Eventhough Zee group plans to repay debt of more than Rs 200 cr during this financial year, it will still have Rs 500-odd crore of debt outstanding at the end of the year.
As per its annual report for 2000-01, the group's has an outstanding debt of Rs 718 crore as on March 31, 2001 compared with Rs 408 crore as on March 31, 2000.
The group's short-term loans have risen to Rs 35 crore (Rs 21.5 crore). The total unsecured loans -- comprising fixed deposits, short-term loans from banks and inter-corporate deposits (ICDs) -- have gone up to Rs 209.7 crore (Rs 22.75 crore).
Aman Chowhan, media analyst, Tata TD Waterhouse Securities, "The group's debt was large in 2000-01 because of the investments in Siticable and the interactive education business. Another reason for the high debt is because of its high advances. So, even if Subhash Chandra repays a part of this debt (to the company), a substantial debt of Rs 500 crore will still be there."
The annual report also shows that Zee Telefilms has raised ICDs to the tune of Rs 124.73 crore. Out of this, Rs 79.73 crore has been borrowed from its subsidiaries and the rest from others.
Zee's official communications agency, however, said, "Most of the ICDs taken from the subsidiaries have already been returned. Those taken from 'others', which are actually short-term loans taken from financial institutions at an approximate interest rate of 12 per cent, are still remaining." The agency added, "The total cost of servicing the Rs 718 crore debt is at a weighted average cost of 10 per cent."
According to the repayment schedule in the balance sheet, in the current year the company plans to repay Rs 208 crore.
But according to analysts, the short-term deposits and loans taken by Zee Telefilms and Zee Interactive Multimedia Ltd are repayable within one year and then the total amount actually repayable increases by Rs 231 crore. That is, the total amount repayable this year comes to Rs 439 crore.
They added that although loans worth Rs 27.39 crore had been repaid, unsecured non-convertible debentures aggregating Rs 50 crore were due.
According to the spokesperson of Zee, "Some of the outstanding debt will be retired in the 2001-02 as we are going to generate income from the current projects."
A scrutiny of the balance sheets of Zee and its subsidiaries shows that almost all the entities of the group have either taken or advanced loans among themselves. The two companies, where major transactions have been undertaken in this manner, are Zee Telefilms and Siticable -- which is its cable distribution arm.
