EXHIBIT 1
(VSNL LOGO)
Rishabh Nath Aditya
Assistant Company Secretary
HQ/CS/CL.24B/10802
22 June 2004
Sirs,
Sub: Intimation regarding Audited Financial Results for the quarter and
Financial Year ended 31 March 2004 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 2004, which has been considered by the Board of
Directors at their 142nd meeting held on 22 June 2004.
2. The Board of Directors has recommended a dividend of Rs.4.50 per share for
the Financial Year 2003-04.
3. Please also find attached the press release issued today in this regard.
Yours faithfully,
For VIDESH SANCHAR NIGAM LIMITED
S/d
Rishabh Aditya
Asst Company Secretary
To :
1) Security Code 23624, The Stock Exchange, Mumbai. Fax No.(22) 2722061,
2721072.
2) Security Code 32149, The Secretary, Calcutta Stock Exchange Assn. Ltd, Fax
No.(33)2202514/2283724.
3) Security Code 5251, The Asst. Manager (Listing), National Stock Exchange of
India Limited. Fax Nos.: (22) 6598237/38.
4) National Securities Depository Ltd. Fax Nos. : 497 29 93.
5) Mr. Vijay Bhojwani, The Bank of New York. Fax No.204 49 42.
6) Sharepro Services. Fax No. 2837 5646
7) Marc H. Iyeki,Director, New York Stock Exchange, Fax No: (212) 656-5071 /72
Madhu Kannan, Managing Director, New York Stock Exchange, Fax No: (212)
265-2016
8) Mr. Hitendra Patil, Vice President (Operations) Central Depository Services
(India) Limited. Fax : 2267 3199.
9) Ms.Tharani Bai, for SEC filing requirements, Fax 1195
(VSNL LOGO)
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.
--------------------------------------------------------------
AUDITED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 MARCH 2004
- --------------------------------------------------------------------------------
(Rs. Million)
- -------------------------------------------------------------------------------------------------------------------
Sr. Particulars Unaudited for the quarter Audited for year ended
No. ended March 31, March 31,
- -------------------------------------------------------------------------------------------------------------------
2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------------
1 Net Sales/ Income from Operations 7,781 9,146 31,635 45,385
- -------------------------------------------------------------------------------------------------------------------
2 Other Income 351 702 1,585 2,205
- -------------------------------------------------------------------------------------------------------------------
3 Interest on Income Tax Refunds - 535 491 535
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 8,132 10,383 33,711 48,125
- -------------------------------------------------------------------------------------------------------------------
4 Total Expenditure 6,116 6,811 26,481 33,978
-------------------------------------------------------------------------------------------------------------
a) Network Cost 4,584 5,620 22,190 30,039
-------------------------------------------------------------------------------------------------------------
b) Operating and Other Expenses 1,241 683 2,909 2,403
-------------------------------------------------------------------------------------------------------------
c) Salaries and Related Costs 291 508 1,382 1,536
-------------------------------------------------------------------------------------------------------------
5 Depreciation 496 400 1,717 1,467
- -------------------------------------------------------------------------------------------------------------------
6 Prior Period Adjustments (19) 87 (9) 136
- -------------------------------------------------------------------------------------------------------------------
7 PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 1,539 3,085 5,522 12,544
(1+2+3)-(4+5+6)
- -------------------------------------------------------------------------------------------------------------------
8 Exceptional Items:
-------------------------------------------------------------------------------------------------------------
a) Expenditure on Voluntary Retirement Schemes (75) - (1,030) -
-------------------------------------------------------------------------------------------------------------
b) Profit from sale of long term investment - - 941 -
- -------------------------------------------------------------------------------------------------------------------
9 Profit Before Tax (7-8a+8b) 1,464 3,085 5,433 12,544
- -------------------------------------------------------------------------------------------------------------------
10 Provision for Taxation 642 1,174 1,656 4,743
-------------------------------------------------------------------------------------------------------------
-Current Tax 516 870 1,356 4,351
-------------------------------------------------------------------------------------------------------------
-Deferred Tax 126 304 300 392
- -------------------------------------------------------------------------------------------------------------------
11 NET PROFIT [9-10] 822 1,911 3,777 7,801
- -------------------------------------------------------------------------------------------------------------------
12 Paid up Equity Share Capital (Face value of 2,850 2,850 2,850 2,850
Rs.10 per share)
- -------------------------------------------------------------------------------------------------------------------
13 Reserves excluding revaluation reserve (As per 50,269 52,654
Balance Sheet of previous accounting year)
- -------------------------------------------------------------------------------------------------------------------
14 Basic and diluted earnings per share (not 2.88 6.70 13.25 27.37
annualised) (Rs.)
