Classic Diamonds (India) Ltd. posted a loss of $1.2 million (INR 68.6 million) during its first fiscal quarter that ended on June 30, 2012 as sales declined. The company reported a profit of $17,546 (INR 971,000) during the same period one year ago. Sales slumped 95 percent year on year to $1.2 million (INR 66.4 million) from $22.5 million (INR 1.24 billion) in the year ago period.

Total expenditures declined 93 percent to $1.6 million (INR 85.9 million) for Classic Diamonds, which recently closed its diamond cutting and polishing factory in Surat and its jewelry manufacturing ‎facility in Mumbai’s SEEPZ location.

This past week, the company stated that a consortium of bankers had withdrawn ‎various working capital and export financing facilities and they demanded the company ‎repay its outstanding balances.‎ Classic Diamonds is in the process of negotiating with the banks.