Exhibit 99.1
[Graphic omitted][Videsh Sanchar Nigam Limited Letterhead]
HQ/CS/CL.24B/9260
29 July 2002
Sir,
Sub: Unaudited Financial Results (Provisional) for the First Quarter
ended 30 June 2002.
Pursuant to clause 41 of the listing agreement with Indian Stock Exchanges,
please find sent herewith the Un-audited Financial Results (Provisional) for the
first quarter ended 30 June 2002 which has been taken on record by the Board of
Directors in their 128th Meeting held on 29 July 2002.
Yours faithfully,
For VIDESH SANCHAR NIGAM LIMITED
By: /s/ R.N. ADITYA
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R.N. Aditya
Asst. Company Secretary
To:
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. 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. Shri A. K. Gupta, DGM(FA), for SEC filing requirements, Fax 1195.
12. Shri U.C. Burman, DGM(Internet), for hosting on website.
[Graphic omitted]
VSNL
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE VIDESH SANCHAR BHAVAN M.G. ROAD, MUMBAI 400001
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UNAUDITED FINANCIAL RESULTS (PROVISIONAL)
FOR THE QUARTER ENDED 30 JUNE 2002
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(Rs. in Million)
Particulars For the Quarter ended For the year ended
30.06.2002 30.06.2001 31.03.2002
(Unaudited) (Unaudited) (Audited)
1 Net Sales/Income from operations 13,731 15,283 65,081
2 Other Income 554 1,138 6,037
Total Income 14,285 16,421 71,118
3 Total Expenditure 9,952 11,099 48,832
a. Network Cost 9,127 10,494 45,004
b. Operating Cost 279 193 1,015
c. Staff Cost 340 312 1,523
d. Administrative expenses 206 100 1,290
4 Interest 23 0 227
5 Depreciation 349 307 1,304
6 Gross Profit (+)/Loss (-) after interest
but before taxation (1+2) - (3+4+5) 3,961 5,015 20,755
7 Prior Year Adjustments 37 (229) 10
8 Provision for Taxation 1,312 1,589 6,671
9 Net Profit (+)/Loss (-) [6-(7+8)] 2,612 3,655 14,074
10 Paid up Equity Share Capital 2,850 2,850 2,850
11 Reserves excluding revaluation reserves -- -- --
(as per balance sheet of previous
accounting year) 45,498
12 Earning per share (not annualised) (Rs.) 9.16 12.83 49.38
13 Aggregate of non-promoter shareholding:
(a) Number of Shares 82,303,205 134,038,560 138,308,000
(b) Percentage of Shareholding 28.66 47.03 48.88
SEGMENTAL INFORMATION:
The company provides mainly international telephony service which accounts for
nearly 84.79% of the operational revenues while the balance revenue is from the
Value Added Services which comprises of internet, leased lines, frame relay etc.
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
reporting in "Other Services" category.
Segmental Reporting (Rs in million)
Particulars For the Quarter ended Year ended
30-Jun-02 30-Jun-01 31-Mar-02
(Unaudited) (Unaudited) (Audited)
Segment Revenue
Telephony Service 11,876 13,466 57,342
Other Services 1,855 1,817 7,739
Total 13,731 15,283 65,081
Less: Inter segment revenue
Net sales/Income from operations 13,731 15,283 65,081
Segment results Profit (+)/Loss (-)
before tax and interest from each
segment
Telephony Service 3,934 2,885 18,106
Other Services 1,528 1,402 6,007
Total 5,462 5,287 24,113
Less:
Interest 23 0 227
Other unallocable expenditure 2,032 1,411 9,168
Unallocable Income (554) (1,139) (6,037)
Other Unallocable expenditure net of 1,601 272 3,358
unallocable income
Total Profit Before Tax 3,961 5,015 20,755
NOTES ON SEGMENTAL REPORTING:
(i) Income and direct expenses in relation to segments is categorised based on
items that are individually identifiable to that segment, while the
remaining costs are categorised 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 a
the underlying services are used interchangeably. Accordingly, it is not
practicable to provide segment disclosure relating to those costs and
expenses, which 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:
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1. The above results were taken on record by the Board of Directors
of the Company at its Meeting held on 29th July, 2002.
2. The traffic volume during the quarter increased by approx. 24%
over the corresponding period of the previous year.
3. Income from operations as well as transmission cost included
under "Network cost" for the quarter ended 30th June, 2002 are on
the basis of revised Total Accounting Rates (TAR) which are
approximately 30% lower than the TAR applicable for the
corresponding period in the previous year. Further, pending final
agreements with major domestic telecom operators for revenue
sharing, same have been accounted for based on the same ratio of
the revenue sharing as at the end of the financial year 2001-02.
On conclusion of the negotiations, the figures would be adjusted
accordingly and may have significant adverse impact on the
results.
4. Licence fee for ILD business is accounted for at 15% of Adjusted
Gross Revenue in accordance with the ILD policy.
5. MCI Worldcom and Teleglobe Canada have filed petitions for
restructuring under Chapter 11 of the U.S. Bankruptcy Code. These
carriers are continuing their operations and have been remitting
monies and are continuing to settle the accounts.
6. As per Accounting Standard 22 on "Accounting for Taxes on
Income", adjustment has been made under provisions for taxation
amounting to Rs. 20 millions towards deferred tax liability (net)
for the quarter ended June 2002.
7. Figures of previous year have been regrouped wherever necessary.
For Videsh Sanchar Nigam Limited
By: /s/ S.K. GUPTA
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S.K. Gupta
Managing Director
Place: Mumbai
Date: 29 July 2002