TIDMEROS
RNS Number : 5880H
Eros International PLC
13 July 2012
EROS INTERNATIONAL PLC
("Eros" or the "Company")
PRELIMINARY RESULTS FOR THE 12 MONTHS ENDED 31 MARCH 2012
HIGHLIGHTS
-- Revenue up 25.5% to US$206.5 million (2011: US$164.6 million)
-- On a constant currency basis revenue up 31.5% US$206.5 million (2011: US$157.0 million)
-- Underlying EBITDA up 22.6% to US$154.8 million (2011: US$126.3 million)
-- Underlying operating profit up 17.0% to US$66.7 million (2011: US$57.0 million)
-- Basic EPS down 17.4% to 31.9 cents (2011: 38.6 cents)
For further information, please contact:
Eros International Plc
Sean Hanafin
Chief Corporate & Strategy Officer
T: +44 (0)20 7258 9909
Jamie M.M. Kirkwood
Group Communications & Investor Relations
T: +44 (0)20 7258 9906
Investec Bank plc
Nominated Adviser & Joint Broker
Patrick Robb / Jeremy Ellis / Carlton Nelson
T: +44 (0) 20 7597 5000
Peel Hunt LLP
Joint broker
Richard Kauffer / Dan Harris / Andy Crossley
T: +44 (0) 20 7418 8900
Pelham Bell Pottinger
Nick Lambert / Victoria Geoghegan / Elizabeth Snow
T: +44 (0) 20 7861 3232
About Eros International Plc
-- Eros co-produces, acquires and distributes Indian language
films, in multiple formats worldwide
-- In 2006, Eros listed its shares on the AIM Market of the London Stock Exchange
-- In October 2010, Eros International listed its Indian
subsidiary Eros International Media on the BSE & NSE in
India
-- Eros operates in over 50 countries, with offices throughout
India, the United Kingdom, USA, UAE, Singapore, Australia, Fiji and
the Isle of Man
EXECUTIVE CHAIRMAN'S STATEMENT
"I am delighted to report that Eros has seen a 25.5% increase in
revenues, a 22.6% increase in underlying EBITDA and a 17.0%
increase in underlying operating profit reflecting our growth from
fiscal 2011 to 2012. These results are all the more impressive as
they have been achieved despite the 13.8% depreciation of the
Indian Rupee against the US Dollar in the twelve months ended 31
March 2012. Expected growth in the Indian Entertainment Sector, our
global film distribution network and our ongoing investment in
content will position us well for the future."
The Company's major global releases during the year were Ready,
Zindagi Na Milengi Dobara, Ra. One, Rockstar, Desi Boyz and Agent
Vinod. Some of the notable film slate for the current year ending
31 March 2013 comprises Housefull 2 (released in April 2012), Vicky
Donor (released in April 2012)Teri Meri Kahaani (released in June
2012), Ferrari ki Sawaari (released in June 2012) and forthcoming
releases such as Cocktail, Maatran, Kochadaiyaan and Khiladi
786.
In order to capitalize on emerging trends like growing Internet
usage, increased broadband and availability of faster 3G/4G mobile
networks, we recently launched Eros Now, our on-demand
entertainment portal accessible via internet-enabled devices, with
a limited number of movies and music videos and we expect to expand
this content offering over time. We believe that Eros Now will
serve as a distribution platform to further exploit our extensive
library content.
On January 5, 2012, we entered into a $125.0 million revolving
credit facility which will mature in January 2017. The new credit
facility includes a provision allowing for one or more increases
from time to time during the life of the facility by an aggregate
amount not to exceed $75.0 million and, on January 27, 2012 we
exercised our option to increase the revolving facility by $25.0
million to a total amount of $150.0 million. The new credit
facility was drawn on February 14, 2012, and the proceeds of the
initial drawing were used to repay in full our then existing
revolving credit facilities, which were due to expire before 30
September 2012, and the unsecured overdraft facility at Eros
Worldwide with an aggregate value of $150.0 million.
Further to the Company's latest public filing on May 2, 2012
with the United States Securities and Exchange Commission in
connection with its proposed listing on the NYSE, the Company
announced on 8 June, 2012 that, given the current US equity market
conditions, the Company has not yet determined when to launch its
intended NYSE listing. The Company is continuing to monitor the
situation and, when more clarity is available on timing, the
Company will make a specific announcement to the London Stock
Exchange. In the meantime, Eros will remain listed on AIM, London
Stock Exchange.
The Company had previously announced that it anticipates
entering into a definitive agreement on or after April 24, 2012 to
acquire a 100% control of B4U Television Network ("B4U"), the
global Bollywood television network. Since the agreement was not
executed by all selling shareholders within a reasonable timeframe,
the transaction has not been completed as intended and stands
cancelled. The Company continues to own 24% non-controlling
interest in B4U.
Kishore Lulla
Executive Chairman
Operating and Financial Review
This financial review is primarily based upon the comparison of
our results for the year ended 31 March 2012 with those of year
ended 31 March 2011. Unless otherwise stated percentage growth
relates to the percentage comparison between these two periods.
Overview
The primary geographic areas from which we derive revenue are
India, Europe and North America, with the remainder of our revenue
generated from an area that we report as the rest of world. Outside
of India, we distribute films to South Asian expatriate populations
and in countries where we release Indian films that are subtitled
or dubbed in local languages. Although we expect the portion of our
revenue attributable to India to continue to grow, we will continue
to opportunistically pursue new global distribution
opportunities.
We distribute our film content, which is our one operating
segment, globally across, three channels: theatrical, television
syndication and digital and ancillary sources. The contribution
from these three distribution channels can fluctuate year over year
based on, among other things, our mix of films and budget levels,
the size of our television syndication deals and our ability to
license music in any particular year.
Underlying Results* Reported Results
2012 2011 Change 2012 2011 Change
(in thousands, except percentage amounts)
Revenue $ 206,474 $ 164,613 25.4% $ 206,474 $ 164,613 25.4%
Gross Profit 89,430 76,596 16.8% 89,430 76,596 16.8%
EBITDA* 154,805 126,321 22.6% 149,516 125,394 19.2%
Operating
profit* 66,727 57,005 17.1% 61,438 56,078 9.6%
*EBITDA is profit before depreciation of tangible assets,
amortisation of intangible assets, finance costs, other gains and
losses and income tax. Operating profit is profit before net
finance costs, other gains and losses and income tax. The
Underlying EBITDA and operating profit results add back share based
payment charges.
