Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Liquidity issues in the group after the demise of the Chairman.
• Lockdown due to COVID-19.
• Temporary closure of export business.
• Non-compliance with certain debt covenants and defaults in repayment of interest and borrowing.
• Recoverability of dues from Mysore Amalgamated Coffee Estates Limited (MACEL) amounting to Rs 3,535 Crores.
• Doubts on the recoverability of dues from 3 parties aggregating to Rs.364 crores.
• Non-compliance with Indian Accounting Standards governing Investment Property.
• Acute liquidity crunch in one of its step-down subsidiaries.
• Liquidity crunch faced by the Company itself.
• Requirement to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Mitigation Strategies

• Sale of equity stake in Mindtree Limited.
• Sale of global village property held by Tanglin Developments Limited.
• Reduction in debt levels.
• Appointment of Mr. Ashok Kumar Malhotra to scrutinize the books of accounts.
• Appointment of Justice K.L. Manjunath to suggest and oversee actions for recovery of dues from MACEL.
• Creation of provision for Capital advances, Supplier advance and doubtful debts.
• Obtaining independent valuations for investment properties.
• Application for one-time exemption from obtaining registration as NBFC under the provisions of RBI.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Reduced energy consumption substantially compared to the previous fiscal through various initiatives including installing energy-saving gadgets, implementing an online energy monitoring system, and integrating green attributes in new and existing outlets.

Social Achievements

• Ethically-sourced coffee, educating underprivileged rural youth, and employing differently-abled people.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Inflation in input costs (packing material and fuel), ecological concerns due to weather dependency, recovering from pandemic constraints, and competition from global players and individual themed cafes.
• Liquidity issues and COVID-19 challenges leading to defaults in interest and principal payments on loans.

Mitigation Strategies

• Irrigating Robusta areas to mitigate weather dependency, converting prospective customers and entering new geographies, strengthening product portfolio, and implementing cost-optimisation measures.
• One-time settlement with lenders, operational efficiencies, and monetizing assets (stake sale in Mindtree, land sale in Mangalore, sale of Way2Wealth entities).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethically-sourced coffee beans.

Climate-Related Risks & Opportunities

Physical Risks

• Bad monsoon impacting coffee production.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs)

Certifications: ISO 22000, ISO 9000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed