The Hindu : Business : Dunlop awaits rehabilitation

Online edition of India's National Newspaper
Sunday, May 01, 2005

Business

Business

Dunlop awaits rehabilitation

Indrani Dutta

Appellate Authority to meet next month

KOLKATA: The ailing Dunlop India Ltd (DIL) ended 2004-05 with a Rs. 4.80 crore loss against a Rs. 32.70 crore post-tax profit in 2003-04. A senior company executive told The Hindu that the AAIFR (Appellate Authority for Industrial and Financial Reconstruction) would hold a meeting on the company on May 27, the first meeting since 2003.

The Dunlop board which met on Friday noted that the factories at Sahagunj in West Bengal and Ambattur in Tamil Nadu and the company's depots continue to remain closed since July-August 2001, pending sanction of an approved scheme of rehabilitation by the Board for Industrial and Financial Reconstruction (BIFR/AAIFR).

However settlement of provident fund and gratuity for the retired, deceased and resigned workmen was "almost up-to-date", the executive claimed.

Explaining the losses in 2004-05, the source said the bottomline was bolstered in 2003-04 on account of a writeback of liabilities, property sale and one-time settlement (OTS) with debenture holders. This was reflected in an exceptional income of Rs. 73 crores in 2003-04. The company, which was declared `sick' on June 22, 1998, had a negative worth of Rs. 432.90 crores in 2004-05 against Rs. 491.40 crores the year before.

During the year under review, the company, which had no sales income, spent Rs. 3.99 crores on staff costs and Rs. 8 crores on fuel, light and water. Interest costs at Rs. 27.70 crores were marginally lower as per the unaudited results.

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Dunlop awaits rehabilitation