Priority Jewels cuts director loans to Rs 13.083 crore by June 2026

Priority Jewels Limited cut its interest-free, on-demand loans from directors to Rs 13.083 crore at 30 June 2026 from Rs 30.336 crore at 31 March 2025. The Rs 17.253 crore reduction occurred while Priority Jewels continued to use Rs 83.794 crore of secured bank working-capital facilities at the June 2026 reporting date.

How did Priority Jewels' director loans decline by June 2026?

Priority Jewels reported unsecured loans from directors of Rs 13.083 crore at 30 June 2026, compared with Rs 18.013 crore at 31 March 2026 and Rs 30.336 crore at 31 March 2025. The decline from 31 March 2025 was Rs 17.253 crore, while the reduction over the three months to 30 June 2026 was Rs 4.93 crore. The accounts include each of these balances within current borrowings.

Priority Jewels describes the funding as Indian-rupee loans from directors that are interest free, have no tenor and are repayable on demand. Interest free means the company does not pay a stated rate on the director balance, while repayable on demand means there is no contractual fixed maturity date. The financial information does not identify the directors providing the Rs 13.083 crore at 30 June 2026, explain the source of repayment, or disclose a plan for further director funding.

The comparison uses different reporting bases: the 30 June 2026 and 31 March 2026 data are consolidated, while the 31 March 2025 data are standalone. That distinction limits a fully like-for-like assessment of the reduction between FY25 and June 2026. However, the disclosed director-loan balance fell at each of the three reported dates, from Rs 30.336 crore to Rs 18.013 crore and then Rs 13.083 crore.

How has Priority Jewels' current borrowing mix changed?

Priority Jewels' total current borrowings were Rs 100.410 crore at 30 June 2026, up from Rs 91.582 crore at 31 March 2026 but below Rs 145.544 crore at 31 March 2025. The June 2026 increase from March 2026 arose mainly because secured bank working-capital facilities rose by Rs 11.916 crore, exceeding the Rs 4.93 crore reduction in director loans.

Secured bank facilities represented about 83% of Priority Jewels' Rs 100.410 crore current-borrowing total at 30 June 2026, while director loans represented about 13%. At 31 March 2025, director loans represented about 21% of the Rs 145.544 crore total. The lower director-loan share reflects both the reduction in that unsecured funding and the increase in secured bank facilities from the March 2026 consolidated level.

Which bank facilities fund Priority Jewels' working capital?

Priority Jewels used four disclosed secured bank working-capital categories totalling Rs 83.794 crore at 30 June 2026: cash credit of Rs 46.984 crore, export packing credit of Rs 16.879 crore, working-capital demand loans of Rs 12.569 crore and gold loans of Rs 7.362 crore. Cash credit rose from Rs 33.532 crore at 31 March 2026, whereas export packing credit declined from Rs 20.059 crore and gold loans declined from Rs 8.287 crore.

Export packing credit is financing available for 120 to 180 days that is repayable on demand. Priority Jewels disclosed interest rates of 5.10% to 8.10% on these facilities for the period, compared with a prior-year range of 5.68% to 10.50%. Gold loans have terms of 180 to 270 days and carried interest rates of 3.50% to 7.50%, unlike the director loans, which have no stated interest rate or tenor.

Priority Jewels reported revenue from operations of Rs 146.726 crore for the period ended 30 June 2026, including Rs 141.302 crore from finished goods. The June 2026 period is not a full year and cannot be annualised from the disclosed information alone. The balance nevertheless places the Rs 83.794 crore of secured working-capital facilities alongside the scale of the company's reported sales activity during the three-month period.

What security supports Priority Jewels' bank facilities?

Priority Jewels' working-capital facilities are secured by a first pari passu hypothecation charge over the company's current assets, both present and future. Pari passu means lenders sharing that charge rank equally against the secured assets. The security package also includes a first pari passu charge over movable fixed assets other than vehicles, liens on fixed deposits of Rs 1.47 crore and Rs 1.20 crore, and a mortgage over land and building at Plot 121, MIDC, Andheri East.

Priority Jewels also disclosed personal guarantees from Shailesh Sangani, Manisha Sangani and Tushar Mehta for the working-capital facilities at 30 June 2026. These guarantees support the secured bank borrowing categories of cash credit, export packing credit, working-capital demand loans and gold loans. The arrangement differs from the Rs 13.083 crore director-loan balance, which the company separately identifies as unsecured and interest free.

The continued bank-led funding mix therefore depends on the availability of facilities secured by the stated assets and supported by the three named personal guarantees. It also depends on balances under short-duration facilities, including export packing credit of Rs 16.879 crore and gold loans of Rs 7.362 crore at 30 June 2026. The disclosure does not state facility limits, utilisation conditions, or any proposed changes to the collateral and guarantee structure.

What longer-term debt obligations remain at Priority Jewels?

Priority Jewels had Rs 10.084 crore of non-current secured borrowings at 30 June 2026, comprising Rs 9.808 crore under the Credit Guarantee Scheme for Exporter, or CGSE, and Rs 27.6 lakh in HDFC Bank vehicle loans. The non-current secured borrowing balance was Rs 11.012 crore at 31 March 2026. Current maturities of long-term debt were Rs 1.033 crore at 30 June 2026, including Rs 89.2 lakh relating to CGSE.

CGSE balances disclosed at 31 March 2026 included Rs 1.70 crore from Axis Bank, Rs 3.20 crore from Yes Bank and Rs 5.80 crore from HDFC Bank. The scheme has a four-year tenor from first disbursement, including a one-year moratorium followed by repayment in 36 instalments. Its stated rates were the repo rate plus 2.25% per annum for Axis Bank and Yes Bank, and the repo rate plus 2.00% per annum for HDFC Bank.

The CGSE and Emergency Credit Line Guarantee Scheme facilities have second pari passu charges over current assets and movable fixed assets other than vehicles, second-ranking liens over fixed deposits of Rs 1.47 crore and Rs 1.20 crore, and a second charge over the MIDC, Andheri East property. The facilities also carry a 100% credit guarantee from National Credit Guarantee Trust Company Limited. Lease liabilities were Rs 1.652 crore at 30 June 2026, compared with Rs 1.76 crore at 31 March 2026 and Rs 95.1 lakh at 31 March 2025; these liabilities are separate from current borrowings.

Conclusion

Priority Jewels reduced its unsecured, interest-free director funding by Rs 17.253 crore between 31 March 2025 and 30 June 2026. Secured bank working-capital facilities remained the largest current-borrowing component at Rs 83.794 crore in June 2026, supported by charges over current and fixed assets, fixed-deposit liens, a property mortgage and personal guarantees.

The next balance-sheet update will show whether Priority Jewels continues to reduce the on-demand director loans or draws further unsecured funding. It will also show how cash credit, export packing credit and gold loans develop after their combined balance reached Rs 71.225 crore at 30 June 2026, with interest rates and short repayment terms disclosed for the latter two categories.