Worst July for sensex in 17 years on FPI pullout

MUMBAI: While the BSE sensex and the NSE Nifty stemmed this week’s slide, they recorded their worst July performance in 17 years. The fall was triggered by dumping of stocks by foreign portfolio investors (FPIs), who have sold Rs 12,419 crore of equities in July 2019 – making the month the worst performing one this year.
The sensex opened on Wednesday at 37,258 and closed at 37,481 points – up 84 points, or 0.2%. On Thursday, the index got back in red and plunged over 500 points or over 1 per cent in the afternoon deals.

While the key indices were down around 5%, shares of smaller companies received a battering with the Nifty mid-cap down nearly 10% and small-cap down more than 10%.

Growth in 8 core sectors dips to 0.2% in June, near 4-year low

NEW DELHI: Growth in the eight key core sectors slowed to 0.2% in June — the lowest since December 2015 — dragged down by a contraction in four segments and pointing to a slowdown for overall industrial growth. Data released by the commerce and industry ministry on Wednesday showed the eight core sectors — spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — rose an annual 0.2% compared with 7.8% in June 2018 and lower than the previous month’s 4.3%.

Growth during April to June was 3.5%, lower than the 5.5% posted in the year-ago period. The core sector accounts for 40.2% of the index of industrial production and the slowdown in June will impact the factory output data for June, which will be released later in the month. Economists said they expect overall industrial output growth to remain muted in June, which may prompt the Reserve Bank of India to cut interest rates.

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Several crucial segments of the economy such as automobiles are in the grip of a slowdown and pose a challenge for policymakers to unveil policies to boost growth.

The central bank has cut interest rates three times in a row and changed its stance to accommodative from neutral, indicating more cuts if needed. “For May 2019, core sector growth was also revised lower from 5.1% to 4.3%. The high base effect is likely to have a bearing on core sector growth in coming months. Owing to that, we expect IIP to grow in the range of 4.5-5% during FY20,” said Madan Sabnavis, chief economist at Care ratings.

The monetary policy committee had noted in the June review that growth impulses had weakened significantly as reflected in a further widening of the output gap compared with the April 2019 policy. A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern, the MPC had said.
Experts say that measures unveiled in the July budget will help boost growth. The data showed that crude oil, natural gas, refinery products and cement contracted in June, pulling down overall growth. The electricity sector rose 7.3% during the month, compared with 7.3% in the previous month and 8.4% in the year earlier month. Since August last year, the sector has remained sluggish.
“Marginal core sector growth, combined with contraction in both auto production and non-oil merchandise exports, suggests that IIP growth would be muted at around 1% in June 2019,” said Aditi Nayar, principal economist at ratings agency ICRA.

“Overall, there is limited visibility of a broad-based improvement in the Indian industrial outlook. The core sector data further strengthens the likelihood of a repo rate cut in the August 2019 policy review,” said Nayar.

U.S. Federal reserve cuts interest rates for the first time since the financial crisis

The Federal Reserve cut interest rates on Wednesday for the first time since 2008, citing concerns about the global economy and muted U.S. inflation, and signaled a readiness to lower borrowing costs further if needed.

Financial markets had widely expected the quarter-percentage-point rate cut, which lowered the U.S. central bank’s benchmark overnight lending rate to a target range of 2.00 per cent to 2.25 per cent.

WATCH: Federal Reserve chair explains reasoning for cutting interest rate

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In a statement at the end of its latest two-day policy meeting, the Fed said it had decided to cut rates “in light of the implications of global developments for the economic outlook as well as muted inflation pressures.”

The Fed said it will “continue to monitor” how incoming information will affect the economy, adding that it “will act as appropriate to sustain” a record-long U.S. economic expansion.

“It’s smart of them to go ahead and take out some insurance here. It’s better than none at all,” said Brett Ewing, chief market strategist at First Franklin Financial Services in Tallahassee, Florida.

U.S. stock prices, which had largely drifted sideways earlier Wednesday as investors awaited the meeting’s outcome, dipped after the Fed’s statement. The benchmark S&P 500 Index was down fractionally after briefly falling to the day’s low.

READ MORE: Bank of Canada is unlikely to follow expected U.S. Fed interest rate cut, experts say

Heading into Wednesday, the index was up about 3 per cent since June 19, when the Fed first signaled a rate cut was likely as it pledged then to act as appropriate to sustain the expansion.”

