Tata Trusts tightens monitoring, shifts focus to grant-making
Tata Trusts, the single-largest shareholder of Tata Sons, has tightened project monitoring processes, shifting from quarterly to monthly reviews to better manage operational expenses and enhance the on-ground impact of its funds, people familiar with the matter said. The organisation may also prioritise grant-making over direct implementation (DI) projects to further minimise expenses, the people said.
An inflated cost structure had led trustees to do an internal audit several months ago, the people said. This revealed many discrepancies, leading the trustees to tighten the monitoring system. Additionally, the Trusts' audit system has been strengthened and it now reports directly to the chief executive, who is responsible for updating the executive committee and board of trustees, people said.
Several DI Projects
An executive committee set up under the late Ratan Tata has been closely monitoring costs and will continue to do so, officials said. It was created to widen the decision-making process and ensure that a collective, rather than an individual, manages the trusts. It currently has four trustees: Noel Tata, Mehli Mistry, Venu Srinivasan, and Vijay Singh. About 66% of the equity capital of holding company Tata Sons is held by philanthropic trusts. These trusts generate funds through dividend receipts from Tata Sons.
Tata Trusts in recent years also got involved in several DI projects, swelling its manpower cost. These were implemented directly by the trust via contractors as part of their donations. The
