EXHIBIT 3
(VSNL LOGO)
Rishabh Nath Aditya
Assistant Company Secretary
HQ/CS/CL.24B/10888
30 July 2004
Sir,
SUB : UN-AUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE FIRST QUARTER ENDED 30
JUNE 2004.
Pursuant to Clause 41 of the Listing Agreement with Indian Stock Exchanges,
please find sent herewith Un-audited Financial Results (Provisional) for the
first quarter ended 30 June 2004, which has been taken on record by the Board of
Directors in their Meeting, held on 30 July 2004.
Thanking you,
Yours faithfully,
For Videsh Sanchar Nigam Limited
R.N. 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.
6) National Securities Depository Ltd. Fax Nos. : 497 29 93.
7) Mr. Vijay Bhojwani, The Bank of New York. Fax No.204 49 42.
8) Sharepro Services. Fax No. 2837 5646
9) 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
10) Mr. Hitendra Patil, Vice President (Operations) Central Depository Services
(India) Limited. Fax : 2267 3199.
11) Ms. Tarani, for SEC filing requirements, Fax 1195
(VSNL LOGO)
VIDESH SANCHAR NIGAM LIMITED
REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30 JUNE 2004
(Rs. in Million)
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Unaudited for the Audited for the
Particulars Quarter ended Year Ended
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June 30, June 30, March 31,
2004 2003 2004
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1 Net Sales/Income from operations 7,944 8,364 31,635
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2 Other Income 248 408 1,585
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3 Interest on Income Tax Refunds - 491 491
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TOTAL INCOME 8,192 9,263 33,711
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4 Total Expenditure 5,695 7,458 26,481
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a. Network Cost 4,805 6,200 22,190
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b. Operating and Other Expenses 521 808 2,909
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c. Salaries and Related Costs 369 450 1,382
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5 Depreciation 547 387 1,717
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6 Prior Period Adjustments (2) - (9)
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7 PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 1,952 1,418 5,522
(1+2+3)-(4+5+6)
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8 Exceptional Items :
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a. Expenditure on Voluntary Retirement Schemes - (387) (1,030)
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b. Profit from sale of long term investment - - 941
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9 Profit Before Tax (7+8a+8b) 1,952 1,031 5,433
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10 Provision for Taxation 684 373 1,656
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- Current Tax 495 447 1,356
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- Deferred Tax 189 (74) 300
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11 NET PROFIT (9-10) 1,268 658 3,777
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12 Paid up Equity Share Capital (Face value of Rs.10/- per share) 2,850 2,850 2,850
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13 Reserves excluding revaluation reserve (As per Balance Sheet 46,760
of previous accounting year)
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14 Basic & Diluted Earning per share (not annualized) (Rs) 4.45 2.31 13.25
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15 Aggregate of non-promoter shareholding
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(a) Number of Shares 77,752,618 77,752,618 77,752,618
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(b) Percentage of Shareholding 27.28 27.28 27.28
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SEGMENT INFORMATION:
BUSINESS SEGMENTS:
(Rs. in Million)
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Particulars Unaudited for the Unaudited for the Audited for the
Quarter ended Quarter ended Year ended
June 30, 2004 June 30, 2003 March 31, 2004
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SEGMENT REVENUE
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International Telephony & Related Services 6,090 7,273 27,177
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Other Services 1,854 1,091 4,458
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TOTAL 7,944 8,364 31,635
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Segment results before tax and interest from each segment
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International Telephony & Related Services 1,865 1,535 6,850
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Other Services 1,298 753 3,046
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TOTAL 3,163 2,288 9,896
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Other Unallocable expenditure 1,459 2,156 7,480
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Unallocable Income 248 899 3,017
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Other unallocable expenditure, net of unallocable income (1,211) (1,257) (4,463)
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PROFIT BEFORE TAX 1,952 1,031 5,433
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Tax 684 373 1,656
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PROFIT AFTER TAX 1,268 658 3,777
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NOTES ON SEGMENT INFORMATION:
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. Consequent to a settlement reached during the quarter, an amount of
Rs. 469 million was received on July 15, 2004, which has been included
in the net sales in accordance with Accounting Standard 9 (AS9)
"Revenue Recognition" and Accounting Standard 4 (AS4) "Contingencies
and Events Occurring After the Balance Sheet Date"
2. The above results were taken on record by the Board of Directors of
the Company at their meeting held on July 30, 2004.
3. The financial results for the quarter ended June 30, 2004 have been
subjected to a Limited Review by the statutory auditors of the
Company.
4. Figures for the previous period have been regrouped where necessary.
5. Investor Complaint status:
- --------------------------------------------------------------------------------------------
Total received during Total resolved during
Outstanding as on the quarter ended the quarter ended Outstanding as on
April 01, 2004 June 30, 2004 June 30, 2004 June 30, 2004
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Nil 133 133 Nil
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FOR VIDESH SANCHAR NIGAM LIMITED
Place : Mumbai S. K. GUPTA
Date : July 30, 2004 MANAGING DIRECTOR