Videsh Sanchar Nigam Limited
31 January 2000
UNAUDITED FINANCIAL RESULTS (PROVISIONAL)
FOR THE QUARTER ENDED 31 DECEMBER 1999
(Rupees in million)
Particulars For the Quarter For the Nine For the Year
ended* months ended* ended
31.12.99 31.12.98 31.12.99 31.12.98 31.03.99
(Unaudited)(Unaudited)(Unaudited)(Unaudited) (Audited)
1. Net Sales/Income
from operations 16628 16971 50182 48980 68315
2. Other Income 191 326 2324 3769 3441
Total Income 16819 17297 52506 52749 71756
3. Total Expenditure
(Including Prior 12242 13119 36810 37267 51812
Year)
4. Interest 0 0 0 0 0
5.(a) Gross Profit(+)/ 4577 4178 15696 15482 19944
Loss(-) after
interest but before
depreciation and
taxation ((1+2)-(3+4))
5.(b) Gross Profit 4386 3852 13372 11713 16503
(excluding other income
6. Depreciation 199 204 678 577 800
7. Provision for 1394 1290 5018 4861 5894
Taxation
8. Net Profit(+)/Loss(-)2984 2684 10000 10044 13250
(5(a)-(6+7))
9. Paid-up Equity Share 950 950 950 950 950
Capital
10.Reserves excluding - - - - 53256
revaluation reserves
(as per balance sheet
of previous accounting
year).
11.Earnings per share (Rs.)- - 140.35 140.97 139.47
(Annualised)(Annualised)
1. The above results were taken on record by the Board of Directors of the
Company at its Meeting held on 31 January 2000.
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. Gross sales for the quarter ended 31 December, 1999 are on the basis of
proposed revised Total Accounting Rates (TAR) which are approximately 10%-
14% lower than the TAR applicable for the corresponding period in the
previous year.
5. *Prior year income/expenditure has been adjusted under the respective heads.
6. ICO Global Communications (Holdings) Limited filed a voluntary petition for
reorganisation under Chapter 11 of the United States Bankruptcy Code on
27 August 1999. VSNL has invested in the ordinary shares of ICO Global
Communications (Holdings) Ltd. to the tune of USD150 million (equivalent to
Rs.5179 million). The Chapter 11 filing enables ICO Global to continue
normal business operations while it develops a Plan of Re-organisation under
the protection of this chapter. US Court of Bankruptcy is presently seized
of restructuring plan of ICO. The restructuring plan would involve
substantial reduction in the equity stake of the existing investors in the
restructured ICO. 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 stage.
7. The Company has successfully achieved the Y2K transition. All the hardware,
software and systems are Y2K compliant and are fully functional.