Top Story

e4m_logo.png

Home >> Media - TV >> Article

Zee okays capital revamp to reflect intrinsic value

21-February-2004
Font Size   16
Share
Zee okays capital revamp to reflect intrinsic value

The Zee Telefilms board cleared a capital restructuring programme. Under the plan, the company will write down its investment in its overseas subsidiaries by Rs 1771.6 crore. This is being done to reflect the “intrinsic value of business”, a Zee Telefilms release said.

It is also restructuring the capital of Siticable, which has an accumulated loss of Rs 149.1 crore including dimunition in value of certain moveable assets (to the tune of Rs 89.5 crore).

The company is writing off Rs 149.1 crore by reducing the share capital of Siticable. Following this, Siticable’s equity base will be reduced to Rs 90 lakh. Zee Telefilm’s investment in Siticable will come down from Rs 317.9 crore to Rs 168.9 crore.

“Both measures are aimed to reflect the true book value of assets in our financial statements. Such restructuring will better reflect the return on capital employed,” said the release.

As part of its restructuring in 1999-2000, Zee had acquired a number of overseas companies. Its total investments were of Rs 3435.6 crore and reserves and surplus account including share premium was Rs 3,865.4 crore.

These companies, which were Zee subsidiaries, were broadcasting several of the group’s channels from their overseas locations on account of regulatory restrictions on uplinking.

“After removing these restrictions, Zee network decided to uplink several of these channels from India for strategic reasons. By moving uplinking of these channels to India, the intrinsic worth of these overseas subsidiaries shifted to the company,” the release said.

Deloitte Haskins and Sells was appointed to value the business of overseas subsidiaries and, accordingly, the company is undertaking the financial restructuring.

“The receipt of value by the company upon taking over the channels will be an intangible. However, in order to avoid the creation of intangibles in the company’s financial statements, it is proposed to write down the investment as proposed out of its reserves and surplus account,” the release said.

Tags

We speak to Punit Misra, CEO, ZEEL, Domestic Broadcast Business, on Zee TV’s new look, its aim and the shaping up of domestic business

This exercise will take the channel to the next level: Siju Prabhakaran, Cluster Head – South Business, Zee Entertainment Enterprises Limited

With Shikhar Dhawan as their brand ambassador, a partnership with NBA and FIFA and a Rs.10 crore marketing budget, this sporty start-up is moving strength to strength.

In an interaction with exchange4media, Sinha, the Country Head at Epsilon shared insights on the growth of Epsilon, integration of Artificial Intelligence and the future of other conventional mediums of marketing

The new brand philosophy to go live on 15th October 2017 during the telecast of Zee Rishtey Awards

The rateOOHmeter platform is based on field data of the OOH campaign universe with information on more than 400 brands, 1600 cities, over 3,000 campaigns and around 85,000 OOH inventory across formats...

This exercise will take the channel to the next level: Siju Prabhakaran, Cluster Head – South Business, Zee Entertainment Enterprises Limited