Tata Communications (VSL) 6-K Current report (foreign)

Exhibit 99.1

HQ/CS/CL.24B/15381

13 May 2014

Sir,

Sub: Information regarding Audited Financial Results for the Financial Year ended 31 March 2014 and Recommendation of Dividend.

Pursuant to clause 41 of the listing agreement with Indian Stock Exchanges, please find sent herewith the Audited Financial Results for the Financial Year ended 31 March 2014 according to Indian GAAP, which have been considered by the Board of Directors at their meeting held on 13 May 2014 (Attachment “A”).

2.     The Board of Directors have recommended a dividend of Rupees 4.50 (Four Rupees and Fifty Paisa) per share for the Financial Year 2013-14.

3.     The press release in this regards is also attached (Attachment “B”)

Thanking you,

Yours faithfully,

For Tata Communications Limited

Satish Ranade

Company Secretary

To:

1) Security Code 23624, The Stock Exchange, Mumbai. Fax No.(22) 22722037,39,41

2) Security Code 5251, The Asst. Manager (Listing), National Stock Exchange of India Limited. Fax Nos.: (22) 26598237/38.

3) National Securities Depository Ltd. Fax Nos. : 2497 29 93.

4) The Bank of New York. Fax No.2204 49 42.

5) Sharepro Services. Fax No. 2837 5646

6) Marc H. Iyeki, Director, New York Stock Exchange, Fax No: (212) 656-5071 /72 / Managing Director, New York Stock Exchange, Fax No: (212) 265-2016

7) Central Depository Services (India) Limited. Fax : 2267 3199.

TATA COMMUNICATIONS LIMITED

REGD. OFFICE: VSB, M.G. ROAD, FORT, MUMBAI-400001.

( in Lakhs)

A. STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2014

Part I
	Particulars	Standalone
		For the quarter ended											For the year ended
		March 31 2014 (adjusted)		March 31 2014			December 31 2013 (adjusted)		December 31 2013 (As published)		March 31 2013		March 31 2014		March 31 2013
		(unaudited) (Refer note 3)		(audited) (Refer note 2&3)			(unaudited) (Refer note 3)		(unaudited)		(audited) (Refer note 2)		(audited)		(audited)
1	Income from Operations
	a. Revenue from Operations		107192		81034			107105		115983		115023		433005		441612
	b. Other operating income		400		400			4235		4235		—		4635		—
	c. Total Income from Operations (1a to 1b)		107592		81434			111340		120218		115023		437640		441612
2	Expenses
	a. Network and transmission		40571		40279			45404		45502		46196		187595		196320
	b. Employee benefit		16852		16178			16470		16685		15673		64081		63946
	c. Depreciation and amortization		16912		11262			16624		18573		19790		68023		76240
	d. Other		23034		15576			22332		25137		20407		86170		81325
	e. Total Expenditure (2a to 2d)		97369		83295			100830		105897		102066		405869		417831
3	Profit / (Loss) from Operations before Other Income, Finance costs and Exceptional Items (1 - 2)		10223		(1861	)		10510		14321		12957		31771		23781
4	Other Income		11539		19639			10857		8066		6839		46395		38022
5	Profit / (Loss) from Ordinary Activities before Finance costs and Exceptional Items (3 + 4)		21762		17778			21367		22387		19796		78166		61803
6	Finance Cost		1341		1341			1447		1447		2158		5951		11969
7	Profit / (Loss) from Ordinary activities after Finance costs but before Exceptional Items (5 - 6)		20421		16437			19920		20940		17638		72215		49834
8	Exceptional Items gain/(loss)		—		—			—		—		18336		8133		15835
9	Profit / (Loss) from Ordinary Activities before Tax (7+8)		20421		16437			19920		20940		35974		80348		65669
10	Tax Expense		6791		4103			6656		6882		9019		26105		18145
11	Net Profit / (Loss) from Ordinary Activities after Tax (9 - 10)		13630		12334			13264		14058		26955		54243		47524

A. STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2014

( in Lakhs)

