Dunlop

On 20th May 2011, Dunlop had touched a new 52-week high at Rs.66, it got suspended in March 2012 at Rs.9.79 due to ‘procedural reasons’ and today it remains a penny stock. Within a span of 6 years, the company and its owner have done a complete turnaround. From hopes of running at full capacity, both the units of the company, at Ambattur in Tamil Nadu and Sahaganj in West Bengal have shut down  and the court has ordered liquidation, and it has appointed a provisional liquidator to take stock of its assets, while barring the company management from selling any property of the tyre maker. And thus it remains in the red with its net loss at Rs.2.23 crore for Q2FY13. Interest amounting to Rs.3.07 crore has not been provided for in the books on working capital loan of Rs.40.25 crore. No depreciation has also been provided for.

Thus for now, Dunlop India remains a shell company. In Dec 2011, the company put its Worli property on the sale block and hoped to raise Rs.400 crore. This is same property mortgaged with ICICI Bank. And there is news that in Tamil Nadu, where the company has surplus land, it is planning to either sell off or jointly develop the property and realise around Rs.700 crore. There is also hope that it might ‘rescued’ by the West Bengal govt. But for now, it remains mired in dark clouds which seem too thick to move.