Facing a severe financial crisis, DSK Developers Limited on Thursday appointed Shirish Kulkarni as the managing director and chief executive officer after his father DS Kulkarni stepped down from the post. The real estate firm in its board of directors meeting also elected banker Shashank B Mukherjee as a director on the board
Even after relinquishing his executive powers, senior Kulkarni continues to be the chairman of the board. Speaking to Hindustan Times, DS Kulkarni said, “The new generation has taken over. I am confident that under the leadership of Shirish, the company will tide over the crisis.”
Shirish, a commerce graduate, was looking after DSK’s auto business till recently.
The firm, which has on three occasions failed to pay debenture dues, had informed the Bombay Stock Exchange (BSE) about some changes in the management of the company in order to draw a financial restructuring plan. The company in its letter sent to BSE earlier this month said, “Once the financial restructuring plan is finalised, we will inform the stock exchange”.
DS Kulkarni said, “We will be submitting details of our business revival plan to the stock exchange within 15 days.”
The company had informed BSE that given the financial problems, it will not be able to pay redemption proceeds and the outstanding interest on non-convertible debentures (NCDs) on due date. “Considering the continuing financial crunch the company is facing, it will be unable to make the payment of redemption proceeds and the payment of outstanding interest on NCDs on due date,” the company said in its letter to BSE on September 1.
{{/usCountry}}The company had informed BSE that given the financial problems, it will not be able to pay redemption proceeds and the outstanding interest on non-convertible debentures (NCDs) on due date. “Considering the continuing financial crunch the company is facing, it will be unable to make the payment of redemption proceeds and the payment of outstanding interest on NCDs on due date,” the company said in its letter to BSE on September 1.
{{/usCountry}}Since the last few months, depositors, mostly senior citizens, have accused the DSK Group for defaulting in payment of interest on FDs, the scheme DSK has been running for the past 35 years. The group owes ₹111 crores to NCD holders besides ₹44 crores to FD holers. In its recent interview to HT, DS Kulkarni said that the company has a total of ₹485 crores to return, including the loans taken from banks and staff salary.
Reacting to the recent development, RTI activist Vijay Kumbhar said, “The firm is trying to buy more time as it is unable to repay the money taken from middle class investors.”
Given the poor financial health of the company, the rating agency CARE has downgraded the firm’s ratings on the NCD issue to D.