Zee News

1.  Secured and Unsecured Loans
 
 a) Secured Loans
 
 1.1 Short term working capital loan from others is secured by
 hypothecation by way of first charge over the current assets of the
 Company ranking pari passu (excluding a bank account on which the
 lender has first charge) with other lenders.
 
 1.2 Term Loans from Banks is secured by hypothecation by way of charge
 on entire fixed assets (both movable and inmovable) and current assets
 including program and media rights ranking pari passu with other term
 lenders [Due within one year Rs. 150,000,000 (Nil)]
 
 1.3 Vehicles Loans are secured against hypothecation of vehicles [Due
 within one year Rs. 8,023,546 (7,997,747)].
 
 b) Unsecured Loans
 
 1.4 Short Term Loans from Banks is guaranted by a related party. There
 are debit balance in these loan accounts at the year end that are
 grouped under Cash and Bank Balances.
 
 2.  Program/film rights etc. 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.
 
 3.  Fixed Deposits/Margin includes Rs. 4,380,000 (55,000) logded with
 Tax Authorities and Rs. 28,125,000 (Nil) under lien of term loan
 lenders.
 
 4.  Other Disclosures:
 
 4.1 Previous years figures are regrouped, rearranged or recast
 wherever considered necessary to confirm to this years classification
 Figures in bracket pertain to previous year.
 
 4.2 Sundry Creditors for Expenses and Other Liabilities includes
 cheques overdrawn of Rs. 115,570,032 (Rs. 33,705,989).
 
 4.3 Capital work in progress includes Capital advances of Rs.
 23,097,799 (Rs. 4,098,453).
 
 4.4 a) Advances given includes Share application money Rs. 67,232,334
 (Rs. 65,782,334) and advance recoverable Rs. 650,511 (Rs. 1,490,797)
 due from a subsidiary.
 
 b) Advances given includes Share Application Money to others Rs.
 8,500,000 (Rs. Nil)
 
 4.5 Micro, Small and Medium Enterprises:
 
 The Company has no dues to Micro and Small Enterprises during the year
 ended 31st March, 2009, on the basis of information provided by the
 parties and available on record. However in the previous year principal
 amount due to suppliers under the Act was Rs. 231,129.
 
 c) Derivative contracts (Forward contracts for hedging purposes)
 entered into by the Company and outstanding at 31st March, 2009 amount
 to Rs. Nil (Nil).
 
 4.6 Contigent Liabilities not provided for:
 
 Amount (Rs.)
 
 Particulars                                  2009             2008
 
 Claims against the Company not acknowledged 
 as debts                                    2,130,006      2,130,006
 Letter of Credit (Net of Liability 
 provided)                                  48,610,973     13,511,582
 Bank guarantee outstanding                     -             500,000
 Customs Duty on pending Export Obligations 18,183,059          -
 Diuted Direct Tax demands                   3,396,973          -
 Legal cases against the Company         Unascertained     Unascertained
 
 The Company has received legal notices of claims/law suits filed
 against it relating to alleged infringement of copy rights and
 defamation in relation to programs telecasted by it. In the opinion of
 the Management, no material liability is likely to arise.
 
 8.8 Assets, film rights etc. transferred pursuant to the Scheme of
 Arrangement and transfer of news business are in the process of
 registration/transfer in the name of the Company.
 
 4.7 Salary, Bonus and Allowances includes prior period expenses Rs.
 Nil (Rs. 1,569,734).
 
 4.8 Retirement Benefits:
 
 (A) Defined Benefit Plan:
 
 The present value of the defined benefit obligation and the related
 current service cost were measured using the projected unit credit
 method with actuarial valuation being carried out at each Balance sheet
 date. The defined benefit obligations are not funded.
 
 (B) Defined Contribution Plan:
 
 Contribution to Provident Fund and Other Funds is recognized as an
 expense in Schedule 12 of the Profit and Loss Account.
 
 5.  Capital Commitments:
 
 Estimated amount of contracts remaining to be executed on capital
 account, not provided for (net of advances) is Rs. 45,545,849 (Rs.
 42,673,787).
 
 6.  Related Party Transactions:
 
 (i) List of Parties where control exists: Subsidiary Company:
 
 Zee Aakash News Private Limited (extent of holding 60%)
 
 (II) Other Related Parties with whom transactions have taken place
 during the year and balance outstanding as on the last day of the year:
 
 Agrani Convergence Limited, Asia Today Limited, Asia T.V. Limited,
 Asian Sky Shop , Buddha Films Private Limited, Continental Drugs Co.
 Prviate Limited, Cornershop Entertainment Co. Private Limited, Cyquator
 Technologies Limited, Dakshin Communications Private Limited, Diligent
 Media Convergance Limited, Asia TV (USA) Limited, Diligent Media
 Corporation Limited, Dish TV India Limited, E-City Bioscope
 Entertainment Private Limited, E-City Entertainment (I) Private
 Limited. E-City Projects Construction (Private) Lmited, E-City Property
 Management & Services Private Limited, Essel Corporate Resources
 Private Limited, Ganjam Trading Co. Private Limited, Essel Shyam
 Communication Limited, Zee Entertainment Enterprises Limited, Essel
 International Limited, ETC Network Limited, Interactive Tradex India
 Private Limited, Intrex Trade Exhcange Limited, Churu Trading Co.
 Private Limited, Pan India Network Infravest Private Limited, Essel
 Infraprojects Limited, Playwin Infravest Private Limited, Himgiri Navh
 Vishwavidyalya, Procall Private Limited, Rama Associates Limited, Real
 Media FZ LLC, RKJ Woods Plantation Private Limited, United News of
 India, Veena Investment Private Limited, Wire & Wireless (India)
 Limited, Wire and Wireless Tisai Satellite Private Limited, Prime
 Publishing Limited, Zee Sports Limited, Zee Telefims, Middle East FZ
 LLC, Zee Turner Limited.
 
 7.  Segment Reporting:
 
 The Company is engaged in the business of production and broadcasting
 of television software which in the context of AS - 17 Segment
 Reporting is considered as the only reportable business segment. The
 geographical segment is not relevant as exports are insignificant.
 
 8.  Additional Information:
 
 Other Additional Information required to be given pursuant to Part II
 of Schedule VI to the Companies Act, 1956, are as under:
 
 9. 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.