Coffee Day Global Ltd, which operates espresso chain Cafe Coffee Day (CCD), discarded about 30,000 custom-made cupboards used for merchandising machines at its clients’ locations within the final monetary 12 months as pandemic took a toll on demand.
According to a regulatory submitting by Coffee Day Global Ltd’s (CDGL) guardian agency Coffee Day Enterprises Ltd on Wednesday, a number of merchandising machines put in by the corporate have been withdrawn from clients’ areas in view of the pandemic scenario.
Coffee Day Global Ltd (CDGL) reported a consolidated web lack of Rs 306.54 crore for the monetary 12 months ended on March 31, 2021 and its income from operation was down 73.4 per cent Rs 400.81 crore.
For the January-March quarter, the corporate reported widening of its web loss to Rs 94.81 crore and its income from operation was 61.4 per cent right down to Rs 141.04 crore.
According to CDGL, within the earlier 12 months, to draw new clients, the merchandising division of the corporate used to put in sure custom-made cupboards at clients’ areas.
Custom-built cupboards are fixtures and can’t be eliminated and would not have any salvage worth.
“In this situation, 29,996 cabinets are discarded and the balance written down value aggregating to Rs 79.78 crore is fully depreciated during the year,” it mentioned.
Moreover, considered one of its lenders has additionally approached the insolvency tribunal NCLT for restoration of its dues.
“However, the application is yet to be admitted by the NCLT. Another lender has initiated legal action for recovery of the dues,” it mentioned.
The firm has excellent dues of Rs 47.52 crore from Sical Logistics, a guardian group agency, which is dealing with insolvency proceedings earlier than the National Company Law Tribunal (NCLT).
Coffee Day Global is an unlisted firm however has “voluntarily” ready the monetary outcomes, utilizing the format prescribed by the itemizing laws, pursuant to the itemizing of shares of its guardian group Coffee Day Enterprises Ltd.
It has additionally obtained data that the corporate has been categorised as “fraud” by Lakshmi Vilas Bank (LVB), now DBS Bank India Ltd (DBIL).
“However, since the company has not any credit facility or guarantee extended with/to LVB/DBIL, the company has requested LVB/DBIL (vide its letter dated 04.03.2021) to clear the fraud tag,” it mentioned including that it awaiting the reply from financial institution.
Coffee Day Global additionally added it has not impacted the common banking operations of the corporate.
Its overseas subsidiaries are beneath liquidation and the method is ongoing and but to conclude.