Hit by pandemic, Café Coffee Day removes many vending machines from customer locations

NEW DELHI: As pandemic-hit FY’21 saw companies embrace work-from-home models for employees and widespread travel restrictions, Coffee Day Global Ltd, which operates the Cafe Coffee chain. Day (CCD), rejected approximately 30,000 personalized customers. makes cabinets used for vending machines at his customers.
According to a regulatory filing filed Wednesday by CDGL’s parent company, Coffee Day Enterprises Ltd, many vending machines installed by the company have been removed from customer locations due to the pandemic situation.
CDGL reported a consolidated net loss of Rs 306.54 crore for the year ended March 31, 2021, and its operating income fell 73.4% to Rs 400.81 crore.
For the January-March quarter, the company reported an increase in its net loss to Rs 94.81 crore, and its operating income was 61.4% to Rs 141.04 crore.
According to CDGL, in the previous year, to attract new customers, the company’s vending machines division had installed some custom cabinets at customers’ homes.
Custom made cabinets are appliances and cannot be removed and have no salvage value.
“In this situation, 29,996 cabinets are scrapped and the balance is depreciated, the value of Rs 79.78 crore is fully written off during the year,” he said.
In addition, one of its lenders also applied to the National Company Law Tribunal (NCLT) for the recovery of its contributions.
“However, the request has not yet been granted by the NCLT. Another lender has taken legal action for the collection of contributions,” he said.
The company has unpaid dues of Rs 47.52 crore owed by Sical Logistics, a parent company of the group, which is facing insolvency proceedings before the NCLT.
Coffee Day Global is an unlisted company but has “voluntarily” prepared the financial results, using the format prescribed by the listing regulations, in accordance with the listing of the shares of its parent group Coffee Day Enterprises Ltd.
He also obtained information that the company was categorized as “fraud” by Lakshmi Vilas Bank, now Dena Bank India Ltd.
“However, since the company does not have any credit facility or guarantee granted with / to LVB / DBIL, the company asked LVB / DBIL (see its letter of 04.03.2021) to remove the label from fraud, “he said, adding that he is awaiting the bank’s response.
Coffee Day Global also added that it had no impact on the company’s regular banking operations.
Its foreign subsidiaries are in liquidation and the process is underway but not yet completed.

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