Yields on U.S. Treasury securities rose as the bonds’ prices, which move in the opposite direction, fell. Ten-year note yields edged up to about 2.04 per cent, while yields on 2-year notes, a proxy for Fed policy rates, rose to 1.86%.

The U.S. dollar index gained ground to touch its highest in more than two years. The index, which measures the greenback against a basket of currencies, was up about 0.20 per cent on the day.

WATCH: The impact of low U.S. interest rates on Canada

Two ‘No’ votes

The decision drew dissents from Boston Fed President Eric Rosengren and Kansas City Fed President Esther George who argued for leaving rates unchanged.

Both have raised doubts about a rate cut in the face of the current expansion, an unemployment rate that is near a 50-year-low, and robust household spending.

On the opposite flank, U.S. President Donald Trump is likely to be disappointed the Fed did not deliver the large rate cut he had demanded. Trump has repeatedly harangued the central bank and Fed Chairman Jerome Powell for not doing enough to help his administration’s efforts to boost economic growth.

Powell and other Fed officials in recent weeks have walked a middle ground, flagging risks like continued uncertainty on the global trade front, low inflation and a weakening world economy, but repeating the view the United States is fundamentally in a good spot.

READ MORE: With fixed rates below variable ones, mortgage market is in the Upside Down

Powell is expected to elaborate on the Fed’s thinking in a news conference at 2:30 p.m. EDT.

The Fed said in its statement that it continued to regard the labor market as “strong” and added that household spending had “picked up.” But it noted business spending was “soft” and that measures of inflation compensation remain low.

The Fed said the rate cut should help return inflation to its 2% target but that uncertainties about that outlook remain. Sustained expansion of economic activity and a strong labor market are also the most likely outcomes, the Fed said.

Underscoring its decision to ease policy across the board, the Fed also said it would stop shrinking its massive holdings of bonds starting Aug. 1, two months ahead of schedule.

“I think ending the quantitative tightening right here was also a good call,” First Franklin’s Ewing said.

Coffee, conversations and that CCD connect: Flashback time for customers

NEW DELHI: Till Cafe Coffee Day came along, espresso for many Indians was a milky, overly sweet something that passed off for coffee sprinkled with drinking chocolate and served at weddings.

And spending quiet hours away from home, college or office — alone, with friend or potential partner, romantic or otherwise — pretty much impossible if you couldn’t afford a restaurant, didn’t want a roadside ‘dhaba’ or a corner in a park.

On Wednesday, as the body of V G Siddhartha, the founder of the Cafe Coffee Day empire, washed up on the banks of a river in Karnataka, it was a walk down nostalgia lane for many people for whom CCD cafes signified heated discussions, brewing romances and frothy friendship tales.

A lot can happen over coffee, read the tagline of the the country’s largest coffee chain.

And so it did over the decades since 1994 when Siddhartha opened CCD’s first outlet in Bengaluru’s upscale Brigade Road.

The chain of 1,750 cafes in more than 200 cities, including in Prague and Vienna, made coffee connoisseurs of many an urban India, teaching them that an espresso was really a shot of coffee, and helping add latte, Americano, cappuccino and frappe to their everyday lexicon.

Soon, people were arguing the merits of coffee brewed from Robusta or Arabica beans in cosy coffee parlours that allowed people to while away the hours without fuss or too much money.

For many, the cafes, represented mostly by Cafe Coffee Day but also by other brands like Barista and Costa Coffee, ushered in a lifestyle change, helping them move from the humble roadside chai.

“For me, the aroma of coffee means CCD. It was the place that gave me my first coffee experience. Also, this is the place where for three long years I spent every Christmas afternoon with my best friend,” said Indrani Paul, a frequent visitor of the Indian home grown coffee giant.

Ayanti Ghosh, 25, remembers it as a place where she celebrated her 18th birthday in Kolkata.

Coffee Day appoints SV Ranganath as interim chairman after VG Siddhartha’s death

SV Ranganath has been appointed as interim chairman of Coffee Day Enterprises Ltd following the death of its founder VG Siddhartha. The founder had gone missing two days ago. His body was found by local fishermen and policemen on the banks of the Nethravathi river near Mangaluru on Wednesday. Ranganath is currently a non-executive independent director.

A Cafe Coffee Day outlet represented something aspirational, she said, adding that she wanted to live close to a CCD when she was growing up.

Many social media users took to Twitter to recall the CCD connect to their lives.

