Business

Coffee Day says exact amount of missing funds not yet known

Only probe report can give the details, says spokesperson

Coffee Day Enterprises on Monday said the investigation initiated by its board after the death of founder V.G. Siddhartha will be concluded and the report released latest by the end of March.

According to a media report, at least $270 million was missing from the company’s accounts.

“It is true that some amount is missing, but the actual figure is different, which will be known soon once the report is released,’’ a top company official told The Hindu.

According to a spokespersion, the promoter family and management are fully cooperating with the investigation but are oblivious to its outcome as their priority is to keep the business running in a challenging environment and meet all stakeholder commitments, including 30,000 jobs associated with the group.

Not involved in business

To a query on the ‘missing funds,’ he said, “The promoter family was not involved in the business at the time of founder V.G. Siddhartha’s unfortunate demise. They stepped in assume responsibility of the large and diversified business on the fifth day of the tragedy, while still being in a state of shock.’’

He further said Coffee Day Enterprises team was working towards bringing down group level debt to manageable level by divesting non-core enterprises.

The months-long probe, following the alleged suicide of Mr. Siddhartha in July last year, examined the financial transactions of the coffee chain and its dealings with dozens of private companies owned by the entrepreneur, according to the report.

“Coffee Day continues to be the largest home-grown F&B brand in the country. Our aim is to save employment and preserve this iconic Indian brand.

“We continue discussions with potential financial and strategic investors to partner in the brand’s next phase of growth,’’ the spokesperson added.

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Printable version | Jul 16, 2020 11:18:19 PM | https://www.thehindu.com/business/coffee-day-says-exact-amount-of-missing-funds-not-yet-known/article31084807.ece

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