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Kolkata, Dec 27 Dunlop India today said that in a recent ruling the Madras High Court had declared the company as “revived” and was out of the purview of BIFR.

In a press release issued today, the company said that in an order dated December 19, Mr Justice S.K. Krishnan of Madras High Court observed that: “BIFR cannot retain its jurisdiction over the petitioner company (Dunlop India Ltd) any further.”

“From the audited balance sheet of Dunlop India Ltd as at March 31, 2007, it is clear that the net worth (of the company) has become positive as it has wiped out the entire accumulated losses. The new entrepreneurs (that is the Kolkata-based Ruia Group) brought in huge funds and running both the units in Bengal and Tamil Nadu. The company has also paid off substantial loans and creditors. Thus the units have been revived,” the Dunlop release quoted the HC ruling.

The order was delivered in conclusion of a writ petition filed at the High Court by Dunlop India Ltd challenging the validity of an auction conducted by Container Corporation of India Ltd (Concor) in July 2006.

Commenting on the development, the Dunlop Chairman, Mr P.K. Ruia, said: “Now that Dunlop is out of the purview of BIFR, banks and financial institutions will be interested in extending loans for its present working capital requirements and future expansion plans.”

It may be mentioned that Dunlop had recorded a book net profit of Rs 447 crore, riding other income (Rs 341 crore) and exceptional items of Rs 121 crore during 2006-07. This was despite reporting an operating loss of Rs 7.26 crore during the fiscal.

The profit was booked by transfer or sale of the company’s real estate assets to wholly owned subsidiaries like Dunlop Properties and Dunlop Infrastructure. Accordingly, the net worth of the company, which was negative at Rs 261 crore in 2005-06, turned positive at Rs 151 crore in 2006-07.

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