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Winsome Diamonds' Receivables Grow, Reports Quarterly Loss

Dec 2, 2013 3:49 PM   By Jeff Miller
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RAPAPORT... Winsome Diamonds & Jewellery Ltd. reported interim results for the quarter that ended on September 30, which marked its sixth quarter in the current fiscal year after India's Ministry of Corporate Affairs approved an extended reporting period of 18 months for the group.

Revenue plummeted to $1.5 million (INR 94.4 million) in the quarter  compared with $373.7 million (INR 23.2 billion) one year ago. The company recorded a loss of $39.6 million (INR 2.5 billion) compared with a profit of $3 million (INR 183.9 million) one year earlier.

The company noted liabilities, including short-term borrowing and trade payables, of $675 million (INR 42.1 billion), which were up from $544 million (INR 33.9 billion) in March, the month that typically closed the company's fiscal year. However, outstanding trade receivables alone surged 34 percent since March to $764 million (INR 47.6 billion) in September, representing an overwhelming majority of the company's paper assets.

Winsome's board met on November 27 to approve the unaudited financial statement but the board adjourned, citing incomplete information from third parties. The company's manufacturing operations have been suspended due to the disruption of working capital and its ''Flash Report'' or proposal for financial restructuring, was rejected by India's Corporate Debt Restructuring (CDR) mechanism,  according to the company.

Winsome's inventory of diamonds and pearls have been in the  custody of Punjab National Bank since June and the most recent valuation amounted to $6.3 million (INR 393.5 million) as of September 30; however,  according to Winsome's statement, the diamond firm believes the valuation was only based on a sample of inventory and ordered a new and more thorough valuation to record on its fiscal year statement.

Tags: diamonds, financial report, Jeff Miller, Jewelry, winsome
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