“I met my wife at #CafeCoffeeDay. That is just one story. There are millions of such beautiful stories across the nation. I don’t agree that #VGSiddhartha failed as an entrepreneur,” said a Twitter user.

In a farewell letter purportedly sent to the board of directors and employees of his company Coffee Day Enterprises, Siddhartha wrote, “I have failed as an entrepreneur. This is my sincere submission, I hope someday you will understand, forgive and pardon me.”

Siddharth, 59, who had gone missing on Monday night, also alleged harassment from lenders and tax authorities.

His many customers who grew up on coffee and conversations at his cafes mourned his death and disagreed that he had failed.

Some said it was the place they first thought of their ‘big idea’.

“Truth to be told, while in college, we bunch of 4 nobodies wrote our first business plan on a Napkin at #CafeCoffeeDay for raising the first round of funding for @innoz #VGSiddhartha @CafeCoffeeDay #Entrepreneurship Thank you sir #RIPSiddhartha,” posted Deepak Ravindran.

Twitter user, Ram Kamal, said Cafe Coffee Day is where they dreamt big. “Dreams with eyes open, high on caffeine. Thank you VS Siddhartha. @CafeCofeeDay,” he said.

Another user said Cafe Coffee Day gave him the first experience of a cafe with so many first dates and so many evenings spent whiling away the hours.

“…in fact went on my first date with my wife to #CCD A terrific brand with so many memories You guys did great #RIPSiddhartha,” wrote another user.

Indian cricketer Ashwin Ravichandran was among those who turned nostalgic as he turned the clock back recollecting his rendezvous with CCD.

“My first memories of going out with friends and having a cup of coffee happened only with the inception of cafe coffee day. Sad news #RIPSiddhartha #cafecofeeday,” he tweeted.

Siddhartha’s body was found by local fishermen and patrolling policemen on the banks of the Nethravathi river near Mangaluru on Wednesday, two days after he went missing.

Cafe Coffee Day founder VG Siddhartha’s business empire

Cafe Coffee Day founder VG Siddhartha had a complex structure of over 50 subsidiaries. This also includes estimated value of businesses according to Siddhartha, as mentioned to the board in his letter, at a total of over Rs 18,000 crore compared to his debt of over Rs 6,500 crore.

A company source reportedly said CCD outlets across the country would remain closed on Wednesday in memory of Siddhartha.

But it was business as usual in several outlets in the national capital’s Connaught Place.

The staff gave away the uncertainty, however. Employees at least three outlets said they received no instruction following the news of their founder’s death on Wednesday morning.

Former Cognizant prez Rajeev Mehta is Mindtree CEO

BENGALURU: Former Cognizant president Rajeev Mehta is taking charge as Mindtree CEO. The post fell vacant after co-founder & CEO Rostow Ravanan resigned in early July.

The founders of the Bengaluru-based IT company ceded management control to L&T after the latter acquired 60% stake in the firm. Sources told TOI the company will make a formal announcement on the appointment on Friday. An email sent to L&T and Mindtree did not elicit a response.

TOI was the first to report that L&T had picked Mehta to steer its IT business in its edition dated March 29.

Mehta was in Cognizant for two decades and was part of former CEO Francisco D’Souza’s core team. He joined the company when it was barely a $25 million venture, and was an integral part of the journey that took it to $16 billion last year. Mehta was appointed as president of the company in 2016, replacing Gordon Coburn, who resigned after Cognizant disclosed violations under the US Foreign Corrupt Practices Act (FCPA).

Mehta started as a senior manager. He took on multiple responsibilities during his tenure. He was senior VP of the BFSI vertical. He served as the group CEO of IT services, leading consulting, digital business and digital systems and technology practice areas.

Mehta was given a substantial increase in his compensation last year – a cash bonus of $1.3 million and restricted stock units of $9 million – and it was expected he would stay in the company. But he quit early this year, may be when he realised that he would not succeed D’Souza.
L&T had undertaken an exhaustive leadership mapping exercise to identify a new face to steer the $1-billion Mindtree.

Phil Fersht, CEO of IT consulting firm HfS Research, said Mehta has incredible experience, being intimately involved with the rampant, profitable growth of Cognizant until this year and was a serious candidate to take on the CEO role there, but the board wanted a change in culture and direction. “His operation prowess, combined with deep industry knowledge will stand him in good stead at Mindtree, and when Mindtree and LTI (L&T Infotech) come together. LTI’s DNA relies on efficient execution, while Mindtree seems to be troubled by the idea of different DNAs. However, the difference itself, when handled with the right sense of urgency and priority, can complement both entities,” Fersht said.

