Bira 91’s Financial Crisis: Auditor Raises Red Flag on Company’s Survival
B9 Beverages, the maker of popular beer brand Bira 91, is facing severe financial stress, raising concerns about its ability to continue as a going concern. The company’s auditor, Walker Chandiok & Co, a member of Grant Thornton Bharat, has reported a fully eroded net worth, citing accumulated losses of â‚ą21,179.75 crore.
Financial Troubles:
Accumulated Losses: â‚ą1,904 crore (as per FY24 report) and â‚ą21,179.75 crore (total accumulated losses)
Negative Cash Flow: â‚ą84 crore in FY24
Liabilities Exceeding Assets: â‚ą619.6 crore as of March 31, 2024
Net Loss: â‚ą6,449.70 crore in FY24, a 65% increase from FY23
Regulatory Issues:
MCA Warning: The Ministry of Corporate Affairs has warned B9 Beverages to ensure timely compliance with provisions related to holding Annual General Meetings (AGMs) after granting a three-month extension for FY25.
Financial Reporting: The company has yet to file its financial statements for FY25 .
Employee Unrest:
Petition for Leadership Change: Over 250 employees have written to the board and investors seeking a change in leadership, citing governance issues, delayed salaries, and unpaid vendor bills.
Job Cuts: The company has reduced its workforce by nearly 50% .
Management’s Stance:
Founder Ankur Jain: Jain has attributed the financial situation to the company’s growth stage, stating that it’s not unusual for businesses to have liabilities exceeding current assets during this phase .
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