Atlas Jewellery India today said the company will not be impacted by the liquidity crisis faced by the promoters' group firms in Dubai.
Atlas Jewellery India had convened an urgent Board meeting yesterday amid reports that its chairman M M Ramachandran had been detained in Dubai for alleged default of over Rs 1,000 crore loans.
In a filing to the BSE, Atlas Jewellery India said the company's director Indira Ramachandran, who is also the promoter's wife, has sent a clarification to the Board on behalf of M M Ramachandran.
"None of the issues pertaining to the GCC companies (in Middle East) of Ramachandran have any bearing on their Indian entities including Atlas Jewellery India Ltd and as promoters of the company they have assured full support of the company," the filing said.
Atlas Jewellery India is a company without any structured or institutional borrowings, it added.
Stating that some of GCC (Gulf Cooperation Council) companies are "presently facing liquidity stress", the company said the promoter and his team are fully engaged in sorting out the issues at the very earliest.
In a separate filing, the company said the Board has accepted the resignation of Shrirang Vasant Khadilkar as Independent Director of Atlas Jewellery India.
The shares of the company fell by 4.93 per cent to close at Rs 22.20 a piece on the BSE today.
According to media reports, M M Ramchandran, founder of Atlas Jewellery group, was arrested by police in Dubai recently.
A consortium of lenders led by Bank of Baroda (BoB) had extended loans to the group.
Sources said that BoB -- which has an exposure of about Rs 1,000 crore -- has also written to the UAE Central Bank seeking details on the matter.
The group has jewellery presence in India as well as in some Gulf countries.
