EXHIBIT 99.1
[Graphic Omitted] [VIDESH SANCHAR NIGAM LIMITED LETTERHEAD]
HQ/CS/CL24B/9083
28 May 2002
Sir,
Sub: Information regarding Audited Financial Results for the quarter and
Financial Year ended 31 March 2002, Recommendation of Final Dividend
and Investment in Share Capital of M/s. Tata Teleservices Limited.
Pursuant to clause 41 of the listing agreement with Indian Stock Exchanges,
please find sent herewith the Audited Financial Results for the quarter and
Financial Year ended 31 March 2002 which has been considered by the Board of
Directors in their 127th Meeting held on 28 May 2002.
2 The Board also recommended a final dividend at the rate of Rupees 87.50/-
(Rs. Eighty Seven and Fifty Paise only) per share (inclusive of special interim
dividend of Rs.75/- per share paid out of the reserves of the Company as per the
approval obtained from the Central Government and Rs.12.50/- per share out of
the profits of the year)
3. Please also be informed that VSNL Board today, unanimously decided to
invest up to Rs.1200 crores in the share capital of M/s. Tata Teleservices
Limited. The Board constituted a sub-committee to undertake and authorise all
such acts and deeds as may be necessary in relation to the proposed investment.
Yours faithfully,
For VIDESH SANCHAR NIGAM LIMITED
By: /s/ SATISH RANADE
---------------------------
Satish Ranade
Executive Director (Legal) & Company Secretary
1. Security Code 23624, The Stock Exchange, Mumbai, Corporate Relationship
Department, 1st Floor, New Trading Ring, Rotunda Building, Phiroze Jee Jee
Bhoy Towers, Dalal Street, Mumbai -400 001. Fax No.(22) 2722061,
2721072.
2. The Secretary, Madras Stock Exchange Limited, Post Box No.183, 11, Second
Line Beach, Chennai - 600 001. Fax No. (44) 524 48 97.
3. Security Code 32149, The Secretary, Calcutta Stock Exchange Assn. Ltd, 7,
Lyons Range, Calcutta - 700 001. Fax No.(33) 220 25 14/28 37 24.
4. Security Code 22064, The Secretary, Delhi Stock Exchange Assn. Limited,
3/1, Asaf Ali Road, New Delhi - 110 002. Fax No. (11) 329 21 81.
5. Security Code 5251, The Asst. Manager (Listing), National Stock Exchange of
India Limited, Capital Market - Listing, Exchange Plaza, Bandra Kurla
Complex, Bandra (E), Mumbai - 400 051.Fax Nos. : (22) 6598237/38.
6. National Securities Depository Ltd., Trade World, 4th Floor, Kamala Mills
Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. Fax Nos. :
497 29 93.
7. Mr. Anish Kumar, The Bank of New York, Express Towers, 13th Floor, Nariman
Point, Mumbai - 400 021. Fax No. 204 49 42.
8. Head Office : M/s. Sharepro Services, Satam Estate, 3rd Floor, Above Bank
of Baroda, Chakala, Andheri (E), Mumbai - 400 099 Ph. 821 5168 / 820 2108 /
820 2114, FAX 837 5646
9. Ms. Caroline Yap, Managing Director, International Client Services, New
York Stock Exchange. No. : +1 2126565071
10. Shri Hitendra Patil, Vice President (Operations) Central Depository
Services (India) Limited Phiroze Jee Jee Bhoy Towers, Dalal Street, Mumbai
- 400 023. Fax : 267 3199
11. Corporate Finance, for SEC filing requirements, Fax 1195.
12. Shri U.C. Burman, DGM (Internet), for hosting on website.
VIDESH SANCHAR NIGAM LIMITED
Regd. Office:
Videsh Sanchar Bhavan, M.G. Road,
Mumbai - 400 001
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED 31ST MARCH 2002.