Part I
	Particulars	Standalone
		For the quarter ended										For the year ended
		March 31 2014 (adjusted)		March 31 2014		December 31 2013 (adjusted)		December 31 2013 (As published)		March 31 2013		March 31 2014		March 31 2013
		(unaudited) (Refer note 3)		(audited) (Refer note 2&3)		(unaudited) (Refer note 3)		(unaudited)		(audited) (Refer note 2)		(audited)		(audited)
12	Extraordinary Items (net of Tax Expense)		—		—		—		—		—		—		—
13	Net Profit/(Loss) for the period (11 - 12)		13630		12334		13264		14058		26955		54243		47524
14	Paid up Equity Share Capital (Face value of 10 per share)		28500		28500		28500		28500		28500		28500		28500
15	Paid up Debt Capital												94118		77470
16	Reserves excluding Revaluation Reserve												739455		702495
17	Debenture Redemption Reserve												43794		35013
18	Earnings Per Share (EPS) Basic and diluted earnings per share before and after Extraordinary Items ( )		4.78		4.33		4.65		4.93		9.46		19.03		16.68
19	Debt Equity Ratio												0.12		0.10
20	Debt Service Coverage Ratio (DSCR) #												23.12		1.90
21	Interest Service Coverage Ratio (ISCR) ##												23.12		11.55

# DSCR = (profit from ordinary activities before tax and exceptional Items + depreciation + interest on long-term loans) /(interest on long-term loans + repayment of long-term loans during the year)*

## ISCR = (profit from ordinary activities before Tax and exceptional Items + depreciation + interest on long-term loans)/interest on long-term loans*

* Loans having original maturity of more than 360 days are considered as long-term loans.

B. STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2014

Part II
	For the quarter ended									For the year ended
A) Particulars of Shareholding	March 31 2014			December 31 2013			March 31 2013			March 31 2014			March 31 2013
1. Public shareholding
a. Number of shares		71266785			71266785			53803177			71266785			53803177
b. Percentage of shareholding		25.01	%		25.01	%		18.88	%		25.01	%		18.88	%
2. Promoters and Promoter Group Shareholding
a. Pledged / Encumbered
- Number of Shares		10000000			10000000			10000000			10000000			10000000
- Percentage of Shares (as a % of the total shareholding of promoters and promoter group)		4.68	%		4.68	%		4.61	%		4.68	%		4.61	%
- Percentage of Shares (as a % of the total share capital of the Company)		3.51	%		3.51	%		3.51	%		3.51	%		3.51	%
b. Non-encumbered
- Number of Shares		203733215			203733215			207028873			203733215			207028873
- Percentage of Shares (as a % of the total shareholding of promoters and promoter group)		95.32	%		95.32	%		95.39	%		95.32	%		95.39	%
- Percentage of Shares (as a % of the total share capital of the Company)		71.48	%		71.48	%		72.64	%		71.48	%		72.64	%
3. Shares held by custodian and against which Depository Receipts have been issued-
(I) Promoters and promoters group		—			—			—			—			—
(II) Public		—			—			14167950			—			14167950

Particulars	Quarter ended on 31.03.2014
B) Investor complaints
Pending at the beginning of the quarter		Nil
Received during the quarter		0
Disposed off during the quarter		0
Remaining unresolved at the end of the quarter		Nil

( in lakhs)

C. STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2014

Part I
	Particulars	Consolidated
		For the quarter ended								For the year ended
		March 31 2014			December 31 2013		March 31 2013			March 31 2014		March 31 2013
		(audited) (Refer note 2)			(unaudited)		(audited) (Refer note 2)			(audited)		(audited)
1	Income from Operations
	a. Revenue from Operations		521531			495365		440046			1961955		1721295
	b. Other operating income		400			4235		—			4635		—
	c. Total Income from Operations (1a to 1b)		521931			499600		440046			1966590		1721295
2	Expenses
	a. Network Costs		284969			269210		251960			1074572		978058
	b. Employee benefits		69235			61675		60486			249761		241146
	c. Depreciation and Amortisation		52433			52021		42728			209137		202705
	d. Other		89345			87094		78946			333461		296120
	e. Total Expenditure (2a to 2d)		495982			470000		434120			1866931		1718029
3	Profit / (Loss) from Operations before Other Income, Finance costs and Exceptional Items (1 - 2)		25949			29600		5926			99659		3266
4	Other Income / (Expense), Net		5300			2460		4137			14330		22659
5	Profit / (Loss) from Ordinary Activities before Finance costs and Exceptional Items (3 + 4)		31249			32060		10063			113989		25925
6	Finance Costs		19607			19838		18781			76170		79414
7	Profit / (Loss) from Ordinary Activities after Finance costs but before Exceptional Items (5 - 6)		11642			12222		(8718	)		37819		(53489	)
8	Exceptional Items gain/(loss)		(15000	)		—		18332			6622		10418
9	Profit / (Loss) from Ordinary Activities before Tax (7+8)		(3358	)		12222		9614			44441		(43071	)
10	Tax Expense		8937			8710		10808			34328		22020
11	Net Profit / (Loss) from Ordinary Activities after Tax (9 - 10)		(12295	)		3512		(1194	)		10113		(65091	)
12	Extraordinary Items (net of Tax Expense)		—			—		—			—		—

