B9 Beverages Annual Report | Balance Sheet

B9 Beverages Limited (BIRA) Return Comparision with Primex 40 Index

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B9 Beverages Limited

B9 Beverages Limited Balance Sheet (Amt. in Million)

Particulars	31 March 2023	31 March 2022
ASSETS
Non-current assets	-	-
Property, plant and equipment	4,314.59	3,579.88
Capital work-in-progress	151.62	84.11
Investment Property	11.02	-
Goodwill	688.70	-
Other intangible assets	666.88	66.9
Loans	46.84	87.19
Other financial assets	543.18	432.72
Income tax assets	14.90	8.54
Other Non Current Assets	139.26	122.96
Current assets	-	-
Inventories	1,642.05	741.80
Trade receivables	1,696.84	1,190.37
Cash and cash equivalents	321.58	88.36
Bank balances other than Cash and Cash equivalent	1639.06	424.16
Loans	44.39	35.03
Other financial assets	30.18	7.59
Other current assets	790.5	431.11
TOTAL ASSETS	12,741.59	7,300.72
EQUITY AND LIABILITIES	-	-
Equity share capital	190.15	142.08
Instruments entirely equity in nature	1,451.37	795.20
Other equity	-22.93	-3,165.66
Non-current liabilities	-	-
Borrowings	174.03	1557.72
Lease Liabilities	2823.34	2674.43
Provisions	69.15	50.45
Deffered Tax Liability	139.80	-
Current liabilities	-
Borrowings	2,972.02	1,909.44
Lease Liabilities	651.32	542.90
Trade payables
Total outstanding dues of micro and small enterprises	283.30	248.16
Total outstanding dues of Creditors other than micro and small enterprises	2,617.29	1,784.31
Other financial liabilities	266.63	260.42
Other current liabilities	986.91	487.70
Provisions	13.35	13.57
Current Tax Liability	125.86	-
TOTAL EQUITY AND LIABILITIES	12,741.59	7,300.72

B9 Beverages Limited Profit & Loss Statement (Amt. in Million)

Particulars	31 March 2023	31 March 2022
Revenue from operations	8,243.23	7,188.51
Other income	243.96	76.20
Total income	8,487.19	7,264.71
Cost of Material Consumed	2,653.85	1,610.10
Changes in inventories of finished goods and work in progress	-262.72	-6.60
Excise duty on sale of goods	3658.6	3,980.49
Employee benefits expense	1,149.88	935.67
Finance costs	965.99	890.81
Depreciation and amortization expense	1214.18	908.13
Other expenses	3,444.38	2,906.75
Total expenses	12,824.16	11,225.35
Loss before Tax	-4,336.97	-3960.64
Current tax	117.86	-
Loss after Tax	-4,454.83	-3,960.64
Other comprehensive Income	-	-
Items that will not be reclassified to profit or loss	-	-
Remeasurement loss on defined benefit obligations	-3.37	-5.26
Items that will be reclassified to profit or loss	-	-
Exchanging difference in translating financial statements of foreign operations	-143.56	-73.06
Other comprehensive Income	-146.93	-78.32
Total comprehensive income for the year	-4,601.76	-4038.96
Loss attributable to:	-	-
Owners of the Company	-4,336.97	-3960.64
Loss for the year	-4,336.97	-3960.64
Other comprehensive income attributable to:	-	-
Owners of the Company	-146.93	-78.32
Other comprehensive income for the year	-146.93	-78.32
Total comprehensive income for the year attributable to:	-	-
Owners of the Company	-4,601.76	-4038.96
Total comprehensive income for the year	-4,601.76	-4038.96
Loss Per Share	-	-
Basic and Diluted (INR)	-93.26	-95.83

B9 Beverages Limited Consolidated Cash Flow Statement (Amt. in Million)