We released 77 films in the year ended 31 March 2012 compared to
78 in the year ended March 31, 2011. Of these films, six were high
profile compared to three high profile films in the year ended 31
March 2011. The six globally released films were Ra. One, Zindagi
Na Milengi Dobara, Ready, Rockstar, Desi Boyz and Agent Vinod.
Higher revenue was partially offset by the negative impact of
foreign exchange rate fluctuations, in particular in the quarter
ended December 2011. In addition one of the six high profile films
released in the year ended 31 March 2012, Agent Vinod, was
rescheduled to release in the final week of the year ended 31 March
2012, resulting in all expected revenues from the film not falling
in the year ended 31 March 2012.
Revenue
Revenue was $206.5 million for the year ended 31 March 2012,
compared to $164.6 million in the year ended 31 March 2011 an
increase of $41.9 million, or 25.5%.
Revenue by customer location from India was $136.9 million in
the year ended 31 March 2012, compared to $108.3 million in the
year ended 31 March 2011, an increase of $28.6 million, or 26.4%
principally reflecting the growth in theatrical revenue. Revenue
from Europe was $26.9 million in the year ended 31 March 2012,
compared to $21.8 million in the year ended 31 March 2011, an
increase of $5.1 million, or 23.4%, principally reflecting the
growth in theatrical revenue and other syndication revenues.
Revenue from North America was $8.4 million in the year ended 31
March 2012, compared to $8.6 million in the year ended 31 March
2011, a decrease of $0.2 million, or (2.3)%, principally reflecting
lower syndication revenues despite a growth in theatrical revenue.
Revenue from rest of world was $34.3 million in the year ended 31
March 2012, compared to $25.9 million in the year ended 31 March
2011, an increase of $8.4 million, or 32.4%, principally reflecting
the additional revenue from distribution in new territories and
revenues from the United Arab Emirates.
Our revenue growth was primarily attributable to an increase in
theatrical revenue in the year ended 31 March 2012, as a result of
the increased number of high profile films with recognized star
casts resulting in higher Indian and international revenue. The
higher revenue in India was a result of wider screen releases,
higher than average ticket prices resulting from the continued
increase in multiplex and digital screens in India and premiums
charged for tickets for one 3D film release, and the timing of
theatrical releases. Our high profile films in the year ended 31
March 2012 were on average released on 5.5% more screens than
similar films in the year ended 31 March 2011. The growth in our
theatrical revenues reflected in particular the success of our
globally released films, Ra. One, Zindagi Na Milengi Dobara, Ready,
Rockstar and Desi Boyz, all of which were high profile films with
recognized casts. Television syndication continued to be strong
with the high profile films helping us continue to syndicate
attractive bundles of new and catalogue films. Ra.One, Zindagi Na
Milegi Dobara and Rockstar were premiered on Star TV while Agent
Vinod and Desi Boyz were premiered on Zee TV. Music and mobile
monetisation from the music tracks of the high profile continued to
be strong. Television and music pre-sales formed an important part
of the company's monetization strategy and contributed towards
de-risking content investment.
Cost of sales
Cost of sales increased by $29.0 million, or 33.0%, for the year
ended 31 March 2012 to the year ended 31 March 2011. The increase
was primarily due to an increase in film amortization costs of
$18.4 million in the period, driven by the increased film release
slate cost for six high profile films in the year ended 31 March
2012 as compared to three high profile films in the year ended 31
March 2011 and the cumulative impact of amortization costs
associated with our increased catalogue films. This increase also
reflected a $5.5 million increase in advertising costs due to wider
advertising of our high profile releases offset by increased
marketing tie ups. Print costs remained consistent in the two
periods as wider screen releases and higher profile larger scale
releases were offset by higher usage of lower cost digital
prints.
Gross profit
Gross profit was $89.4 million in the year ended 31 March year
2012, compared to $76.6 million in the year ended 31 March 2011, an
increase of $12.8 million, or 16.7%, driven primarily by the
increase in revenue, which was partially offset by an increase in
cost of sales. As a percentage of revenue, our gross profit margin
reduced to 43.3% from 46.5% in the years ended 31 March 2012 and 31
March 2011.
Administrative costs
Administrative costs, including rental, legal, travel and audit
expenses, were $28.0 million in the year ended 31 March 2012,
compared to $20.5 million in the year ended 31 March 2011, an
increase of $7.5 million, or 36.6%, which was driven by an increase
of $4.4 million of share based payment charges compared to the year
ended 31 March 2011, and $2.3 million of additional overhead due to
investment in set up of digital revenue streams such as Eros Now
including personnel and other costs. As a percentage of revenue,
administrative costs were 13.6% in the year ended 31 March 2012,
compared to 12.5% in the year ended 31 March 2011. The share based
payment charges comprise the ongoing charges arising from the
Indian IPO share option scheme, bonuses granted ahead of the
anticipated listing on the New York Stock Exchange together with a
charitable donation. As at 31 March 2012, costs incurred in respect
of the anticipated listing on the New York Stock Exchange,
excluding costs in relation to employees, has been deferred and is
shown with in prepaid charges in trade and other receivables.
Underlying EBITDA
Underlying EBITDA profit was $154.8 million in the year ended 31
March year 2012, compared to $126.3 million in the year ended 31
March 2011, an increase of $28.5 million, or 22.6%, driven
primarily by the increase in revenue, which was partially offset by
an increase in cost of sales. As a percentage of revenue, our
underlying EBITDA profit margin decreased slightly to 75.0% from
76.7% in the years ended 31 March 2012 and 31 March 2011.
Underlying operating profit
Underlying operating profit was $66.7 million in the year ended
31 March year 2012, compared to $57.0 million in the year ended 31
March 2011, an increase of $9.7 million, or 17.0%. As a percentage
of revenue, our Underlying operating profit marginally reduced to
32.3% from 34.6% in the years ended 31 March 2012 and 31 March 2011
reflecting the changes in gross profit margin and the digital
investment costs within administrative expenses.
Net finance costs
Net finance cost in the year ended 31 March 2012 was $1.0
million, compared to net finance costs of $1.6 million in the year
ended 31 March 2011, a movement of $0.6 million. The change is
primarily attributable to an increase in finance income from IPO
funds on deposit following the listing of our Indian subsidiary in
October, 2010.
