Exhibit 4
RISHABH NATH ADITYA
Assistant Company Secretary
HQ/CS/CL.24B/9663
24 January 2003
Sir,
SUB: UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE THIRD QUARTER ENDED
31 DECEMBER 2002.
Pursuant to Clause 41 of the Listing Agreement with Indian Stock
Exchanges, please find sent herewith Unaudited Financial Results (Provisional)
for the third quarter ended 31 December 2002, which has been taken on record by
the Board of Directors in their meeting, held on 24 January 2003.
Thanking you,
Yours faithfully,
For Videsh Sanchar Nigam Limited
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) 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) Mr. Hitendra Patil, Vice President (Operations) Central Depository Services
(India) Limited Phiroze Jee Jee Bhoy Towers, Dalal Street, Mumbai - 400
023. Fax: 267 3199
11) Mr. A.K. Gupta, DGM(FA), for SEC filing requirements, Fax 1195
(TATA INDICOM LOGO) (VSNL LOGO)
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.
--------------------------------------------------------------
UNAUDITED FINANCIAL RESULTS (PROVISIONAL)
FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2002
Rs. in Million, except per share data
- -------------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended Year Ended
-----------------------------------------------------------------------------------------------
Particulars 31.12.2002 31.12.2002 31.12.2001 31.12.2002 31.12.2001 31.03.2002
** @@ (Audited)
- -------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6) (7)
- -------------------------------------------------------------------------------------------------------------------------------
1 Net Sales/Income from
operations 10,030 10,483 17,386 36,239 48,623 65,081
- -------------------------------------------------------------------------------------------------------------------------------
2 Other Income 439 439 1,882 1,555 4,508 6,037
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 10,469 10,922 19,268 37,794 53,131 71,118
- ---------------------------------------------------------------------------------------------------------------------------------
3 Total Expenditure 8,327 7,931 13,402 27,167 36,257 48,832
-----------------------------------------------------------------------------------------------------------------------
(a) Network Cost 7,355 6,959 12,671 24,419 34,285 45,004
-----------------------------------------------------------------------------------------------------------------------
(b) Operating Cost
(including provision
for doubtful debts) 377 377 279 1,240 716 1,015
-----------------------------------------------------------------------------------------------------------------------
(c) Staff Cost 347 347 357 1,028 989 1,523
-----------------------------------------------------------------------------------------------------------------------
(d) Administrative
expenses 248 248 95 480 267 1,290
- -------------------------------------------------------------------------------------------------------------------------------
4 Interest 23 23 0 52 0 227
- -------------------------------------------------------------------------------------------------------------------------------
5 Depreciation 356 356 314 1,067 965 1,304
- -------------------------------------------------------------------------------------------------------------------------------
6 GROSS PROFIT (+)/
Loss(-) AFTER
INTEREST BUT BEFORE
TAXATION (1+2)-(3+4+5) 1,763 2,612 5,552 9,508 15,909 20,755
- -------------------------------------------------------------------------------------------------------------------------------
7 Prior Year adjustments 11 11 59 49 (60) 10
- -------------------------------------------------------------------------------------------------------------------------------
8 Provision for Taxation
- Current 968 1,256 1,802 3,481 4,978 6,276
-----------------------------------------------------------------------------------------------------------------------
- Deferred (34) (34) 119 88 79 395
- -------------------------------------------------------------------------------------------------------------------------------
9 NET PROFIT (+)/LOSS(-)
[6-(7+8)] 818 1,379 3,572 5,890 10,912 14,074
- -------------------------------------------------------------------------------------------------------------------------------
10 Paid up Equity Share
Capital (Face value
of Rs.10/- per share) 2,850 2,850 2,850 2,850 2,850 2,850
- -------------------------------------------------------------------------------------------------------------------------------
11 Reserves excluding
revaluation reserves
(as per balance sheet
of previous
accounting year) -- -- -- -- -- 45,496
- -------------------------------------------------------------------------------------------------------------------------------
12 Basic & Diluted
Earning per share
(not annualized) (Rs) 2.87 4.84 12.83 20.67 38.29 49.38
- -------------------------------------------------------------------------------------------------------------------------------
13 Aggregate of
non-promoter
shareholding
-----------------------------------------------------------------------------------------------------------------------
(a) Number of Shares 82,303,185 82,303,185 134,038,560 82,303,185 134,038,560 139,308,000
-----------------------------------------------------------------------------------------------------------------------
(b) Percentage of
Shareholding 28.88 28.88 47.03 28.88 47.03 48.88
- -------------------------------------------------------------------------------------------------------------------------------
** After accounting for impact of adjustments pertaining to period ended 30
September 2002 as required under AS-25 with respect to interconnect
agreements finalized with major domestic operators.
@@ Excluding impact of adjustments pertaining to period ended 30 September
2002 as required under AS-25 with respect to interconnect agreements
finalized with major domestic operators.
1
SEGMENTAL INFORMATION:
The company provides mainly international telephony service constituting nearly
79% of the operational revenues. Other services comprises of Internet, Leased
lines, Frame relay etc which have been aggregated and reported in "Other
Services" category.