Particulars	31 March 2023	31 March 2022
Cash flows from operating activities
Loss before tax	-4,336.97	-3960.64
Adjustments for:
Depreciation and amortisation	1214.18	908.13
Employee Stock Option Expense	109.91	148.08
Provision for expired inventory	138.9	78.25
Bad debts	77.9	20.95
Loss Allowances	34.5	35.27
Interest income	-82.88	-32.17
Lease concessions	-	-1.04
Property, Plant and equipment written off	46.54	2.35
Net gain on redemption of mutual funds units	-21.59	-9.08
Gain on termination of lease contracts	-68.11	-1.8
Finance cost	897.32	890.81
Unrealized foreign exchange loss/ (gain)	-6.88	-38.88
Operating profit before working capital changes	-1,997.18	-1959.77
(Increase)/decrease in trade receivables	-607.53	-34.08
(Increase)/decrease in inventories	-1039.15	173.77
(Increase)/decrease in Loans, Other financial assets, and other assets	-594.33	4.30
Increase/(decrease) in trade payables, other financial liabilities and other liabilities	1,386.06	-114.27
Changes in working capital	-854.95	29.72
Income tax refund (net)	-6.36	0.6
Net cash generated by operating activities	-2,858.49	-1929.45
Cash flows from investing activities
Purchase of PPE and Capital WIP	-1282.63	-444.86
Interest received	68.98	28.84
Deposits made with banks (net)	-1110.83	-51.49
Net gain on redemption of mutual funds units	21.59	9.08
Loan (given)/repaid	30.99	26.81
Net cash generated by investing activities	-2271.90	-431.62
Cash flows from financing activities
Proceeds from issue of Instruments entirely equity in nature	6090.28	2662.64
Proceeds from transactions costs in relation to issue of Instruments entirely equity in nature	-83.74	-48.65
Proceeds from application money received for allotment of securities	-	7
Proceeds from non-current borrowings	390.00	150
Repayment of non-current borrowings	-640.97	-50
Payment of lease liabilities- principal	-579.28	-441.24
Payment of lease liabilities- Interest	-430.24	-409.68
Proceeds from current borrowings(net)	1062.58	863.49
Interest Paid	-445.02	-436.51
Net cash generated from financing activities	5,363.61	2297.05
Net increase/(decrease) in cash and cash equivalents during the year	233.22	-64.02
Cash and cash equivalents at the beginning of the year	88.36	152.38
Cash and cash equivalents at the end of the year	321.58	88.36

Let 's break down the Cash Flow Statement for the years 2023 and 2022, activity-wise:

Loss Before Tax:

In 2023, the loss before tax amounted to -rs. 4,336.97, while it was -rs. 3,960.64 in 2022, indicating increased losses over the period.

Adjustments:

Depreciation and amortization expenses increased from rs. 908.13 in 2022 to rs. 1,214.18 in 23, suggesting higher asset depreciation during the period.

Employee Stock Option Expense decreased from rs. 148.08 in 2022 to rs. 109.91 in 2023, indicating potentially reduced issuance or valuation of stock options.

Provision for expired inventory increased to rs. 138.9 in 2023 from rs. 78.25 in 2022, indicating potential losses associated with inventory expiration.

Bad debts increased to rs. 77.9 in 2023 from rs. 20.95 in 2022, suggesting higher defaults or write-offs in accounts receivable.

Interest income decreased from -rs. 32.17 in 2022 to -rs. 82.88 in 2023, indicating reduced interest earnings.

Finance costs slightly increased from rs. 890.81 in 2022 to rs. 897.32 in 2023, reflecting continued financial expenses.

Operating profit before working capital changes remained negative in both years, indicating operational challenges.

Working Capital Changes:

Changes in working capital were negative in both years, indicating potential liquidity challenges.

There were significant decreases in trade receivables and increases in trade payables and other liabilities, impacting working capital.

Income tax refund (net) was negligible in both years, indicating minimal impact on operating cash flows.

Cash Flows from Operating Activities:

Net cash generated by operating activities was significantly negative at -rs. 2,858.49 in 2023 and -rs. 1,929.45 in 2022, indicating substantial cash outflows from operations.

Cash Flows from Investing Activities:

Significant cash outflows were observed in investing activities, with net cash generated by investing activities amounting to -rs. 2,271.90 in 2023 and -rs. 431.62 in 2022.

This was primarily driven by the purchase of property, plant, and equipment (PPE), and deposits made with banks.

Cash Flows from Financing Activities:

Net cash generated from financing activities was positive and significantly higher at rs. 5,363.61 in 2023, compared to rs. 2,297.05 in 2022.

