www.tatacommunications.com 2007-2008 22nd Annual Report Tata Communications Limited VSB, MG Road, Fort, Mumbai 400001 India Beaufort Sea Kara Sea Baffin Bay Barents Sea Norwegian Sea Sweden Finland Iceland Norway < j g f f Russia Hudson Bay Baltic Canada Sea Estonia Denmark Latvia North Sea Sea of Lithuania D f j Z f n U. K. Okhotsk Netherlands Belarus Ireland Cfe[fe Poland Belgium Germany= i X e b ] l i k Ukraine Lux. Czech. Rep. E\l`ccpjliJ\`e\ Slovakia Kazakhstan Austria Hungary D f e k i \ X c France Switz. Slovenia Romania Croatia Mongolia Italy Aral K f i f e k f Sea Uzbekistan Japan Bulgaria Black Sea E \ n P f i b Kyrgyzstan D X [ i ` [ Greece Spain Azerbaijan Turkey Turkmenistan Sea of Japan Pacific United States Azores Portugal Tajikistan D X k X n X e (East Sea) I \ j k f e South Korea Malta Yellow China Sea Mediterranean Sea Syria Atlantic Tunisia Iran Afghanistan Morocco Iraq Jordan East Kuwait China Algeria E \ n ; \ c _ ` Sea Pakistan Nepal ? f e ^ B f e ^ Libya Gulf The Bahamas Saudi Mexico Western Arabia Egypt Qatar of Mexico Sahara 8 Y l ; _ X Y ` Burma U. A. E. Bangladesh ? f e ^ B f e ^ Cuba Arabian India Dominican Oman Sea Republic D l d Y X ` Mauritania Haiti Jamaica J X e A l X e Laos Niger Bay of Bengal Antigua Mali Yemen South China Belize Chad Guadeloupe Cape Thailand Dominica Sea Honduras Verde Guatemala Senegal Eritrea Vietnam Martinique St. Lucia Sudan Nicaragua Caribbean Sea Gambia St. Vincent : _ \ e e X ` Cambodia Philippines Guam El Salvador Grenada Burkina Faso Djibouti Guinea Bissau Guinea Ocean Costa Ghana Benin Rica Trinidad and Tobago Nigeria J ` e ^ X g f i \ Cote d'Ivoire Sri Lanka G X j ` ^ : ` k p Ethiopia Panama Sierra Leone Palau Venezuela Central African Micronesia Liberia Republic Guyana Cameroon Colombia Suriname Somalia Malaysia Equatorial Guinea Uganda Kenya Sao Tome & Principe Ecuador Gabon Dem. Rep. Of Congo Ocean Congo Tanzania Indian Indonesia Soloman Papua New Islands Guinea East Timor Peru Comoros Brazil Angola Zambia Bolivia Vanuatu Zimbabwe Ocean Mozambique Namibia Mauritius Paraguay Botswana New I`f[\AXe\`if Caledonia Madagascar 8 j lChile e Z ` f e Australia South Africa Uruguay Great Australian 9l\efj8`i\j : X g \ K f n e Ocean Bight Tasman Sea Argentina J p [ e \ p New Zealand India Middle East Europe Tata Communications & North Africa Tata Communications LVSB Kashinath Dhuru Marg Tata Communications Exchange Tower, Suite 7.03 Prabhadevi Mumbai 400028 Hamdan Street, 2 Harbour Exchange Square Tel +91 22 6657 8765 City Center Building London, E14 9GE Fax +91 22 6639 5162 Block – A, 2nd Floor, England Offi ce # 204 Tel +44 20 7519 4610 Asia P.O. Box 41660 Fax +44 20 7519 4609 Tata Communications Abu Dhabi, 5 Shenton Way United Arab Emirates Tata Communications #34–10 UIC Building Tel +971 2 626 6223 131 Avenue Charles de Gaulle Singapore 068808 Fax +971 2 627 2624 92200 Neuilly sur Seine Tel +65 6551 3600 France Fax +65 6423 0315 North America Tel +33 1 41 43 4200 Tata Communications Fax +33 1 41 43 4200 Tata Communications 12010 Sunset Hills Road, 2402 Bank of America Tower 4th Floor Tata Communications 12 Harcourt Road Central Reston, Virginia 20190 Avenida de Europa 4, Bajo A Hong Kong USA Parque Empresarial “La Moraleja” Tel +852 3693 8888 Tel +1 703 547 5900 28108 Alcobendas Fax +852 3690 2022 Fax +1 703 547 6555 Madrid, Spain Tel +34 916 57 48 90 Australia Tata Communications Fax +34 916 62 06 79 Tata Communications 90 Matawan Rd – 3rd Floor King Street Wharf Matawan, NJ 07747 Suite 503, 35 Lime Street USA Sydney NSW 2000 Australia Tel + 1 732 888 6700 Tel +61 2 9299 2014 Fax + 1 732 888 6809 Fax +61 2 9299 2019 Tata Communications 1555 Rue Carrie-Derick Montréal (Québec) Canada, H3C 6W2 Tel +1 514 868 7272 www.tatacommunications.com Fax +1 514 868 7234 © 2008 Tata Communications Ltd. All Rights Reserved. Tata Communications Limited TWENTY SECOND ANNUAL REPORT 2007-08 CONTENTS Corporate Details .............................................................................................................. 2 Notice .................................................................................................................................... 3 Directors’ Report ................................................................................................................ 7 Report on Corporate Governance .............................................................................. 18 Declaration by CEO regarding Company’s Code of Conduct and CEO/CFO Certification ..................................................................................................... 32 Secretarial Responsibility Statement ......................................................................... 