New Delhi, Feb 28: Zee Telefilms will be one of the biggest gainers from the Budget proposal due to the exemption of television software from income tax.
Zee sources told The Financial Express that the company's export earnings in 1999-2000 are likely to be around Rs 180 crore which will be fully exempt from income-tax.
In the current fiscal, the company is expecting an export income of approximately Rs 135 crore, sources added.
Zee Telefilm's tax liability is expected to go down significantly from the current financial year following the Union finance minister's announcement of including television software under Section 80 HHC of the Income-tax Act, sources said. They also stated that the company's earning per share is expected to go up with the improvement in its net profit.
The company had a tax liability of Rs 14.89 crore in 1997-98 when it netted a PAT of Rs 43.68 crore on a turnover of Rs 173.39 crore. The company had earmarked Rs 7.05 crore as its tax liability in the first six monthsof the current fiscal.
In the first half of the current fiscal, Zee Telefilms had recorded a net profit of Rs 29.43 crore on a turnover of Rs 102.55 crore.
Significantly, Zee Telefilms' exports in 1998-99 are expected to account for over 60 per cent of its turnover, a trend which is likely to continue in the next fiscal, sources stated. The company had an export earning of Rs 83.22 crore in 1996-97, which was 93 per cent of the total turnover of Rs 89 crore.
Major part of the Zee Telefilms software export is comprises programmes it produces for Asia Today Ltd, a 50:50 joint venture between STAR and Zee. The company also exports software to UK, South Africa, Mauritius, Fiji and the US.
The company would also reap benefits from the lowering of interest on export packing credit as proposed in the current budget. According to sources, the company would be able to raise cheaper credit, which would significantly lower cost of finance for the company.
The other expected gainers following the Budgetproposal are ESPN-STAR Sports and TV18. ESPN-STAR Sports has been engaged in exporting sports-related software while, TV18 has been exporting news and current affairs-based software.
Renowned director-script writer Hrishikesh Mukherjee and technical wizard of the Hindi film industry Babubhai Mistry were on Sunday conferred the `Lifetime Achievement Award' at a function to give away the second Zee Cine Awards for technical excellence.
Mukherjee has made memorable films like Anupama, Chupke Chupke, Abhiman, Guddi, Namak Haram, Anand, Golmaal and staged a comeback after 16 years with polygram's Jhoot Bole Kauvva Kate'. Mistry was a master of technical effects at a time when computers were unknown to the film industry.
Govind Nihalani won the best director award for his film Hazaar Chaurasi Ki Ma, late Akbar Bakshi was given the award for best action for the film Soldier, Jatin-Lalit received the award for best background music for the film Kuch Kuch Hota Hai, Sameer Chandra was giventhe award for the best art direction in the film China Gate. Farah Khan collected her trophy for choreography for the number Chaiyya Chaiyya in Dil Se.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.