RapNet


Rapaport News

 

Manufacturing

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Shrenuj Seeks Legal Opinion Over Bank Action

Jul 3, 2016 10:35 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... Shrenuj & Co., a Mumbai-based diamond and jewelry manufacturer, is challenging an order by India’s second-largest bank to seize its assets and restrict the travel of its promoters.

ICICI Bank on May 16 appointed a receiver for Shrenuj Far East Limited, the company’s Hong Kong subsidiary which has a $15 million credit limit with the bank, Shrenuj said in a note to the Bombay Stock Exchange (BSE). ICICI then pursued an order from India’s debt recovery tribunal to add Indian inventories to the assets that Shrenuj Far East had already given up to the receiver.

“In its apparent over-enthusiasm, ICICI Bank Limited approached the DRT-III [debt recovery tribunal] in India and sought an ‘ex-parte’ order for attaching all the inventories in India and placing restrictions on the international movement of the promoters,” Shreyas Doshi, chairman of Shrenuj, said. “This order was sought on frivolous grounds, far from the factual situation.”

Doshi, along with group executive director Vishal Doshi, were named by The Economic Times as the people who have been prevented from leaving India. He stressed the bank’s action will not impact the company’s current operations but it does jeopardize the rights of the other 18 banks who form the lending consortium in India.

“The company is in the process of seeking a legal opinion to challenge this ex-parte decision of DRT-III and take remedial measures,” Doshi said.

The news followed Shrenuj’s decision to “rationalize” its workforce after annual revenue slumped 34 percent and the company swung to a loss. The gem cutter has faced “severe liquidity pressure,” accountants Rajendra & Co wrote in an independent auditors’ report May 28.

ICICI Bank did not immediately respond to a request for comment. The BSE has requested further clarification from Shrenuj about the matter.
Tags: Banks, finance, ICICI Bank, India, lending, manufacturers, manufacturing., mumbai, Rapaport News, Shrenuj, Shrenuj & Co.
Similar Articles
Synova machineSynova Launches Automated Cutter
Sep 26, 2019
A technology provider part-owned by De Beers has unveiled anautomated cutting machine...
Manufacturer LDC Acquires Metal-Casting Company
Asian Star Full-Year Profit Rises
Mouawad Cuts Record Yellow Diamond
Asian SarSales Rise at India’s Asian Star
Dec 04, 2018
Sales and profit grew at Indiandiamond manufacturer Asian Star in the...
Rapaport Magazine: US Manufacturing
IDMA, WFDB Consider Joining Forces



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us