Coffee Day Enterprises Limited has informed the Exchange about General Updates

Coffee Day Enterprises Limited (CDEL) has informed stock exchanges that SEBI passed an Adjudication Order on March 02, 2026 imposing a monetary penalty on the company under Section 15HB of the SEBI Act. The penalty relates to alleged non-compliance with the SEBI Act and SEBI (LODR) Regulations, 2015 concerning financial reporting and disclosures for FY 2020-21 to FY 2023-24. The core issue is the non-recognition of interest expense of around Rs 528.43 crores on borrowings, which SEBI found to be a deviation from Indian Accounting Standards (Ind AS 1, 23, 32 and 109). SEBI investigation noted that the company and its subsidiaries understated reported losses by not booking this interest, even though it was disclosed in explanatory notes. Certain past and present directors, the CFO, and the Company Secretary have also been levied individual monetary penalties. The company has stated that the Order has no material impact on its financial, operational, or other activities, and plans to take appropriate legal recourse.