Zee Tele to invest Rs.400 crore (US$89 mil) in Internet venture
zeetelevision.com
Source : BS
Sep 7, 1999, 11:42:15 AM
Zee Telefilms will invest Rs.400 crore in the Internet service provider project. According to the company's audited balance sheet for the financial year 1998-99, Siti Cable is poised to transform itself into SitiNet offering services such as Internet delivery, video/audio, and telephony solutions for business as well as home users.
The company also proposed to invest Rs.122 crore in the three regional channels and movie production.
The balance sheet prepared according to the US GAAI' this year as well, reveals that the net income of the company under the USGAAP stood at $10.3 million (Rs.44.26 crore) against $14.6 million (Rs.62 crore) reported as per the Indian GAAP. The company's revenue from related party under heads, sale of programme rights and commission on advertisements is pegged at $38.9 million (Rs.167 crore) and 11.8 million (50.7 crore) respectively as on March 31, 1999.
Dues from related parties are pegged at $24.8 million (Rs.106.7 crore) against $7.8 million (Rs.33.5 crore) during the same period in 1998. "The transactions with the related parties are decided on principal to principal basis. Asia Today Ltd accounts for a major portion of the related transaction of the company, as it is governed by a perpetual programme supply agreement," the balance sheet states.
The net cash provided by operating activities is a negative $1.2 million (Rs.5.1 crore) during fiscal 1999 against a positive $5.73 million (Rs.24.6 crore) during fiscal 1998. "Net cash provided by operations consisted primarily of net income offset by increase in accounts receivable and inventories.
Accounts receivable as a percentage of total revenue increased to 42.3 per cent as on March 31, 1999, compared to 38.8 per cent on March 31, 1999. Further, the average days outstanding of accounts receivable has increased in the 31-60, 61-90 and greater than 90-day aging period. The company believes that this is a temporary phenomenon and that the situation would improve from October 1999," the company states.
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