@yrm91 ji – Why are you linking an Investment to Pending receivables… could you share the basis of your assumption that this 17 crore advance amount is an adjustment against the pending Receivables from KJR studios
As per the Annual Report, the total Receivables as on 31st March 23 is only 15.53 crores and this is less than the Investment amount of 17 crores.
The ageing schedule of these Receivables is given below
-
12 crores is categorised as not due (probably this is less than 45 days old)
-
3.34 crores is < 6 months old
-
13.64 lakhs is > 6 months old
-
0.01 lakh is above 1 year
It’s Receivables above 6 months and above 1 year are just in lakhs…there is no way a company would try to make an adjustment of 17 crores against few lakhs…Even if we consider the total Receivables and assuming all are pending only from KJR Studios (highly unlikely) this is still around 15.5
Second thing is that, in order to make an adjustment the company has to first classify this receivable as a Default. Which they would do only after a certain period say 1 year or above or basis any other adverse event…further they would initiate a Recovery step and any adjustment agreed between these parties, in my view would be requiring BOD meeting and approval …we would have got intimated had this event ever happened
Third, as on 31st March the movie was in production stage… by this time Phantom would have just completed the pre production work and might be in early stages of post production work.
To my knowledge this movies budget is around 100 crores…this includes Remuneration for Director, Hero, Heroines and other Actors and Technicians plus other production costs like Sets, Properties, Costumes etc;…Given that this is a VFX heavy movie we can assume 50% is the VFX budget which is 50 crores… Out of this there is no way that 17 crores is spent only for pre production
Last, the Annual Report clearly states that this is an “Advance for Distribution Rights”…Given that this is a custom line item where in you can write any meaningful text, they would have mentioned it clearly as “Receivables Adjusted towards Distribution Rights” and not as Advance amount
As I mentioned before this is a situation which Phantom came across and grabbed it as they saw this as an opportunity to get Rights at low cost …a good deal and nothing more than that
| Subscribe To Our Free Newsletter |
