Asgard Alcobev adds Rs 9.21 crore CMJ tax liability in restatement

Asgard Alcobev Limited restated the accounting for its February 2026 acquisition of CMJ Breweries Private Limited, adding a Rs 9.21 crore deferred-tax liability at 31 March 2026 and reducing September-quarter profit before tax by Rs 81.01 lakh through additional depreciation. The auditor’s 13 November 2026 review conclusion remained unmodified.

What did Asgard Alcobev correct in the CMJ acquisition accounting?

Asgard Alcobev corrected two omissions in the acquisition accounting for CMJ Breweries: deferred tax was not recognised on a Rs 33.12 crore fair-value adjustment to CMJ Breweries’ buildings, and depreciation on that adjustment was not recorded. The company said the errors occurred in its consolidated financial statements for the year ended 31 March 2026 and were corrected under Indian Accounting Standard 8, or Ind AS 8, covering accounting errors.

CMJ Breweries became a 78.90% subsidiary of Asgard Alcobev on 17 February 2026, according to the independent auditor’s review report. The errors therefore concerned the fair-value treatment of buildings from the acquisition date through the 31 March 2026 year-end, rather than the parent’s standalone financial statements.

The independent auditor, A D V & Associates, drew attention to the correction in its review report dated 13 November 2026. It stated that its conclusion on the consolidated September 2026 results was not modified, and that nothing had come to its attention to suggest the comparative adjustments to 31 March 2026 and the June 2026 quarter were inappropriate or improperly applied.

The auditor also said that its review was conducted under Standard on Review Engagements 2410 and provided moderate assurance rather than an audit opinion. CMJ Breweries’ interim financial information was reviewed by another auditor, Arun Rathi And Associates, whose review report was dated 11 November 2026.

How did the correction change Asgard Alcobev’s March 2026 balance sheet?

Asgard Alcobev’s restated 31 March 2026 consolidated balance sheet increased goodwill by Rs 7.27 crore, increased deferred-tax liabilities by Rs 9.21 crore and reduced non-controlling interest by Rs 1.94 crore. The company said these balance-sheet adjustments had no effect on profit for the year ended 31 March 2026.

The difference between the deferred-tax liability increase and the goodwill increase was partly reflected in the Rs 1.94 crore reduction in non-controlling interest. The filing does not provide a separate numerical bridge beyond those three disclosed restatement adjustments, but it reports post-restatement goodwill of Rs 12.92 crore and deferred-tax liabilities of Rs 9.21 crore at 31 March 2026.

By 30 September 2026, goodwill remained Rs 12.92 crore, while deferred-tax liabilities stood at Rs 6.71 crore. Total consolidated assets declined to Rs 204.52 crore at 30 September from Rs 209.10 crore at 31 March, while total equity increased to Rs 52.14 crore from Rs 47.91 crore.

How much did the missed depreciation affect 2026 quarterly profit?

Asgard Alcobev recognised Rs 37.41 lakh of missed depreciation for the period from 17 February 2026 to 31 March 2026 in the restated quarter ended 30 June 2026. The company described that February-to-March amount as not material and therefore recorded it in the following interim period rather than changing profit for the year ended 31 March 2026.

Including that catch-up amount, depreciation for the quarter ended 30 June 2026 increased by Rs 1.18 crore and profit before tax fell by the same Rs 1.18 crore. The June 2026 comparative result was consequently restated, with the disclosed expense including depreciation attributable both to that quarter and to the prior financial year’s short post-acquisition period.

For the quarter ended 30 September 2026, the correction increased depreciation by Rs 81.01 lakh and reduced profit before tax by Rs 81.01 lakh. Reported depreciation and amortisation expense was Rs 2.39 crore in the September quarter, compared with Rs 2.79 crore in the restated June quarter and Rs 42 lakh in the quarter ended 30 September 2025.

The September-quarter restatement effect was smaller than the June-quarter effect because June included the Rs 37.41 lakh catch-up charge for 17 February to 31 March 2026. The filing identifies the depreciation adjustment as the mechanism affecting interim profit, rather than a change to revenue, finance costs or the reported acquisition date.

What were Asgard Alcobev’s September 2026 results after the restatement?

Asgard Alcobev reported consolidated profit before tax of Rs 3.31 crore for the quarter ended 30 September 2026, after the disclosed Rs 81.01 lakh depreciation effect. This compared with Rs 1.39 crore in the restated quarter ended 30 June 2026 and Rs 23.50 lakh in the quarter ended 30 September 2025.

Total income was Rs 49.15 crore in the September 2026 quarter, down from Rs 53.28 crore in June 2026 but up from Rs 24.12 crore a year earlier. Revenue from operations was Rs 48.93 crore, versus Rs 53.04 crore in June and Rs 24.12 crore in the September 2025 quarter.

Profit for the September 2026 quarter was Rs 2.55 crore, compared with Rs 1.69 crore in June 2026 and Rs 16.95 lakh a year earlier. For the half year ended 30 September 2026, total income was Rs 102.43 crore and profit before tax was Rs 4.70 crore, compared with Rs 45.30 crore and Rs 1.15 crore, respectively, in the corresponding 2025 half year.

Asgard Alcobev reported only one business segment, Beverages, under Ind AS 108 on operating segments. As a result, the filing does not separately show CMJ Breweries’ revenue, expenses or post-restatement profit contribution within the consolidated September results.

What is next for Asgard Alcobev’s holding in CMJ Breweries?

Asgard Alcobev has shareholder approval to convert Rs 21 crore of a Rs 21.01 crore inter-corporate deposit, or ICD, to CMJ Breweries into the subsidiary’s equity shares. Shareholders approved the proposed conversion at the annual general meeting held on 30 September 2026, following in-principle board approval on 14 August 2026.

The balance principal of Rs 1.20 lakh and the related interest receivable will remain a loan or receivable, according to the filing. The company had not recorded the conversion in the September 2026 results because definitive terms, agreements and the share allotment remained pending.

Management said the increase in Asgard Alcobev’s ownership interest would be accounted for as an equity transaction in the quarter ending 31 December 2026, once definitive agreements are executed and shares are allotted. The ICD and interest were already eliminated on consolidation, so the pending accounting relates to the ownership change rather than recognition of an intra-group balance.

Separately, Asgard Alcobev had issued 2.20 crore convertible warrants on a preferential basis and received Rs 79.75 lakh, or 25% of the issue price, by 30 September 2026. The company said the proceeds had been fully used for the stated offer-document objects, with no deviation or variation disclosed.

Conclusion

Asgard Alcobev’s restatement records the deferred-tax consequences of a Rs 33.12 crore building fair-value adjustment made on acquiring CMJ Breweries and adds depreciation that had been omitted. The 31 March 2026 correction increased goodwill by Rs 7.27 crore and deferred-tax liabilities by Rs 9.21 crore without changing that year’s profit, but reduced profit before tax in the restated June quarter and the September quarter.

The next disclosed event is the proposed conversion of Rs 21 crore of CMJ Breweries ICD principal into equity, which management expects to account for in the quarter ending 31 December 2026 after agreements and allotment. Readers can watch for the resulting ownership percentage, non-controlling interest movement and the presentation of that equity transaction in the next consolidated results.