33 Auditors’ Certificate on Corporate Governance ..................................................... 34 Auditors’ Report ................................................................................................................. 35 Balance Sheet ..................................................................................................................... 38 Profit & Loss Account ....................................................................................................... 39 Cash Flow Statement ....................................................................................................... 40 Schedules ............................................................................................................................. 41 Notes to the Accounts ..................................................................................................... 54 Section 212 of the Companies Act, 1956, related to Subsidiary Companies 81 Consolidated Accounts Auditors’ Report on Consolidated Financial Statements .................................... 85 Consolidated Balance Sheet.......................................................................................... 86 Consolidated Profit & Loss Account ........................................................................... 87 Consolidated Cash Flow Statement ........................................................................... 88 Consolidated Schedules ................................................................................................. 89 Consolidated Notes to the Accounts ......................................................................... 95 Board of Directors ............................................................................................................. 122 Annual General Meeting on Saturday, 2 August 2008, at MC Ghia Hall, Kalaghoda Mumbai at 11.00 a.m. As a measure of economy, copies of the Annual Report will not be distributed at the Annual General Meeting. Shareholders are requested to kindly bring their copies to the meeting. 1 1 \\ceps6\D\Sales\Mohan\Tata Communication AR 2008 ------ ???/SBC/7-7/ COMMUNICATIONS Twenty Second Annual Report 2007-2008 Tata Communications Limited CORPORATE DETAILS BOARD OF DIRECTORS (As on 30 June 2008) Mr. Subodh Bhargava (Chairman) (Independent) Mr. N. Srinath (Managing Director and Chief Executive Officer) Mr. Kishor A. Chaukar (Panatone Nominee) Mr. P. V. Kalyanasundaram (Independent) Dr. V.R.S. Sampath (Independent) Mr. Amal Ganguli (Independent) Mr. Vinod Kumar (Panatone Nominee) Mr. S. Ramadorai (Panatone Nominee) Mr. A. K. Srivastava (Government Nominee) Mr. Arun Gandhi (Panatone Nominee) Mr. H. P. Mishra (Government Nominee) Mr. Satish Ranade Company Secretary & Chief Legal Officer Mr. Rajiv Dhar Chief Financial Officer REGISTERED OFFICE VSB, Mahatma Gandhi Road, Fort, Mumbai – 400 001. CORPORATE OFFICE LVSB, Kashinath Dhuru Marg, Prabhadevi, Mumbai – 400 028. BANKERS Bank of America Citibank Inc. Deustche Bank HDFC Bank Ltd. Hongkong & Shanghai Banking Corporation Indian Overseas Bank State Bank of India Axis Bank Ltd. Vijaya Bank LEGAL ADVISORS Messrs ANS Law Associates Messrs Mulla & Mulla and Craigie Blunt & Caroe STATUTORY AUDITORS Messrs S.B. Billimoria & Co., Chartered Accountants REGISTRARS & Messrs Sharepro Services (India) Pvt. Ltd. TRANSFER AGENTS Satam Estate, 3rd Floor, Above Bank of Baroda, Chakala Andheri (East), Mumbai - 400 099. 2 2 \\ceps6\D\Sales\Mohan\Tata Communication AR 2008 ------ ???/SBC/7-7/ NOTICE NOTICE is hereby given that the Twenty Second Annual General Meeting of Tata Communications Limited will be held at 1100 hours on Saturday, 2 August 2008, at MC Ghia Hall, Bhogilal Hargovindas Building, Second Floor, 18/20 Kaikhushru Dubash Road Marg, Kalaghoda, Mumbai - 400001 to transact the following business: Ordinary Business 1. To receive, consider and adopt the Balance Sheet of the Company as on 31 March 2008, the audited Profit and Loss Account for the year ended on that date, the Auditors’ Report thereon and the Report of the Board of Directors. 2. To declare dividend for the financial year 2007-2008. 3. To appoint a Director in place of Mr. PV Kalyanasundaram who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. 4. To appoint a Director in place of Dr. VRS Sampath who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. 5. To appoint a Director in place of Mr. Amal Ganguli who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. Special Business 6. To appoint Mr. Arun Gandhi as a Director liable to retire by rotation in respect of whom a notice under the provisions of section 257 of the Companies Act, 1956 has been received by the Company