Tata Chemicals said despite not being mandatory, its board had voluntarily formed a risk management committee in February 2015 and "risk associated with all the businesses, including the UK and Kenya operations were reviewed, evaluated and discussed in details at the risk committee meetings regularly".
"Major restructuring activities have been undertaken at the UK and Kenya operations and have started showing positive operating and financial results in these entities in recent times," the company said in a clarification sought by BSE.
It further said: "Additionally, the Board of Directors at their meetings while discussing the performance of each operating business entities also reviewed risks pertaining to those entities."
The company's Kenya operations had faced numerous challenges and in 2014 it was forced to mothball the soda ash plant in Magadi resulting in layoff of 200 employees due to heavy debt and high energy costs. In the first quarter of this fiscal, the company had stated that Magadi continued to focus on improving operational performance.
On the other hand, in August last year Mistry had expressed optimism that Tata Chemical's UK operations would turn profitable in 2015-16 after incurring losses for several quarters. In the first quarter of 2016-17, the company had an impact of depreciation of pound post the Brexit vote.
In its annual report for 2015-16, Tata Chemicals has said that the areas of significant risk for TCML (Tata Chemicals Magadi) surround the ability to recover trona quality, reduce siltation in Lake Magadi, a deteriorating road infrastructure, water scarcity and land and environmental pressures.
"Through concerted efforts including technical collaboration with third parties, greater engagement with local and national stakeholders and focused cost control measures are underway," it had said.
On the European operations, the company said that it faced key risks related to volatility of exchange rates and energy costs, and increasingly stringent environmental EU norms.
"Contractual arrangements to address volatility and engagement with relevant stakeholders are underway to manage the risks," it had said.
Tata Chemicals said that its European firm TCEL expects to continue to strengthen its financial performance further in FY 2016-17 as it drives on from the reorganisation in 2014, with profit forecast to grow in all major products - soda ash, sodium bicarbonate and salt - during the coming year.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.