He said Mehta’s two core challenges in the new role are building an aggressive strategic plan to keep Mindtree’s culture and pride intact with the LTI merger, and learn from and work with LTI to improve the margins. “Net-net, there is as much opportunity to excite the market as there is risk to mess this up and descend into the wasteland where many once-great service providers languish, with little hope of coming back,” he said.

Canada’s GDP up 0.2% in May GDP as manufacturing, construction rebound

Canada‘s economy grew by 0.2 per cent in May, the third increase in as many months, thanks to a rebound in manufacturing, Statistics Canada data showed on Wednesday.

Analysts in a Reuters poll had predicted an increase of 0.1 per cent in May following a larger-than-expected increase of 0.3 per cent in April. Overall, 13 of the 20 industrial sectors monitored expanded in May, the national statistical agency said.

WATCH: Global trade war biggest threat to Canadian economy, says Bank of Canada governor Stephen Poloz

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Durable manufacturing rose by 2.3 per cent, more than offsetting the 1.7 per cent drop seen in April. Meanwhile, the transportation equipment manufacturing subsector saw a growth of 5.7 per cent after motor vehicle production returned to normal levels some temporary plant shutdowns in April.

READ MORE: How to buy a car without getting swindled

Canada‘s construction industry also saw gains in May, rising 0.9 per cent and recording its fourth jump in five months. Residential construction posted its strongest growth in more than a year, rising by 2.2 per cent as construction of double, row and other multi-unit dwelling expanded.

READ MORE: Housing data reveals ‘growing divergence’ between eastern and western Canada

However, contractions were felt within the mining, quarrying and oil and gas extraction industries, which dropped by of 0.8 per cent following a gain of 5.5 per cent in April, thanks in large part to a decline in extractions from the oil sands.

‘A humble man’: India Inc remembers Siddhartha

NEW DELHI: Industry captains on Wednesday paid rich tributes to VG Siddhartha, founder of India’s biggest coffee chain Cafe Coffee Day (CCD), remembering his entrepreneurial spirit and humble nature but also cautioned entrepreneurs not to let failures destroy their self-esteem.

Industry leaders such as Kiran Mazumdar Shaw of Biocon, automobile czar Anand Mahindra, Paytm’s Vijay Shekhar Sharma, Sachin Bansal of Ola and IT honcho CP Rupani remembered Siddhartha as a “humble and soft speaking” man.

The body of the Cafe Coffee Day founder was found on Wednesday in the Nethravathi river in Dakshina Kannada district of Karnataka after 36 hours of intense search.

In a tweet, Biocon chairperson and managing director Kiran Mazumdar Shaw said, “My deepest condolences to VG Siddhartha’s widow Malavika and his sons and to Shri & Smt SM Krishna and family. RIP.”

Kiran Mazumdar Shaw tweet (1)

Embattled liquor tycoon Vijay Mallya said Siddhartha was an “excellent human and brilliant entrepreneur”. However, Mallya added that he was “devastated with the contents of his letter”.

“The government agencies and banks can drive anyone to despair. See what they are doing to me despite offer of full repayment. Vicious and unrelenting,” he tweeted.

Vijay Mallya tweet (1)

Siddhartha had in a purported letter written by him indicated that pressure from banks, a private equity investor and tax authorities drove him to end his life.

Cafe Coffee Day founder VG Siddhartha’s business empire

Cafe Coffee Day founder VG Siddhartha had a complex structure of over 50 subsidiaries. This also includes estimated value of businesses according to Siddhartha, as mentioned to the board in his letter, at a total of over Rs 18,000 crore compared to his debt of over Rs 6,500 crore.

Karti P Chidambaram, son of Congress leader and former finance minister P Chidambaram, who is facing enforcement directorate (ED) probe in the Aircel Maxis case, said the government agencies are the biggest impediments to ease of business.

“Managing the systematic harassment by the State n it’s pliant agencies is the biggest challenge. IT, ED, CBI, ROC etc are the biggest impediments for ease of business,” Karti said.

Karti P Chidambaram tweet (1)

Meanwhile, Mahindra Group chairman Anand Mahindra said entrepreneurs must not allow business failures to destroy their self-esteem.

“I did not know him & have no knowledge of his financial circumstances. I only know that entrepreneurs must not allow business failure to destroy their self-esteem. That will bring about the death of entrepreneurship,” said Mahindra.

