Part 2: More than half of everything Bombay Rayon’s suppliers claimed in its insolvency could not be matched to the company’s own records — Rs 317 crore of it from four tiny trading firms with no mills. The only two claims flagged as related-party belonged to the promoters, and both were paid in full while 2,027 workers recovered 14 paise in the rupee.
This is the company on whose purchases the State Bank of India lent, restructured three times, and finally wrote off more than Rs 1,300 crore.
Inside Story Of The Books That Didn’t Match.
When a manufacturer collapses, its supplier bills are the story of what it bought — the yarn, the dyes, the chemicals that went into cloth.
Those suppliers file claims in the insolvency for what they…