Exhibit No. 4
(VSNL LOGO)
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2003
(IN INDIAN GAAP)
(RS. IN MILLIONS)
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Unaudited for the Quarter Ended Unaudited for the Nine Audited for Year
Particulars December 31, Months Ended December 31, ended March 31,
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2003 2002 2002 2003 2002 2003
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** @@
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1 Net Sales/Income from operations 7,735 10,030 10,483 23,854 36,239 45,385
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2 Other Income 498 416 416 1,370 1,503 2,205
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3 Interest on Income Tax Refunds - - - 490 - 535
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TOTAL INCOME 8,233 10,446 10,899 25,714 37,742 48,125
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4 Total Expenditure 6,461 8,327 7,931 20,501 27,167 33,978
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a. Network Cost 5,766 7,355 6,959 17,606 24,419 30,039
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b. Operating and Other Expenses 462 625 625 1,804 1,720 2,403
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c. Salaries and Related Costs 233 347 347 1,091 1,028 1,536
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5 Depreciation 428 356 356 1,221 1,067 1,467
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6 Prior Period Adjustments - 11 11 10 49 136
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7 PROFIT (+)/ LOSS(-) BEFORE TAX
AND EXTRAORDINARY ITEM
(1+2+3)-(4+5+6) 1,344 1,752 2,601 3,982 9,459 12,544
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8 Extraordinary Items:
a. Expenditure under Voluntary
Retirement Scheme - - - (955) - -
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b. Profit from sale of
Investment in Inmarsat
Ventures Plc. *941 - - *941 - -
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9 Profit Before Tax (7+8) 2,285 1,752 2,601 3,968 9,459 12,544
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10 Provision for Taxation 476 934 1,222 1,014 3,569 4,743
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- Current Tax 158 968 1,256 840 3,481 4,351
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- Deferred Tax 318 (34) (34) 174 88 392
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11 NET PROFIT (+)/LOSS(-) (9-10) 1,809 818 1,379 2,954 5,890 7,801
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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
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13 Reserves excluding revaluation
reserve (As per Balance Sheet
of previous accounting year) - - - - - 52,654
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14 Basic & Diluted Earning per
share (not annualised) (Rs.) 6.35 2.87 4.84 10.36 20.67 27.37
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15 Aggregate of non-promoter shareholding
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a. Number of Shares 77,752,618 82,303,185 82,303,185 77,752,618 82,303,185 78,556,139
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b. Percentage of Shareholding 27.28 28.88 28.88 27.28 28.88 27.56
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** After accounting for impact of adjustments pertaining to period ended
September 30, 2002, with respect to interconnect agreements finalised with
major domestic operators in November 2002.
@@ Excluding impact of adjustments pertaining to period ended September 30,
2002, with respect to interconnect agreements finalised with major domestic
operators in November 2002.
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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 including the audited results of March 31, 2003, have been regrouped
accordingly.
(RS. IN MILLIONS)
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Particulars Unaudited for the Quarter Unaudited for the Nine months For year Ended
Ended December 31, Ended December 31, March 31, 2003
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2003 2002 2003 2002 (Restated)
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@@
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SEGMENT REVENUE
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International telephony &
related services 6,623 9,404 20,717 33,094 41,189
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Other Services 1,112 1,079 3,137 3,145 4,196
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TOTAL 7,735 10,483 23,854 36,239 45,385
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Less: Inter segment revenue - - - - -
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Net sales/Income from 7,735 10,483 23,854 36,239 45,385
operations
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SEGMENT RESULTS PROFIT (+) / (LOSS) (-) BEFORE TAX AND INTEREST FROM EACH SEGMENT
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International telephony &
related services 1,450 2,863 4,549 9,921 12,945
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Other services 735 895 2,106 2,133 2,881
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TOTAL 2,185 3,758 6,655 12,054 15,826
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Other unallocable expenditure 1,339 1,573 5,488 4,098 6,022
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Unallocable Income 1,439 416 2,801 1,503 2,740
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Other Unallocable expenditure
net of unallocable income 100 (1,157) (2,687) (2,595) (3,282)
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TOTAL PROFIT BEFORE TAX 2,285 2,601 3,968 9,459 12,544
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Taxes 476 1,222 1,014 3,569 4,743
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PROFIT AFTER TAXES 1,809 1,379 2,954 5,890 7,801
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@@ Excluding impact of adjustments pertaining to period ended September 30,
2002, with respect to interconnect agreements finalised with 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 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 "unallocable expenditure".
NOTES:
1. The above results were taken on record by the Board of Directors of the
Company at their meeting held on January 21, 2004.
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 sold its entire investment in Inmarsat Ventures Plc. during
Q3-2003 and realized gain of Rs.941 million.
4. 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.
5. The financial results for the quarter and nine months ended December 31,
2003, have been subjected to a Limited Review by the Statutory Auditors of
the Company.
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6. The Company has entered into an arrangement with BSNL under which VSNL's
infrastructure will be used for carrying their ILD traffic for one year,
following expiry of the current arrangement on February 13, 2004.
7. Figures of the previous period have been regrouped wherever necessary.
8. Investor Complaint status:
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Total received during Total resolved during
Outstanding as on the quarter ended the quarter ended Outstanding as on
October 01, 2003 December 31, 2003 December 31, 2003 December 31, 2003
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Nil 273 273 Nil
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FOR VIDESH SANCHAR NIGAM LIMITED
Place : Mumbai S. K. GUPTA
Date : January 21, 2004 MANAGING DIRECTOR
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