ZEE TELEFILMS SCRIP SOARS
TO A NEW HIGH

The Zee Telefilms Ltd (ZTL) scrip has once again spurted on the stock exchanges. Towards end last week it scaled a new high of Rs 879, breaking the Rs 800 barrier that had been holding it back the previous few months. The share has seen heavy buying from foreign institutional investors. The reason: they expect the extension of the section 80HHC benefit, which provides income tax exemption, to television software exporting companies to help ZTL report better profits this year.

While this is true, experts point out that ZTL may actually not derive any benefits from this exemption immediately. The company has in the past had disputes with the income tax authorities on this very score. It had earlier contended that the section 80HHC exemption was applicable to television software exports and not paid tax. Its contingent liabilities on account of this are to the tune of Rs 519 million in financial year 1998. This disputed amount will now have to paid up by ZTL as income-tax authorities will now state that since the exemption has only now been granted by the government its earlier efforts to avoid paying taxes under section 80 HHC are invalid. However, experts don't doubt that the income tax exemption benefit will help Zee TV in the long run.

Television software production firm Sri Adhikari Brothers pole-vaulted past Rs 100 to touch a new high of Rs 127.50. The company's promoters have been making a concerted effort to hawk its huge television software library internationally.

The scrips of the Pentafour group - which is involved in computer software and animation -- also made advances. Pentafour Communications came close to its earlier new high of Rs 210 with a closing of Rs 208 over the weekend. Sister company Pentafour Software & Exports also nearly touched its previous high of Rs 1,115 on the back of news that it had signed a deal with US company Stan Lee Media. According to the agreement, Stan Lee will contract Pentafour Software for creating television software, feature films, home video, Internet video games and comic books.