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Coffee Day plunges 5% as company appoints E&Y to scrutinise books

EY would also scrutinise the books of the company and its subsidiaries, the company said in a filing to BSE.

ETMarkets.com|
Aug 09, 2019, 10.18 AM IST
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BCCL
CCD-1---BCCL
CCD board appointed Malavika Hegde as an additional member of the executive committee, which was formed in the meeting held on July 31, the company said.
NEW DELHI: Shares of Coffee Day Enterprises slipped 5 per cent in Friday’s trade after the company appointed Ernst & Young to investigate into the circumstances leading to statements made in the letter by its late Chairman VG Siddhartha.

EY would also scrutinise the books of the company and its subsidiaries, the company said in a filing to BSE.

The scrip fell 5 per cent to hit a low of Rs 73.35 on BSE.

“The board of directors has decided it owes a duty to all the stakeholders of the company, to ensure that the company continues to have a strategic direction and a suitable way forward. To achieve this objective, it was decided by the board to appoint a person of eminence or a reputed firm as strategic corporate advisor/s to the board,” the company said.

In an alleged letter, Siddhartha had said that he was under pressure from a private equity partner, who was forcing him to buy back shares, a transaction which he had partially completed six months ago by borrowing a large sum of money from a friend.

Siddhartha’s dead body was recovered by police from the Netravathi river in Karnataka early on July 31.

Meanwhile, the CCD board appointed Malavika Hegde as an additional member of the executive committee, which was formed in the meeting held on July 31, the company said.
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