Auditors Grant Thornton highlighted the funding Force India received from
Orange India Holdings as a cause for concern.
Referring to Force India’s losses and net liabilities of £49.1m, Grant
Thornton said: “These conditions indicate to us that the continued support
of the company’s parent, Orange India Holdings… is necessary if the
business is to continue as a going concern.
“There is no evidence available to us to confirm that Orange India will
receive the continued support it needs from its shareholders and in turn
that that continued support will therefore be available to Force India
Formula One Team.
“This material uncertainty may cast significant doubt about the company’s
ability to continue as a going concern.”
The cost of keeping a mid-tier team racing is reported to hit £120m
(£75m) a year
Formula 1 racing is currently in crisis as the huge costs of the high-octane
sport take their toll on smaller competitors.
Marussia has shut up shop, experts have questioned whether Caterham’s
last-ditch attempt to raise the money it needs will succeed and Force India,
Lotus and Sauber – the three smallest remaining teams – were rumoured to
have considered boycotting last week’s US grand prix as concerns over how
the sport’s prize money is divided.
Speaking ahead of the US event, Formula 1 boss Bernie Ecclestone said: “The
problem is that there is too much money being distributed badly. We have to
decide the best way to sort this whole thing out. Frankly, I know what’s
wrong but don’t know how to fix it.”
Force India could not be reached for comment.
Indian entrepreneur Vijay Mallya is one of Force India’s owners