Form 6-K

 

FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., 20549

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month October 2004

 

Commission File Number 001-15118

 

 

VIDESH SANCHAR NIGAM LIMITED

(Translation of registrant’s name into English)

 

 

Videsh Sanchar Bhavan, Mahatma Gandhi Road, Mumbai 400 001, India

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  [X]        Form 40-F  [  ]

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                      

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                      

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes                No  [X]

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b): 82 -                     .

 

Registrant hereby incorporates in the report on Form 6-K the following Exhibits:

 

Exhibit
Number
  

Description of Exhibit

1.   Intimation of change in VSNL’s board of directors as a result of the expiry of the term of Mr. S.K. Gupta, Managing Director of VSNL, on September 30, 2004.
2.   Notification to the Stock Exchanges regarding shareholding pattern and quarterly compliance report on corporate governance of VSNL as on September 30, 2004.
3.   Unaudited Financial Results (Provisional; Indian GAAP) for the quarter and the six months ended September 30, 2004.

 

Forward-Looking Statements

 

All words and statements other than statements of historical fact included in this Form 6-K (including the attached exhibits), including, without limitation, “expect”, “believe”, “plan”, “intend”, “estimate”, “anticipate”, “may”, “will”, “would” and “could” or similar words and statements concerning the registrant and its prospects, and other statements relating to the registrant’s expected financial position, business strategy, the future development of the registrant’s operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the registrant, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the registrant’s present and future business strategies and the environment in which the registrant will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of the registrant’s industry, and changes in general economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in the registrant’s control, include, but are not limited to, those risk factors discussed in the registrant’s various filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on September 29, 2004. These forward-looking statements speak only as of the date of this Form 6-K. The registrant expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the registrant’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

 

VIDESH SANCHAR NIGAM LIMTED

By:

  

/s/ Amitabh A. Khanna

Name:

   Amitabh A. Khanna

Title :

   Chief Financial Officer

 

Date: October 27, 2004

EXHIBIT 1

 

LOGO

 

Satish Ranade

Company Secretary & VP (Legal)

 

HQ/CS/CL.24B/11019

1 October 2004

 

Sir,

 

    Sub : Change in Company’s Directorship

 

Pursuant to clause 30 of the listing agreement with Indian Stock Exchanges please be informed that the tenure of Mr. S.K. Gupta as Managing Director of VSNL comes to an end on 30th September 2004. Accordingly Mr. Gupta has ceased to be the Managing Director of VSNL as also being a Director on the Board of VSNL with effect from 30th September 2004.

 

Thanking you,

 

Yours faithfully,

For Videsh Sanchar Nigam Limited

 

Satish Ranade

Company Secretary & V P (Legal)

 

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) Mr. Harish Abhichandani,, DGM (F) for SEC filing requirements, Fax 1105

EXHIBIT 2

 

LOGO

 

Rishabh Nath Aditya

Assistant Company Secretary

 

HQ/CS/CL.24B/11046

7 October 2004

 

Sir,

 

    Sub: Quarterly Compliance as on 30 September 2004

 

In accordance with the Clause 35 and Clause 49 of the Listing Agreement please find attached herewith the following:

 

  a) Shareholding Pattern of VSNL as on 30 September 2004 (Attach “A”).

 

  b) Quarterly Compliance Report on Corporate Governance for the quarter ended 30 September 2004 (Attach “B”).

 

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.

 

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) Mr. Harish Abhichandani, for SEC filing requirements, Fax 1195

VIDESH SANCHAR NIGAM LIMITED

 

SHAREHOLDING PATTERN AS ON 30-Sep-04

 

Sr.

No.

   

Category

    Holding
      No. of Shares
    Percentage

A.

    Promoter’s holding          

1

    Promoters          
     Indian Promoters    207247382    72.72
     Foreign Promoters    0    0.00

2

    Persons acting in concert    0    0.00
         
  
    

Sub –Total

    207247382    72.72
         
  

B.

    Non-Promoters Holding          

3

    Institutional Investors          

a.

    Mutual Funds and UTI    544237    0.19

b.

    Banks, Financial Institutions, Insurance Companies (Central/ State Govt. Institutions/Non-Government Institutions)    26798910    9.40

c.

    FIIs    1118304    0.39
         
  
    

Sub –Total

    28461451    9.99
         
  

4

    Others          

a.

    Private Corporate Bodies    1149093    0.40

b.

    Indian Public    10096548    3.54

c.

