Resolution professional initiates forensic audit of RCI Industries books
The resolution professional of RCI Industries and Technologies Ltd has decided to initiate a forensic audit on the company as “there are reasonable grounds to believe that the business of the corporate debtor including certain transactions have been carried on with intent to defraud creditors of the corporate debtor.”
The resolution professional in an exchange filing on behalf of the company said that he believes that certain transactions were of fraudulent nature which may be detrimental to the interest of the creditors and other stakeholders associated with the corporate debtor and that there exist certain Avoidance transactions.
The insolvency process was initiated against RCI Industries and Technologies Ltd after the Delhi bench of NCLT admitted the insolvency application filed by Standard Chartered Bank (Singapore) Ltd, which has a factoring agreement with one of the suppliers of RCI Industries and Technologies – Sizer Metals Pte Ltd.
The insolvency application was filed by Standard Chartered Bank (Singapore) Ltd after RCI Industries and Technologies defaulted on a payment of Rs 21 crore.
Sizer Metals Pte Ltd had supplied tin ingots and nickel full plate to RCI Industries and Technologies.
New Delhi-headquartered RCI is a manufacturer of Round and Flat Rolled Copper and Copper Alloys. It has its production plants in Baddi and Nalagarh, and warehousing facilities in Delhi, Maharashtra and Rajasthan. The company made a consolidated loss of Rs 71 crore on a revenue of Rs 59.68 crore in 2021-22.
The company owed Rs 268 crore to financial creditors, Rs 101 crore to operational creditors, and Rs 60 lakh to employees.
The CoC for RCI Industries and Technologies Ltd has nine financial creditors including seven scheduled commercial banks and two NBFCs. Union Bank, which has the largest claim with Rs 95.16 crore, has the largest voting share at 35.45% followed by PNB having claims of Rs 43.58 crore and voting share of 16.23%, State Bank of India (Rs 34.65 crore claims) having 12.91% voting share. Other major lenders include Indian Bank with 10.44% voting share.
Also Read: CoC for RCI Industries constituted; Rs 268 crore claims submitted
