Jay Meattle

  • Strategies for operating in this liquidity crisis

    From Ratan Tata‘s letter to all Tata companies (dated: Nov 6 2008):

    Under the circumstances I consider it essential that each of our companies should consider:

    • the conservation of cash to the maximum extent possible
    • draw down all loans / lines of credit from banks and institutions to the maximum extent possible
    • expeditiously finalise pending load and funding agreements, even if they involve accepting higher rates of interest

    Companies should also take finite steps to:

    • improve operational efficiency
    • aggressively implement restructuring of internal cost framework
    • drastically reduce operating expenditure
    • defer non-essential capital expenditure and capacity expansion
    • put on hold any plans for acquisitions unless considered strategically critical

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© Jay Meattle