    NRIs/OCBs    144334    0.05

d.

    Any other          
    

i        ADR

    37898957    13.30
    

ii       In transit (NSDL)

    2235    0.00
         
  
    

Sub Total

    49291167    17.30
         
  
    

GRAND TOTAL

    285000000    100.00
         
  

 

TOTAL FOREIGN HOLDINGS     

Sr.

No.

   

Category

    Holding
      No. of Shares
    Percentage

1

    FIIs    1118304    0.39

2

    NRIs/OCBs    144334    0.05

3

    ADR    37898957    13.30
         
  
     TOTAL    39161595    13.74
         
  

VIDESH SANCHAR NIGAM LIMITED

 

Distribution of Shareholding entities / persons holding more than 1% of paid up capital as

on 30 September 2004 as per clause 35 of Listing Agreement

 

Sr. No.

   

Category

   

Name

    Holding
         No. of Shares
    Percentage

A

    Promoter’s Holding               

1

    Indian Promoters    Panatone Finvest Limited (an acquisition vehicle floated by the Tata group)    128250000    45.00
          Central Govt.Including Nominees of President of India    74446885    26.12
          TATA SONS LIMITED    4494497    1.58
          TATA INVESTMENT CORPORATION LTD    56000    0.02

2

    Persons acting in Concert               
              
  
    

Sub Total

         207247382    72.72
              
  

B

    Non Promoters Holding               

3

    Institutional Investors               

a

    Mutual Funds & UTI               

b

    Financial Institutions               
          Life Insurance Corporation of India Limited    18953214    6.65

c

                   0.00
              
  
    

Sub-Total

         18953214    6.65
              
  

4

    Others               

a

    Private Corporate Bodies               

b

    Any other (please specify)    The Bank of New York (ADR)    37898957    13.30
              
  
    

Sub-Total

         37898957    13.30
              
  
    

Grand Total

         264099553    92.67
              
  

Quarterly Compliance Report on Corporate Governance

 

Name of the Company

    :      VIDESH SANCHAR NIGAM LIMITED

Quarter ending on

    :      30 September 2004

 

Particulars

    Clause of
Listing
Agreement
  

Compliance
status

(Yes/No)

  

Remarks

1.

    2.   3.   4.

Board of Directors

    49 I   Yes   As of 30 September 2004, VSNL had a total of twelve Directors1, out of whom two are Executive Directors and ten are non-executive Directors including the Chairman. There were four independent Directors.

Audit Committee

    49 II   Yes   The Audit Committee of VSNL consists of five members with all the Directors being non-executive and two of them being independent with one of independent Directors being its Chairman.
Shareholders/Investors Grievance Committee    49 VI(C)   Yes   Investors Grievance Committee as required under Clause 49 is in place under the Chairmanship of a non-executive Director.
Remuneration of Directors    49 III   Yes   The non-executive Directors on the Board of VSNL are paid only sitting fees as per the applicable provisions of the Companies Act, 1956. The Government Directors do not accept sitting fees.
Board Procedures    49 IV   Yes    
Management    49 V   Yes    
Shareholders    49 VI   Yes    
Report on Corporate Governance    49 VII   Yes    

 

Satish Ranade

Company Secretary &

Vice Precedent (Legal)

1 As intimated to Stock Exchanges vide letter No. HQ/CS/CL.24B/11019 dated 1 October 2004, the tenure of Mr. S.K. Gupta as Managing Director of VSNL had come to an end on 30th September 2004. Accordingly, Mr. Gupta had ceased to be the Managing Director of VSNL as also being a Director on the Board of VSNL and from 1 October 2004 till date VSNL has a total of eleven Directors on its Board.

EXHIBIT 3

 

LOGO

 

Rishabh Nath Aditya

Assistant Company Secretary

 

HQ/CS/CL.24B/10888

26 October 2004

 

Sir,

 

Sub : Un-audited Financial Results (Provisional) for the first quarter ended 30 September 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 September 2004, which has been taken on record by the Board of Directors in their Meeting, held on 26 October 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. for SEC filing requirements, Fax 1195

LOGO

 

VIDESH SANCHAR NIGAM LIMITED

REGD. OFFICE: VIDESH SANCHAR BHAVAN, M.G. ROAD, MUMBAI-400001.