Other gains and losses
Other losses in the year ended 31 March 2012 of $6.8 million
principally comprise a $4.3 million interest rate hedging charge,
$1.3 million in respect of a provision in respect of one of our
available-for-sale equity investments previously shown within other
comprehensive income and, a net foreign exchange loss of $1.1
million.. In the year ended 31 March 2011 we had a gain of $1.3
million principally arising from a foreign exchange gain of $1.1
million. The foreign exchange loss was mainly derived from the fall
of the rupee and a loss arising on a dollar denominated loan in our
Indian subsidiary. The hedging loss of $4.3 million arose from the
refinancing of our revolving credit facility and a change in our
interest hedging strategy.
Income Tax Expense
Income tax expense in the year ended 31 March 2012 was $10.1
million, compared to $8.2 million in the year ended 31 March 2011,
an increase of $1.9 million, or 23.2%. Our effective tax rate was
18.8% in the year ended 31 March 2012, compared to 14.8% in the
year ended 31 March 2011. The ongoing increases in effective rate
reflect the increase in the amount of taxes due within India in the
year ended 31 March 2012. Our income tax expense in the year ended
31 March 2012 included $4.9 million of estimated current tax
expense and $5.1million of estimated deferred tax expense.
Earnings per share
Earnings per share ("EPS") in the year ended 31 March 2012 was
impacted by the inclusion of the first time full year minority
interest share, following the listing of Eros International Media
Limited, our principal Indian subsidiary on the Indian Bombay and
National stock exchanges in November 2010. Basic EPS in the year
ended 31 March 2012 was 32 cents, compared to 39 cents in the year
ended 31 March 2011, a decrease of 18.0%. Fully diluted EPS in the
year ended 31 March 2012 was 31 cents, compared to 38 cents in the
year ended 31 March 2011, a decrease of 18.4%.
Other financial information
Our reporting currency is the U.S. dollar. Transactions in
foreign currencies are translated at the exchange rate prevailing
at the date of the transaction. Monetary assets and liabilities in
foreign currencies are translated into U.S. dollars at the exchange
rates at the applicable balance sheet date. For the purposes of
consolidation of foreign operations, all income and expenses are
translated at the quarterly average rate of exchange during the
periods covered by the applicable statement of income and assets
and liabilities are translated at the exchange rate prevailing on
the balance sheet date. When the U.S. dollar strengthens against a
foreign currency, the value of our sales and expenses in that
currency converted to U.S. dollars decreases. When the U.S. dollar
weakens, the value of our sales and expenses in that currency
converted to U.S. dollars increases.
Recently, there have been periods of higher volatility in the
Indian Rupee and U.S. dollar exchange rate, including the year
ended March 31, 2012. This volatility is illustrated in the table
below for the periods indicated:
Year ended Period End Average (1) High Low
31 March 2011 44.54 45.46 47.49 43.90
31 March 2012 50.70 48.01 53.71 44.00
(1) Represents the average of the exchange rates on the last day
of each month during each period presented.
This volatility in the Indian Rupee as compared to the U.S.
dollar has impacted our results of operations as shown in the table
below comparing the reported results against constant currency
comparables based upon the average rate of exchange for each of the
four quarters ended 31 March 2012, weighted in proportion to the
revenue recognized in each quarter, of INR 48.63 to $1.00. In
addition to the impact on gross profit, the volatility during the
year ended 31 March 2012 also led to a non-cash foreign exchange
loss of $1.1 million principally on our Indian subsidiaries'
foreign currency loans in the year ended 31 March 2012 compared to
a non-cash foreign exchange profit of $1.1 million in the year
ended 31 March 2011 reflected in other gains and losses.
2011 Unaudited
2012 2011 Constant
Reported Reported Currency Decline
Revenue $ 206.5 $ 164.6 $157.0 $ (7.6)
Cost of sales (117.1) (88.0) (85.7) (2.3)
Gross profit $ 89.4 $ 76.6 71.3 $ (5.3)
The impact of the decline in the Rupee to the US Dollar is shown
in the above table which shows that on a constant currency basis
the gross profit for the year ended 31 March 2011 would have been
reduced by $5.3 million or 6.9%.
Sources and Uses of Cash
2012 2011
Net cash from operating activities $ 117,703 $ 100,661
Net cash used in investing activities $ (141,667) $ (139,332 )
Net cash from financing activities $ 51,756 $ 77,443
Net cash from operating activities in the year ended 31 March
2012 was $117.7 million, compared to $100.7 million in the year
ended 31 March 2011, an increase of $17.0 million, or 16.9 %,
notwithstanding decrease in income taxes and an increase interest
paid in the year ended 31 March 2012 of $2.1 million and
$0.5million, respectively. In addition, there was an increase in
working capital of $21.5 million due to increase of $5.9 million in
trade payables and an increase in trade receivables of $27.7
million in the year ended 31 March 2012 compared to decrease of
$7.9 million in trade payables and an increase in trade receivables
of $2.6 million in the year ended 31 March 2011.
Net cash used in investing activities in the year ended 31 March
2012 was $141.7 million, compared to $139.3 million in the year
ended 31 March 2011, an increase of $2.4 million, or 1.7%,
reflecting an increase in our investment in film content in the
year ended 31 March 2011and future years offset by a decline in
investment in property, plant and equipment combined with an
increase in interest received. Our investment in film content in
the year ended 31 March 2012 was $142.7 million, compared to $129.8
million in the year ended 31 March 2011 an increase of $12.9
million, or 9.9%, reflecting a change in the mix of acquired and
co-produced films. Of both films released in the period and films
scheduled for future release, to more high profile Hindi films and
ongoing investments in our film library. Our purchase of property,
plant and equipment in the year ended 31 March 2012 was
$1.2million, compared to $10.0 million in the year ended 31 March
2011, a decrease of $8.8 million, or 88.0%, which related
principally to the purchase of a property for our main Mumbai
offices, which was previously leased in the year ended 31 March
2011.
Net cash from financing activities in the year ended 31 March
2012 was $51.8 million, compared to $77.4 million in the year ended
31 March 2011, principally as a result of the net proceeds of $71.1
million arising from the initial public offering of a 78.11%
interest in Eros India in the year ended 31 March 2011 and
additional proceeds of short-term and long-term borrowing of $50.2
million in the year ended 31 March 2012.
A registration statement relating to Eros' A Ordinary Shares has
been filed with the United States Securities and Exchange
Commission, but has not yet become effective. These securities may
not be sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This press release shall
not constitute an offer to sell or a solicitation of an offer to
buy nor shall there be any offer or sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such jurisdiction.
