
In a statement, the founder of Usha Martin Basant Jhawar and his son Prashant Jhawar,who together own 25 per cent stakes in the company, said,“Tatas are an excellent business house and their involvement in the steel business of Usha Martin will add value to the stakeholders and that the transaction with Tata Steel is overall a positive development. We are encouraged by Tatas signing a business agreement with the current management of Usha Martin Limited.
“As 25 per cent shareholders, we are concerned about the liabilities which will fall on the residual business and its capacity to service the same. No details are available,” it stated.
“How much of the term loans, working capital, liabilities to unsecured creditors and other liabilities will be cleared and how much will be carried forward with the burden falling on residual business is very opaque. No details are available, creating doubt over transparency and management accountability. Since no details are on the table our concern over diversion of funds continues,” it further read.
“Therefore we seek complete transparency in the utilization of sale proceeds and have sought further details from the Board of Directors of Usha Martin Limited,” it added. (UNI)