EXHIBIT 9
(VSNL LOGO)
Rishabh Nath Aditya
Assistant Company Secretary
HQ/CS/CL.24B/10181
30 October 2003
Sir,
SUB : UN-AUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE SECOND QUARTER
ENDED 30 SEPTEMBER 2003.
Pursuant to Clause 41 of the Listing Agreement with Indian Stock Exchanges,
please find sent herewith Un-audited Financial Results (Provisional) for the
Second Quarter ended 30 September 2003, which has been taken on record by the
Board of Directors in their Meeting, held on 30 October 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. Pavithra Kumar, 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
FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2003
(RS. IN MILLION)
- ------------------------------------------------------------------------------------------------------------------------------
Unaudited for the Quarter ended Unaudited for the Half Year ended Audited For
Particulars 30 September 30 September Year Ended
----------- ----------------------------------- -------------------------------------- -------------
2003 2002* 2002 2003 2002 2002 31 March 2003
As Published Restated @ As Published* Restated @
1 Net Sales/Income
from operations 7,755 12,478 11,986 16,119 26,209 25,757 45,385
2 Other Income 463 557 557 872 1,087 1,087 2,205
3 Interest on
Income Tax
Refunds - - - 490 - - 535
----- ------ ------ ------ ------ ------ ------
TOTAL INCOME 8,218 13,035 12,543 17,481 27,296 26,844 48,125
----- ------ ------ ------ ------ ------ ------
4 Total Expenditure 6,582 8,887 9,362 14,040 18,839 19,236 33,978
(a) Network Cost 5,640 7,937 8,412 11,840 17,064 17,461 30,039
(b) Operating
and Other
Expenses 534 609 609 1,342 1,094 1,094 2,403
(c) Salaries and
Related Costs 408 341 341 858 681 681 1,536
5 Depreciation 406 364 364 793 712 712 1,467
6 Prior Period
Adjustments 10 1 1 10 38 38 136
7 PROFIT (+)/
Loss(-) BEFORE
TAX AND
EXTRAORDINARY
ITEM
(1+2+3)-(4+5+6) 1220 3,783 2,816 2,638 7,707 6,858 12,544
8 Extraordinary
Item:
Expenditure
under Voluntary
Retirement Scheme 568 - - 955 - - -
9 Profit Before
Tax (7-8) 652 3,783 2,816 1,683 7,707 6,858 12,544
10 Provision for
Taxation 165 1,324 958 538 2,636 2,347 4,743
- Current Tax 235 1,221 855 682 2,513 2,224 4,351
(RS. IN MILLION)
- ------------------------------------------------------------------------------------------------------------------------------
Unaudited for the Quarter ended Unaudited for the Half Year ended Audited For
Particulars 30 September 30 September Year Ended
----------- ----------------------------------- -------------------------------------- -------------
2003 2002* 2002 2003 2002 2002 31 March 2003
As Published Restated @ As Published* Restated @
- Deferred Tax (70) 103 103 (144) 123 123 392
----- ------ ------ ------ ------ ------ ------
11 NET PROFIT
(+)/LOSS(-)
(9-10) 487 2,459 1,858 1,145 5,071 4,511 7,801
----- ------ ------ ------ ------ ------ ------
12 Paid up Equity
Share Capital
(Face value of
Rs.10/- per
share) 2,850 2,850 2,850 2,850 2,850 2,850 2,850
13 Reserves
excluding
revaluation
reserve (As per
Balance Sheet of
previous
accounting year) - - - - - - 52,654
14 Basic & Diluted
Earning per
share (not
annualised) (Rs.) 1.71 8.63 6.52 4.02 17.79 15.83 27.37
15 Aggregate of
non-promoter
shareholding
(a) Number of
Shares 77,752,618 82,303,185 82,303,185 77,752,618 82,303,185 82,303,185 78,556,139
(b) Percentage
of Shareholding 27.28 28.88 28.88 27.28 28.88 28.88 27.56
* Interconnect agreements with the major carriers for F.Y. 2002-03 were
finalised during November 2002. Pending finalisation of these agreements,
the results for the period ended September 30, 2002 were declared on the
basis of management estimates.
