Asia Cup final: India beat Malaysia 2-1 to win third Asia Cup title

Mar 16: An investigation into Coffee Day Enterprises Ltd., initiated by its board after the death of founder V.G. Siddhartha, is likely to conclude that at least Rs 2,000 crore is missing from its accounts, according to people familiar with the matter.

The months-long probe following the suicide of Siddhartha in July examined the financial transactions of India’s largest coffee chain and its dealings with dozens of private companies owned by the entrepreneur. The draft report, running more than a hundred pages, points to thousands of rupees that have gone missing, said the people, asking not to be named because the details aren’t public. It also details hundreds of transactions between the founder’s listed and personal businesses that were not conducted at arm’s length, they said.

Though the report is in its final stages, the precise details could change before its release, expected as early as this week, the people said. The missing funds could total more than Rs 2500 crore, one person said.

“The investigation report is still a work in progress, and not finalized,” a spokesman for the company said. “The board of directors and the company are unaware of its content at this point of time. Hence it would be premature to speculate on the investigation findings.”

The priority for management and Siddhartha’s family “is to keep the business running in a challenging environment and meet all stakeholder commitments, including 30,000 jobs associated with the group,” the spokesman added.

The disappearance of the 59-year-old founder last year stunned India’s business community. He had last been seen telling his driver he was going for an evening walk along a bridge in southern India; his body was found by local fishermen two days later. A letter delivered to Coffee Day’s board and employees, which appeared to be signed by Siddhartha, described massive debts and complained of pressure from lenders and tax authorities. It claimed he bore sole responsibility for the company’s financial transactions.

The probe began about a month later when the company brought in Ashok Kumar Malhotra, a retired senior official from India’s federal enforcement agency, to investigate. A senior lawyer practicing in India’s top court is assisting, the company said in a regulatory filing at the time.

The publicly traded Coffee Day was supposed to be India’s answer to Starbucks Corp. More than 1,500 of its Café Coffee Day outlets blanketed cities and highways, with affordable options for the country’s aspiring middle classes. The chain’s tagline: “A lot can happen over coffee.”

But the empire has been battered since the founder’s death. Its shares plummeted about 90% and its market value dropped to about $80 million. Trading was suspended in February.

India’s regulators are tracking the situation and may use the company’s final report as part of a deeper dive into its internal affairs, the people said. Coffee Day showed about Rs 2400 crore in cash and cash equivalents on its balance sheet as of March 2019, the most recent figures the company has issued.

After the death of Siddhartha however, the company faced a severe liquidity crunch and had “zero cash in the bank,” according to one of the people. It struggled with day-to-day expenses and paying salaries has been a strain, the person said.

The draft report details personal guarantees by Siddhartha for loans taken by Coffee Day, and his unsecured loans at high interest rates from local money lenders, the people said. It also probes Coffee Day’s defaults to coffee growers and other vendors, they said.

A related issue is that coffee estates owned by Siddhartha and several employees had been used as collateral for bank loans. The report found that valuations for properties were inflated to get the loans, one person said.

Investigators have examined several theories about what happened to the company’s money, including whether Coffee Day was manipulating its finances to show cash and profit and whether Siddhartha was taking cash out of the listed company to pay off a large investor to whom he had guaranteed a return, the person said. From the filings of his listed and private companies, the entrepreneur’s loans had totaled more than Rs 10,000 crore, and he had been squeezed by borrowing to repay interest on earlier loans, the person said.

In the letter purportedly from Siddhartha, the entrepreneur said he had tried his best but failed as an entrepreneur. “I am solely responsible for all mistakes,” the letter read. “Every financial transaction is my responsibility. My team, auditors and senior management are totally unaware of all my transactions. The law should hold me and only me accountable, as I have withheld this information from everybody including my family.”

As the report nears release, Coffee Day is finalizing a deal with Blackstone Group Inc. for real estate assets. A large tranche of the payment is due in about a week, one person said.

Coffee Day said it is working to reduce its debt load by divesting non-core enterprises.

“The aim is to save employment and preserve this iconic Indian brand,” the spokesman said.

New Delhi, Jan 27: The government on Monday issued the preliminary information memorandum for 100 per cent stake sale in national carrier Air India. As part of the strategic disinvestment, Air India would also sell 100 per cent stake in low cost airline Air India Express and 50 per cent shareholding in joint venture AISATS, as per the bid document issued on Monday.

