DCA quizzes Dunlop on loans

In the notes to the accounting policy, it said: "In terms of scheme of arrangement with the ultimate holding company (Dunlop India Ltd) dated 1/12/93 the company has taken over the inter corporate deposits of Dunlop India Ltd amounting to Rs 18,08,79,084 in lieu of issue of 18,10,000 Zero Interest Fully Convertible Debentures of Rs 18,10,00,000/-. The terms and conditions of repayment of principal are pendingfinalisation under the revised scheme."

This subsidiary reported a loss of Rs 22,373 as on October 31, 1994, and its accumulated loss was Rs 34,869.

At another subsidiary, India Tyre & Rubber Company (India) Ltd, statutory auditor Ford, Rhodes, Parks & Co has noted: "In respect of deposits with limited companies shown under loans given by the company, we are informed that they are fully recoverable though there are no confirmations available for our verification. As regards interest thereon, interest receivable in respect of one inter-corporate deposit amounting to Rs 8.36 lakhs has been written off during the year…"

Showa Investments Ltd, another subsidiary, said in its annual report for 1994 that: "One flat purchased at N.C.P.A. at Bombay is nearing completion and the company has upto the date of this report paid advances of Rs 1.80 crore as against total cost of Rs 2.16 crore". Showa also had received Rs 1.42 crore from another subsidiary, DIL Properties Ltd, as an interest free loan.

DILProperties had incurred a loss of Rs 3.58 lakh in 1993-94 and had an accumulated loss of Rs 52.34 lakh. Its total loan component from the holding company, other corporate bodies and group companies was Rs 5.81 crore on October 31, 1994.