Coffee Day seeks more time for audited financials of June, September quarters

Probe into Siddhartha’s letter to conclude in a few weeks, says the company

Coffee Day Enterprises Ltd., the holding company of all ventures promoted by the late V.G. Siddhartha, said that investigation into the circumstances in which the former chairman had written the letter prior to his demise was still under way and would be completed in a few weeks.

The company’s board of directors, which met here on Wednesday, said it had appointed Ashok Kumar Malhotra, a retired DIG of the Central Bureau of Investigation, to probe the circumstances leading to the statements made in the letter of Mr. Siddhartha dated July 27, 2019, and to scrutinise the books of accounts of the company and its subsidiaries. The firm has sought further time to announce its audited financial results for the quarter ended June 30 and half year ended September 30 of fiscal 2019-20.

It may be recalled that the company had earlier appointed IDFC Securities as the advisor to identify strategic option for divestment and advise on the refinancing of existing debt.

To speed up its divestment process, the board of Coffee Day Global, a subsidiary, has authorised the wife of Mr. Siddhartha, Malavika Hegde, director and Chief Financial Officer of CDGL, to finalise the appointment of required agencies for conducting due diligence towards disinvestment of stake in CDGL. The resignation of Sanjay Nayar from the boards of the two companies, was also accepted.

Coffee Day Enterprises released unaudited and consolidated profit and loss account and segment wise performance for the first quarter ended June 30. The company posted a revenue of ₹942 crore, down by 2% year-on-year and net profit at ₹1,509 crore from ₹17 crore in the corresponding year ago period (attributable to owners).

The net profit included exceptional gain amounting to ₹1,659 crore primarily on account of sale of stake held in Mindtree, the company said.

Coffee Day Global posted net revenue of ₹361 crore, a 1% decline year-on-year and a net loss of ₹61 crore. EBIDTA was at ₹73 crore, down 10% year-on-year. The closure of 280 cafes during the quarter, drop in exports, fluctuation in international price were among the reasons for the loss, the company said.

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Printable version | Jul 5, 2020 8:42:29 PM |

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