A tale of two diamond manufacturing cos in trouble

Buzz is common about two diamond manufacturing companies being in trouble — one, a Diamond Trading Company Sightholder, has cash flows troubles and is highly leveraged . The other has reportedly misdeclared imports to the air cargo customs .

Business has been slack for the manufacturer of cut and polished diamonds, which has impacted its cash flows. This, in turn , has caused liquidity issues and put the company in a perilous state as it owes money to both banks and diamond market constituents .

Rumours abound that the company could pay off the banks but defaults on the market .


Another manufacturer is said to be in trouble , but that’s more because of compliance issues than anything financial, according to rumour mills .

The gems and Jewellery sector has been in the spotlight for all the wrong reasons since the Multicrore scam allegedly perpetrated by Nirav Modi and his uncle Mehul Choksi in collusion with certain staff of state run PNB . Both the diamantaires allegedly fled before the scam surfaced .