Failing to be transparent regarding source of its questionable UAE revenue growth, EROS utilized an internal “review” to legitimize itself.
Did either Skadden Arps or the “Big Four” accounting firm enlisted for this internal review process actually review accounting journal entries specifically related to UAE revenues?
We uncovered 11 UK companies with links to current and former EROS insiders linked to a questionable entity in the UAE, Globus, which lists itself as an EROS licensing customer.
Both EROS’s former CFO and controller were board members for a number of these UK companies, which in some cases had a shared address with EROS's UK headquarters.
One UK entity, Rana Productions, is a clear related party to the UAE entity. Rana generated a large amount of UAE revenue with uncollected receivables.
(Editors' note: the article on Eros International (NYSE:EROS) is fully available in PDF form below).
EROS's Secret: Undisclosed Related Party Links In The UAE?
Disclosure: I am/we are short EROS.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.