Orkay Industries (OIL) was incorporated in Dec.'68 as Orkay Silk Mills, a private limited company, by the House of Mehras. It was converted into a public limited company in Sep.'84, and got its present name in Apr.'93. Kapal R Mehra is the chairman and Jitendra R Mehra is the managing director. OIL manufactures and markets various types of polyester (PET) chips, polyester (POY) filament and texturised yarn as well as fabrics for outerwear, curtains, home upholstery, etc. The company made a Rs 99.60-cr rights issue (premium : Rs 20) in Aug.'93 to part-finance the company's integrated expansion programme, involving an increase in the spinning capacity of partially oriented yarn (POY) from 6000 tpa to 17,000 tpa, an increase in the polycondensation capacity from 12,000 tpa to 34,000 tpa, installation of a draw twisting capacity of 11,000 tpa, etc. The estimated cost, as appraised by IDBI, was Rs 207.50 cr. The company sold its POY division in Nov'96. In 1995, OIL along with its subsidiaries and group companies, has acquired zero-percent FCDs of Rank Hotels & Resorts at Rs 85 cr. But, the rationale of this investment and the source of funds of the subsidiary and group companies raised genuine suspicion.