- -------------------------------------------------------------------------------------------------------------------
15 Aggregate of non-promoter shareholding
-------------------------------------------------------------------------------------------------------------
a) Number of shares 77,752,618 78,556,139 77,752,618 78,556,139
-------------------------------------------------------------------------------------------------------------
b) Percentage of shareholding 27.28 27.56 27.28 27.56
- -------------------------------------------------------------------------------------------------------------------
SEGMENTAL REPORTING:
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 31 March 2003 have been regrouped
accordingly.
(Rs. Million)
- -------------------------------------------------------------------------------------------------------------
Particulars Unaudited for the quarter Audited for year ended
ended March 31, March 31,
- -------------------------------------------------------------------------------------------------------------
2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------
SEGMENT REVENUE
- -------------------------------------------------------------------------------------------------------------
International telephony & related services 6,460 8,094 27,177 41,189
- -------------------------------------------------------------------------------------------------------------
Other Services 1,321 1,052 4,458 4,196
- -------------------------------------------------------------------------------------------------------------
TOTAL 7,781 9,146 31,635 45,385
- -------------------------------------------------------------------------------------------------------------
SEGMENT RESULTS BEFORE TAX AND INTEREST FROM
EACH SEGMENT
- -------------------------------------------------------------------------------------------------------------
International telephony & related services 2,327 3,021 6,850 12,938
- -------------------------------------------------------------------------------------------------------------
Other Services 1,054 687 3,046 2,824
- -------------------------------------------------------------------------------------------------------------
TOTAL 3,381 3,708 9,896 15,762
- -------------------------------------------------------------------------------------------------------------
Other unallocable expenditure 2,268 1,860 7,617 5,958
- -------------------------------------------------------------------------------------------------------------
Unallocable Income 351 1,237 3,154 2,740
- -------------------------------------------------------------------------------------------------------------
Other Unallocable expenditure net of unallocable (1,917) (623) (4,463) (3,218)
income
- -------------------------------------------------------------------------------------------------------------
TOTAL PROFIT BEFORE TAX 1,464 3,085 5,433 12,544
- -------------------------------------------------------------------------------------------------------------
Taxes 642 1,174 1,656 4,743
- -------------------------------------------------------------------------------------------------------------
PROFIT AFTER TAXES 822 1,911 3,777 7,801
- -------------------------------------------------------------------------------------------------------------
NOTE ON SEGMENTAL REPORTING:
a) Revenue and expenses, which are directly identifiable to segments, are
attributed to the relevant segment. The Company does not have any
inter-segment revenues. 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 "other unallocable expenditure".
b) Segment total assets and liabilities have not been allocated, in the
absence of 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 their meeting held on 22 June 2004.
2. The Board has recommended a dividend of Rs. 4.50 per share (45%) on the
issued and paid up equity share capital.
3. The Company has sold its entire investment in Inmarsat Ventures Plc. and
realized a gain of Rs. 941 million.
4. The shareholders of the Company at the Extra-ordinary General Meeting held
on 2 April 2004 approved, and the High Court of Judicature at Mumbai vide
its order passed on 6 May 2004 confirmed the utilization of Securities
Premium Account in accordance with the provisions of Section 78 read with
Section 100 of the Companies Act, 1956 towards adjustment of the reduction
in the carrying values of certain fixed assets. The aggregate reduction of
Rs.9,564 million has been debited to Securities Premium Account. The
related deferred tax asset of Rs.3,431 million arising on such reduction
has been credited to Securities Premium Account.
5. On 30 March 2004, the Company purchased the Internet Service Provider (ISP)
business from Dishnet DSL Limited under a slump sale agreement for a
purchase consideration of Rs.2,700 million.
6. During the year the Company promoted two wholly-owned subsidiaries, VSNL
Lanka Limited and VSNL Singapore Pte Limited. These subsidiaries had total
assets of approximately Rs.145 million and total revenues of approximately
Rs.1 million. The investment in these subsidiaries amounted to Rs.110
million. As these subsidiaries are not material to the financial position
and profits of the Company, consolidated financial statements have not been
prepared and presented.
7. Previous year figures have been regrouped wherever necessary.
8. Investor Complaint status:
- --------------------------------------------------------------------------------------------------------
Outstanding as on 01 Total received during Total resolved during Outstanding as on 31
January 2004 the quarter ended 31 the quarter ended 31 March 2004
March 2004 March 2004
- --------------------------------------------------------------------------------------------------------
Nil 224 224 Nil
- --------------------------------------------------------------------------------------------------------
FOR VIDESH SANCHAR NIGAM LIMITED
Place: Mumbai S. K. GUPTA
Date : June 22, 2004 MANAGING DIRECTOR