Coffee Day Enterprises shares tumbled over 9% in an early trade on Monday after the Income Tax department detected Rs 650 crore concealed income from the documents seized during the raid last week. The shares of Coffee Day Enterprises were trading at Rs 208.95 down by more than 9.86%.
The search and seize operations, which began on September 21 at multiple locations of Cafe Coffee Day, concluded on Sunday evening in the offices of the group involved in coffee, tourism, IT and other areas. The offices and residence of CCD’s founder-owner V.G. Siddhartha and its other officials in Bengaluru, Chikkamagaluru, Hassan and Mysuru across Karnataka were also searched during the last four days.
Coffee Day Enterprises Ltd runs popular cafe chain Cafe Coffee Day all over India. Its owner VG Siddhartha is also the son-in-law of former Karnataka Chief Minister SM Krishna, who recently joined the BJP.
“The searches concluded with the group’s officials admitting to concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is expected to be a much higher figure,” IANS quoted a tax official as saying. The raids were conducted under the directions and supervision of the Income Tax Department’s Investigation Cell Director-General B.R. Balakrishnan.
The company reported a 51.15% increase in consolidated net profit to Rs 26.83 crore for the first quarter ended June 30, 2017. The company had reported a net profit of Rs 17.75 crore in the corresponding period of previous fiscal. Its total income from operations grew to Rs 830.41 crore during the quarter under review as against Rs 755.86 crore in the corresponding quarter a year ago.