Rs. in Million
Particulars Unaudited Figures Audited Figures
For the Nine For the Quarter Ended For the Year Ended
Months Ended
31.12.2001 31.03.2002 31.03.2001 31.03.2002 31.30.2001
1 Net Sales/Income from 48,623 16,458 20,021 65,081 72,975
operations
2 Other Income 4,508 1,529 1,408 6,037 6,684
Total Income 53,131 17,987 21,429 71,118 79,659
3 Total Expenditure 36,257 12,575 14,801 48,832 53,801
a. Increase / decrease in NOT APPLICABLE
stock in trade
b. Consumption of Raw NOT APPLICABLE
Materials
c. Staff Cost 989 534 889 1,523 1,710
d. Network Cost 34,285 10,719 13,444 45,004 50,235
e. Operating Cost 680 335 321 1,015 869
f. Administrative expenses 303 987 147 1,290 987
4 Interest 227 0 227 1
5 Depreciation 965 339 343 1,304 1,162
6 Gross Profit (+)/Loss(-)
after interest but before
taxation (1+2)-(3+4+5) 15,909 4,846 6,285 20,755 24,695
7 Extraordinary Item:-Write
down of Investment in ICO
Global Communications - - - - 52
8 Prior Year Adjustment (60) 70 0 10 (1,032)
9 Provision for Taxation 5,057 1,614 1,812 6,671 7,887
10 Net Profit (+) / Loss(-)
[6-(7+8+9)] 10,912 3,162 4,473 14,074 17,788
11 Paid up Equity Share Capital 2,850 2,850 2,850 2,850 2,850
12 Reserves excluding
revaluation reserves (as per
balance sheet of previous
accounting year) - - - - 62,992
13 Earning per share (not
annualised) (Rs.) 38.29 11.09 15.69 49.38 62.42
14 Aggregate of non-promoter
shareholding:-
(a) Number of Shares 134,038,560 139,308,000 134,038,560 139,308,000 134,038,560
(b) Percentage of Shareholding 47.03 48.88 47.03 48.88 47.03
Segmental information:
The company provides mainly international telephony which accounts for nearly
87.65% of the revenue, internet and leased lines services. Business segments
other than telephony segment do not meet the criteria specified in AS-17;
Segmental Reporting and do not qualify as reportable Segments and hence
information about these segments has been aggregated and reported is "Other
Services" category.
Secondary segments revenue are segregated by geographical area based on the
location of the customer, who is invoiced or in relation to which the revenue is
otherwise recognized.
Business Segment
Segment Reporting Rs. in Million
Particulars Unaudited Figures Audited Figures
For the Nine For the Quarter Ended For the Year Ended
Months Ended
31.12.2001 31.03.2002 31.3.2001 31.03.2002 31.3.2001
Segment Revenue
Telephony Service 42,616 14,726 17,711 57,342 63,868
Other Services 6,007 1,732 2,310 7,739 9,107
Total 48,623 16,458 20,021 65,081 72,975
Less: Inter segment revenue
Net sales/income from operations 48,623 16,458 20,021 65,081 72,975
Segment results (Profit)(+)/Loss(-) before tax and interest from each segment
Telephony Service 14,062 4,044 3,693 18,106 18,557
Other Services 3,229 2,778 3,275 6,007 5,320
Total 17,291 6,822 6,968 24,113 23,877
Less:
Interest (227) (227) (1)
Other Unallocable expenditure
net of unallocable income (1,382) (1,749) (683) (3,131) 819
Total profit before tax 15,909 4,846 6,285 20,755 24,695
Notes:
(i) Income and direct expenses in relation to segments is categorized based on
items that are individually identifiable to that segment, while the
reminder of the costs are categorized in relation to the associated
turnover of the segment. Certain expenses such as staff cost, depreciation
and certain part of network cost are not specifically allocable to specific
segments as the underlying services are used interchangeably. Accordingly,
it is not practicable to provide segment disclosure relating to those costs
and expenses are separately disclosed as "unallocated" and directly charged
against the total income.
(ii) Fixed assets used in the company's business or liabilities contracted have
not been identified to any of the reportable segment, as the fixed assets
and services are used interchangeably between segments. Hence, it is
currently not practicable to provide segment disclosures relating to total
assets and liabilities since the meaningful segregation of the available
data is onerous.
Notes:
1. The above results were taken on record by the Board of Directors of the
Company at its Meeting held on 28th May, 2002.
2. Income from operations as well as transmission cost included under "Network
cost" for the quarter and year ended 31st March, 2002 are on the basis of
revised Total Accounting Rates (TAR) which are approximately 20% lower than
the TAR applicable for the previous year. Therefore, while the telephone
traffic has grown by approx 16% for the current year, the income from
operations has shown a decline by about 9.38%.
3. Income from operations till 31st March, 2001 included income from Intelsat.
Consequent to corporatisation of Intelsat during the year, henceforth
income will be received as dividend.
4. Network Cost includes Rs. 726 million pertaining to earlier years, levied
by the Wireless Planning & Coordination Committee for Spectrum
authorisation.
5. Consequent to the Accounting Standard - 22 on accounting for taxes on
Income becoming mandatory effective from April 1, 2001, the Company has
charged the estimated cumulative net deferred tax liability of Rs. 2416
million until April 1, 2001 to general reserves. Provision for taxation for
the year ended 31st March 2002 is net deferred tax debit of Rs. 401
Million.
6. Figures of previous year have been regrouped wherever necessary.
For Videsh Sanchar Nigam Limited
By: /s/ S.K. GUPTA
----------------------------
Place: Mumbai S.K. Gupta
Date: 28 May 2002 Managing Director