Untitled - Domain-b

More documents

Recommendations

Info

on actuarial valuation are charged to Profit and Loss Account. Accrued liabilities for leave encashment are made by the parent and its subsidiaries wherever applicable based on unavailed leave to the credit of employees in accordance with the rules of the respective companies. 13. Miscellaneous Expenditure (a) Share issue and Preliminary expenses are amortized over a period of five to ten years. (b) Other deferred revenue expenditures are amortized based on the management’s estimates of its enduring future benefit generally over the period of 36 to 60 months and premium on prepayment and upfront fees are amortized over the period of loan 14. Secured Loans (a) Term Loan from Bank / inancial Institutions : (i) In case of parent, is secured by first pari passu charges on advertisement commission receivable and first mortgage and charge on all immovable and moveable properties both at present and future except fixed assets located at Noida and an exclusive charge on program library of the Company both present and future programs and films. (ii) In respect of subsidiaries, is secured against the first ranking mortgage and charges on all the movable and immovable assets, assignment of the charges in respect of all licenses (present and future) except specific charge to banks for working capital facility and financing of vehicles as stated in b (ii) and c below and negative lien on copyrights and broadcasting rights. Collaterally secured by pledge of equity and preference shares of the subsidiaries held by the parent and also guaranteed by the parent. (b) Working capital finance from banks : (i) In case of parent, is secured by hypothecation of stock other than (program and film rights), book debts (other than advertisement commission receivables) and first charge on immovable properties at Noida and second charge on immovable properties at Marol, Mumbai, all rank pari passu with other financing banks and second charge on advertisement commission receivables. (ii) In case of subsidiaries, is secured by way of first charge against hypothecation of capital equipments, components stores, and book debts and collaterally secured by hypothecation of control room equipments and guaranteed by the parent. (c) Hire Purchase and lease finance : Hire purchase and lease finance is secured by hypothecation of specific assets underlying the hire purchase / lease. 15. Debtors Debtors are stated in the Balance Sheet at net realizable value. Net realizable value is the invoiced amount less provision for bad and doubtful debtors. Provisions are made specifically against debtors where there is evidence of a dispute or an inability to pay or irrecoverablility. 16. Restructuring (a) Zee Cinema and Zee TV channels, hitherto uplinked from abroad by Asia Today Limited (ATL) – wholly owned subsidiary of the ZTL, are now being uplinked from India by ZTL w.e.f. October 1, 2003 and January 1, 2004 respectively. The value of ZTL’s investments in its foreign subsidiaries are affected due to this, hence value of investments is reviewed. Also, carrying value of investments in one of the Indian subsidiary of ZTL is reviewed on account of reduction of capital by that subsidiary. The carrying value of these investments is accordingly written down. (b) The Honourable High Court at Mumbai vide order dated May 6, 2004 has approved reduction of capital of ZTL by way of adjustment of permanent diminution in the value of investments in subsidiaries as per (a) above of Rs./Thousand 19,205,303 against Securities Premium account, however effect of such order is given in the financial statements for the year ended March 31, 2004. The goodwill arising on consolidation of financial statements has accordingly been adjusted against Securities Premium. (c) Write-off of assets of Rs./Thousand 895,623 and debit balance in Profit and Loss account (including loss of current year) of Rs./Thousand 595,014 are adjusted against Share Capital and Securities Premium in an Indian subsidiary. Rs./Thousand 299,738 net-off pre-acquisition losses (Goodwill) and current year losses, is reflacted as adjustment to balance brought forward on restructuring in the Profit and Loss account. ZEE TELEILMS LIMITED
(d) ZTL has entered into a Memorandum of Understanding with Zee Sports Limited (ZSL) to transfer its News and Current Affairs telecast business on its Zee News and its Alpha channels, permitting use of its Trademarks and logo with all rights, assets and liabilities related to the Business on “as is where is basis” with all its employees etc. (e) The amalgamation of ETC Networks Limited with Econnect India Limited (both subsidiaries of ZTL) w.e.f. April 1, 2003 is under process before the respective Honourable High Court. Provision for Taxation in the case of amalgamating company is made considering the brought forward losses of the amalgamated company. On amalgamation being approved, this current provision would be considered adequate. (f) The adjustment of permanent diminution in the value of investments in Econnect India Limited and Zee Interactive Learning Systems Limited of Rs./Thousand 207,400 and Rs./Thousand 404,783 respectively against Securities Premium in the financial statements for the year ended March 31, 2003 has been approved by the Honourable High Court during the year. (g) During the year DML, a wholly owned subsidiary has amalgamated with ZTL. The amalgamation has no impact in the CS except difference in accounting policy of Rs./Thousand 108, which has been adjusted in the profit and loss account balance brought forward. 