Zee recently said, it is expecting delays in recovering payments from certain related parties. In fiscal year 2019, Zee had given an intercorporate deposit (ICD) of Rs. 150 crore. On seeing delays in recovering the amount, it assigned the ICD to certain related parties to secure payment of Rs. 170 crore (including accrued interest). Since there are further delays in receiving payment from these parties during the September quarter, the said amount was listed as “exceptional item” in its books.
This made Zee fall short of analysts’ profit estimates. Zee’s September quarter profit rose 7% to Rs. 413 crore. Zee also said, its cash flow for the first half of fiscal 2020 had been approved by its board but had not been reviewed by the auditors.