Coffee Day appoints EY for scrutiny

Coffee Day appoints EY for scrutiny

Pictorial representation. Photo credit: PTI

Coffee Day Enterprises on Thursday said it has appointed global accounting firm EY to scrutinize the books of accounts of the company and its subsidiaries.

Besides, EY will also investigate into the circumstance under which Coffee Day Enterprises late founder V G Siddhartha had written the purported letter dated July 27, 2019, alleging harassment by the Income Tax department.

The board of the company, in its meeting held on Thursday, also decided to appoint a person of eminence or a reputed firm as a strategic corporate advisor.

“The Board of Directors in the meeting held today has appointed EY to investigate into the circumstances leading to statements made in the purported letter of the former Chairman, late V G Siddhartha dated July, 27 2019 and to scrutinise the books of accounts of the Company and its subsidiaries,” informed Coffee Day Enterprises Ltd in a regulatory filing.

As per the regulatory filings with stock exchanges and the corporate affairs ministry, Coffee Day Ltd’s liabilities had doubled to over Rs 5,200 crore and Siddhartha’s unlisted ventures for realty and hospitality were having similar levels of debt.