News Headline
Zee seeks to clean convergence adventure from balance sheet
MUMBAI: It is finally taking a hit in its balance sheet for its adventurous forays during the peak of the dot com and convergence craze.
Subhash Chandra’s Zee Telefilms Ltd (ZTL) is planning to write off the value of ZTL’s investment of Rs 614.5 million in its wholly owned subsidiaries, Econnect India Ltd (EIL) and Zee Interactive Learning Systems Ltd (ZILS).
Consequent to this, ZTL has proposed to effect a corresponding reduction in its reserves and surplus by Rs 612.2 million to Rs 34483.6 million.
Breakup of ZTL’s investments in EIL and ZILS:
EIL Rs 210 million (2,10,00,000 equity shares of Rs. 10/- each)
ZILS Rs 404.5 million (19,26,413 equity shares of Rs. 10/- each at a premium of Rs. 200/- per share)
Investments written off by Rs 614.5 million.
Reserves and surplus reduced by Rs 612.2 million.
Zee has already got board approval for the same. Now it is seeking its shareholders nod too, through an extraordinary general meeting scheduled to be held on 8 August 2003.
The move comes in the wake of a major capital reduction in EIL and ZILS, both of which have incurred heavy losses. The company has admitted that the two companies’ net worth has been totally eroded in its notice to shareholders.
While EIL has a paid up share capital of Rs 210 million, the net worth of ZILS is pegged at Rs 405.3 million comprising of paid up capital of Rs 20 million and Reserves and Surplus of Rs 385.3 million (on account of its shares being issued at a premium of Rs 200 each to ZTL).
The accumulated losses and outstanding miscellaneous expenses of the two subsidiaries as on 31 December 2002 are as given below:
Subsidiary Accumulated losses Miscellaneous expense not written off
EIL 163,957,067 43,397,962
ZILS 413,909,000 13,810,000
Under the proposal, the ZTL board says it wants to extinguish the losses of EIL by reducing its paid up equity share capital from Rs 210 million to Rs 2.6 million.
Similarly, ZILS will also undertake a capital reduction from Rs 20 million consisting of 2 million equity shares to Rs 500,000. The Rs 385.2 million which it got from its issue of shares to ZTL at a premium of Rs 200 per share will be shown as a credit in the balance sheet.
ZTL has said that the losses in Zils are on account of a general slowdown in the information technology business globally and those in EIL to a general slowdown in the dotcom business. This news comes in the aftermath of the dotcom slaughter, which left many Internet ventures in ruins. However, it should be noted here that regionally and globally, IT education, which was the mainstay of ZILS, was not greatly affected by the dotcom bust. Did the ZILS management follow an incorrect business model?
Despite the fact that Econnect has closed down a number of unremunerative channels on the portal and has been focusing on entertainment portals to supplement the business of its parent company ZTL, the company has not started making profits yet.
ZILS also has not been financially strong enough to generate profits even as recent efforts at non-performing operations and assets were discontinued. This despite the fact that ZILS has also closed down a number of loss making centers and has restructured the business to focus on the export of software and content development.
It is pertinent to note though, that the Zee Group has been plugging its KidZee foray into pre-primary education on its television channels with a plan to roll out 100 centres through the franchising route. The kids education initiative is being charted through ZILS.
The Zee management says the current accounting exercise will not impact its ability to service its liability in respect of the paid up or unpaid share capital.
Market analysts say the markets have already factored in losses incurred by subsidiaries of Zee Telefilms and don’t expect any reactions to the resultant capital reduction in ZTL. Following the write-off, the current assets position is expected to be more in line with Zee’s present financial position.
(Figures have been approximated to one decimal place)
NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.
The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.
Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.
The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.
Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.
Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.
The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.
Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.
Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.
The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.
Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.
