Zee Media Corporation Limited has informed stock exchanges about pre-institution mediation proceedings initiated against the company regarding alleged copyright infringement claims. The disclosure was made in compliance with Regulation 30 of the Listing Regulations.

Mediation Proceedings Details

The pre-institution mediation has been filed at the Alternative Dispute Redressal Center, 4th Floor, Zila Adalat Bhawan, North 24 Paraganas, Barasat, Kolkata. The proceedings were initiated by Mr. Saumyajit Sen alias Ronny Sen under Section 12A of Chapter II/A of Commercial Courts Act, 2015.

Financial Claims and Implications

The opposing party has claimed substantial damages against Zee Media Corporation for the alleged copyright infringement. The financial demands include both principal damages and interest components totaling ₹181.10 million.

Company's Response and Assessment

Zee Media Corporation has conducted a preliminary assessment of the copyright infringement allegations. Based on this initial review, the company maintains a confident stance regarding the proceedings.

Key aspects of the company's position include:

• No Expected Financial Impact: The company believes no financial implications are expected against it
• Legal Defense Strategy: Zee Media will seek necessary advice from legal counsel
• Active Defense: The company plans to defend the matter accordingly

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Listing Regulations and in accordance with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155. Company Secretary and Compliance Officer Ranjit Srivastava signed the regulatory filing, ensuring proper compliance with disclosure requirements.

The mediation proceedings represent a pre-litigation dispute resolution mechanism, allowing parties to resolve copyright disputes before formal court proceedings. The outcome of these mediation proceedings will determine whether the matter proceeds to formal litigation or reaches an amicable settlement.

Zee Media Corporation Limited , a prominent player in the news publishing and broadcasting business, has reported no fund utilization during the second quarter, according to its latest monitoring agency report. The company, which had raised Rs. 200 crore through a preferential issue of fully convertible equity share warrants in October-November, is facing financial headwinds and market challenges.

Key Financial Highlights

• No funds were utilized during Q2 from the Rs. 200 crore raised through preferential issue.
• The company incurred a loss of Rs. 3,024.00 lakhs for the half-year ended September 30.
• Consolidated revenue from operations stood at Rs. 36,108.00 lakhs for H1.
• Working capital remains negative, raising concerns about the company's financial stability.

Fund Utilization and Market Concerns

CARE Ratings Limited, the appointed monitoring agency, reported that no funds were received or utilized during the quarter ended September 30. The agency highlighted that the current market price per equity share is lower than the warrant exercise price, which may affect the viability of the intended use of funds.

Financial Performance

The company's financial results paint a challenging picture:

Going Concern and Future Outlook

Despite the current financial challenges, Zee Media's management remains optimistic about the company's future. The Board of Directors has approved a business plan aimed at securing higher revenues and improving operational cash flows. The company is also undertaking cost rationalization measures and has obtained credit period extensions to manage its contractual obligations.

Capital Infusion Plans

To strengthen its financial position, Zee Media has initiated several capital infusion measures:

1. Allotment of 13,33,33,333 fully convertible warrants to Foreign Portfolio Investors.
2. Approval for raising funds through Foreign Currency Convertible Bonds (FCCBs) up to USD 465,90,000.
3. Potential conversion of 135,000,000 warrants issued to a Promoter Group entity, subject to regulatory approvals.

Auditor's Review

Ford Rhodes Parks & Co LLP, the company's statutory auditors, have highlighted a material uncertainty related to Zee Media's ability to continue as a going concern. However, they have not modified their conclusion on the financial results, considering the measures being taken by the company.

Zee Media Corporation's management believes that the planned capital infusion, cost rationalization measures, and improved business strategies will enable the company to overcome its current financial challenges and meet its liabilities as they fall due.

As the media landscape continues to evolve, Zee Media's ability to adapt and capitalize on its strategic initiatives will be crucial in determining its future financial health and market position.