Zee Entertainment Enterprises
BSE: 505537 | NSE: ZEEL | ISIN: INE256A01028 | Media & Entertainment
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
Background Zee Entertainment Enterprises Limited (“ZEEL” or the Company) is incorporated in the State of Maharashtra, India. The Company has been mainly in the following businesses during the year: a) Broadcasting of Satellite Television Channels uplinked from India; b) Advertisement canvassing agent for other television channels; c) Sale of programs including films and program feeds mainly to its subsidiaries for broadcasting on their satellite television channels all over the world; d) Production and Distribution of Films. 1. Prior Year Comparatives Previous years figures are regrouped, rearranged, or recast wherever necessary to confirm to this year’s classification. Figures in brackets pertain to previous year. 2. a) Program/film rights for broadcasting are intangible assets as defined in AS–26 but considered and shown under current assets as are used for broadcasting in the ordinary course of business. b) In Schedule 13, Operational Cost includes Cost of Program/ Film rights amortized/ impaired, sold etc. The Company has impaired program/ film rights of Rs./Thousand Nil (8,400) during the year. 3. Immovable Property a) The Collector of Hyderabad, Andhra Pradesh, had resumed possession of the freehold land (included under Schedule 6 - “Investments”) admeasuring 17,639.64 sq. meters, bought from Padmalaya Telefilms Limited (PTL), registered in the name of the Company and having book value of Rs./Thousand 573,456. The action of the Collector has been set aside by the appellate authorities and the possession of the land is restored to the Company during the year. b) In terms of final settlement agreement entered with PTL during the year, the company has given up its claim on the second piece of land admeasuring 2700 sq. meters having book value of Rs./Thousand 25,806, accordingly value of investments has been written off and liability provided is written back as an exceptional item. 4. Disclosures: a) The Company has been deploying its surplus funds as short-term demand loans/inter corporate deposits mainly to related parties. The parties are regular in repayment of principal and interest, hence are considered good. c) Advances include Rs./Thousand 29,249 (126,167) due from subsidiaries. d) Balances with Non Scheduled Bank as at March 31, 2009 with Standard Chartered Bank (Mauritius) is Rs./Thousand 352 (1,374). Maximum Balance during the year is Rs./Thousand 1,374 (3,485). h) Employee Stock Option Plan (ESOP) Zee Network Employees Welfare Trust holds 5,000 (5,000) Equity Shares of Re. 1/- each of the Company. i) Micro, Small and Medium Enterprises: The Company has no dues to Micro and Small enterprises during the year ended March 31, 2009, on the basis of information provided by the parties and available on record. j) Capital work in progress includes Capital Advances Rs./Thousand 183,250 (142,427). k) Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) is Rs./Thousand 266,181 (312,662). l) Sundry Creditors for expenses and other liabilities under Current Liabilities include cheques overdrawn Rs./Thousand 11,844 (82,847). m) Dividend Rs./Thousand 1,315 (1,174) unclaimed for the period of more than seven years is transferred to Investor’s Education and Protection Fund. n) During the year, expenses of Rs./Thousand 63,160 (76,980), shared by other related party, are netted off in relevant heads of expenses in Profit and Loss account. 5. Employee Benefits Notes: (a) Amounts recognized as an expense and included in the Schedule 14 “Personnel Cost” are gratuity Rs./Thousand 9,823 (7,278) and leave encashment Rs./Thousand 22,137 (16,964). (b) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. B) Defined contribution plan: “Contribution to Provident and other funds” is recognized as an expense in Schedule 14 “Personnel Cost” of the Profit and Loss Account 7 Contingent Liabilities not provided for (Rs./ Thousand) Particulars 2009 2008 a) Corporate Guarantees - For Subsidaries to the extent of loans availed/outstanding 1,565,100 1,204,500 Rs./Thousand 1,001,338 (519,340) - For other related parties, loans o utstanding Rs./Thousand 4,526,760 5,362,700 3,949,415 (4,654,185) b) Bank guarantees outstanding 1,810 3,028 c) Claims against the company not acknowledged as debts 132,743 348,334 d) Disputed Direct Taxes 133,517 46,585 e) Letters of credit (net of liability provided) - 7,969 f) Legal cases against the Company Unascertainable Unascertainable 6. Taxation a) The Company’s claims for certain deductions under Chapter VIA of the Income Tax Act, 1961 for Assessment years 1993-1994 to 1999-2000 is allowed by second appellate