Questions for Arun Jagatramka
The Mercury asked the following questions of Arun Jagatramka on Friday. Mr Jagatramka’s responses are included in full.
1. Has Mr Jagatramka or any members of his family stayed at 64 Cliff Road at any time since June18, 2013, and if so, what was the tenancy arrangement?
Answer: Gujarat NRE Coking Coal Limited has rented 64 Cliff Road under a lease agreement. The house has been provided by the Company for use as a residence for Mr Jagatramka as part of an annual remuneration package.
2. Over the course of the 2009 to 2013 financial years, Gujarat NRE Coking Coal made loans to Gujarat NRE Properties Pty Ltd totalling at least $6,010,725. Are any of these loans still outstanding to any extent? If so, how much remains unpaid and when will it be repaid? If not, when were they repaid?
Answer: A valuation of the property was undertaken. Based on this valuation an appropriate impairment has been included in the books of account. The property was sold at the current market price based on the valuation provided to raise much-needed funds for NRE’s mining operations. The loan is not outstanding.
3. How did Gujarat NRE Coking Coal, or Gujarat NRE Properties, identify Mr Kunal Chandak or his company, Basant International, as a potential buyer of Gujarat NRE Properties Pty Ltd?
Answer: Over the last six months Gujarat NRE Coking Coal has been identifying and selling non-core assets of the company to raise funds. The company has since sold its residential properties at Bank Street and Cliff Road, Wollongong, and its equity holding in Rey Resources Limited. The potential buyers for all such sales (including the Cliff Road property) have been identified using market intermediaries and business associates. All funds raised by these sales have been used to sustain operations over the last few months.
4. Did anyone associated with the Jagatramka family, or any of their companies, directly or indirectly finance Mr Chandak’s $10,163,050 purchase of Gujarat NRE Properties?
5. Prior to the sale of Gujarat NRE Properties to Basant International, what assets did Gujarat Properties own, apart from the property at 64 Cliff Road?
Answer: 64 Cliff Road was the only property owned by Gujarat NRE Properties. This company was sold to raise funds to sustain Gujarat NRE Coking Coal mining operations. Funds were received in July. The company sold the property as part of Mr Jagatramka’s untiring efforts to explore every avenue to keep the mine operating under extremely difficult conditions facing the nation’s mining sector, which have seen thousands of miners losing their jobs.
Questions for Kunal Chandak
The Mercury wanted to ask Kunal Chandak the following questions but was not able to contact him at the address registered with Australian Securities and Investment Commission:
1. Why did you pay $10,163,050 for a company, Gujarat NRE Properties, whose only asset is a property valued at $3,750,000?
2. How did you or your company, Basant International, raise that money?
3. Does Basant International own any other assets apart from Gujarat NRE Properties?
4. What is Basant International’s core business?