Driving Naari Programme launched in Chandigarh
Chandigarh, Notwithstanding a big fan following for Kings XI Punjab in the region, it is becoming increasingly difficult for the franchisee to keep the operations going as a financial viable venture here. In the last four years, the accumulated losses of K.P.H Dream Cricket Private Limited (franchisee owners) have not gone down much. The latest annual balancesheet pegs the company’s net loss (as on March 31, 2014) at Rs 4 crore, 35 lakh, 96 thousand five hundred forty two (435,96,542).
This year, in the hope of earning more through gate money and corporate boxes, Kings XI Punjab have shifted base from Dharamsala to Pune. Pune has a stadium with bigger spectators’ capacity and more corporate boxes than Dharamsala as well as Mohali.
So, it’s no surprise that the home crowd gets to see a game in Mohali 20 days after the tournament starts.
The independent auditor’s report (2013-14) on company’s financial health presented on September 26, 2014 under the heading ‘Going Concern’ (in para 28) remarks, “The Company had been continuously incurring losses except in the previous year wherein profit was earned amounting to Rs 78,01,431. Further in the current year the company has incurred losses of Rs 4,35, 96, 542. Resultingly, the company has accumulated losses of Rs 53,21,62,139 which has resulted in erosion of it’s
net worth.”
The report (Emphasis of matter) also notes, “These conditions, along with matters as set forth in Note 28, indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.” The auditors have year after year opined that “the internal control system for the ticketing process needs to be further strengthened”.
Team co owners Priety Zinta and Mohit Burman have been claiming in certain sections of media that the company has made profits but the claims fly in the face of figures given in the annual balancesheets.
Repeated attempts to contact Kings XI Punjab COO Fraser Castellino through his office and public relations agency drew no response.
To offset the losses this year, the franchisee have roped in a bevy of sponsors, one of which is related to a liquor manufacturing company, the other to a pan masala company and yet another to a condom brand, among others. The franchisee continues to be steady in it’s relationship with a beer-related brand.
Now that the Kings XI Punjab have finally made it here, Chandigarh Police has also reminded them of a pending Rs 8 crore bill.
