Agile. Intelligent. Connected. Enable the future – Now Annual Report 2019-20 CONTENTS A Corporate Overview C Financial Statements Tata Communications Riding the next 02-28 145-327 continues to be driven wave of digital Who We Are ................................................................. 02 Standalone Financial Statements by its purpose to Our Reach ....................................................................... 04 Independent Auditor’s Report ............................... 145 evolution, as Our Clientele .................................................................. 06 Balance Sheet ............................................................. 154 ‘Deliver a New World Financial Highlights .................................................... 07 Statement of Profit and Loss ................................ 155 of CommunicationsTM’ businesses fuel Covid-19: Our Response ............................................ 08 Cash Flow Statement ............................................... 156 Letter from the MD & CEO ........................................ 12 Statement of Changes in Equity .......................... 158 – resting on agile, growth ambitions, Business Model – Notes forming part of the intelligent and secure we remain Our Value Creation Philosophy ............................... 16 Standalone Financial Statements ......................... 159 Leading Transformation – solutions that enable Consolidated Financial Statements enthused by the Founded on Innovation ............................................. 18 Independent Auditor’s Report ...............................222 exceptional digital Sustainability at Core ................................................ 20 possibilities of ‘A Consolidated Balance Sheet ................................230 Profile of Board of Directors ................................... 22 experiences. Consolidated Statement of Profit and Loss ......231 Awards and Accomplishments ............................... 26 New World’- an Consolidated Cash Flow Statement ................... 233 Corporate Details ......................................................... 28 Digital transformation continues Consolidated Statement of agile, intelligent Changes in Equity ...................................................... 235 to dictate enormous shifts in Notes forming part of the businesses as well as in society. and connected Consolidated Financial Statements ................... 237 Once unfathomable solutions have Statutory Reports B Form AOC-1 .................................................................. 326 become a tangible reality today space that presents 29-144 and a connected world is no longer a breeding ground Notice ............................................................................... 29 a distant dream but, a reality for Board’s Report ............................................................ 46 enterprises and individuals across for the future – Management Discussion & Analysis ................... 68 the globe. Corporate Governance Report ............................ 104 to not just thrive Business Responsibility Report ........................... 136 As the future of digital technologies but survive with beckon – to secure new ways of engagement and operation, to dignity and unleash opportunities that enable us to harness our capabilities to dexterity. reimagine and redesign a new world – we continue to build robust and dynamic solutions for organizations and enterprises to seamlessly embark on their digital transformation journeys. www.tatacommunications.com/ investors/ Corporate Annual 19 Overview A Report 20 WHO WE ARE Our strategy shifts are focused on: A digital ecosystem enabler that powers today’s rapidly evolving world, Tata Communications is taking big Delivering strides to fulfil our objective superior customer of delivering a New World of experience Communications™. Sustainability, innovations and We are reimagining the future by unlocking AI at the core new growth opportunities for customers, while making a positive and tangible impact on the society at large. With our extensive Having the From domain expertise, we empower our customers, right team and products to comprising of 300 of the Fortune 500 culture platforms companies, to seamlessly progress through their digital transformation journeys. We achieve this by powering borderless