Komal Gets Out Of Dunlop Disqualification

Kolkata, Aug 26 | Updated: Aug 27 2004, 05:30am hrs
The statutory auditors of liquor major Shaw Wallace & Co Ltd have noted that Ms Komal C Wazir, daughter of the promoter MR Chhabria, is disqualified from being a director by virtue of having been on the board of a sick company that is also a defaulter.

Auditors Lodha & Co, in their report on Shaw Wallaces accounts for 2003 -04, have also noted that she resigned from the board of this sick company on May 20 this year.

In an unstated reference to tyremaker Dunlop India Ltd, the auditors have pointed out that it has unpaid deposits, interest and unpaid redeemable debentures.

Dunlop is waiting for the Board for Industrial & Financial Reconstruction to finalise its scheme.

None of the directors of Shaw Wallace, except Ms Wazir, is disqualified as on March 31, 2004, from being appointed as a director under Section 274 (1) (g) of the Companies Act 1956, the auditors have noted.

The spokesman for Shaw Wallace said the disqualification point is a mere technicality, and will no longer hold since Ms Komal Chhabria has already stepped down from Dunlop. Also, she is a non-retiring director of Shaw Wallace.

The auditors have also expressed their inability to ascertain the impact of certain tax liabilities and unconfirmed inter-corporate deposits on the overall profitability of the company.

The management, in its notes to the accounts, has said that in respect of financial years 1993- 94, 1994- 95 and 1996 -97, various demands raised against the company add up to Rs 202.65 crore and the company has filed appeals before the Income Tax Appellate Tribunal and High Court. These appeals are pending.

The IT assessment for the block period of financial 1986 to August 27, 1996, has been set aside by the ITAT for a fresh assessment.

Also, there are various other income tax matters adding up to Rs 20.72 crore that are being contested by the company at appellate and other levels.

"The company is persuing a settlement in accordance with the provisions of the Income Tax Act 1951 of the matters involved in the block assessment and the financial years 1995 -96, 1997 -98 to 2002 -03," the management stated.

On the auditors qualifications on unconfirmed intercorporate deposits, the management has commented that party-wise balances of certain intercorporate deposits, acceptances and bill discounted as at the balance sheet date are subject to confirmation with the respective parties.

"Pending outcome outcome of the ongoing negotiations/ settlements and /or decisions by the court, etc, in respect of above overdue instalment of principles and /or interst amounting to Rs 6459 lacs (Rs 6648.19 lacs), no further interest on the same has been provided during the year," the management has noted.