SEBI imposes Rs.10 lakh on Coffee Day and officials for financial fabrication

SEBI imposes Rs.10 lakh on Coffee Day and officials for financial fabrication

Holds it responsible for violating accounting norms

The Securities and Exchange Board of India (SEBI) has penalized Coffee Day Enterprises Limited (CDEL), its current and former directors, and key managerial personnel, for alleged financial misinformation.

The market regulator probed for the Financial Year 2019–2020 to the Financial Year 2024 and financial results for the Financial Year 2020 to Q2 Financial Year 2025.

While Coffee Day is to pay Rs.10 lakh, the fine on others ranges from Rs.1 lakh to Rs.5 lakh.

SEBI held that Coffee Day understated its reported losses by not accounting for interest expenses of Rs.489.49 crore. Thus, violating accounting norms.

However, Coffee Day contended disclosing it had not accounted for the interest expenses in the annual reports and quarterly results.

However, the regulator maintained that disclosures of non-compliances in the financial statements did not absolve the company of its misdeeds.