Some of the information presented in this press release and in
related comments by Eros' management contains forward-looking
statements. In some cases, these forward-looking statements are
identified by terms and phrases such as "aim," "anticipate,"
"believe," "feel," "contemplate," "intend," "estimate," "expect,"
"continue," "should," "could," "may," "plan," "project," "predict,"
"will," "future," "goal," "objective," and similar expressions and
include references to assumptions and relate to Eros' future
prospects, developments and business strategies. Similarly,
statements that describe Eros' strategies, objectives, plans or
goals and statements regarding the proposed offering and the
anticipated costs of these transactions are forward-looking
statements and are based on information available to Eros as of the
date of this press release. Forward-looking statements are subject
to risks, uncertainties and assumptions that could cause actual
results to differ materially from those contemplated by the
relevant statement. Such risks and uncertainties include a variety
of factors, some of which are beyond Eros' control, including
market conditions. Information concerning these and other factors
that could cause results to differ materially from those contained
in the forward-looking statements is contained under the caption
"Risk Factors" in Eros' Registration Statement on Form F-1 filed
with the U.S. Securities and Exchange Commission. Eros undertakes
no obligation to revise the forward-looking statements included in
herein to reflect any future events or circumstances, except as
required by law. Eros' actual results, performance or achievements
could differ materially from the results expressed in, or implied
by, these forward-looking statements.
SUMMARISED AUDITED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS OF MARCH 31, 2012 AND 2011
As at March 31
------------------------------
Note 2012 2011
(in thousands)
ASSETS
Non-current assets
Property, plant and equipment 5 $12,622 $14,075
Goodwill 1,878 1,878
Intangible assets - trade name 14,000 14,000
Intangible assets - content 6 473,092 421,901
Intangible assets - others 7 1,870 698
Available-for-sale financial
assets 30,385 25,556
Deferred tax assets 407 265
$534,254 $478,373
Current assets
Inventories $1,130 $1,561
Trade and other receivables 8 78,650 57,659
Current tax receivable 4,937 6,081
Other financial assets 1,573 -
Cash and cash equivalents 10 145,422 126,167
231,712 191,468
Total assets $765,966 $669,841
LIABILITIES
Current liabilities
Trade and other payables 9 $27,239 $23,197
Short-term borrowings 11 68,527 49,611
Other financial liabilities 1,538 4,579
Current tax payable 2,610 429
$99,914 $77,816
Non-current liabilities
Long-term borrowings 11 $180,768 $149,310
Other financial liabilities 11,027 -
Deferred tax 20,009 17,340
211,804 166,650
Total liabilities 311,718 244,466
Net assets $454,248 $425,375
EQUITY
Equity attributable to equity
holders of the parent
Share capital 12 $21,687 $21,349
Share premium 135,008 128,296
Translation reserve (20,534) 102
Reverse acquisition reserve (22,752) (22,752)
Other reserves 59,781 56,893
Retained earnings 242,975 205,745
416,165 389,633
Non controlling interest 38,083 35,742
Total equity $454,248 $425,375
SUMMARISED AUDITED CONSOLIDATED INCOME STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2012 AND 2011
Year ended March 31
Note 2012 2011
(in thousands, except
per share amounts)
Revenue 1 $206,474 $164,613
Cost of sales (117,044) (88,017)
Gross profit 89,430 76,596
Administrative costs (27,992) (20,518)
Operating profit 61,438 56,078
Financing costs (5,697) (3,570)
Finance income 4,688 1,986
Net finance costs 2 (1,009) (1,584)
Other gains/(losses) 3 (6,790) 1,293
Profit before tax 53,639 55,787
Income tax expense (10,059) (8,237)
Profit for the year $43,580 $47,550
Attributable to:
Owners of the parent 37,406 44,796
Non-controlling interest 6,174 2,754
$43,580 $47,550
Earnings per share (cents)
Basic earnings per share 4 31.9 38.6
Diluted earnings per share 4 31.4 38.1
SUMMARISED AUDITED CONSOLIDATED STATEMENTS OF OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED MARCH 31, 2012 AND 2011
Year ended March 31
-------------------------
Note 2012 2011
(in thousands, except
per share amounts
Profit for the year $ 43,580 $47,550
Reclassification of revaluation of
freehold buildings - (67)
Reclassification adjustment relating
to available-for-sale financial assets 1,230 -
Fair value adjustment of available-for-sale
financial assets 4,829 (3,045)
Exchange differences on translating
foreign operations (30,049) 376
Reclassification of gains on cash
flow hedges 4,405 (3,068)
Change in fair value of cash flow
hedges (3,847) 3,617
Total comprehensive income for the
year $ 20,148 $45,363
Attributable to non-controlling interests $ 1,602 $2,758
Attributable to owners of Eros International
Plc $ 18,546 $42,605
SUMMARISED AUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2012 AND 2011
Year ended March 31
---------------------------
Note 2012 2011
(in thousands)
Cash flow from operating activities
Profit before tax $53,639 $55,787
Adjustments for:
Depreciation 1,275 928
Share based payment 5,289 927
Amortization of intangibles 86,804 68,114
Non cash items 5,511 -
Net finance charge 1,009 1,584
Impairment of available-for-sale
financial assets - -
Movement in trade and other receivables (27,689) (2,618)
Movement in inventories 341 248
Movement in trade payables 5,861 (7,873)
(Gain)/loss on sale of property,
plant and equipment 239 (193)
Cash generated from operations 132,279 116,904
Interest paid (10,368) (9,906)
Income taxes paid (4,208) (6,337)
Net cash generated from operating
activities $ 117,703 $100,661
Cash flows from investing activities
Purchase of property, plant and
equipment (1,224) (9,964)
Proceeds from disposal of property,
plant and equipment 8 784
Purchase of intangible film rights
and related content (142,675) (129,806)
Purchase of intangible assets others (1,572) (268)
(Purchase)/Sale of available-for-sale
financial assets - (2,020)
Interest received 3,796 1,942
Net cash used in investing activities $ (141,667) $(139,332)
Cash flows from financing activities
Net proceeds from issue of share
capital by subsidiary 1,498 71,063
Net proceeds from issue of share
capital 15 -
Proceeds/(repayment) of short-term
