New Delhi: The auditor of B9 Beverages said in its report for fiscal year 2024 that the privately owned maker of the Bira 91 beer "is exposed to market risk, credit risk and liquidity risk which may impact the fair value of its financial instruments". The net worth of the group (B9 Beverages) has fully eroded, Walker Chandiok & Co, a network firm of Grant Thornton International, said in the audit report.
The New Delhi-based company has not yet filed its financials for fiscal 2025. For FY24, the company reported a negative cash flow of ₹84 crore and accumulated losses of ₹1,904 crore. Its liabilities exceeded assets by ₹619.6 crore as on March 31, 2024. "These events and conditions indicate the existence of material uncertainty that may cast significant doubt about the group's ability to continue as a going concern, with current liabilities far exceeding current assets," the report said.
"It is not unusual for businesses at the growth stage to have current liabilities exceed current assets at this stage of the business," founder Ankur Jain said in an emailed response to ET's request for comment.
In a related development, the ministry of corporate affairs has directed B9 Beverages that it is "required to be careful in future and ensure timely compliance of the provisions related to holding of its annual general meeting", after the company sought an extension to hold its AGM for FY25 citing "difficulties". The Registrar of Companies on September 4 granted it a three-month extension to report the financials for FY25.
On the MCA matter, Jain said: "This is standard boilerplate language for obtaining procedural permissions, and is consistent with language for other companies that may have applied for such permissions from time to time."
In its report for FY24, Walker Chandiok & Co said the management was confident that the group would be able to realise its assets and discharge its obligations "based on future cash flow projections and infusion of funds subsequent to year-end along with expected capital infusion from prospective investors". The company, which had quickly grabbed attention for its craft beers since its launch in 2015, is now hit by multiple challenges, including steep job cuts and halting of production.
More than 250 employees last month wrote to its board and leading investors Japanese beverage company Kirin Holdings and Peak XV Partners and lender Anicut Capital, seeking a "leadership change", citing delays in payments of salaries and reimbursements.
The New Delhi-based company has not yet filed its financials for fiscal 2025. For FY24, the company reported a negative cash flow of ₹84 crore and accumulated losses of ₹1,904 crore. Its liabilities exceeded assets by ₹619.6 crore as on March 31, 2024. "These events and conditions indicate the existence of material uncertainty that may cast significant doubt about the group's ability to continue as a going concern, with current liabilities far exceeding current assets," the report said.
"It is not unusual for businesses at the growth stage to have current liabilities exceed current assets at this stage of the business," founder Ankur Jain said in an emailed response to ET's request for comment.
In a related development, the ministry of corporate affairs has directed B9 Beverages that it is "required to be careful in future and ensure timely compliance of the provisions related to holding of its annual general meeting", after the company sought an extension to hold its AGM for FY25 citing "difficulties". The Registrar of Companies on September 4 granted it a three-month extension to report the financials for FY25.
On the MCA matter, Jain said: "This is standard boilerplate language for obtaining procedural permissions, and is consistent with language for other companies that may have applied for such permissions from time to time."
In its report for FY24, Walker Chandiok & Co said the management was confident that the group would be able to realise its assets and discharge its obligations "based on future cash flow projections and infusion of funds subsequent to year-end along with expected capital infusion from prospective investors". The company, which had quickly grabbed attention for its craft beers since its launch in 2015, is now hit by multiple challenges, including steep job cuts and halting of production.
More than 250 employees last month wrote to its board and leading investors Japanese beverage company Kirin Holdings and Peak XV Partners and lender Anicut Capital, seeking a "leadership change", citing delays in payments of salaries and reimbursements.
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