The auditor of B9 Beverages, makers of the popular Bira 91 beer, said that the net worth of the group has fully eroded. In its report for the fiscal year 2024, the auditor added that the group is exposed to market risk, credit risk and liquidity risk, impacting the fair value of its financial instruments.
According to a report in The Economic Times, the auditor, Walker Chandiok & Co, a network firm of Grant Thornton International, said the management was, however, confident that B9 Beverages would be able to realise its assets and discharge its obligations based on future cash flow projections.
The company is yet to file its financials for fiscal 2025. For FY24, it reported accumulated losses of Rs 1,904 crore, negative cash flow of Rs 84 crore, and liabilities exceeding assets by Rs 619.6 crore as of March 31, 2024.
The report added that the group’s current liabilities far exceed their current assets. Founder Ankur Jain, in his response to the financial daily, stated that it was not unusual for a company to have liabilities exceeding current assets during the growth stage.
B9 Beverages catapulted to popularity for their craft beers since their launch in 2015. However, it has now been hit by multiple challenges, including job cuts and even halting of production. More than 250 employees wrote to the board and investors seeking a change in leadership. The employees also cited delays in salary payments and reimbursements.
The company had also sought an extension to hold its AGM for FY25 citing difficulties. The Ministry of Corporate Affairs then directed B9 Beverages to be careful in the future and ensure timely compliance of the provisions related to the holding of its AGM.
