Gutted Dunlop Property Holding Up Sale Of Other Local Assets

Kolkata, September 29: | Updated: Sep 30 2003, 05:30am hrs
The fire on March 13 that gutted Dunlop India Ltds erstwhile marketing office and depot in the city, is going to delay the sale of the companys certain local properties, said P Balakrishnan, executive director, Dunlop India.

The gutted property is part of those Kolkata properties that have been cleared for sale by the BIFR and the preceeds of which will go towards re-commencement of operations at the plants, Mr Balakrishnan said while addressing the shareholders at the 76th annual general meeting here on Monday. In a 20-minute AGM, the shortest ever in the companys history, all the four resolutions were cleared unanimously. Mr Balakrishnan chaired the AGM.

He said the sale of these properties would now get delayed till necessary clearances from all the government departments concerned like police and fire services had been received for sale of the gutted property.

Mr Balakrishnan said that not only has Dunlop lost intrinsic sale value with this unfortunate fire incident, but the company will also witness delay in the implementation of its rehabilitation scheme.

The executive director said there has been some improvement in the situation which arose out of trade union opposition to the Dunlop boards decision to shift the registered office from Dunlop House at 57A&B Mirza Ghalib Street to Kings Court at 46, Chowringhee Road.

With the intervention of the Calcutta High Court, the company has been able to move some statutory records from its premises. With this release of select documentation it has now become possible to commence the work towards disbursement of provident fund to erstwhile employees or their families... Mr Balakrishnan said.

He said that efforts are on to clear further documents. However, due to this situation, the accounts of the company continue to carry qualifications by the auditors, he said. Dunlop incurred a net loss of Rs 39.15 crore during the financial year to March 31, 2003 on a turnover of Rs 28.68 crore.