authority and effect of those appeal orders resulted in excess provision for tax of Rs./ Thousand 573,794 which is accounted for during the year. Interest of Rs./Thousand 204,053 received on these refunds was however credited to the Profit and Loss account in previous financial year. Further, during the year, the Company has received income tax refund of Rs./Thousand 524,934 relating to Assessment year 2006-2007, pending final tax assessment, interest income of Rs./Thousand 47,904 and excess tax provision are not accounted, and refund received is adjusted against provision for tax. 7. Leases: (a) The Company leases office, residential facilities and plant and machinery (including equipments) etc. under cancellable/non-cancellable agreements that are renewable on a periodic basis at the option of both the lessee and the lessor. The initial tenure of the lease generally is for 11 months to 60 months. (b) In respect of assets given under operating lease. (i) The Company has given part of building under cancelable operating lease agreement. The initial term of the lease is for 36 months. (ii) The rental revenue for the year is Rs./Thousand 64,119 (19,458). 8. Related Party Transactions (i) List of Parties where control exists Subsidiary Companies a) Wholly Owned Apac Media Ventures Limited; Asia Business Broadcasting Mauritius Limited; Asia Today Limited; Asia TV Limited; Expand Fast Holding (Singapore) Pte. Limited; Zee CIS Holding LLC; Pan Asia Infrastructure Limited (ceased w.e.f. January 19, 2009); Zee Multimedia (Maurice) Limited; Zee Multimedia Worldwide Limited, Mauritius; Zee Multimedia Worldwide Limited (BVI); Zee Sports Americas Limited; Zee Sports International Limited; Zee Sports Limited; Zee Technologies (Guangzhou) Limited; Zee Telefilms Middle East FZLLC; Zee TV South Africa (Proprietary) Limited; Zee TV USA Inc.; ZES Holding Limited*; Zee Entertainment Studios BVI*; ZES Mauritius Limited*; ZES International Limited*; Zee Motion Pictures Private Limited*. * incorporated during the year. b) Others - Direct ETC Networks Limited; Taj Television India Private Limited; Zee Turner Limited. c) Other - Indirect Taj Television Limited, Mauritius (ii) Associates Aplab Limited (extent of holding 26.42%) Broadcast South Asia Limited (extent of holding 48.44%) (Ceased to be w.e.f. May 8, 2008) (iii) Other Related parties with whom transactions have taken place during the year and balance outstanding as on the last day of the year. 25 FPS Media Private Limited; Asian Sky Shop Limited; Asian Satellite Broadcasting Private Limited; Briggs Trading Company Private Limited; Buddha Films Limited; Churu Trading Company Private Limited; Credensys Software Technologies Limited; Digital Media Convergence Limited; Dakshin Media Gaming Solutions Private Limited; Dish TV India Limited; Diligent Media Corporation Limited; Essel Propack Limited; E-City Entertainment (India) Private Limited; E-City Retail Private Limited; E-Cool Gaming Solution Private Limited; Essel Agro Limited; Essel Corporate Services Private Limited; Essel Sports Private Limited; Essel Infraprojects Limited; Essel International Limited; Essel Shyam Communication Private Limited; Essel Shyam Technologies Limited; Integrated Subscribers Management Limited; Ganjam Trading Company Private Limited; Intrex Trade Exchange Limited; Jay Properties Private Limited; Jayneer Capital Private Limited; New Media Broadcasting Private Limited; Pan India Network Infravest Private Limited; Pan India Network Private Limited; Prajatma Trading Company Private Limited; Premier Finance and Trading Co. Limited; Rama Associates Limited; Real Media FZLLC, Taleem Research Foundation; Wire and Wireless (India) Limited; Zee News Limited. Directors/Key Management Personnel Mr. Punit Goenka Disclosure in respect of material other Related Parties which account for 10% or more of the transactions during the year: a) Fixed asset purchased include from Aplab Limited Rs./Thousand Nil (497). b) Loans, Advances and Deposits given include to Zee Sports Limited Rs./Thousand Nil (20,115); Briggs Trading Co. Private Limited Rs./Thousand Nil (1,410,000); Churu Trading Co. Private Limited Rs./Thousand 3,770,500 (2,186,000); Ganjam Trading Co. Private Limited Rs./Thousand Nil (1,492,522); Prajatma Trading Co. Private Limited Rs./Thousand 2,170,000 (1,605,000); Dish TV India Limited Rs./Thousand 2,430,000 (3,177,000); Wire and Wireless (India) Limited Rs./Thousand 1,550,000 (1,070,000); Premier Finance and Trading Co. Limited Rs./Thousand 1,605,000 (Nil). c) Loans, Advances and Deposits repayment received includes Briggs Trading Co. Private Limited Rs./Thousand Nil (1,410,000); Churu Trading Co. Private Limited Rs./Thousand 3,770,500 (2,186,000); Ganjam