Bizmen ask banks to disclose financial status of companies

Shivani Bhakoo

Tribune News Service

Ludhiana, October 18

City-based businessmen are a harried lot, especially cycle and parts manufacturers who have to supply goods to buyers within the city and other states.

Recently, an incident cropped up highlighting Rs 35 crore dues to cycle part manufacturers.

Shocked suppliers feel that banks should at least tell them about credentials of buyers and firms to ensure that there payments remain secure.

Talking to The Tribune, Badish Jindal, president, Federation of Punjab Small Industries Associations (FOPSIA) said that banks have declared certain firm’s accounts NPAs but they do not know about the credentials of buyers.

“Recently, during a meeting with the Deputy Commissioner, many complaints related to payments of local suppliers came up. Particularly, in cycle industry buyers get stocks but when payments are to be made, we come to know that they are bank defaulters. We want banks to provide us details of such sick units. We suffer huge loss as suppliers are not aware about sick units,”said Jindal.

He added that local suppliers were finding it hard to retrieve their money from a leading cycle manufacturer in Haryana as the firm has declared that two of its units are not being run.

Federation of Industrial and Commercial Organisations (FICO) president Gurmit Singh Kular said the supplier should take post-dated cheques to ensure security. “When we have a legal document in hand, no one can harm us. If we do not take a post dated cheque for supplying goods, we can face the heat.” He said, “There should be a system through which one can come to know if the other party is financially sound.”