borrowings 19,588 8,613
Proceeds/(repayment) from long-term
borrowings 30,655 (2,233)
Net cash generated from financing
activities $ 51,756 $77,443
Net increase in cash and cash equivalents 27,792 38,772
Effects of exchange rate changes
on cash and cash equivalents (8,537) (218)
Cash and cash equivalents at beginning
of year 126,167 87,613
Cash and cash equivalents at end
of year $ 145,422 $126,167
SUMMARISED AUDITED CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY
FOR THE YEAR ENDED MARCH 31, 2012
Share Reverse Non-
Share Premium Translation Retained Acquisition Other Controlling Total
Capital Account Reserve Earnings Reserve Reserves Total Interest Equity
(in thousands)
Balance at March
31, 2011 $21,349 $128,296 $102 $205,745 $(22,752) $56,893 $389,633 $35,742 $425,375
Gain/Losses of
available for
sale financial
assets - - - - - 1,230 1,230 - 1,230
Fair value
adjustments of
available for
sale financial
assets - - (1,617) - - 6,446 4,829 - $ 4,829
Reclassification
of loss on cash
flow hedges - - - - - 4,405 4,405 - 4,405
Fair value
adjustment of
cash flow hedge - - - - - (3,847) (3,847) - (3,847)
Exchange
difference on
translating
foreign
operations - - (19,019) - - (6,458) (25,477) (4,572) (30,049)
Other
comprehensive
income - - (20,636) - - 1,776 (18,860) (4,572) (23,432)
Profit for the
year - - - 37,406 - - 37,406 6,174 43,580
Total
comprehensive
income for the
period - - (20,636) 37,406 - 1,776 18,546 1,602 20,148
Shares issued - - - (176) - 1,112 936 562 1,498
Share based
payment 338 6,712 - - - - 7,050 177 7,227
Balance at March
31, 2012 $21,687 $135,008 $(20,534) $242,975 $(22,752) $59,781 $416,165 $38,083 $454,248
(1) During the year ended March 31, 2012 the Group's Indian
subsidiary, Eros International Media Limited, has issued shares to
the employees of the company under ESOP scheme resulting in an
increase in the non-controlling interest in accordance with the
policy set out in 3.2 to the principal accounting policies.
SUMMARISED AUDITED CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY
FOR THE YEAR ENDED MARCH 31, 2011
Share Reverse Non-
Share Premium Translation Retained Acquisition Other Controlling Total
Capital Account Reserve Earnings Reserve Reserves Total Interest Equity
(in thousands)
Balance at March
31, 2010 $21,349 $128,296 $(270) $171,54 $(22,752) $6,81 $304,989 $2,200 $307,189
Revaluation
adjustment of
freehold buildings - - - - - (67) (67) - (67)
Fair value
adjustment of
available-for-sale
financial assets - - - - - (3,045) (3,045) - (3,045)
Reclassification of
gain on cash flow
hedges - - - - - (3,068) (3,068) - (3,068)
Fair value
adjustment of cash
flow hedge - - - - - 3,617 3,617 - 3,617
Exchange difference
on translating
foreign operations - - 372 - - - 372 4 376
Other comprehensive
income - - 372 - - (2,563) (2,191) 4 (2,187)
Profit for the year - - - 44,796 - - 44,796 2,754 47,550
Total comprehensive
income for the
period - - 372 44,796 - (2,563) 42,605 2,758 45,363
Shares issued by
subsidiaries(1) - - - (11,527) - 52,639 41,112 30,784 71,896
Share based payment - - - 927 - - 927 - 927
Balance at March
31, 2011 $21,349 $128,296 $102 $205,745 $(22,752)) $56,893 $389,633 $35,742 $425,375
(1) During the year ended March 31, 2011 the Group's Indian
subsidiary, Eros International Media Limited, completed an IPO
resulting in an increase in the non-controlling interest in
accordance with the policy set out in 3.2 to the principal
accounting policies.
1 BUSINESS SEGMENTAL DATA
Eros acquires, co-produces and distributes Indian films in
multiple formats worldwide. Film content is monitored and strategic
decisions around the business operations are made based on the film
content, whether it is new release or catalogue. Hence, management
identifies only one operating segment in the business, film
content. We distribute our film content to the Indian population in
India, the South Asian diaspora worldwide and to non-Indian
consumers who view Indian films that are subtitled or dubbed in
local languages. As a result of these distribution activities, Eros
has identified four geographic markets, India, North America,
Europe and the Rest of the World.
Revenues are presented based on the region of domicile and by
customer location:
Year ended March 31
-----------------------
2012 2011
(in thousands)
Revenue by region of domicile
India $ 113,573 $81,292
Europe 41,828 44,529
North America 10,454 5,056
Rest of the world 40,619 33,736
$ 206,474 $164,613
Year ended March 31
2012 2011
(in thousands)
Revenue by customer location
India $136,942 $108,339
Europe 26,852 21,787
North America 8,379 8,617
Rest of the world 34,301 25,870
Total Revenue $206,474 $164,613
One customer, an aggregator of television rights, Dhrishti
Creations Pvt. Ltd., accounted for 11.8% of the Group's total
revenues for the year ended March 31, 2012. (2011: 23 %) For the
year ended March 31,2012 and March 31, 2011 no customers other than
Dhrishti Creations Pvt. Ltd. accounted for more than 10% of the
Group's total revenues.
There were no significant non-cash expenses during the year
except the impairment, loss on sale of assets, share based
incentives, depreciation, derivative interest and amortization
disclosed above and a share based payment charge of 2012:
$5,289,451 (2011: $927,000).
North Rest of the
India America Europe World
Assets (in thousands)
As of March 31, 2012 $273,435 $3,397 $162,853 $ 326,281
As of March 31, 2011 $254,383 $1,759 $152,273 $261,426
Rest of
North the
India America Europe World
Liabilities (in thousands)
As of March 31, 2012 $113,458 $874 $37,983 $ 159,403
As of March 31, 2011 $ 80,978 $888 $5,091 $ 157,509
2 FINANCE CHARGES AND INCOME
Year ended March 31
-----------------------
2012 2011
(in thousands)
Interest on bank overdrafts and loans $ 9,341 $ 8,677
Interest on other borrowings 120 -
Total interest expense for financial liabilities
not classified at fair value through profit
or loss 9,461 8,677
Reclassification of gains on hedging previously
recognized in other comprehensive income 2,223 3,068
Loss arising on interest swaps as designated
hedging instruments - -
Capitalized interest on filmed content (5,987) (8,175)
5,697 3,570
Less: Interest Received (4,688) (1,986)
$ 1,009 $1,584
For the year ended March 31, 2012, the capitalization rate of
interest was 5.2% (2011: 6.0%).