Trading Co. Private Limited Rs./Thousand Nil (1,492,522); Prajatma Trading Co. Private Limited Rs./Thousand 2,170,000 (1,605,000); Dish TV India Limited Rs./Thousand Nil (2,900,000); Wire and Wireless India Limited Rs./Thousand 70,000 (Nil); Premier Finance and Trading Co. Limited Rs./Thousand 1,605,000 (Nil). d) Loans, Advances and Deposits balances outstanding at year end include Zee Sports Limited Rs./Thousand 29,249 (31,704); Zee Turner Limited Rs./Thousand Nil (94,463); Dish TV India Limited Rs./Thousand 2,430,000 (7,81,315); Wire and Wireless (India) Limited Rs./Thousand 23,00,817 (820,817). e) Sundry Creditors balances include Pending Remittances to Principals pending to Asia Today Limited Rs./Thousand 869,628 (1,688,837); Amounts due for Purchase of Programs, Goods and Services to Asia Today Limited Rs./Thousand 12,448 (88,157); ETC Networks Limited Rs./Thousand 41,085 (48,847); Dish TV India Limited Rs./Thousand Nil (98,929); Diligent Media Corporation Limited Rs./Thousand Nil (15,118); Wire and Wireless (India) Limited Rs./Thousand 92,984 (Nil); Essel Sports Private Limited Rs./Thousand 70,044 (Nil). f) Sales, Services and Recoveries (Net) include to Asia Today Limited Rs./Thousand 929,083 (785,724); Dish TV India Limited Rs./Thousand 4,475 (9,957); Zee News Limited Rs./Thousand 245,694 (66,260); Real Media FZ LLC. Rs./Thousand 5,958 (9,461); Subscription Revenue from Asia Today Limited Rs./Thousand Nil (126,610); Advertisement Revenue from Asia Sky Shop Rs./Thousand 12,085 (Nil); Dish TV India Limited Rs./Thousand 83,427 (166,694); ETC Networks Limited Rs./Thousand 6,186 (Nil); Commission - Space Selling from Asia Today Limited Rs./Thousand 65,360 (29,144); Zee TV USA Inc. Rs./Thousand Nil (37,436); Zee News Limited Rs./ Thousand 268,367 (271,679). g) Other income include Dividend Income from ETC Networks Limited Rs./Thousand 12,224 (7,679); Aplab Limited Rs./Thousand 3,303 (3,303); Essel Propack Limited Rs./Thousand 2,186 (Nil); Interest income from Briggs Trading Co. Private Limited Rs./Thousand Nil (6,208); Churu Trading Co. Private Limited Rs./Thousand 258,147 (120,272); Ganjam Trading Co. Private Limited Rs./Thousand Nil (144,805); Prajatma Trading Co. Private Limited Rs./Thousand 256,625 (136,071); Dish TV India Limited Rs./Thousand 68,917 (198,237); Premier Finance & Trading Co. Private Limited. Rs./Thousand 173,521 (Nil); Wire and Wireless (India) Limited Rs./Thousand 127,877 (Nil); Miscellaneous/Rent income from Zee Turner Limited Rs./Thousand 14,330 (148); Asia Today Limited Rs./Thousand 39,829 (Nil); ETC Networks Limited Rs./Thousand 2,083( Nil); Asian Sky Shop Limited Rs./Thousand Nil (316); Diligent Media Corporation Limited Rs./Thousand 2,081 (462); Pan India Network Infravest Private Limited Rs./Thousand Nil (669); Dish TV India Limited Rs./Thousand 25,132 (Nil); Zee News Limited Rs./Thousand 20,441 (Nil); Digital Media Convergence Limited Rs./Thousand Nil (1,349); Wire and Wireless (India) Limited Rs./Thousand 1,335 (Nil) h) Purchase of Programs, Goods and Services from Asia Today Limited Rs./Thousand 59,212 (46,175); Taj TV Limited – Mauritius Rs./Thousand 3,529 (8,095); Dish TV India Limited Rs./Thousand 20,886 (13,660); Essel Corporate Services Private Limited Rs./Thousand 134,872 (44,315); Essel Sports Private Limited Rs./Thousand 262,603 (59,500); Wire and Wireless (India) Limited Rs./Thousand 250,321 (Nil).; Commission paid to Zee Turner Limited Rs./Thousand 145,992 (120,342); Balances written off 25 FPS Media Private Limited Rs./Thousand 13,665 (Nil). i) Corporate guarantees include in respect Asia Today Limited Rs./Thousand 1,565,100 (1,204,500); Dish TV India Limited Rs./Thousand 3,305,760 (1,877,700); Wire and Wireless India Limited Rs./Thousand 921,000 (2,835,000). Notes: i) Details of Remuneration to Whole-time Director is disclosed in Note 5 (e). ii) Sharing of expenses has been disclosed in Note 5 (n). 13. Additional Information required to be given pursuant to Part II of Schedule VI to the Companies Act, 1956 is as follows: The Company is in the business of producing television programs and is not subject to any license hence licensed capacity is not given. Further the nature of business of the Company is such that the installed capacity is not quantifiable. 9. Segmental Reporting The Financial Statements of the Company contain both the consolidated financial statements as well as the separate financial statements of the parent company. Hence, the Company has presented the segmental information on the basis of the consolidated financial statements as permitted by Accounting Standard - 17. |
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| Source : Religare Technova | |
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