@ After accounting for impact of adjustments pertaining to period ended
September 30, 2002, with respect to interconnect agreements finalised with
the major domestic operators in November 2002.
SEGMENTAL REPORTING:
(i) BUSINESS SEGMENTS:
Management has reviewed and revised the reportable business segments to include
international telephony, international private leased circuit, frame relay,
telex and telegraph as a separate reportable segment "international telephony
and related services" for the purpose of evaluating performance and to
facilitate decision making on future allocation of resources. Prior period
figures have been regrouped accordingly.
(RS. IN MILLION)
- -----------------------------------------------------------------------------------------------------------------------------------
Unaudited for the Quarter Unaudited for the Half Year Audited For
Particulars ended 30 September ended 30 September Year Ended
- ----------- ------------------------- --------------------------- -------------
2003 2002 2003 2002 31 March 2003
Restated @ Restated @
SEGMENT REVENUE
International Telephony & Related Services 6,820 10,936 14,094 23,691 41,189
Other Services 935 1,050 2,025 2,066 4,196
----- ------ ------ ------ ------
TOTAL 7,755 11,986 16,119 25,757 45,385
----- ------ ------ ------ ------
Less: Inter Segment Revenue
Net Sales/Income from Operations 7,755 11,986 16,119 25,757 45,385
Segment Results Profit (+) / Loss (-) Before Tax and Interest from each Segment
International Telephony & Related Services 1,556 3,014 3,099 7,058 12,945
Other Services 614 560 1,371 1,238 2,881
----- ------ ------ ------ ------
TOTAL 2,170 3,574 4,470 8,296 15,826
----- ------ ------ ------ ------
Other Un-allocable Expenditure 1,981 1,315 4,149 2,525 6,022
Un-allocable Income 463 557 1,362 1,087 2,740
Other Un-allocable Expenditure Net of
Un-allocable Income (1,518) (758) (2,787) (1,438) (3,282)
----- ------ ------ ------ ------
TOTAL PROFIT BEFORE TAX 652 2,816 1,683 6,858 12,544
----- ------ ------ ------ ------
Taxes 165 958 538 2,347 4,743
----- ------ ------ ------ ------
PROFIT AFTER TAXES 487 1,858 1,145 4,511 7,801
----- ------ ------ ------ ------
@ After accounting for impact of adjustments pertaining to period ended
September 30,2002, with respect to interconnect agreements finalised with
the major domestic operators in November 2002.
NOTE ON SEGMENTAL REPORTING:
Revenue and expenses, which are directly identifiable to segments, are
attributed to the relevant segment. Expenses on rent of satellite channels &
landlines and royalty & license fee on revenues from operations are allocated
based on turnover. Certain expenses such as staff costs, operating & other
expenses and depreciation are not allocable to segments and consequently have
been classified as "un-allocable expenditure".
Notes:
1. The above results were taken on record by the Board of Directors of the
Company at their meeting held on October 30, 2003.
2. The Company introduced a Voluntary Retirement Scheme (VRS) exercisable by
eligible employees between May 15, 2003 and July 14, 2003. In accordance
with Accounting Standard 26 on Intangible Assets, expenditure incurred
under the scheme has been charged to the profit and loss account.
3. The Company has undertaken a review of the useful lives and carrying value
of fixed assets. Pending completion of the review, depreciation has been
provided based on rates prescribed in Schedule XIV of the Companies Act,
1956.
4. The financial results for the quarter and half year ended September 30,
2003 have been subjected to a Limited Review by the Statutory Auditors of
the Company.
5. Figures of the previous period have been regrouped wherever necessary.
6. Investor Complaint status:
Total received during Total resolved during
Outstanding as on the quarter ended the quarter ended Outstanding as on
July 01, 2003 September 30, 2003 September 30, 2003 September 30, 2003
----------------- --------------------- --------------------- ------------------
Nil 192 192 Nil
FOR VIDESH SANCHAR NIGAM LIMITED
Place : Mumbai S. K. GUPTA
Date : October 30, 2003 MANAGING DIRECTOR