Air India closing balance sheet to be given to Tatas today, handover in days if no disagreement on accounts – Times of India
NEW DELHI: With Air India (AI) all set to return to founder Tata Group either this or next week, the airline’s finance department staffers has urged its staffers to give their “best in these last three four days before (it gets) divested”. The closing balance sheet as on January 20, 2022, has to be provided to the Tatas on Monday (Jan 24) “so that it can be reviewed by (them) and any changes be effected on Wednesday,” AI finance head has written to his employees on Monday as they may be required to work on holidays during this week to complete the task.
AI’s share purchase agreement was signed on October 25, 2022. Since then the process was on to meet required conditions precedent (CP) clearance from regulatory agencies. After that the closing balance sheet on date of CP completion will be prepared. A transition management will be put in place with representatives from Bombay House. Unless there is a difference of views between the outgoing and incoming owners on the balance sheet, the Tatas will then pay Rs 2,700 crore consideration and then take over control.
“AI disinvestment is now decided to be on January 27… We have done an excellent job till now in providing all support for the disinvestment exercise…. The next three days will be hectic for our department and I request all of you to give your best in these last three four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all,” AI finance head has written to his employees on Monday.
AI officials say Tata Group has begun a “train the trainer” program under which some people have been selected from various departments to be trained about the Tata ethos, work culture. The trained will, in turn, train their colleagues. “One key thing being told is that unlike a PSU where seniority decides who will be the boss, AI employees should be prepared to work under someone who could be younger than them,” said an official.
The Tatas have so far not commented on takeover preparations or plans for the airline founded by JRD Tata 69 years ago.
“The transition period is likely to see someone from Tata coming in as the accountable manager and senior AI officials continuing to work in their current roles barring a few changes in no-operational side. The Tata-appointed brass will need some time to takeover till they are, first, finalised and announced and, then secondly, given security clearances by government agencies,” said a person in the know.
Tata Sons senior VP Nipun Aggarwal — an engineer from Delhi College from Engineering and post graduate in finance & management from IIM Calcutta — is expected to play a key role in AI.
AI’s share purchase agreement was signed on October 25, 2022. Since then the process was on to meet required conditions precedent (CP) clearance from regulatory agencies. After that the closing balance sheet on date of CP completion will be prepared. A transition management will be put in place with representatives from Bombay House. Unless there is a difference of views between the outgoing and incoming owners on the balance sheet, the Tatas will then pay Rs 2,700 crore consideration and then take over control.
“AI disinvestment is now decided to be on January 27… We have done an excellent job till now in providing all support for the disinvestment exercise…. The next three days will be hectic for our department and I request all of you to give your best in these last three four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all,” AI finance head has written to his employees on Monday.
AI officials say Tata Group has begun a “train the trainer” program under which some people have been selected from various departments to be trained about the Tata ethos, work culture. The trained will, in turn, train their colleagues. “One key thing being told is that unlike a PSU where seniority decides who will be the boss, AI employees should be prepared to work under someone who could be younger than them,” said an official.
The Tatas have so far not commented on takeover preparations or plans for the airline founded by JRD Tata 69 years ago.
“The transition period is likely to see someone from Tata coming in as the accountable manager and senior AI officials continuing to work in their current roles barring a few changes in no-operational side. The Tata-appointed brass will need some time to takeover till they are, first, finalised and announced and, then secondly, given security clearances by government agencies,” said a person in the know.
Tata Sons senior VP Nipun Aggarwal — an engineer from Delhi College from Engineering and post graduate in finance & management from IIM Calcutta — is expected to play a key role in AI.
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