Financial Daily from THE HINDU group of publications
Saturday, Feb 23, 2002
Financial Daily from THE HINDU group of publications Saturday, Feb 23, 2002 |
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Restructuring Corporate - Restructuring Zee Tele to merge, liquidate 11 subsidiaries Our Bureau
MUMBAI, Feb. 22 ELEVEN subsidiaries of Zee Telefilms Ltd (ZTL) will cease to exist according to the company's corporate restructuring proposal cleared by its board on Friday. These subsidiaries include five Indian companies — E-connect India Ltd, Programme Asia Trading Company Ltd, Elzee Television Ltd, Kaveri Entertainment Ltd and Dakshin Media Ltd. The overseas subsidiaries include Winterheath Company Ltd, Mauritius, Hokushan Trading Ltd, HongKong, Expand Fast Holdings Ltd, BVI, Zee Multimedia World Ltd, BVI, Asia TV, USA and Zee TV SA (Proprietary) Ltd, South Africa. "These companies would either be merged with ZTL or liquidated,'' Mr Hitesh Vakil, Chief Financial Officer, ZTL, said. According to Mr Sandeep Goyal, Group Broadcasting CEO, ZTL, the corporate structure of Zee had become multi-layered and complex because of organic and inorganic growth. "Due to subsequent changes in the regulatory and tax framework, inefficiencies had crept in. We aim to achieve better tax-efficiency and leaner corporate structure by reducing the number of subsidiaries from 23 to 12,'' Mr Goyal said. Mr Vakil said the advantages from these moves are operational efficiencies, cost savings and tax efficiencies. "Because of technology we do not require separate operations," he said. For example, the African operations do not need separate companies as they have the UK beam. "Technology has come to our advantage and therefore there is no need for duplication," he said. The businesses and employees of some subsidiaries have already been moved to ZTL allowing for their closing down. "We do not forsee any job cuts in the process," Mr Vakil said. Under the proposed corporate structure, ZTL will have three wholly-owned subsidiaries — Siticable Network Ltd, Zee Interactive Learning Systems Ltd and Zee Multimedia Worldwide Mauritius. Besides there will be one 74 per cent owned subsidiary Zee Turner Private Ltd.
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