Company accepts Sanjay Nayar’s resignation from board
MUMBAI: Given the unprecedented developments the Coffee Day Group is confronted with, the company board has decided at its meeting on November 13 to disclose the management-compiled unaudited profit & loss account as well as the financials of Coffee Day Enterprises Ltd (CDEL) and its material subsidiary, Coffee Day Global Ltd (CDGL) for the first quarter ended June 30, 2019.
“Due to the on-going probe in the books of accounts of the company and its subsidiaries there will be delay in submission of unaudited financial results for the first quarter ended June 30, 2019 and second quarter, half year ended September 30, 2019 within the prescribed statutory timelines,” the company said in a BSE filing.
A statement said the company had appointed IDFC Securities as the advisor to identify strategic option for divestment and advice on the refinancing of existing debt in a meeting held on September 07, 2019.
The management-compiled report said CDEL has generated revenue at Rs942 crore and a net profit of Rs1509 cr for the first quarter ending June 30, 2019. While the revenue witnessed 2 per cent growth year-on-year, the growth in profit was a whopping 8776 per cent.
The net profit reported for the first quarter includes an exceptional gain amounting to Rs1,659 crore primarily on account of sale of equity stake held in Mindtree, according to the company statement.
“The profit after tax (PAT) for the period Q4FY19 & FY19 includes exceptional gain amounting to Rs17 crore and Rs68 crore, respectively on account of fair valuation of equity stake held in Global Edge Software Ltd,” the statement added.
The Board accepted the resignation of Sanjay Nayar from the Board of Coffee Day Enterprises Ltd and Coffee Day Global Ltd (Material Subsidiary).
The company has sought further time to publish unaudited limited review financial results for the quarter ended June 30, 20I9 and quarter/ half year ended September 30, 20I9.
Coffee Day Enterprises, which owns and operates India’s largest coffee chain Cafe Coffee Day, is reeling under a huge debt.
CDEL has total debt of Rs4,970 crore, according to its regulatory filing on August 17.
Its major lenders include Standard Chartered Bank, IDBI Bank and Yes Bank. Private equity funds such as KKR & Co, New Silk Route, Affirma Capital and some individual investors of Bengaluru and Mumbai also have exposure to the coffee chain.