Are Force India really in trouble?

February 6, 2010

Could Force India be about to be dissolved?

The Daily Telegraph recently published a story which alleged that Force India had failed to lodge their accounts with Companies House by the due date and therefore were in immediate danger of being shut down. The story led to Force India Team Principal, and Chairman of the United Beverages Group of Companies, Vijay Mallya, making a statement to the effect that this was nothing more than an administrative oversight which would be shortly resolved.

I asked my esteemed finance colleague, Dr Ruth Bender (http://snipurl.com/hv1ay), whether or not this was a real problem or a storm in a tea cup. Ruth’s response was ‘Technically it is a problem, but in practice, not that often.’ Ruth checked this out on our FAME database and Force India’s last filed accounts were for the year to December 2007, so assuming they are a private company, the Dec 2008 accounts should have been filed by Sept 2009. On that basis they are less than 5 months overdue – in Ruth’s words: ‘not very good, but I’ve seen worse’. She also commented that in her time as a Partner with an accounting firm (we normally employ people that worked in the real world at Cranfield) they often filed late, but never lost a company because of it, let’s hope Force India don’t either.

PS If you like Tweeting you can follow Ruth on http://twitter.com/Ruth999

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