Rs 619 crore wiped out, loss of Rs 1,904 crore: Bira 91 now in crisis, report flags audit red flags

The auditor of B9 Beverages, maker of the popular Bira 91 beer, said the group’s net worth had been completely eroded. The auditor added in his report for the fiscal year 2024 that the group is exposed to market risks, credit risks, and liquidity risks, which affects the fair value of its financial instruments.

According to a report in The Economic Times, the auditor, Walker Chandiok & Co, a subsidiary of Grant Thornton International, said management was confident that B9 Beverages would be able to realize its assets and meet its liabilities based on future cash flow projections.

The company is yet to file its financials for FY25. For FY2024, it reported cumulative 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 its current assets. Founder Ankur Jain, in his response to the financial daily, said that it is not unusual for a company to have liabilities exceeding current assets during the growth phase.

Craft beer company B9 Beverages has soared in popularity since its launch in 2015. However, it has now been hit with multiple challenges, including job cuts and even halting production. More than 250 employees wrote to the board and investors demanding a change in leadership. Employees also cited delays in payment and reimbursement of salaries.

The company has also requested an extension to hold its annual general meeting for the financial year 2025 due to difficulties. The Ministry of Corporate Affairs then directed B9 Beverages to be vigilant in the future and ensure timely compliance with the provisions related to holding the AGM.