BoAt Flags Financial Mismatches Ahead of IPO Filing
BoAt’s parent company, Imagine Marketing, has reported discrepancies between the financial information shared with lenders and its internal accounting records. The issues, revealed in the company’s updated draft red herring prospectus, involved mismatches in quarterly statements submitted to banks compared with its own books for fiscal years 2023, 2024, and 2025. The company, currently preparing for an IPO, has been under heightened examination as these concerns come to light.
According to the prospectus, auditors have repeatedly flagged “unfavourable remarks and observations” over the years regarding fund utilisation and irregular transactions, including payments to its Singapore-based subsidiary Kaha Pte Ltd and excess remuneration paid to directors in FY23. These disclosures have triggered significant discussion on social media, with industry veteran Mohandas Pai criticising startups for “funny accounting” ahead of public listings.
BoAt has stated that it is taking corrective steps, such as securing shareholder approval to regularise excess director remuneration and strengthening financial reporting processes to ensure accuracy going forward. Meanwhile, leadership changes have also been introduced, with co-founder Aman Gupta shifting to a non-executive director role and Sameer Mehta moving from CEO of Imagine Marketing to executive director.
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