Management control of the airline would also be transferred to the successful bidder.

The government has set March 17 as the deadline for submitting the Expression of Interest (EoI).

EY is the transaction adviser for Air India disinvestment process.

Melbourne, Feb 11: Opener David Warner received Allan Border Medal, while all-rounder Ellyse Perry bagged Belinda Clarke medal in the 2020 Australian Cricket Awards on Monday.

Warner secured his third (2016, 2017, 2019) Allan Border Medal and Perry a trio of Belinda Clarke Awards (2016, 2018, 2019) as voted by their peers, umpires and the media across all forms and every game of international cricket in 2019.

Warner dominated the ICC World Cup with 647 runs including a highest score of 166 at an average of 71.88, including three centuries. He then rebounded from a challenging Ashes series to dominate at home in the T20I series against Sri Lanka and Pakistan, the Test series against Pakistan - which included his memorable innings of 335 not out in Adelaide - and the Test series against New Zealand.

Warner (194) outpolled Ashes hero Steve Smith by a single vote for the Allan Border Medal with paceman Pat Cummins, the ICC International Cricketer of the Year, third in the polling with 185 votes.

Perry enjoyed an incredible year with both bat and ball, starting with dominant Ashes performances which included an innings of 116 in the Test in Taunton and 11 wickets in the three ODIs.

Her figures of 7-22 at Canterbury were the best ODI figures by an Australian woman's player. She backed that up against the West Indies by taking 3-17 in the opening ODI and then scoring 112 not out in Antigua before finishing the year with a solid series against Sri Lanka at home. Perry (161) was a comfortable winner of her third Belinda Clarke Award from Alyssa Healy (153) and Jess Jonassen (87) taking second and third place respectively in the voting.

Breakout batsman Marnus Labuschagne's superlative Test summer and Ashes series secured him the Male Test Player of the Year. Having replaced Steve Smith as a concussion substitute in the Lord's Test, Labuschagne went on to make 353 runs at 50.42 in the Ashes.

His outstanding form continued at home with a first-up 185 against Pakistan at the Gabba and a Test high 215 against New Zealand in Sydney. He scored 347 runs at an average of 173.5 against Pakistan and 549 runs at 91.5 against New Zealand. Limited overs captain Aaron Finch (38) capped a stellar year by being voted the Men's One-Day International Player of the Year ahead of Usman Khawaja (33) and Warner (24).

Finch's year included a massive series against Pakistan in the UAE with 451 runs at 112.75, including knocks of 116, 153 not out and 90. He then dominated the World Cup with 507 runs at 50.7, including 153 against Sri Lanka and 100 against England at Lords. Warner (19) continued his magical year in the T20I game to become the Men's T20 International Player of the Year from Glenn Maxwell (16). Kane Richardson and Steve Smith (8) tied for third.

Alyssa Healy claimed top honours as the women's One-Day International Player of the Year with 39 votes ahead of Perry (33) and Jonassen (19). Healy scored a double by also claiming the women's T20 Player of the Year with 18 votes, ahead of Jonassen and Meg Lanning who were tied on 15. It was the second consecutive year that Healy has won the women's ODI and T20 Awards.

West Australian veteran Shaun Marsh was voted Men's Domestic Player of the Year with 1322 runs at 52.88 in all forms of the game, including the highest score of 214, while breakout paceman Wes Agar was named the Bradman Young Cricketer for his 41 wickets at 22.62 in the year.

Molly Strano and Tayla Vlaeminck took the prized Women's Domestic Player of the Year and Betty Wilson Young Cricketer of the Year awards respectively.

Strano took 28 wickets in 22 games while Vlaeminck's 19 wickets for the year reinforced her enormous potential.

Former Hobart Hurricane Corrine Hall was named Community Champion for her work as an Ambassador of the Kindness Factory, grassroots cricket, and upcoming book Victress, which features 35 iconic female athletes and their stories. Each portrait is accompanied by the athlete's story, with a particular focus on how kindness impacted their journey.

The awards for international cricket are based on votes from players, umpires and the media on a 3-2-1 basis from each match. For the domestic awards, the votes are collected from all players.