( in lakhs)

C. STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2014

Part I
		Consolidated
		For the quarter ended									For the year ended
		March 31 2014			December 31 2013			March 31 2013			March 31 2014			March 31 2013
	Particulars	(audited) (Refer note 2)			(unaudited)			(audited) (Refer note 2)			(audited)			(audited)
13	Net Profit / (Loss) for the period (11 - 12)		(12295	)		3512			(1194	)		10113			(65091	)
14	Share in Profit / (Loss) of Associates		2			64			37			169			25
15	Minority Interest		(26	)		(22	)		637			(140	)		2735
16	Net Profit / (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)		(12319	)		3554			(520	)		10142			(62331	)
17	Paid up Equity Share Capital (Face value of 10 per share)		28500			28500			28500			28500			28500
18	Reserves excluding Revaluation Reserve											30846			93340
19	Debenture Redemption Reserve											43794			35013
20	Earnings Per Share (EPS) Basic and diluted earnings per share before and after Extraordinary Items ( )		(4.32	)		1.25			(0.18	)		3.56			(21.87	)

D. Standalone Business Segment Information:

( in Lakhs)

Particulars	Standalone
	For the quarter ended															For the year ended
	March 31 2014 (adjusted)			March 31 2014			December 31 2013 (adjusted)			December 31 2013			March 31 2013			March 31 2014			March 31 2013
	(unaudited) (Refer note 3)			(audited) (Refer note 2&3)			(unaudited) (Refer note 3)			(As published)			(audited) (Refer note 2)			(audited)			(audited)
Income from Operations
Global Voice Solutions		22394			22394			27686			27686			31013			111922			119311
Global Data and Managed Services		85198			59040			83654			92532			84010			325718			322301
Total		107592			81434			111340			120218			115023			437640			441612
Segment result
Global Voice Solutions		(3252	)		(3252	)		(2687	)		(2687	)		(1357	)		(12679	)		(14423	)
Global Data and Managed Services		68570			42614			65066			73761			67403			254667			251273
Total		65318			39362			62379			71074			66046			241988			236850
Less :
(i) Finance Cost		1341			1341			1447			1447			2158			5951			11969
(ii) Other Unallocable Expenses (net)*		43556			21584			41012			48687			27914			155689			159212
Profit / (Loss) before Taxes		20421			16437			19920			20940			35974			80348			65669
* Includes Exceptional Items gain/(loss)		—			—			—			—			18336			8133			15835

E. Consolidated Business Segment Information:

( in Lakhs)

Particulars	Consolidated
	For the quarter ended									For the year ended
	March 31 2014			December 31 2013			March 31 2013			March 31 2014			March 31 2013
	(audited) (Refer note 2)			(unaudited)			(audited) (Refer note 2)			(audited)			(audited)
Income from Operations
Global Voice Solutions		249065			242883			218818			957159			856469
Global Data and Managed Services		209263			204754			174632			792562			675343
South Africa Operations		63548			51833			46410			216314			188548
Others		55			130			186			555			935
Total		521931			499600			440046			1966590			1721295
Segment result
Global Voice Solutions		36362			38689			37047			158527			140359
Global Data and Managed Services		134127			128292			104850			493165			420581
South Africa Operations		13465			14562			2172			43557			5148
Others		(236	)		(395	)		(2644	)		(995	)		(3544	)
Total		183718			181148			141425			694254			562544
Less :
(i) Finance Costs		19607			19838			18781			76170			79414
(ii) Other Unallocable Expenses (net)*		167469			149088			113030			573643			526201
Profit / (Loss) before Taxes		(3358	)		12222			9614			44441			(43071	)
*Includes Exceptional Items gain/(loss)		(15000	)		—			18332			6622			10418

Notes to Segments:

The Company’s reportable business segments are Global Voice Solutions (GVS), Global Data and Managed Services (GDMS), South Africa Operations and others. The composition of the reportable segments is as follows:

GVS includes International and National Long Distance Voice services.

GDMS includes Corporate Data Transmission services, data centers, virtual private network signalling and roaming services, television and other network and managed services.

South Africa Operations are carried out by the Company’s subsidiary Neotel Pty Ltd. and comprise wholesale international voice and data transit, enterprise business solution services for the wholesale and corporate market, telephony and data services for retail customers in South Africa.

