Coffee Day Global Ltd, which operates coffee chain Cafe Coffee Day (CCD), discarded about 30,000 custom-made cabinets used for vending machines at its customers' places in the last financial year as pandemic took a toll on demand.
According to a regulatory filing by Coffee Day Global Ltd's (CDGL) parent firm Coffee Day Enterprises Ltd on Wednesday, a lot of vending machines installed by the company have been withdrawn from customers' locations in view of the pandemic situation.
Coffee Day Global Ltd (CDGL) reported a consolidated net loss of Rs 306.54 crore for the financial year ended on March 31, 2021 and its revenue from operation was down 73.4 per cent Rs 400.81 crore. For the January-March quarter, the company reported widening of its net loss to Rs 94.81 crore and its revenue from operation was 61.4 per cent down to Rs 141.04 crore.
According to CDGL, in the earlier year, to attract new customers, the vending division of the company used to install certain custom-made cabinets at customers' locations. Custom-built cabinets are fixtures and cannot be removed and do not have any salvage value.
"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 said. Moreover, one of its lenders has also approached the insolvency tribunal NCLT for recovery 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 said. The company has outstanding dues of Rs 47.52 crore from Sical Logistics, a parent group firm, which is facing insolvency proceedings before the National Company Law Tribunal (NCLT).
Coffee Day Global is an unlisted company but has "voluntarily" prepared the financial results, using the format prescribed by the listing regulations, pursuant to the listing of shares of its parent group Coffee Day Enterprises Ltd. It has also obtained information that the company 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 said adding that it awaiting the reply from bank.
Coffee Day Global also added it has not impacted the regular banking operations of the company. Its foreign subsidiaries are under liquidation and the process is ongoing and yet to conclude.
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