Mumbai: Eros Media World plc, a leading global player in the Indian film entertainment industry, announced the successful conclusion of its internal review of accounting practices and internal controls. The Company’s Audit Committee confirmed that all revenues recognized during the fiscal year ended March 31, 2020, were appropriately recognized. The review also found no impairments in the intangible assets and goodwill reported in the Company’s Form 6-K dated March 31, 2021, and identified no material weaknesses in internal controls over financial reporting.
The Company has reported that the United States Securities and Exchange Commission (SEC) has closed its investigation into the Company’s accounting practices and other matters. The SEC has not recommended any enforcement action against EMW, its affiliates, officers, or employees, marking the closure of all outstanding regulatory inquiries.
Over recent years, Eros Media World has faced multiple challenges, including allegations from short-sellers like Hindenburg Research, and three separate SEC investigations. These allegations ranged from inflated revenues and misleading financial statements to improper related party transactions. EMW is proud to announce that all three SEC investigations have concluded without further action, reinforcing the integrity of the Company’s operations and financial practices.
In a statement, the Company expressed gratitude for the continued support of its shareholders and stakeholders throughout this period and reaffirmed its commitment to the highest standards of corporate governance, transparency, and operational excellence.
“We are most pleased to have these issues behind us as we look forward to a new future for the Company,” said Kishore Lulla, Founder & Executive Director of Eros Media World Group. “We would like to thank our United States counsel for their brilliant legal representation and their extraordinary efforts on our behalf: Kenneth E. Lee of Levine Lee LLP, lead litigation counsel and regular outside counsel; Rachel G. Skaistis of Cravath, Swaine & Moore LLP, SEC counsel; and Victor Hou of Cleary Gottlieb Steen & Hamilton LLP.”
