Zee Entertainment Enterprises Limited has received adjudication orders from the Additional Commissioner of CGST, C.EX, Palghar Commissionerate regarding two separate GST matters involving disputed input tax credits. The company disclosed this development under Regulation 30 of SEBI Listing Regulations.

GST Adjudication Orders Details

The entertainment company has received orders from the adjudicating authority concerning two show cause cum demand notices (SCN) issued by the Directorate General of GST Intelligence (DGGI). Both cases relate to disputed input tax credit arising from alleged wrongful credit of GST by vendors.

Company's Response and Legal Position

Zee Entertainment has confirmed that both adjudication proceedings have been completed, with the Commissioner of CGST, C.Ex. Palghar Commissionerate upholding the tax demands raised by DGGI. The company is contesting both demands on merits and based on legal advice received.

The disputed amounts exclude interest and penalty components, which could potentially increase the total financial impact. Both cases stem from allegations of wrongful GST credit availment by the company's vendors, leading to disputed input tax credit claims.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with SEBI Listing Regulations and follows the requirements outlined in SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155. The company has provided details of the status changes and developments in relation to these proceedings as mandated by regulatory requirements.

The matter does not involve litigation against key management personnel, promoters, or ultimate persons in control of the company. No settlement details were disclosed as the proceedings remain contested.

Zee Entertainment Enterprises Limited (ZEEL) has provided clarification to the Bombay Stock Exchange (BSE) regarding recent news reports about layoffs within the company. The media conglomerate emphasized that its ongoing workforce optimization is part of a broader strategic initiative to create a more agile and collaborative organizational structure.

Restructuring for Agility

ZEEL explained that the company is undertaking a re-modeling and integration of its business divisions as part of its omni-channel approach. This exercise is designed to:

• Create a more agile organization structure
• Ensure sharper focus on goals and performance
• Adapt to evolving business dynamics

The company stressed that this optimization process is an ongoing exercise based on business dynamics and does not impact the operation or performance of the company.

Previous Workforce Rationalization Announcement

ZEEL referenced a press release dated April 5, 2024, where the company's MD & CEO had proposed a lean organization structure to the Board. This proposal included:

• Rationalizing the workforce by 15% across the company
• Implementation over a period (specific timeframe not mentioned)

Financial Position

While the news primarily focuses on organizational restructuring, it's worth noting ZEEL's financial position based on the latest available balance sheet data:

The data suggests that ZEEL has maintained a stable financial position over the past year, with modest growth in total assets and a significant reduction in current liabilities.

Compliance Assurance

ZEEL affirmed its commitment to regulatory compliance, stating that the company has always adhered to its obligations under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company assured that it would continue to make disclosures in accordance with these regulations.

As ZEEL navigates through this period of organizational change, stakeholders will be watching closely to see how these restructuring efforts impact the company's operational efficiency and market position in the competitive media landscape.