Banks, with a combined exposure of around $450 million, has obtained court order to repossess the inventory - stock of diamond lying with the company - and restrict travel of the promoters.....Trade circles attribute the problems faced by the group to aggressive expansion overseas even as rough diamond prices kept soaring and polished diamond prices remained relatively muted after the financial meltdown of 2008-09..The slowdown in the diamond industry along with some of the company's business bets such as diversification in Africa backfired.
However, many of the top officials of the company are abroad, to solve this issue and the sources are hopeful that a favourable solution will be found very soon. The stock has hit the lower circuits, after the company's website, viz.ho.shrenuj.com, was taken off due to some technical issues.
The company has undertaken an exercise to rationalize its manpower across all levels,” Shrenuj said in a statement to the Bombay Stock Exchange. The management is of the opinion the realizable value of the firm’s inventory and other assets are sufficient to repay all outstanding liabilities, the report said.