FIs block Dunlop’s accounts

CALCUTTA, November 30: The ailing M R Chhabria group tyre company Dunlop India today received another jolt when Life Insurance Corporatio...

CALCUTTA, November 30: The ailing M R Chhabria group tyre company Dunlop India today received another jolt when Life Insurance Corporation (LIC) and Unit Trust of India blocked the resolution dealing with consideration and adoption of balance sheet and profit and loss account for the 15 months ended March 31, 1999 of the company.

At the 72nd annual general meeting of the company chaired by Director P K Puri, the two financial institutions holding about 26.75 per cent of the total shares sought to defer the resolution or put it to poll where they will oppose it.

The resolution was later put to poll which would be held tomorrow and results would be declared on December 2. It is likely to be carried as Chhabria’s holding in the company was still about 39.82 per cent. Financial institutions, including UTI, LIC and others hold 33.32 per cent while 26.86 per cent of the shares were held by residents and others.

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The remaining four resolutions, including reappointment of chairman-in-exile-M R Chhabria asdirector were carried during the meeting. The auditors Lodha and Company had criticised the management in the annual report of company and had almost expressed inability to give a clean chit saying all the papers were not provided to them for inspection.

Later, while replying to the queries Y C Lumba, whose appointment as whole-time director was ratified today, said all the details as sought by the auditors would be made available once the normal operation of the company resumed.

He hoped that Industrial Development Bank of India, which has been appointed the operating agency as per Board of Industrial and Financial Reconstruction order dated August 9, 1999 for revival of the company would consider their revival scheme and give a report very soon. Lumba categorically said, the company is certainly not up for sale.