| This is on account of the company having to pay $50 million (Rs 200 crore) as dues for the Cricket World Cup. The company's net worth has also eroded which was was $4 million (Rs 16 crore) as on March 31, 2007. Sony operates Hindi general entertainment channels SET, SET MAX, SET PIX, among others. |
| In 2003, Sony won the satellite rights for telecasting two World Cup tournaments by paying $250 million (Rs 1,000 crore). The payments for the loan taken are due now. |
| In the last three years, SET India's debt burden has been rising. Its debt has increased by 44.89 per cent to $71 million (Rs 284 crore) in 2007-08 from $49 million (Rs 196 crore) in 2006-05. Its debt in 2005-06 was $37 million (Rs 148 crore). |
| The debt-equity ratio has deteriorated to 16.64 in 2007-08 from 1.17 in 2006-07 and 0.79 in 2005-06. Kunal Dasgupta, CEO of SET India, said the company was on recovery path. Once additional capital was infused, the financial health would improve, he added. |
| Dasgupta said private equity firms have valued the company at $800 million (Rs 3,200 crore), which was a reflection of Sony's intrinsic financial health. |
| Its board of directors met in November last and recommended an additional equity contribution of $40 million (Rs 160 crore) by shareholders. |
| The additional capital call was later made in February this year which did not go down well with the minority shareholders. Two of its minority stakeholders "� Atlas Equifin and Grandway Global Holdings "� who hold a combined 31.67 per cent stake, took the company to court. |
| However, the matter has been resolved now with the parties finally deciding to pay additional capital. Following this submission, the court disposed of the petition filed by the minority stakeholders against SET. |
| However, Sony's need for capital could increase further if SET Singapore losses a case which is now pending with the income tax tribunal. The financial impact is estimated to be $25-30 million (Rs 100 to Rs 120 crore). |
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