BUSINESS SEGMENT
(Rs. in Million)
- ------------------------------------------------------------------------------------------------------------------------------
Particulars Quarter ended Nine Months Ended Year Ended
- ------------------------------------------------------------------------------------------------------------------------------
31.12.2002 31.12.2002 31.12.2001 31.12.2002 31.12.2001 31.03.2002
(Unaudited) @@ (Unaudited) (Unaudited) (Unaudited) (Audited)
**
- ------------------------------------------------------------------------------------------------------------------------------
SEGMENT REVENUE
- ------------------------------------------------------------------------------------------------------------------------------
Telephony Service 7,859 8,312 15,200 30,225 42,690 57,342
- ------------------------------------------------------------------------------------------------------------------------------
Other Services 2,171 2,171 2,186 6,014 5,933 7,739
- ------------------------------------------------------------------------------------------------------------------------------
Total 10,030 10,483 17,386 36,239 48,623 65,081
- ------------------------------------------------------------------------------------------------------------------------------
Less: Inter Segment revenue -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Net Sales/Income from
Operations 10,030 10,483 17,386 36,239 48,623 65,081
- ------------------------------------------------------------------------------------------------------------------------------
Segment results (Profit)(+)/Loss(-) before tax and interest from each segment
- ------------------------------------------------------------------------------------------------------------------------------
Telephony Service 1,675 2,524 4,798 9,501 12,672 18,106
- ------------------------------------------------------------------------------------------------------------------------------
Other Services 1,881 1,881 1,715 5,078 4,619 6,007
- ------------------------------------------------------------------------------------------------------------------------------
Total 3,556 4,405 6,513 14,579 17,291 24,113
- ------------------------------------------------------------------------------------------------------------------------------
Less:
- ------------------------------------------------------------------------------------------------------------------------------
Interest 23 23 0 52 0 228
- ------------------------------------------------------------------------------------------------------------------------------
Other Unallocable expenditure 2,209 2,209 2,843 6,574 5,890 9,168
- ------------------------------------------------------------------------------------------------------------------------------
Unallocable Income (439) (439) (1882) (1,555) (4,508) (6,037)
- ------------------------------------------------------------------------------------------------------------------------------
Other Unallocable expenditure
net of unallocable income 1,793 1,793 961 5,071 1,382 3,358
- ------------------------------------------------------------------------------------------------------------------------------
Total Profit Before Tax 1,763 2,612 5,552 9,508 15,909 20,755
- ------------------------------------------------------------------------------------------------------------------------------
** After accounting for impact of adjustments pertaining to period ended 30
September 2002 as required under AS-25 with respect to interconnect
agreements finalized with major domestic operators.
@@ Excluding impact of adjustments pertaining to period ended 30 September
2002 as required under AS-25 with respect to interconnect agreements
finalized with major domestic operators.
NOTES ON SEGMENTAL REPORTING:
(i) Income and direct expenses in relation to segments is categorized
based on items that are individually identifiable to that segment,
while the remaining 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.
(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.
Notes:
1. The above results were taken on record by the Board of Directors of
the Company at its Meeting held on 24 January 2003.
2. The traffic volume for the nine months period ended 31 December 2002
increased by approx 7% over the corresponding period of the previous
year.
3. The Company provides mainly International Long Distance (ILD) voice
telecommunication service, which accounts for nearly 79% of the
operational revenues. The operational revenue for ILD voice
telecommunication service for the nine months ended 31 December 2002
have been accounted for based on the interconnect charges and
Settlement Rates (SR) as finalized and agreed with the domestic
operators for the outgoing traffic and with the foreign carriers for
the incoming traffic. In line with the increasing competition in the
market, SR for the current period are significantly lower than the SR
for the corresponding period in the previous year, while the
interconnect charges are significantly higher than the interconnect
charges applicable for the corresponding period in the previous year.
2
4. Note 4 to the Unaudited Financial Results for the quarter and
half-year ended 30 September 2002 stated "pending finalization of
agreements with major domestic telecom operators for revenue
sharing/interconnect for ILD voice telecommunications service, the
same have been accounted for based on the same ratio of revenue
sharing for the year ended 31 March 2002. On conclusion of the
agreement with these domestic carriers/decision of TRAI, the figures
would be adjusted accordingly and may have significant adverse impact
on the results."
The Company's reference to TRAI with respect to interconnect charges
is still under process. In the meanwhile, the Company has finalized
agreements with the concerned operators in November 2002.
Consequential adjustments for the six months ended 30 September 2002,
accounted for in the quarter ended 31 December 2002 are a decrease of
Rs.453 million in net sales, increase in Network cost by Rs.396
million and reduction in net profit by Rs.560 million.
Information in respect of financial results for the current quarter,
excluding impact of earlier period adjustments has been given in
Column 3. The results for the nine months ended 31 December 2002
include adjustments.
5. Licence fee for ILD business is accounted for on the basis of the
provisions of the new ILD policy.
6. MCI Worldcom and Teleglobe Canada had filed petitions for
restructuring under Chapter 11 of the U.S. Bankruptcy Code and the
same have been approved by the US courts. While Teleglobe has emerged
from Chapter 11 MCI Worldcom is yet to emerge out of the same.
However, they are continuing their operations and have been remitting
monies and are continuing to settle the accounts.
7. Figures of previous year have been regrouped wherever necessary.
FOR VIDESH SANCHAR NIGAM LIMITED
Place: Mumbai S. K. GUPTA
Date : 24 January 2003 MANAGING DIRECTOR
3