BackCoffee Day says I-T searches won’t have much impact on financial position
Coffee Day says searches conducted by the I-T department on the company and its subsidiaries will not have any significant impact on its financial position
Premium
Bengaluru: Coffee Day Enterprises Ltd on Monday said searches conducted by the income tax (I-T) department over the past few days on the company and its subsidiaries will not have any significant impact on the financial position of the company.
Last Thursday, the I-T department raided the offices and residence of Coffee Day chairman V.G. Siddhartha. Raids were conducted at multiple locations including Siddhartha’s office at Coffee Day Square in Bengaluru’s Lavelle Road and his residence in Sadashivanagar, an official at the I-T department told Mint last week on condition of anonymity. Premises in other cities were also searched.
The searches were carried out by the I-T department from 21 to 24 September, Coffee Day said in a BSE filing on Monday, adding there was no information discovered that would significantly impact its financial position. Any information that is considered to have a ‘material impact in nature discovered later’ will be intimated to the exchange immediately, it added.
Shares of Coffee Day were trading 9.87% down at Rs209.00 at 12.15 PM on the BSE, while the exchange's benchmark Sensex index was down 0.93% at 31,625.32 points.
According to an I-T department official, the searches concluded with an admission of previously concealed income exceeding Rs650 crore. The amount is expected to be a much higher figure, the official added, requesting not to be identified.
“There are a number of other issues including violations of other statutes on which there is no disclosure but relevant evidence has been found. These will be pursued effectively with vigour, energy and imagination," the official said.
Coffee Day Enterprises, a part of Coffee Day Global Ltd, which opened its first cafe in 1996, runs over 500 outlets in India and countries like Austria, Czech Republic and Malaysia. Its chairman Siddhartha is the son-in-law of former Karnataka chief minister and former minister of external affairs S.M. Krishna, 84, who left the Congress party in January and joined the Bharatiya Janata Party (BJP).
Sharan Poovanna in Bengaluru contributed to this story
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
