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Coffee Day auditor resigns citing 'technical issues'

Coffee Day Enterprises' auditor, Sundaresha & Associates, has resigned citing "technical issues"

twitter-logoBusinessToday.In | August 6, 2020 | Updated 14:12 IST
Coffee Day auditor resigns citing 'technical issues'
Coffee Day Enterprises

Coffee Day Enterprises' auditor, Sundaresha & Associates, has resigned citing "technical issues". On Wednesday, the auditor gave "technical issues" as the reason to the company for its decision to resign as auditor, Coffee Day said in an exchange filing on Friday.

"The Company on 3rd August 2020 made a disclosure to respected Stock Exchanges  regarding Resignation of Auditors Sundaresha & Associates. The Auditors had citied due to some technical issues they are resigning as the Statutory Auditors of the Company and the same was accepted by the Board of Directors on 03rd August 2020. Further, the Auditors on 5th August 2020, gave the clarification to the Company for the reason technical issue," the company added.

Sundaresha & Associates were recently appointed in place of BSR & Associates, which resigned in July citing "commercial considerations".

The development comes at a time when the company is making efforts to sell its assets. Coffee Day Enterprises has been paring its debt through the sale of non-core assets after the death of its promoter V G Siddhartha.

Earlier in March this year, the firm had announced to repay Rs 1,644 crore to its 13 lenders after concluding a deal with Blackstone Group to sell its technology business park

The company in September last year had announced the sale of its Global Village Tech Park in Bengaluru to global investment firm Blackstone and realty firm Salarpuria Sattva at an enterprising value of Rs 2,700 crore. It has also sold CDEL's stake in IT firm Mindtree to L&T Infotech.

The company has closed down around 280 outlets in the first quarter of the current fiscal year owing to profitability issues.

Shares of Coffee Day Enterprises were trading at Rs 22.85, up 1.05 points, or 4.82 per cent on NSE at the time of reporting.

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