17. Investments (a) Investments are classified as long term and stated at cost. Provision for diminution in value of long-term investment is made if the diminution is other than temporary. (b) The fall in the market value of quoted investments of Rs./Thousand 11,191 (99,751) in an associate company is not provided for, considering the fall as temporary in nature. (c) Investment in 6% non cumulative redeemable preference shares amounting to Rs. 156,441 (Rs. 194,644), of its various distribution companies (network management companies) are valued at cost, keeping in view its strategic business interest in these distribution companies, though these companies have negative net worth. 18. Loans and Advances (a) Rs./Thousand 807,001 (1,775,250) due from Buddha ilms Limited is considered recoverable, as the promoter of ZTL continue to provide comfort for this balance after repayment of Rs./Thousand 1,130,000. (b) A subsidiary has provided financial support to Distribution Companies (network management companies) by way of interest free advances for its strategic business interests. On the basis of undertaking of their promoters to provide financial support and in the opinion of the management entire advances of amount Rs. 162,333 (Rs. 188,780) is considered recoverable except Rs. 29,118 (Rs. 21,619) for which provision has been made, though these companies have negative worth. 19. The Service Tax Department has raised demand of Rs./Thousand 147,590 towards Service Tax and penalty of Rs./Thousand 147,590 on Airtime Sales Commission Income for the period from November 1996 and July 2001. The demand has been confirmed by the first appellate authority, which is challenged by ZTL before the Customs, Excise and Service Tax Appellate Tribunal, which has since remanded back the case to lower authorities. However, this liability is not provided, as ZTL does not anticipate any liability, as opined by the experts. 20. Zee has commenced various new television channels during the year and all its television channels are put on Direct-to-home (DTH) platform for test run and sales promotion. This service though is yet to be commercialized. 21. Subsequent Events ZTL has raised US$ 100 million by way of 0.5% Convertible Bonds (CCB) on April 28, 2004 due for redemption on April 29, 2009. The bondholders have an option to convert these bonds into equity shares at an initial conversion price of Rs. 197.235 per share, with a fixed rate of exchange on conversion of Rs. 43.88 (US$ 1 ), from and including June 8, 2004 to and including April 22, 2009. The conversion price will be subject to certain adjustments. urther, the bonds may be redeemed in whole and not part at the option of ZTL at any time on or after May 12, 2006 and upto April 22, 2009, subject to certain conditions. Unless previously converted, redeemed or repurchased and cancelled, the bonds will mature on April 29, 2009 at 116.24% of their principal amount. 22. Taxation (a) Current income tax is calculated on the results of individual companies in accordance with local accounting practices and tax regulations. (b) Deferred tax assets and liabilities are recognized using the asset and liability approach for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Unutilized tax losses will only be utilized where there is a likelihood of them being able to be offset against tax in the future. or the calculation of deferred tax, the local tax rates likely to be in force are used for the respective individual company where deferred tax accounting is adopted. 97
Page 18 and 19:
Directors’ Report Your Directors
Page 20 and 21:
proper explanation relating to mate
Page 22 and 23:
Name of the The financial Holding E
Page 24 and 25:
Board members have complete and unf
Page 26 and 27:
Details of last three Annual Genera
Page 28 and 29:
AShareholders’ Information 1. Dat
Page 30 and 31:
15. Change of Address Members holdi
Page 32 and 33:
24. Distribution of Shareholding as
Page 34 and 35:
● Zee broadcasts Zee TV and Alpha
Page 36 and 37:
transparency and implementation of
Page 38 and 39:
There is also a significant target
Page 40 and 41:
in 2004, which were partially offse
Page 42 and 43:
year as against Rs. 3,199.3 million
Page 44 and 45:
Prior Period Adjustments (Net) Prio
Page 46 and 47:
numbers. It is also possible that u
Page 48 and 49: The Company primarily competes agai
Page 50 and 51: suspended the implementation of CAS
Page 52 and 53: committee with representatives from
Page 54 and 55: Annexure to Auditors’ Report Anne
Page 56 and 57: Balance Sheet as at March 31, Sched
Page 58 and 59: Schedules to the Balance Sheet as a
Page 60 and 61: Schedule 5 : ixed Assets (at cost)
Page 62 and 63: ZEE TELEILMS LIMITED (Rs. in ’000
Page 64 and 65: Schedules to the Profit and Loss Ac
Page 66 and 67: Schedule 18 : Significant Accountin
Page 68 and 69: 12. Leases a) Operating Lease Lease
Page 70 and 71: 7. Disclosures a) Share application
Page 72 and 73: ) Provision for taxation for the ye
Page 74 and 75: (iv) Transactions with Related Part
Page 76 and 77: i) Details of Remuneration to direc
Page 78 and 79: e) Other Information Particulars Ea
Page 80 and 81: Cash low Statement for the year end
Page 82 and 83: Last ive Years’ inancial Highligh
Page 84 and 85: Auditors’ Report To the Board of
Page 86 and 87: C Consolidated Balance Sheet as at
Page 88 and 89: Schedules to Consolidated Balance S
Page 90 and 91: Schedules to Consolidated Balance S
Page 92 and 93: Schedulse to Consolidated Profit an
Page 94 and 95: Schedule 18 - Significant Accountin
Page 96 and 97: (b) Tangible fixed assets (i) Tangi
Page 100 and 101: (c) The components of the deferred
Page 102 and 103: Propack Limited; Essel Agro Limited
Page 104 and 105: Business Segment (inancial Year 200
Page 106: BConsolidated Cash low Statement as
show all

Untitled - Domain-b

Create successful ePaper yourself

Delete template?

Save as template?