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Videsh Sanchar Nigam (VSND)

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Tuesday 26 October, 1999

Videsh Sanchar Nigam

2nd Qtr & Interims

VIDESH SANCHAR NIGAM LIMITED
22 October 1999

UNAUDITED FINANCIAL RESULTS (PROVISIONAL)
FOR THE QUARTER ENDED 30 SEPTEMBER 1999


                                                            (Rupees in million)

                                        For the             For the
                                        quarter             quarter
                                        ended               ended
                                        30.09.99            30.09.98
                                        (Unaudited)         (Unaudited)

1.   Net Sales/Income from               16632               16812
     operations

2.   Other Income                         1223                2205
TOTAL INCOME                             17855               19017

3.   Total Expenditure (Including Prior  12231               12414
     Year)

4.   Interest                                0                   0

5(a) Gross Profit (+)/Loss(-) after       5624                6603
     interest but before depreciation
     and taxation ( (1+2)-(3+4) )

5(b) Gross Profit (excluding other        4401                4398
     income)

6.   Depreciation                          224                 188

7.   Provision for Taxation               1934                2168

8.   NET PROFIT (+)/LOSS(-) 
     ( 5(A)-(6+7) )                       3466                4247

9.   Paid-up Equity Share Capital          950                 950

10.  Reserves excluding revaluation          -                   -
     reserves (as per balance sheet of
     previous accounting year).

11.  Earnings per share (Rs.)                -                   -



                              For the half year ended        For the Year
                              30 Sept. 1999   30 Sept. 1998  ended 31.03.99
                              (Unaudited)     (Unaudited)    (Audited)
          
1.   Net Sales/Income from    33530           32482          68315  
     operations

2.   Other Income              2134            3443           3441
TOTAL INCOME                  35664           35925          71756

3.   Total Expenditure        24556           24621          51812
     (Including Prior Year)

4.   Interest                     0               0              0

5(a) Gross Profit             11108           11304          19944
     (+)/Loss(-) after                                
     interest but before 
     depreciation
     and taxation 
     ( (1+2)-(3+4) )

5(b) Gross Profit              8974            7861          16503
     (excluding other                                
     income)

6.   Depreciation               467             373            800

7.   Provision for Taxation    3624            3571           5894

8.   NET PROFIT (+)/LOSS(-)    7017            7360          13250
     ( 5(A)-(6+7) )                                               

9.   Paid-up Equity Share
     Capital                   950             950             950

10.  Reserves excluding          -               -           53256
     revaluation                                                     
     reserves (as per balance
     sheet of previous
     accounting year).

11.  Earnings per share (Rs.) 147.73          154.95         139.47
                              (Annualised)    (Annualised)


1.  The above results were taken on record by the Board of Directors of the
Company at its Meeting held on 22 October 1999.

2.  Interest on GDR Funds has been considered as income earned during the
construction period and adjusted against carrying cost of the assets as done in
the past.

3.  Figures of previous year have been regrouped wherever necessary.

4.  ICO Global Communications (Holdings) Limited filed a voluntary petition for
reorganisation under Chapter 11 of the United States Bankruptcy Code on 27
August 1999 in which the Company has invested a sum of USD 150 million
(equivalent to Rs 5179 million).  The Chapter 11 filing enables ICO Global to
continue normal business operations while it develops a Plan of Reorganisation
under the protection of this chapter.  ICO has recently proposed a restructuring
plan to certain prospective investors which envisages reduction in the equity
stake of the existing investors to at least 2%.  Pending approval of the
restructuring plan by the court, no provision has been considered by the Company
for probable diminution in the value of investment in ICO Global which is
indeterminate at this state.

5.  The Company has made a detailed assessment of risks posed to its operations
by the year 2000 (Y2K) problem and has initiated since 1997, appropriate risk
mitigation measures.  VSNL has adopted BSI PD-2000 standard as definition of
Y2K-Readiness.  Although, most of the systems are Y2K ready, full readiness, is
expected to be achieved by November 1999.  The company has a budget estimate of
appox. Rs.363 million for the purpose.  The detailed contingency plans are
under preparation.

      

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