3 OTHER GAINS AND LOSSES
Year ended March 31
-------------------------
2012 2011
(in thousands)
(Gain)/loss on disposal of property, plant
and equipment $ 239 $ (193)
Net foreign exchange (gains)/losses 1,057 (1,100)
Net (gain)/loss on held for trading financial
liabilities 4,264 -
Hedge ineffectiveness on cash flow hedges - -
Reclassification adjustment relating to available-for-sale
financial assets 1,300 -
Foreign exchange (gain)/loss on available-for
sale financial assets (70) -
$6,790 $ (1,293)
The net loss on held for trading financial liabilities in the
year ended March 31, 2012 principally relates to losses arising on
a previously effective interest swap as a result of a change in
hedging strategy.
4 EARNINGS PER SHARE
Year ended March 31
------------------------------------------------
2012 2011
Basic Diluted Basic Diluted
(in thousands, except earnings
per share)
Earnings
Earnings attributable to the
equity holders of the parent $37,406 $37,406 $44,796 $44,796
Potential dilutive effect related
to share based compensation
scheme in subsidiary undertaking - (507) - (481)
Adjusted earnings attributable
to equity holders of the parent $37,406 $36,899 $44,796 $44,315
Number of shares
Weighted average number of shares 117,227 117,227 116,134 116,134
Potential dilutive effect related
to share based compensation
scheme - 187 - 187
Adjusted weighted average number
of shares 117,227 117,414 116,134 116,321
Earnings per share
Earnings attributable to the
equity holders of the parent
per share (cents) 31.9 31.4 38.6 38.1
5 PROPERTY, PLANT AND EQUIPMENT
Year ended March 31, 2012
Land Furniture,
and Fittings and Plant and
Building Equipment Vehicles Machinery Total
(in thousands)
Opening net book amount $ 10,767 $ 1,516 $581 $1,211 $14,075
Exchange differences (755) (389) (63) 52 (1,155)
Additions 189 14 95 926 1,224
Disposals - (136) (7) (104) (247)
Depreciation charge (659) (88) (150) (378) (1,275)
Closing net book amount $9,542 $ 917 $ 456 $ 1,707 $ 12,622
As at March 31, 2012
(in thousands)
Cost or valuation $11,198 $2,367 $1,725 $ 6,005 21,295
Accumulated depreciation (1,656) (1,450) (1,269) (4,298) (8,673)
Net book amount $ 9,542 917 456 1,707 12,622
Year ended March 31, 2011
Land Furniture,
and Fittings and Plant and
Building Equipment Vehicles Machinery Total
(in thousands)
Opening net book amount $2,271 $1,012 $594 $1,556 $5,433
Exchange differences 218 18 6 20 262
Additions 8,834 622 301 142 9,899
Disposals (429) - (159) (3) (591)
Depreciation charge (127) (136) (161) (504) (928)
Closing net book amount $10,767 $1,516 $581 $1,211 $14,075
As at March 31, 2011
(in thousands)
Cost or valuation 11,764 2,742 1,693 5,027 21,226
Accumulated depreciation (997) (1,226) (1,112) (3,816) (7,151)
Net book amount $10,767 $1,516 $581 $1,211 $14,075
Land and buildings with a carrying amount of approximately
$8,239,807 (2011; $9,932,465) have been pledged to secure
borrowings (see note 18).
6 INTANGIBLE CONTENT ASSETS
Gross Content Accumulated
Assets Amortization Content Assets
(in thousands)
As at March 31, 2012
Film and content rights 599,172 (288,457) 310,715
Content advances 162,377 - 162,377
Non Current Content
assets $761,549 $(288,457) $473,092
As at March 31, 2011
Film productions $170 - $170
Film and content rights 487,046 (228,680) 258,366
Content advances 163,365 - 163,365
Non Current Content
assets $650,581 $(228,680) $421,901
Changes in the main content assets are as follows:
Year ended March 31
2012 2011
(in thousands)
Film productions
Opening balance $170 $7,878
Additions 22 1,297
Changes in foreign currency translation (22) (88)
Transfer to film and content rights (170) (8,917)
Closing balance $- $170
Content advances
Opening balance $163,365 $123,106
Additions 159,725 136,684
Changes in foreign currency translation (13,489) 1,649
Transfer to film and content rights (147,224) (98,074)
Closing balance $162,377 $163,365
Film and content rights
Opening balance $258,366 $218,244
Amortization (86,525) (67,839)
Changes in foreign currency translation (8,520) 970
Transfer from other content assets 147,394 106,991
Closing balance $310,715 $258,366
7 OTHER INTANGIBLE ASSETS
Other intangibles are comprised of internally generated software
used within the Group's digital and home entertainment
activities.
Year ended March 31
Accumulated
Gross Amortization Net
(in thousands)
As at March 31, 2012 $3,422 $(1,552) $ 1,870
As at March 31, 2011 $1,971 $(1,273) $698
The changes in other intangible assets are as follows:
Year ended March
31
--------------------
2012 2011
(in thousands)
Opening balance $698 $692
Additions during the year 1,572 268
Changes in foreign currency translation (121) 13
Amortization (279) (275)
Closing balance $1,870 $698
8 TRADE AND OTHER RECEIVABLES
As at March 31
--------------------
2012 2011
(in thousands)
Trade accounts receivable $61,819 $49,794
Trade accounts receivable reserve (478) (221)
Trade accounts receivable net 61,341 49,573
Other receivables 11,805 7,285
Prepaid charges 5,504 801
Trade accounts receivable and other $78,650 $57,659
An element of trade accounts receivable that have not been
impaired are past due as at the reporting date. The age of these
financial assets past due were as follows:
As at March 31
------------------
2012 2011
(in thousands)
Not more than three months $4,219 $963
More than three months but not more than six
months 1,032 793
More than six months but not more than one
year 829 1,201
More than one year 1,469 2,513
$7,549 $5,470
The movements in the trade receivable provisions are as
follows:
As at March 31
2012 2011
(in thousands)
At April 1 $221 $87
Utilizations (124) -
Provisions 381 134
At March 31 $478 $221
The carrying amount of trade and other receivables is considered
a reasonable approximation of fair value. There were no amounts
held as collateral in respect of any of the years.