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Paytm founder Vijay Shekhar Sharma tweeted that he was “saddened beyond words.”

Vijay Shekhar tweet (1)

Flipkart co-founder Sachin Bansal said that Siddhartha was an “inspiring entrepreneur and investor.”

“I had known #VGSiddhartha personally and was always amazed at his energy and positivity,” Bansal added.

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Tech Mahindra MD and CEO CP Gurnani, while saluting his entrepreneurship, said it was a “Very sad day”.

” ..some of us were daydreaming that he may not have jumped off the bridge …wish he had stayed alive to fight. My heart goes out to his family,” he said.

CP Gurnani tweet (1)

Meanwhile, Coffee Day Enterprises on Wednesday named independent director S V Ranganath as the interim chairman of the company.

US ‘working hard’ with India to help grow its economy: Pompeo

WASHINGTON: The US is “working hard” with the Indian government to provide the country with opportunities to grow its economy as part of the Trump administration’s Indo-Pacific strategy, secretary of state Mike Pompeo has said.

Trade tensions between India and the US have been rising with President Donald Trump complaining that tariffs imposed by New Delhi on American products were “no longer acceptable”.

In June, the US terminated India’s designation as beneficiary developing country under the generalised system of preferences (GSP) programme.

India imposed retaliatory tariffs on 28 US products including almonds and apples from June 5, after the Trump administration revoked its preferential trade privileges.

The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

Pompeo’s remarks came weeks after a team led by assistant US trade representative (AUSTR) for South and Central Asia, Christopher Wilson, held talks with senior Indian officials in New Delhi this month on a wide range of bilateral trade issues, in particular on tax and tariffs.

“Our Indo-Pacific strategy is well on its way to bearing fruit for not only them but for the United States, and we have watched these coalitions build out. We’re working hard with the Indian government to provide them with opportunities to grow their economy as well,” Pompeo told reporters accompanying him on a tour to the Indo-Pacific region.

The US is also seeking greater market access for its dairy products and cut in customs duties in information and communications technology products. The American companies have also raised concerns over price cap on certain medical devices by India.

Stating that the US has taken a unilateral position in rolling back export incentives from India, the Indian government has asserted that it would not allow trade negotiations to overtake issues of national interest.

Meanwhile, India’s ambassador to the US, Harsh Vardhan Shringla said that trade between the two countries has grown to $142 billion in 2018, and is expected to reach $238 billion by 2025.

The next stage of growth will be driven by the small and medium-sized enterprises (SME) in both the countries, he said in Colorado.

Specifically, the growth of SMEs in the digital marketplace present an ideal opportunity for increased India-US cooperation, he added.

RIP Siddhartha: Some CCD outlets stay shut

BENGALURU: Some outlets of the popular Cafe Coffee Day (CCD) chain in central Bengaluru remained shut on Wednesday as a mark of respect to its founder-chairman VG Siddhartha, who died under mysterious circumstances, a company source said.

“Retail outlets in the city centre, including our main coffee ‘the square’ opposite the famous Cubbon Park are closed for the day as a homage to our founder-chairman along with our main office above the cafe,” a CCD source clarified to IANS.

While in Mumbai, company officials confirmed that all 50 Cafe Coffee Day outlets were functioning as normal. And they said the outlets will remain open during their regular hours till 11 pm.

Coffee Day appoints SV Ranganath as interim chairman after VG Siddhartha’s death

SV Ranganath has been appointed as interim chairman of Coffee Day Enterprises Ltd following the death of its founder VG Siddhartha. The founder had gone missing two days ago. His body was found by local fishermen and policemen on the banks of the Nethravathi river near Mangaluru on Wednesday. Ranganath is currently a non-executive independent director.

Earlier in the day, the source had told IANS that all the CCD outlets across the country would remain shut as a mark of respect to Siddhartha.

“CCD offices, including that of Coffee Global Enterprises and the Amalgamated Bean Coffee (ABC), have also been shut across the country,” the source said on the condition of anonymity.

“A holiday has also been declared for the workers and employees of all coffee estates in the three coffee districts of Chikkamagaluru, Hassan and Kodugu in the southern state due to the sudden death of coffee king Siddhartha,” added the source.

In Kerala there are 25 outlets — six in Thiruvananthapuram, 14 in Kochi, and five in Kozhikode. We have been asked to go on with the business and hence we abided by that,” said the CCD staff, who did not wish to be identified.

