Outcome of the Board Meeting Held on February 11, 2021
Total Page:16
File Type:pdf, Size:1020Kb
An ~roup Enterprise ORO UP February 11, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers Bandra- Kurla Complex, Bandra (E), Mumbai - 400 051 Dalal Street, Mumbai- 400 001 Kind Attn.: Corporate Relationship Department Subject: Outcome of the Board Meeting held on February 11, 2021 Dear Sir/Madam, Pursuant to applicable regulations of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, including Regulation 30, this is to inform you that the Board of Directors of the Company at their meeting held today, i.e. February 11, 2021 has inter-alia considered and approved the Un-Audited Financial Results of the Company for the third quarter (Q3) and nine months period ended December 31, 2020 of the Financial Year 2020-21, both on standalone and consolidated basis, prepared under Ind-AS, duly reviewed by M/s Ford Rhodes Park & Co LLP, Chartered Accountants, the Statutory Auditors of the Company, pursuant t.o Regulation 33 of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, together with Limited Review Report thereon. In respect of the above, we hereby enclose the following: ~ The Un-Audited Financial results for the third quarter (Q3) and nine months period ended December 31, 2020 of the Financial Year 2020-21, in the format specified under Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; ~ Limited Review Report by M/s Ford Rhodes Park & Co LLP, Chartered Accountants, the statutory Auditors of the Company on the Un-Audited Financial results for the third quarter (Q3) and nine months period ended December 31, 2020 of the Financial Year 2020-21; and ~ Earning Release of the Company. The Board meeting commenced at 1545 Hrs and concluded at 1710 Hrs. Request you to kindly take the same on record. Thanking you, Yours truly, For Zee Media Corporation Limited RanjitSr~ Company Secretary & Compliance Officer Membership No .A18577 Encl: as above Zee Media Corporation Limited Corporate Office: FC-9, Sector-16A. Film City, Naida - 201301, UP, India. Phone: +91-120-2511064-73 Regd. Office: Marathon Futurex. 14th Floor, A Wing, N M Joshi Marg, Lower Pare!, Mumbai - 400013, India Phone: +91-22-7105 5001 I www.zeenews.com I CIN: L92100MH1999PLC121506 Zee Media Corporation Limited -MEDIA CIN : L92100MI-11999PLCl21506 Regd . Off. 14th Floor. 'A' Wing, Marathon Futurex. NM Joshi Marg, Lower Pare!, Mumbai -400 013 ~GROUP www.zeenews.com Standalone Financial Results for the quarter and nine months ended 31 December, 2020 Rs. I lakhs Quarter ended on Nine months ended on Year ended on s. 31-Dec-20 30-Sep-20 31-Dec-19 31-Dec-20 31-Dec-19 31-Mar-20 No. Unaudited Unaudited Audited I Revenue from operations 16,403 13 ,179 13,806 41,027 43,750 55,934 2 Other income 92 131 190 326 725 939 Total Revenue I I + 2 I 16,495 13,310 13,996 41,353 44,475 56,873 3 Ex11e11ses (a) Operating costs 1,928 1.959 2,264 5,720 7,575 10,159 (b) Employee benefits expense 4,197 4.094 3,556 11 ,663 11 ,346 14,908 (c) Finance costs 476 505 545 1,454 1,846 2,379 (d) Depreciation and amortisation expense 1.584 1.604 1,806 4,821 5,642 7,183 (e) Marketing, distribution and business promotion expenses 1,640 1.425 750 4,369 3,746 5,133 ( f) Other expenses 2,627 2.050 2,843 6,687 8,513 11,262 Total Expenses [ 3(a) to 3(1) I 12,452 11,637 11,764 34,714 38,668 51,024 4 Profit before exceptional items and taxes 11 + 2 - 3 I 4,043 1,673 2,232 6,639 5,807 5,849 5 Exceptional items (net) (Refer Note 4) - - (20,043) - (33,292) (32,553) 6 Profit I (loss) before tax 14 + 5 I 4,043 1,673 (17,811) 6,639 (27,485) (26,704) 7 Tax expense a) Current tax 1,096 512 688 1,973 1,980 2,155 b) Deferred tax charge I (credit) ( 132) ( 145 ) (118) (409) (47) (8) Total tax expense I 7(a) + 7(b) I 964 367 570 l,564 1,933 2,147 8 Profit I (loss) for the period I 6 - 7 I 3,079 1,306 (18,381) 5,075 (29,418) (28,851) 9 Other comprehensive income I (loss) Items that will not be reclassified to profit or loss (net of tax) Remeasurement gains I (losses) of defined benefit obli gation 14 52 (16) 26 ( 124) (146) Other com11rehensive income I (loss) for the period (net of tax) 14 52 (16) 26 (124) (146) 10 Total comprehensive income I (loss) for the 11eriod I 8 + 9 I 3,093 1,358 (18,397) 5,101 (29,542) (28,997) II Paid up equity share capital of Re. I/- each 4,708 4,708 4,708 4,708 4,708 4,708 12 Other equity 28,569 13 Earnings per share (of Re. I/- each) (not annualised) - Basic (Rs.) 0.66 0.27 (3.91) 1.08 (6.25) (6. 