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Rediff.com  » Sports » Kings XI Punjab reports loss of Rs 25 cr

Kings XI Punjab reports loss of Rs 25 cr

May 04, 2010 19:57 IST

The miseries of Kings XI Punjab seem to be unending.

After finishing at the bottom of the IPL-III tally, the team owned by actress Preity Zinta and others has informed the government that it suffered a loss of Rs 25 crore in the very first year (2008-09) of formation of the consortium KPH Dreams Cricket Private Ltd.

According to financial statements submitted to the Registrar of Companies (ROC) here, KPH Dreams Cricket, which is co-owned by Bollywood actress Preity Zinta and industrialist Ness Wadia, earned a total income of Rs 55 crore while the total expenditure stood at close to Rs 80 crore in 2008-09.

A senior official in ROC said on the condition of anonymity that "revenue from the franchise rights and sponsorships constituted a major share of the total income of the company while participating in first edition of IPL."

However, the company reported depreciation of Rs 30 crore and players cost of Rs 27 crore in its total expenditure for the year 2008-09.

The company last week submitted its balance sheet and annual returns with the ROC.

On April 21, a local Court had issued notices to co-owners of Kings XI Punjab including Preity Zinta and Ness Wadia on a complaint filed by ROC accusing the Mohali franchise of not filing balance sheets and annual returns.

Kings XI Punjab, which had committed to pay USD 76 million as franchise fee for over 10 years, in January this year had said that it was hoping to break even by March 2011.

According to the filing, Preity Zinta and Ness Wadia hold 23 per cent stake each in the franchise, while Karan Paul, Chairman of Apeejay-Surrendra Group, has 4 per cent equity.

The balance 50 per cent is with M.B. Finmart and Windy Investments.

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