Eros International Completes Internal Review After Accounting Allegations

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Eros International, a leading global company in the Indian film entertainment industry has announced that, with the assistance of Skadden Arps Slate Meagher & Flom LLP, the Company's Audit Committee has completed the internal review which it commenced in November 2015.

The review included analysis of the Company's financial reporting for the following areas: (i) UAE sales and revenue recognition, (ii) amortization policy of intangibles, including film and content costs, (iii) related party transactions, (iv) ErosNow registered users count, and (vi) Eros' film library. Having completed its review, the Audit Committee remains satisfied with the Company's financial reporting and disclosures in its financial statements as filed.

  Eros International Completes Internal Review After Accounting Allegations
Jyoti Deshpande, Chief Executive Officer of the Company, stated, "We are pleased the Audit Committee, with the assistance of Skadden Arps Slate Meagher & Flom LLP, has completed its thorough internal review, 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."

The Company expects to announce its full year results for the fiscal year ended March 31, 2016 in June 2016. Grant Thornton India LLP continue as Auditors of the consolidated financial statements of Eros International Plc and subsidiaries.

Eros International is the top film distributor and producer and there were reports that revenues were boosted by the company, by not following apt accounting policies. These were later denied and quashed by the company.

Following the allegations the share price of Eros International saw a dramatic drop from Rs 600 levels to the current levels of Rs 174. the stock had also hit a 5w-week low of Rs 125 on the day of the Union Budget.

GoodReturns.in

Read more about: eros
Story first published: Tuesday, March 22, 2016, 12:53 [IST]
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