Cafe Coffee Day founder VG Siddhartha’s business empire

Cafe Coffee Day founder VG Siddhartha had a complex structure of over 50 subsidiaries. This also includes estimated value of businesses according to Siddhartha, as mentioned to the board in his letter, at a total of over Rs 18,000 crore compared to his debt of over Rs 6,500 crore.

Abey Tellas, a professor at a leading college sipping his coffee at a outlet in Thiruvananthapuram, told IANS: “I was a bit surprised to see this outlet open. When I entered, it was business as usual. I thought about the founder of CCD, that it’s a bit sad, he is no more.”

Meanwhile, the board of Coffee Day Enterprises appointed SV Ranganath as its interim chairman, after the police in Mangaluru earlier recovered the body of its founding chairman Siddhartha almost 36 hours after he went missing.

Letter written by VG Siddhartha raises many unanswered questions

The letter, purportedly written by CCD founder VG Siddhartha, apart from making allegations about the I-T department, also claims he was facing intense harassment from one of his investors. While he didn’t name the investor, speculation has been rife on the internet as to who it could be. His body was found on Wed in Netravati river after he went missing on Mon eve.

The board also decided to appoint Nitin Bagmane as the interim chief operating officer (COO), a company statement said.

Coffee Day appoints SV Ranganath as interim chairman

NEW DELHI: Coffee Day Enterprises Ltd on Wednesday appointed SV Ranganath as interim chairman after the sudden death of its founder VG Siddhartha, the company said in a notification to stock exchanges. The body of Cafe Coffee Day (CCD) owner Siddhartha was found on the banks of the Nethravathi river near Mangaluru after a massive 36-hour search operation.

Ranganath is currently non-executive independent director of the company. Coffee Day also named Nitin Bagmane as interim chief operating officer (COO), subject to approval by the board.

CEOs seek emotional anchors against stress

Although organisations have begun taking initiatives to help employees manage stress levels, it’s very lonely at the top. There have been several cases of suicide by CEOs across the globe. Stress levels are particularly high for startup entrepreneurs who are driven by the pressures of delivering high valuations. As a result, support groups have picked up pace.

The company has set up a committee that will be vested with the powers of the chief executive and will explore opportunities to deleverage the Coffee Day Group, the notification added.

“Constitution of an executive committee comprising Ranganath, Nitin Bagmane (COO) and R Ram Mohan (CFO) to exercise the powers previously vested with the chief executive officer of the company and the administrative committee constituted by the board in 2015,” it mentioned.

SV Ranganath

(SV Ranganath, Image: Coffee Day)

Siddhartha, whose chain of cafes helped make coffee a lifestyle beverage and brought in latte, cappuccino, Americano and espresso into the urban Indian lexicon, was 69 and is survived by his wife Malavika and two sons.

The body of Siddhartha, who purportedly wrote a farewell letter to the board of directors and employees of his company Coffee Day Enterprises and alleged harassment from lenders and tax authorities, was traced after nearly two days of an intensive search operation.

Cafe Coffee Day founder VG Siddhartha’s business empire

Cafe Coffee Day founder VG Siddhartha had a complex structure of over 50 subsidiaries. This also includes estimated value of businesses according to Siddhartha, as mentioned to the board in his letter, at a total of over Rs 18,000 crore compared to his debt of over Rs 6,500 crore.

The board took cognizance of statements in the purported letter from Siddhartha and stated that “while the authenticity of the letter is unverified” it will take “serious note of the same” and “thoroughly investigate” the matter.

Here’s the complete notification from the company:

Coffee day1

Coffee day2

“The board also took note of a message from Malavika Hegde expressing support and trust in the company’s professional team and the common effort to look after the interest of the employees and all other stakeholders,” it said.

The company said the audit committee and executive committee will engage in discussions with the statutory auditors of the company and such other advisors as may be necessary with a view to recommend appropriate next steps to the board at its forthcoming meeting on August 8.

The board has appointed Cyril Amarchand Mangaldas as its legal counsel to advise on these matters.

Siddhartha went missing on Monday night near Ullal bridge on Nethravathi river. The businessman left Bengaluru for Sakleshpur in Hassan district in a car on Monday afternoon. On the way, he asked his driver to go towards Mangaluru, police said.

He got off the car and told his driver to wait for him at the end of the bridge, saying he was going for a walk.
Meanwhile, shares of Coffee Day Enterprises further plummeted 20 per cent to hit its lowest trading permissible limit (Rs 123.25) for the day.

Read this story in Marathi