9 TRADE AND OTHER PAYABLES
As at March 31
------------------
2012 2011
-------
(in thousands)
Trade accounts payable $10,399 $15,134
Accruals & other payables 12,071 3,038
Social security & other taxes payable 4,769 5,025
$27,239 $23,197
The Group considers that the carrying amount of trade and other
payables approximate their fair value.
10 CASH AND CASH EQUIVALENTS
Cash and Cash equivalents consist of cash on hand and balance
with banks and investments in money market investments, noted as
held - to - maturity investments. Cash and Cash equivalents
included in the statement of cash flows comprise amounts in the
statement of financial position.
As at March 31
----------------------
2012 2011
(in thousands)
Held-to-maturity investments $8,552 $33,268
Cash at bank and in hand 136,870 92,899
$145,422 $126,167
11 BORROWINGS
Analysis of long-term borrowings
As at March
31
-----------
Nominal
Interest Rate Maturity 2012 2011
%
(in thousands)
Asset backed borrowings
Term loan LIBOR+7.5% 2015 $ 1,819 $ 2,830
Term loan BPLR+5.5% 2012 - 557
Term loan LIBOR+8.5% 2017 2,033 3,376
Term loan BPLR 2012 - 75
Term loan BPLR+1.25% 2012 - 135
Asset loan 10-15% 2015 819 1,247
Term loan BR + 5.5% 2012 - 5,131
Term loan 10-15% 2012 157 45
Term loan BR+1.80% 2017 19,665 -
$24,493 $13,396
Unsecured borrowings
Other borrowings 10.5% 2022 $ 10,804 -
$100 million revolving
facility LIBOR+1.65% 2012 - $100,000
$25 million revolving
facility LIBOR+2.35% 2012 - 25,000
$20 million revolving
facility LIBOR +3% 2012 - 20,000
$150 million revolving LIBOR +1.9%
facility - 2.9% + Mandatory
Cost 2017 $ 150,000 -
$ 160,804 $145,000
Nominal value of borrowings $ 185,297 $ 158,396
Cumulative effect of unamortized
costs (2,183) (845)
Installments due within
one year (2,346) (8,241)
Long-term borrowings -
at amortised cost $ 180,768 $ 149,310
Bank prime lending rate ("BPLR") is the Indian equivalent to
LIBOR. Asset backed borrowings are secured by fixed and floating
charges over certain group assets.
Analysis of short-term borrowings
As at March 31
--------------------
Nominal interest
rate (%) 2012 2011
(in thousands)
Asset backed borrowings
Export credit and overdraft LIBOR+ 1-2.5% $40,626 $26,825
Unsecured Borrowings
Commercial Paper 10.95% -11.95% 25,555 4,506
Book Overdraft BR+ 2% - 10,039
Installments due within one year
on long-term borrowings 2,346 8,241
Short-term borrowings - at amortised
cost $68,527 $49,611
12 ISSUED SHARE CAPITAL
Number of
Shares GBP
(in thousands)
Authorized
200,000,000 ordinary shares of 10p each ("Ordinary Shares") at March 31, 2012, and
March 31,
2011 200,000,000 20,000
Number of
Shares USD
(in thousands)
Allotted, called up and fully paid
As at March 31, 2010 and March 31, 2011 116,133,758 21,349
Allotment of shares on 1 June 2011 107,776 18
Allotment of shares on 3 October 2011 2,075,340 320
As at March 31, 2012 118,316,874 21,687
The allotment of shares on June 1, 2011 were shares issued for
employee bonus/remuneration issued at $3.60 a share based on the
mid-market price on May 31, 2011. The allotment on October 3, 2011
were shares issued to employees, directors and a charity as
bonus/remuneration/charitable donation at $3.20 a share based on
the mid-market price on October 3, 2011.
The holders of Ordinary Shares are entitled to receive dividends
as declared from time to time and are entitled to one vote per
share at meetings of the Company.
13 MAJOR CONSOLIDATED ENTITIES
Country % of voting
of rights
Date Incorporation held
Eros Network Limited June 06 U.K. 100
Eros International Limited June 06 U.K. 100
Eros International USA Inc June 06 U.S. 100
Eros Music Publishing Limited June 06 U.K. 100
Eros Worldwide FZ-LLC June 06 UAE 100
Eros International Media Limited June 06 India 77.83
Eros International Films Pvt. Limited June 06 India 100
Eros Pacific Limited June 06 Fiji 100
Eros Australia Pty Limited June 06 Australia 100
Big Screen Entertainment Pvt. Limited January 07 India 64
Copsale Limited June 06 BVI 100
Ayngaran International Limited October 07 IOM 51
Ayngaran International UK Limited October 07 U.K. 51
Ayngaran International Media Pvt.
Limited October 07 India 51
Acacia Investments Holdings Limited April 08 BVI 100
Eyeqube Studios Pvt. Limited January 08 India 99.99
Belvedere Holdings Pte. Ltd. March 2010 Singapore 100
Eros International Pte Ltd. August 2010 Singapore 100
Ayngaran Anak Media Pvt. Limited October 08 India 51
All of the companies were involved with the distribution of film
content and associated media. All the companies are indirectly
owned with the exception of Eros Network Limited and Eros Worldwide
FZ-LLC.
The Group was holding 99.99% share capital of Eros International
Media Ltd (EIML) as on April 1, 2010.
The shareholding of the Group reduced to 78.11% on IPO of EIML
on October 1, 2010. The Group shareholdings further reduced to
77.98 % on October 14, 2010 and 77.83% on February 2, 2012 on
exercise of ESOP by the employees.
14 POST BALANCE SHEET EVENTS
On 24 April 2012 following an EGM shareholders approved the
waiving of pre-emption rights in connection with the proposed
allotment and issue of such number of A Ordinary Shares as the
Directors may in their absolute discretion determine in connection
with a registered public offering in the US of such A Ordinary
Shares and the proposed listing of A Ordinary Shares on the New
York Stock Exchange. In addition, Shareholders also approved the
following actions, all of which are subject to, and will have
effect only on the listing of the A Ordinary Shares on the New York
Stock Exchange:
-- adoption of the New Articles;
-- re-designation of all Shares, save for those Shares held by
the B Shareholders (the Company's founders as described below), as
A Ordinary Shares;
-- re-designation of all Shares held by the B Shareholders as B Ordinary Shares; and
-- cancellation of the admission of the A Ordinary Shares to
trading on AIM, as soon as practicable after the listing of the A
Ordinary Shares on the New York Stock Exchange.