Others primarily comprise a Joint venture business.

Revenues and interconnect charges are directly attributable to the segments. Space segment utilization charges, rent of landlines and other network and transmission costs are allocated based on utilization of satellite and landlines. License fee for GVS and GDMS have been allocated based on adjusted gross revenues from these services. Segment result is segment revenues less segment expenses. Certain costs including depreciation which are not allocable to GVS and GDMS have been classified as “Other Unallocable Expenses (net)”.

Telecommunication services are provided utilizing the Company’s assets which do not generally make a distinction between the types of services. As a result, fixed assets are used interchangeably between segments. In the absence of a meaningful basis to allocate assets and liabilities between segments, no allocation has been made.

F. Statement of Standalone Assets and Liabilities as at March 31, 2014

( in Lakhs)

Particulars		Standalone
		As at March 31 2014		As at March 31 2013
		(audited)		(audited)
A EQUITY AND LIABILITIES
1. Shareholders’ funds
(a) Share Capital			28500		28500
(b) Reserves and Surplus			760061		723142
	Sub-total - Shareholders’ funds		788561		751642
2. Non-current liabilities
(a) Long-term borrowings			21000		62500
(b) Other Long term liabilities			42869		39156
(c) Long-term provisions			12367		12216
	Sub-total - Non-current liabilities		76236		113872
3. Current liabilities
(a) Short-term borrowings			31618		14970
(b) Trade payables			114456		108281
(c) Other current liabilities			98248		70266
(d) Short-term provisions			32923		28199
	Sub-total - Current liabilities		277245		221716
	TOTAL - EQUITY AND LIABILITIES		1142042		1087230
B ASSETS
1. Non-current assets
(a) Fixed assets
(i) Tangible assets			411262		469491
(ii) Intangible assets			12456		13854
(iii) Capital work-in-progress			31004		17466
(b) Non-current investments			206866		203051
(c) Deferred tax assets (Net)			9292		871
(d) Long-term loans and advances			221282		185449
(e) Other non-current assets			808		808
	Sub-total - Non-current assets		892970		890990
2. Current assets
(a) Current investments			93431		46241
(b)Inventories - stores and spares			415		420
(c) Trade receivables			68544		85649
(d) Cash and bank balances			52263		32862
(e) Short-term loans and advances			33477		29039
(f) Other current assets			942		2029
	Sub-total - Current assets		249072		196240
	TOTAL - ASSETS		1142042		1087230

G. Statement of Consolidated Assets and Liabilities as at March 31, 2014

( in Lakhs)

Particulars		Consolidated
		As at March 31 2014		As at March 31 2013
A EQUITY AND LIABILITIES
1. Shareholders’ funds
(a) Share Capital			28500		28500
(b) Reserves and Surplus			51452		113987
	Sub-total - Shareholders’ funds		79952		142487
2. Minority Interest			621		791
3. Non-current liabilities
(a) Long-term borrowings			975055		919458
(b) Deferred tax liabilities (Net)			3573		2870
(c) Other Long term liabilities			415911		393297
(d) Long-term provisions			26393		23549
	Sub-total - Non-current liabilities		1420932		1339174
4. Current liabilities
(a) Short-term borrowings			222572		108040
(b) Trade payables			404027		391564
(c) Other current liabilities			319139		368522
(d) Short-term provisions			40450		33335
	Sub-total - Current liabilities		986188		901461
TOTAL - EQUITY AND LIABILITIES			2487693		2383913
B ASSETS
1. Non-current assets
(a) Fixed assets
(i) Tangible assets			1385496		1329151
(ii) Intangible assets			44074		54695
(iii) Capital work-in-progress			61818		76342
(iv) Intangible assets under development			3481		724
(b) Goodwill on consolidation			61846		87294
(c) Non-current investments			75380		75321
(d) Deferred tax assets (Net)			10847		1109
(e) Long-term loans and advances			228247		229076
(f) Other non-current assets			1232		808
	Sub-total-Non-current assets		1872421		1854520
2. Current assets
(a) Current investments			100442		56841
(b) Inventories - stores and spares			5058		2720
(c) Trade receivables			273390		313870
(d) Cash and bank balances			166947		92330
(e) Short-term loans and advances			67768		60827
(f) Other current assets			1667		2805
	Sub-total - Current assets		615272		529393
	TOTAL - ASSETS		2487693		2383913

Notes:

1. The above standalone and consolidated results of the Company for the financial year ended March 31, 2014 have been reviewed by the audit committee and audited by the statutory auditors. These results were taken on record and approved by the Board of Directors at their meeting held on May 13, 2014.

