EXHIBIT 1
Rishabh Nath Aditya
Assistant Company Secretary
HQ/CS/CL.24B/9907
29 May 2003
Sir,
Sub: Information regarding Audited Financial Results for the quarter and
Financial Year ended 31 March 2003 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
quarter and Financial Year ended 31 March 2003, which has been considered by the
Board of Directors at their 133rd meeting held on 29 May 2003.
2. The Board of Directors has recommended a dividend of Rs.8.50 per share
for the Financial Year 2002-03
Yours faithfully,
For VIDESH SANCHAR NIGAM LIMITED
Rishabh Nath Aditya
Asst. 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)
2723719/2037/9/41/16.
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. Ms.Caroline Yap, Managing Director, International Client Services, New
York Stock Exchange. No. :+1 2126565071
9. Shri Hitendra Patil, Vice President (Operations) Central Depository
Services (India) Limited Phiroze Jee Jee Bhoy Towers, Dalal Street,
Mumbai - 400 023. Fax : 267 3199
10. Corporate Finance, for SEC filing requirements, Fax 1195.
[VIDESH SANCHAR NIGAM LIMITED LOGO]
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 MARCH 2003
(Rs. in Million)
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For the Nine For the Quarter ended For Year Ended
Particulars Months ended (Audited)
----------------------------------- ----------------- -------------------------------- ----------------------------------
31.12.2002 31.03.2003 31.03.2002 31.03.2003 31.03.2002
----------------------------------- ----------------- --------------- ---------------- --------------- ------------------
(1) (2) (3) (4) (5) (6)
----------------------------------- ----------------- --------------- ---------------- --------------- ------------------
1 Net Sales/Income from operations 36,239 9,146 16,458 45,385 65,081
2 Other Income 1,503 1,237 1,303 2,740 5,809
TOTAL INCOME 37,742 10,383 17,761 48,125 70,890
3 Total Expenditure 27,167 6,811 12,575 33,978 48,831
(a) Network Cost 24,419 5,620 10,719 30,039 45,004
(b) Operating and Other Expenses 1,720 683 1,322 2,403 2,303
(c) Salaries and Related Costs 1,028 508 534 1,536 1,523
4 Depreciation 1,066 400 339 1,467 1,304
5 Prior Year adjustments 49 87 70 136 10
6 GROSS PROFIT (+)/ LOSS(-)BEFORE 9,460 3,085 4,777 12,544 20,745
TAXATION (1+2)-(3+4+5)
7 Provision for Taxation 3,569 1,174 1,614 4,743 6,671
- Current Tax 3,481 870 1,298 4,351 6,276
- Deferred Tax 88 304 316 392 395
9 NET PROFIT (+)/LOSS(-) (6-7) 5,890 1,911 3,163 7,801 14,074
10 Paid up Equity Share Capital 2,850 2,850 2,850 2,850 2,850
(Face value of Rs.10/- per share)
11 Reserves excluding revaluation -- -- -- 52,654 47,590
reserve (As per balance sheet of
previous accounting year)
12 Basic & Diluted Earning per share 20.67 6.70 11.10 27.37 49.38
(not annualized) (Rs)
13 Aggregate of non-promoter
shareholding
(a) Number of Shares 82,303,185 78,556,139 139,308,000 78,556,139 139,308,000
(b) Percentage of Shareholding 28.88 27.56 48.88 27.56 48.88
-2-
SEGMENTAL REPORTING:
The Company provides International Long Distance Service providing voice and
data services. The Company's primary segment is international telephony.
BUSINESS SEGMENTS
(Rs. in millions)
------------------------------------------------------------------------------------
For the Nine For the Quarter ended For Year Ended
Particulars Months ended (Audited)
- -------------------------------------- ---------------- ---------------- --------------- ---------------- -----------------
31.12.2002 31.03.2003 31.03.2002 31.03.2003 31.03.2002
- -------------------------------------- ---------------- ---------------- --------------- ---------------- -----------------
(1) (2) (3) (4) (5) (6)
- -------------------------------------- ---------------- ---------------- --------------- ---------------- -----------------
SEGMENT REVENUE
Telephony Service 30,225 6,873 14,652 37,097 57,342
Other Services 6,014 2,273 1,806 8,288 7,739
Total 36,239 9,146 16,458 45,385 65,081
Less: Inter Segment revenue - - - - -
Net Sales/Income from Operations 36,239 9,146 16,458 45,385 65,081
Segment results (Profit)(+)/Loss(-) before tax and interest from each segment
Telephony Service 7,120 2,628 4,468 10,186 14,538
Other Services 4,926 1,085 1,271 5,640 5,539
Total 12,046 3,713 5,739 15,826 20,077
Other Unallocable expenditure 3,864 1,678 2,265 5,542 5,140
Unallocable Income 1,278 1,050 1,303 2,260 5,809
Other Unallocable expenditure net of 2,586 628 962 3,282 (668)
unallocable income
Total Profit Before Tax 9,460 3,085 4,777 12,544 20,745
NOTES ON SEGMENTAL REPORTING:
(i) Revenue and expenses, which are directly identifiable to segments, are
attributed to the relevant segment. Expenses on rent of satellite
channels and landlines, and royalty and license fee on revenues from
operations are allocated based on turnover. Certain expenses such as
staff costs, operating and other expenses and depreciation are not
allocable to segments and consequently have been classified as
"unallocated expenses".
(ii) Segment total assets and liabilities have not been allocated, as in the
absence of a meaningful basis to allocate assets and liabilities
between segments. Fixed assets 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 29 May 2003.
2. Despite maintaining the ILD traffic volume, the income from operations
is lower primarily due to significant reduction in settlement rates due
to increasing competition.
3. The Board of Directors has recommended a dividend of Rs.8.50 per share
for the Financial Year 2002-03 (Financial Year 2001-02 Rs.12.50 per
share plus one time special dividend of Rs.75 per share).
Figures of previous year have been regrouped wherever necessary.
FOR VIDESH SANCHAR NIGAM LIMITED
Place : Mumbai S. K. GUPTA
Date : 29 May 2003 MANAGING DIRECTOR