 

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2004

 

(Rs. in Millions)

    

Particulars

    Unaudited for the quarter
ended September 30,
     Unaudited for the half year
ended September 30,
    

Audited for
year ended

2004

  
      2004
     2003
     2004
     2003
    
1    Net Sales/Income from operations    7,785     7,755     15,729     16,119     31,635  
2    Other Income    294     463     542     871     1,585  
3    Interest on Income Tax Refunds    —       —       —       491     491  
     Total Income    8,079     8,218     16,271     17,481     33,711  
4    Total Expenditure    6,072     6,582     11,767     14,040     26,481  
     a. Network Cost    4,906     5,640     9,711     11,840     22,190  
     b. Operating and Other Expenses    753     534     1,274     1,342     2,909  
     c. Salaries and Related Costs    413     408     782     858     1,382  
5    Depreciation    568     406     1,115     793     1,717  
6    Prior Period Adjustments    (2 )   10     (4 )   10     (9 )
7    Profit before tax and exceptional items (1+2+3)-(4+5+6)    1,441     1,220     3,393     2,638     5,522  
8    Exceptional Items :                               
     a. Expenditure on Voluntary Retirement Schemes    —       (568 )   —       (955 )   (1,030 )
     b. Profit from sale of long term investment    —       —       —       —       941  
9    Profit Before Tax (7+8)    1,441     652     3,393     1,683     5,433  
10    Provision for Taxation    560     165     1,244     538     1,656  
    

- Current Tax

    436     235     931     682     1,356  
    

- Deferred Tax

    124     (70 )   313     (144 )   300  
11    Net Profit (9-10)    881     487     2,149     1,145     3,777  
12    Paid up Equity Share Capital (Face value of Rs.10/- per share)    2,850     2,850     2,850     2,850     2,850  
13    Reserves excluding revaluation reserve (As per Balance Sheet of previous accounting year)                            46,760  
14    Basic & Diluted Earning per share (not annualized) (Rs)    3.09     1.71     7.54     4.02     13.25  
15    Aggregate of non-promoter shareholding                               
     (a) Number of Shares    77,752,618     77,752,618     77,752,618     77,752,618     77,752,618  
     (b) Percentage of Shareholding    27.28     27.28     27.28     27.28     27.28  

Segment Information:

 

Business Segments:

 

(Rs. in Millions)

Particulars

   

Unaudited for the quarter year

ended September 30,

     Unaudited for the half year
ended September 30,
    

Audited for
year ended

March 31,

2004

  
   2004
     2003
     2004
     2003
    

Segment Revenue

                               

International telephony & related services

    5,846     6,820     11,936     14,094     27,177  

Other Services

    1,939     935     3,793     2,025     4,458  
    
 
 
 
 

Total

    7,785     7,755     15,729     16,119     31,635  
    
 
 
 
 

Segment results before tax and interest from each segment

                               

International telephony & related Services

    1,606     1,546     3,471     3,081     6,850  

Other Services

    1,325     636     2,623     1,389     3,046  
    
 
 
 
 

Total

    2,931     2,182     6,094     4,470     9,896  
    
 
 
 
 

Other unallocable expenditure

    1,784     1,993     3,243     4,149     7,480  

Unallocable Income

    294     463     542     1,362     3,017  

Other Unallocable expenditure, net of unallocable income

    (1,490 )   (1,530 )   (2,701 )   (2,787 )   (4,463 )
    
 
 
 
 

Profit Before Tax

    1,441     652     3,393     1,683     5,433  
    
 
 
 
 

Tax

    560     165     1,244     538     1,656  
    
 
 
 
 

Profit after tax

    881     487     2,149     1,145     3,777  
    
 
 
 
 

 

Notes on Segment Information:

 

a) “International telephony and related services” include international telephony, international private leased circuits, frame relay, telex and telegraph services. All other business segments are included under “Other services”.

 

b) 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”.

 

c) 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 October 26, 2004.

 

  2. Consequent to the settlement, an amount of Rs.469 Million has been included in the net sales during the quarter ended June 2004 in accordance with Accounting Standard-9 (AS-9) “Revenue Recognition” and Accounting Standard-4 (AS-4) “Contingencies and events occurring after Balance Sheet date”.

 

  3. The financial results for the quarter and six months ended September 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:

 

Outstanding as

on July 01, 2004

  

Total received during

the quarter ended

September 30, 2004

  

Total resolved during

the quarter ended

September 30 2004

  

Outstanding as on

September 30, 2004

Nil

   40   40   Nil

 

       

For Videsh Sanchar Nigam Limited

Place

  

: Mumbai

  

Subodh Bhargava

Date

  

: October 26, 2004

  

        Director