Coffee Day Enterprises on Wednesday announced a delay in the announcement of its second quarter results owing to a probe into the accounts of the company and its subsidiaries.
In another development, KKR India chief executive Sanjay Nayar has quit the board of Coffee Day Enterprises. Nayar resigned on Monday and the board accepted his resignation on Wednesday, the company said in a stock-exchange filing.
According to the regulatory filing, the probe into the company’s accounts is progressing and is likely to take a few more weeks for completion. “Hence there will be delay in submission of unaudited financial results for the first quarter ended June 30, 2019 and 2nd quarter, half year ended September 30, 2019 within the prescribed statutory timelines,” the company said in the filing.
The board had appointed former DIG of CBI Ashok Kumar Malhotra to investigate the circumstances leading to statements made in the letter of the former chairman late VG Siddhartha on July 27, 2019 and to scrutinize the books of accounts of the company and its subsidiaries.
Coffee Day Enterprises, which owns and operates India's largest coffee chain Cafe Coffee Day, has a total debt of Rs 4,970 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.
First Published: IST