Current festive season has indeed brought on happy times for Eros International. In the eye of storm for past few months where the company shares saw some disturbance amidst allegations of malpractice, Eros has managed to put it all behind as the financial year comes to a close. It has just been announced that with the assistance of Skadden Arps Slate Meagher & Flom LLP, Eros’ Audit Committee has completed the internal review which commenced in November 2015. Meanwhile, Eros US shares have corrected 60% in the past six months.
“Even as there were malicious headlines in certain section of media, bosses at Eros knew that this was a temporary phase and there would be stability pretty soon,” informs our source, “The company has been in the business or close to 40 years and brings with it certain reputation, credibility and trust. The investors never lost faith in us and we too knew that it was just a matter of time before the truth came out.”
The review included analysis of the Company’s financial reporting. Having completed its review, the Audit Committee remains satisfied with the Company’s financial reporting and disclosures in its financial statements as filed.
“There is no point commenting on the origin of all the noise as well as the forces behind it as that would be against business ethics. However, what we are sure of is the wonderful future ahead,” the source adds, “Skadden’s review confirms our belief that the allegations against the company were baseless. EROS US is a secular growth story with its fundamentals intact, including its market leading position as the number one Indian movie production studio.
For Eros, 2015-16 has been a landmark year as over 1000 crore have come in from revenues just from the India theatrical ticket sales. Some of the biggies that contributed towards this mega haul were Bajrangi Bhaijaan, Bajirao Mastani, Tanu Weds Manu Returns and Welcome. 2016-16 campaign starts with Ki & Ka (which releases on 1st April) followed by biggies like Housefull 3, Dishoom, Baar Baar Dekho, Rock On 2 and Shivaay before the close of year.
This isn’t all as their other arm Trinity Pictures is bringing a film each with Kabir Khan, Siddharth Anand, Amole Gupte, Krish and Prabhu Solomon in this financial year, hence continuing to keep the flag high for the company. Moreover, with Eros Now boasting of more than 5000 films and with a verified subscriber base of 37 million users, the app has gained enhanced traction over the months.
Says Jyoti Deshpande, Chief Executive Officer of the Company, “We are pleased that the Audit Committee, with the assistance of Skadden Arps Slate Meagher & Flom LLP, has completed its thorough internalreview, and reinforced its confidence in the Company’s accounting policies, practices and disclosures in the Company’s financial statements and other key metrics. We reiterate that the Company maintains the highest standards of integrity and transparency in financial reporting. I am positive that our strong business fundamentals will continue to help us build on our market leadership position in the Indian filmed entertainment sector and capitalize on opportunities to create long term shareholder value”.