Severe restrictions on import of bullion have hit hard Shree Ganesh Jewellery House, one of country’s largest gold jewellers, which is also a major trader and supplier of the yellow metal to the local industry.The Kolkata-based company has suffered a loss of over Rs 1,000 crore in one month as it had to cancel an import deal with a UAE company due to government imposed curbs, it said on Wednesday. “Due to regulatory non-allowance for import of gold into India for domestic selling Shree Ganesh Jewellery House FZE, a wholly owned subsidiary in UAE, had to cancel a bullion purchase contract in October. As such the subsidiary has suffered a loss of approximately Rs 1,137 crore,” the company said.Of this loss, Rs 61.75 crore were provided in the standalone books of the listed parent company as diminution in the value of investment while another Rs 624 crore has been written off as bad debt as the subsidiary is also a debtor of the parent company, Shree Ganesh has disclosed while announcing the financials for the second quarter.During the quarter Shree Ganesh suffered a loss of whooping Rs 1,047 crore as compared with a profit of Rs 72 crore in the first quarter.Apart from the setback due to import restrictions, Shree Ganesh has also suffered a loss of Rs 396 crore due to non-saleability of some jewellery products and their subsequent return to the supplier to the extent of Rs 595 crore.These two cases have wiped off Rs 940 crore from the jeweller’s net worth. Shree Ganesh, a nominated agency to directly import precious metals, imports 98% of its raw materials but generates 80% of its revenues from exports, creating a hedge at a time of a weakening rupee.But the curbs on imports as well as difficult demand scenario played havoc this time.

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