Three founders from Maharashtra entered the Shark Tank India arena to pitch Ezo, their company designed to help small shopkeepers track sales. The panel of sharks, including Anupam Mittal, Namita Thapar, Ritesh Agarwal, Kunal Bahl and Aman Gupta, listened intently as the founders stated that their goal was to reduce skimming in small businesses. However, the playing field quickly unraveled, revealing deeper problems.

The founders explained that their revenue model involved selling billing machines to grocers and earning through subscriptions. When asked if they had tried the renovations, they admitted they hadn’t been in the business long enough. Despite this, they projected a revenue of 30 million rupees, leaving the Sharks baffled. A deeper dive into his finances uncovered his use of questionable accounting practices.

Namita Thapar broke down the difference between cash and accrual accounting for the group, noting that the latter provides a clearer picture of a business’s performance. He said bluntly, “Accrual accounting paints a more accurate picture of a business and is always the preferred method.”

A visibly unimpressed Anupam Mittal commented, “Puri daal hi kaali hai boss.” He dismissed the founders’ claims that their accounting choices were unintentional, saying, “You’re a professional; don’t pretend you didn’t know what you were doing.” Namita agreed, calling it an integrity issue instead from just one accounting problem.

Ritesh Agarwal and Namita Thapar pulled out of the deal, citing a lack of confidence in the business and advising the founders to fix their accounting practices. Aman Gupta, while acknowledging his business acumen, said: “You want to break the subscription model in a country where even Amazon and Netflix are struggling? Don’t make money from shady practices.”