2. The figures of the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year.

3. Consequent to the order of the Bombay High Court dated January 24, 2014, approving the Scheme of Arrangement, the transfer of the IDC division (Colocation service division of the Company) to Tata Communications Data Centers Private Limited (“TCDC”) has been effected from the appointed date in terms of the Scheme.

Consequently, the results for the standalone quarter ended March 31, 2014, (audited) exclude the results of the IDC division for the entire year ended March 31, 2014. Accordingly the results for the standalone quarter and year ended March 31, 2014, are not comparable with the results of the other periods.

Further, the figures disclosed for the quarters ended March 31, 2014, (adjusted) and December 31, 2013, (adjusted) are considering the impact of the exclusion of the results of the IDC division for the respective quarters only. No effect of the IDC division transfer has been given for the quarter and year ended March 31, 2013.

4. The Board of Directors at its meeting held on May 13, 2014, proposed a dividend of 4.50 (Previous year 3) per equity share.

5. Other Income includes:

Foreign Exchange Fluctuation

( in Lakhs)

Net foreign exchange gain/(loss)	For the quarter ended															For the year ended
	March 2014 (adjusted)			March 2014			December 2013 (adjusted)			December 2013			March 2013			March 2014			March 2013
	(unaudited) (Refer note 4)			(audited) (Refer note 2)			(unaudited) (Refer note 4)			(unaudited) (As published)			(audited) (Refer note 2)			(audited)			(audited)
- Standalone		(161	)		(164	)		379			365			448			(355	)		1543
- Consolidated		(1612	)		(1612	)		(1605	)		(1605	)		(1162	)		(4562	)		(1448	)

6. Other operating income in the standalone and consolidated financial statements for the quarter ended March 31, 2014, quarter ended December 31, 2013 and year ended March 31, 2014, comprises an amount of 400 lakhs, 4235 lakhs and 4635 lakhs respectively in respect of export benefits received.

7. Network costs in the consolidated financial statements for the quarter ended December 31, 2013 and year ended March 31, 2014, are net of a write back amounting to 3371 lakhs in respect of earlier years with respect to Neotel.

8. The Company has recorded a provision for a decline other-than-temporary in the carrying value of the investments in and advances to Neotel and impairment of goodwill based on the ongoing exclusive discussions with Vodacom Group Limited to sell all of the issued share capital of Neotel, held by VSNL SNOSPV Pte Ltd, a wholly owned subsidiary of Tata Communications Limited, and the management’s current assessment that there are indications that there is a decline in such carrying values which may be other than temporary. (Refer Note 9 (a) and (c))

9. Results include exceptional items:

a. For the quarter and year ended March 31, 2014, a charge amounting to 15000 lakhs representing the impairment of Neotel goodwill, in the consolidated financial statements.

b. For the year ended March 31, 2014, in respect of the standalone and consolidated financial statements, an amount of  21622 lakhs being Input credits against certain statutory obligations relating to earlier periods that have been accounted for during the quarter ended June 30, 2013 on crystallization of the entitlements to such credits.

c. For the year ended March 31, 2014, in respect of the standalone financial statements, an amount of 13489 relating to the provision for diminution in carrying amount of investments and advances in Neotel.

d. For the year ended March 31, 2013, in respect of the standalone financial statements, Employee cost optimization expenses amounting to 3127 lakhs and gain on sale of fixed asset of 18962 lakhs and in respect of consolidated financials, employee cost optimization expenses amounting to 8544 lakhs and gain on sale of fixed asset of 18962 lakhs.

e. For the quarter ended March 31, 2013, in respect of the standalone financial statements, Employee cost optimization expenses amounting to 626 lakhs and gain on sale of fixed asset of 18962 lakhs and in respect of consolidated financials, employee cost optimization expenses amounting to 630 lakhs and gain on sale of fixed asset of 18962 lakhs.

10. During the year ended March 31, 2013, the Company has reassessed the economic useful life of certain fixed assets which has resulted in net reduction in depreciation expenses of 35 lakhs for the quarter and year ended March 31, 2013 in its standalone financials and 12862 lakhs for the quarter ended March 31, 2013 and 15900 lakhs for the year ended March 31, 2013 in its consolidated financials.

11. Previous year figures have been regrouped/ rearranged wherever necessary to conform to the current year’s classifications.

For TATA COMMUNICATIONS LIMITED

VINOD KUMAR

MANAGING DIRECTOR &

GROUP CEO

Place : Mumbai.

Date : May 13, 2014