CCD removes a lot of vending machines from customer locations

Coffee Day Global Ltd, that runs coffee chain Cafe Coffee Day (CCD), removed about 30,000 custom-made cabinets used for vending machines at its customers' places.

According to a regulatory filing by Coffee Day Global Ltd (CDGL) parent firm Coffee Day Enterprises Ltd on Wednesday, a lot of vending machines installed by the company has been withdrawn from customers' locations in view of the pandemic situation, reported PTI.

It 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, vending division of the company use 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 added the PTI report.

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 due 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, now Dena Bank India Ltd.