13) - Diluted (Rs.) 0.65 0.27 (3.91) 1.08 (6.25) (6.13) ~~ ,~o"' cORCO"'"'°• ~ l5' - ./ ;: ~· ;'vJl:'.' 1 II' ~ ....._/ I '.:J' ,, ·~ c:o--: 'c"'1.p ·iO°' ' 11111 Ci:y. liCI~\,\ - MEDIA Zee Media Corporation Limited .., CIN: L92100MHI999PLCl21506 Regel. Off 14th Floor, 'A' Wing, Marathon Futurex, NM Joshi Marg, Lower Pare!, Mumbai - 400013 ~ GROUP www.zeenews.com The above standalone financial results, prepared in accordance with the Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India, have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on I I February, 2021 . The statutory auditors have carried out a limited review of the results for the quarter and nine months ended 31 December, 2020. 2 The Company has only one identifiable business segment viz. Television Broadcasting Business. 3 COYID-19 pandemic has caused unprecedented economic disruption globally. No major adverse impact on operations is observed on news television channel broadcasting, being essential services. However, the extent of the impact of the COVID-19 on the Company's operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, spending of industries and trade on marketing I promotional activities and governments spending on promotion for public welfare and information. The Company is monitoring the developments and is taking necessary measures to mitigate th e impact on the Company, if any. 4 Exceptional items: a) During the year ended 31 March 2020, the Company, in accordance with Ind AS 109 ''Financial Instruments", had provided impairment loss of Rs. 33,292 lakhs (Rs. 20,043 lakhs and Rs. 33,292 lakhs during the quarter and nine months ended 31December,2019 respectively) in respect of its investment in Diligent Media Corporation Limited (DMCL). b) During the year ended 31 March 2020, the Company had written back certain provisions I liabilities amounting to Rs . 739 lakhs which were no longer required I payable. 5 The Company had issued Corporate Guarantee on 29 June, 2015, to IDBI Trusteeship Services Limited ("Debenture Trustee") for the Non convertible Debentures ("NCDs") aggregating to Rs. 25,000 lakhs, issued by Pri - Media Services Private Limited, the then Wholly Owned Subsidiary of the Company, subsequently merged with Diligent Media Corporation Limited (DMCL). The said NCDs were due for redemption by DMCL on 30 June, 2020 at Rs . 43,889 lakhs (including premium). The Debenture Trustee, vide letter dated 17 October, 2020, invoked the Corporate Guarantee issued by the Company upon non-redemption of NCDs by DMCL, and called upon the Company to make a payment of an amount aggregating to Rs . 45,711 lakhs (including interest and associated costs upto the said date). Subsequent to the above invocation, based on the discussions with the Debenture Trustee, the above corporate guarantee liability was settled by way of a) transfer of specified NCDs to Miloeux Media & Entertainment Private Limited ("MMEPL") by the Debenture Trustee and subsequent allotment of Compulsorily Convertible Prefe rential Shares (CCPS) by the Company of Rs. 9,000 lakhs on 31 December, 2020 to MMEPL towards extinguishment of liability towards the specified NCDs; and b) payment of Rs. 20,000 lakhs to the Debenture Trustee on 3 February, 2021 towards full and final settl ement of the remaining liability. The Company received NOC dated 3 February, 2021 from the Debenture Trustee confirming the discharge of the entire liability of the Company under the Corporate Guarantee. The Company is in discussion with DMCL regard ing recovery of the above settlement amount of Rs. 29,000 lakhs paid towards the Corporate Guarantee as well as other receivables of Rs . '.! ,067 lakhs aggregating to Rs. 31 ,067 lakhs from DMCL. DMCL has informed the Company that based on its internal assessment and a va luation report from an independent valuer, the fair value of its tangible and intangible assets are more than the amounts payable to the Company. Further, the Company has also independently got the assets of DMCL valued by another independent valuer and as per the valuation report, the value of assets of DMCL is more than the amount recoverable by the Company. Based on the internal assessment, the valuation reports and the assurance from DMCL to repay the amount, the amount of Rs . 31 ,067 lakhs is fully recoverable whereas the auditors have expressed qualification on the same.