On 3 May 2012 shareholders approved a resolution, relating to a
1 for 3 share consolidation subject to the anticipated New York
Exchange Listing. The amounts disclosed in respect of the following
share grant awards, joint share ownership plan and option awards
are stated before the 1 for 3 share consolidation. The vesting of
the awards and share ownership plan are conditional on the New York
Stock Exchange listing.
The share grant awards
On March 29, 2012, our board of directors approved a grant of
our A ordinary shares in an aggregate amount of up to 1% of our
issued share capital following this offering, or the Share Grant
Awards, to certain employees and directors of the Company and
certain subsidiaries and holding companies in connection with this
offering. On April 17, 2012, as part of the Share Grant Awards, we
approved a grant of 8, 99,436 of our A ordinary shares to certain
of our employees, valued at a price equal to the New York Stock
Exchange initial public offering price per share in this offering,
conditional upon the consummation of this offering and continued
employment for six months following consummation of the
offering.
The joint share ownership plan
On March 29, 2012, our board of directors approved a joint share
ownership program, or JSOP, pursuant to which certain of our
employees and executive directors, and of certain of our
subsidiaries, may acquire shares jointly with the trustee of our
Employee Benefit Trust upon receiving a grant by our board of
directors to do so. Our board of directors has approved the grant
of an aggregate number of A ordinary shares issued pursuant to the
JSOP and the Option Awards, as discussed below, not to exceed 8% of
our issued share capital following this offering. The ownership and
related vesting arrangements for such grants will be governed by
deeds between each participant and the trustee. Pursuant to the
deed governing the Employee Benefit Trust, the trustee has waived
its rights to receive dividends, but has retained its right to vote
shares. Over time, the participant may transfer or dispose of a
portion of his or her interest in the shares subject to the
occurrence of certain conditions set forth in the deed. Upon
certain triggering events as specified in the deed, the trustee
will have the option to acquire the beneficial interest belonging
to the participant by paying the option price as determined
pursuant to the formula set
forth in the deed.
On April 18, 2012, we issued 6,000,492 ordinary shares at an
initial value set forth in the deeds governing these shares to the
Company's Employee Benefit Trust for the benefit of certain of our
employees under the JSOP, which shares will be admitted to trading
on the AIM Market until our delisting in connection with the
offering. Upon the listing of our A ordinary shares, the value of
these shares will be adjusted to equal the initial public offering
price of this offering per share. Under the deeds governing these
shares, each participant will be required to pay a nominal amount
to acquire shares and the trustee will be required to pay the
Company the remaining market value of such shares, as defined in
the relevant deed, at time of acquisition. Over time and subject to
certain conditions, if these shares increase in value from the
initial public offering price of this offering per share, the
participant's interest in those shares will increase
proportionately. The consideration for these shares was funded by a
loan from us to the Employee Benefit Trust, which will be repaid
upon demand by the Company, by all cash held by the Employee
Benefit Trust within seven days of receipt of such demand and by
cash received upon sale of any shares held by the Employee Benefit
Trust, within seven days of such sales. Upon the listing of our A
ordinary shares on the NYSE, the principal amount of the loan will
be adjusted to reflect the initial public offering price of this
offering per share. These shares are subject to three different
vesting and performance conditions set out in separate JSOP deeds.
Under two of these deeds, our board of directors may permit up to
10% of the applicable shares to vest after May 31, 2013, and up to
20% of the applicable shares in the aggregate to vest after May 31,
2014. After May 31, 2015, some or all of the remaining shares under
these two deeds will vest automatically only if a specified level
of total shareholder return or earnings per share, as applicable,
has been met. The shares covered by the third deed automatically
vest in their entirety after May 31, 2015, if the specified level
of total shareholder return has been met. Until a participant's
rights in these shares vest, the rights to vote and receive
dividends associated with such unvested shares will remain with the
trustee.
The option awards
On March 29, 2012, our board of directors approved a grant of
options for ordinary shares, or the Option Awards, to certain
employees and directors of the Company and certain subsidiaries and
holding companies of the Company. The aggregate number of Option
Awards, together with any A ordinary shares issued pursuant to the
JSOP, will not exceed 8% of our issued share capital following the
offering. On April 17, 2012, we approved a grant to certain of our
employees and consultants of 2,422,944 ordinary share options with
an exercise price equal to the initial public offering price of
this offering per share. These options will be subject to three
different vesting and performance conditions, similar to those
described above for the shares issued under the JSOP on April 18,
2012. Our board of directors may permit up to 10% of the applicable
options to vest after May 31, 2013, and up to an aggregate of 20%
of the applicable options to vest after May 31, 2014. After May 31,
2015, the remaining options subject to these vesting and
performance conditions will vest automatically if a specified level
of total shareholder return or earnings per share, as applicable,
has been met. The third group of options will automatically vest in
their entirety after May 31, 2015, if the specified level of total
shareholder return has been met.
Also on April 17, 2012, we approved a grant to certain employees
and consultants of 1,795,008 ordinary share options with an
exercise price equal to the initial public offering price of this
offering per share. 400,008 of these options will vest monthly over
a period of 24 months, and the remaining 1,395,000 will vest
quarterly over a period of five years.
Board Appointment
On June 22, 2012 Jyoti Deshpande, the Company's former Group
Chief Executive Officer & Managing Director rejoined Eros in
her former role.
Acquisition of B4U
The Company had previously announced that it anticipates
entering into a definitive agreement on or after April 24, 2012 to
acquire a 100% control of B4U Television Network ("B4U"), the
global Bollywood television network. Since the agreement was not
executed by all selling shareholders within a reasonable timeframe,
the transaction has not been completed as intended and stands
cancelled. The Company continues to own 24% non-controlling
interest in B4U.
15 Basis of preparation
The full year results for the year ended 31 March 2012 have been
extracted from the audited consolidated financial statements which
have not yet been dispatched to shareholders. The financial
information set out in this preliminary announcement does not
constitute statutory accounts but is derived from those accounts.
While the financial information in this preliminary announcement
has been prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the European Union. The
auditors have reported on the statutory accounts for the year ended
31 March 2012 and their report was unqualified. The financial
information relating to the year ended 31 March 2011 is extracted
from the statutory accounts for that period, which contain an
unqualified auditors report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FMGMNFZVGZZZ
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