This increase was primarily due to proceeds from the issue of instruments entirely equity in nature, non-current borrowings, and proceeds from current borrowings.

Net Increase/(Decrease) in Cash and Cash Equivalents:

There was a net increase in cash and cash equivalents of rs. 233.22 in 2023, compared to a decrease of -rs. 64.02 in 2022.

Cash and Cash Equivalents:

Cash and cash equivalents at the end of the year increased to rs. 321.58 in 2023 from rs. 88.36 in 2022, indicating improved liquidity position at the end of the period.

Financial Ratios of B9 Beverages Limited

Particulars	2023	2022
Current Ratio	0.88	0.72
Debt Equity Ratio	0.6	6.2
Debt service coverage ratio	-1.51	-1.19
Return on Equity Ratio	-139%	-393%
Inventory Turnover Ratio	6.86	8.28
Trade Receivables turnover Ratio	5.19	5.71
Trade Payables turnover Ratio	2.8	2.5
Net capital turnover ratio	-9.28	-4.96
Net profit ratio	-48%	-47%
Return on Capital employed	-36%	-61%
Return on Investment	2%	3%

Insight of the financial ratios of B9 Beverages Limited For March 31, 2023

Current Ratio:

The current ratio measures the company 's ability to meet short-term liabilities with its short-term assets. A ratio below 1 suggests potential liquidity issues. B9 Beverages Limited 's current ratio improved to 0.88 in 2023 from 0.72 in 2022, indicating a better ability to cover short-term obligations.

Debt Equity Ratio:

The debt-to-equity ratio indicates the proportion of debt used to finance the company 's assets relative to shareholders ' equity. A higher ratio indicates higher financial risk. B9 Beverages Limited reduced its debt equity ratio significantly from 6.2 in 2022 to 0.6 in 2023, indicating a lower reliance on debt for financing its operations.

Debt Service Coverage Ratio:

The debt service coverage ratio measures the company 's ability to cover its debt obligations with its operating income. Negative values suggest insufficient operating income to cover debt obligations. B9 Beverages Limited 's debt service coverage ratio worsened from -1.19 in 2022 to -1.51 in 2023, indicating a deteriorating ability to cover debt obligations.

Return on Equity Ratio:

The return on equity (ROE) ratio measures the profitability of the company in relation to shareholders ' equity. Negative values indicate a loss on equity investments. B9 Beverages Limited 's ROE improved from -393% in 2022 to -139% in 2023, although still negative, suggesting a better utilization of equity capital.

Inventory Turnover Ratio:

The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates better inventory management. B9 Beverages Limited 's inventory turnover ratio decreased from 8.28 in 2022 to 6.86 in 2023, suggesting a slight decline in inventory turnover efficiency.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio measures how efficiently a company collects its accounts receivable. A higher ratio indicates quicker collection of receivables. B9 Beverages Limited 's trade receivables turnover ratio decreased from 5.71 in 2022 to 5.19 in 2023, indicating a slight decline in receivables collection efficiency.

Trade Payables Turnover Ratio:

The trade payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio indicates faster payment to suppliers. B9 Beverages Limited 's trade payables turnover ratio increased from 2.5 in 2022 to 2.8 in 2023, suggesting improved efficiency in paying suppliers.

Net Capital Turnover Ratio:

The net capital turnover ratio measures how effectively a company utilizes its capital to generate revenue. Negative values suggest inefficient capital utilization. B9 Beverages Limited 's net capital turnover ratio worsened from -4.96 in 2022 to -9.28 in 2023, indicating a decline in capital efficiency.

Net Profit Ratio:

The net profit ratio measures the profitability of the company relative to its revenue. B9 Beverages Limited 's net profit ratio remained relatively stable at around -47% to -48% in both 2022 and 2023, indicating consistent but negative profitability.

Return on Capital Employed (ROCE):

ROCE measures the efficiency and profitability of capital investments. Negative values indicate a loss on capital investments. B9 Beverages Limited 's ROCE improved from -61% in 2022 to -36% in 2023, indicating better utilization of capital employed.

Return on Investment (ROI):

ROI measures the profitability of an investment relative to its cost. B9 Beverages Limited 's ROI slightly decreased from 3% in 2022 to 2% in 2023, indicating a lower return on investment.