growth, boosting product innovation, improving productivity & efficiency, building agility and managing risk. We remain committed to drive the next level of intelligent solutions powered by cloud, mobility, Our Platform, Internet of Things (IoT), collaboration, security, solutions and and network services, resting on our solutions services oriented approach, proven managed service capabilities and cutting-edge infrastructure. Mobility TM and IOT NetFoundry Enabling Collaboration Enabling Security Network Enabling Transformation Mobility We are Cloud, Edge a digital and Security Next Enabling Enabling ecosystem Generation Voice Collaboration Hybrid Cloud enabler Connectivity 02 03 Corporate Annual 19 Overview A Report 20 OUR REACH Baffin Bay Providing connectivity Beaufort Sea Barents Sea to more than Chukchi Sea 200 Norwegian Sea Countries Hudson Bay Gulf of Alaska Bering Sea United Kingdom Baltic Sea Bude Scarborough North Sea Amritsar Goonhilly Coleraine Jalandhar Ludhiana Kotkapura Sea of Porthcurno Whitesands Bay Chandigarh Bhatinda Patiala Ambala Dehradun Pottington Sangrur Okhatsk Fatehabad Karnal Sonipat Meerut Hansi Moradabad New Delhi Nepal Groningen Ghaziabad Rampur Dublin Gurgoan Bareilly (Bair ahava) Faridabad Nepal Khurja Bhutan London (Bir gunj via Rax aul) Amsterdam Shahjahanpur Gangtok (Malbase ) NOC Alwar Agra Etawah Sitapur Pharenda Gorakhpur Kannauj Betian Jaipur Areraj Siliguri Lucknow Deoria Fazilanagar 4 Ajmer Saguli Gwalior Gopalgunj Darbhanga Oostende Siwan Samastipur Kota Kanpur Chapra Muza arpur 7 Dalkola Frankfurt Buxar Patna Khagaria 3 Allahabad Bhilwara Arrah Jhansi Varanasi Gazipur Udaipur Chattarpur Panna Gaya Biaora Paris Satna Rewa Halifax WER A Himatnagar Harbour Pointe TGN- Maksi A Bhopal Asansol Omerpur Seattle TGN- Gandhinagar Penmarch Ujjain TGN- Dewas Gotegaon Jabalpur Ranchi Puruliya Durgapur FASTER Ahmedabad Ratlam Piparia Bangladesh World’s Godhra Khunti Itarsi Narsinghpur Nadiad Indore Gadarwara Jamshedpur Kolkata (Dhaka) Bilaspur Bagnan Laurentide GTT ATLANTIC Vadodra Seoni Rourkela Hillsboro FEA Portland Montreal GTT ATLANTIC Bharuch Kharaghpur Balaghat Halifax WACS Kulpa Jaleshwar Nedonna Beach Surat Bhandara Raipur MonacoToulon Amravati Durg Edalabad Nagpur Bhadrak Japan Lynn SEA ME WE3 Marseille Akola Wardha PC-1 EIG Valsad TGN-P Toulon Black Sea Nasik Jatni Bhubaneshwar Ajigaura Miura Bandon Bilbao Chandrapur Aurangabad Balugaon Dhakale Chikura Ninomiya NOC Asifabad Kalyan Berhampur Bari MUMBAI Sea of TGN-P Nanded Kitaibaraki Shima Caspian Palasa New York Karimnagar Amdalava Ahmednagar Bobbili Srikakulam Maruyama Wada Warrangal Japan Lisbon Kuduk Newark Madrid Sea PUNE Sholapur Hyderabad Wall NOC Pur Vishakapatnam AAE-1 Chityal PC-1 Ashburn TGN-A Satara Pacific Sacramento Mehboobnagar (East Sea) Seixal Sangli Kodad Palermo Kolhapur TGN-A Sesimbra FASTER Santa Clara Vijayawada Kakinada Shindu-ri largest Palo Alto Mazara Raichur Estepona Catania 1 Belgaum Marmaris Moglathuru Gibraltar Ramnagar San Jose Annaba Bizerte Panaji Hubli Ongole Morro Bay Chania Ponda Bellary Qingdao UNITY Nellore Pusan TGN-P Grover Beach TGN-EA Toyohashi UNITY Yeroskipos Davangere Yellow Tetouan Shimoga Tirupati Emi TGN-P wholly owned subsea Los Angeles Chickmagalore Mediterranean Tripoli Chittoor Arakonam Pacific CHENNAI Sea Mangalore Hassan Kolar Redondo Alexandria Tumkur Atlantic Sullia Sakleshpur Bangalore Periya Trikakundram Tripoli Sea Medikeri Kanakpura Kannur Mysore Shanghai C2C Nandapuram Pondicherry Chongming JUS Abu Talat Kozhikode Cuddalore Erode Nanhui Coimbatore Salem FNAL fibre backbone and a SAT3 Suez Tirupur Thrissur Palakkad Trichy Altavista Zafarana Ras Sidr Ernakulam PC-1 Al Khobar East APG K OCHI El Goro, Gran Canaria Kottayam Madurai Boca Raton BairahavaAlleppey Seabras 1 Okinawa APCN 2 Manama Kollam China Al Fujairah JUS Tier-1 IP network Karachi Trivendrum Pa Li Doha GlobeNet Taiwan Sea WACS Dubai JUS Main One Barka FNAL Shantou Tanshui Toucheng SJC Muscat EAC Al Bustan Deep Water Bay PC-1 EIG Qalhat Kolkata Taipa Fangshan FNAL TGN-GULF Cox’s Bazar Makaha Jeddah TGN-IA GlobeNet TGN-P Mumbai APCN 2 ASE South China EAC Pune Hyderabad Ngwe Saung Ballesteros Pyapon Sea Danang C2C Cape Verde Al Hudaydah Manila Dakar AAE-1 FEA Caribbean Sea SEA ME WE5 Chennai Tanguisson Point IMEWE Nasugbu Daet Tanguisson Point Aden EIG SEA ME WE4 SEA ME WE4 AAE-1 Piti TGN-EA Batangas Piti Tumon Bay APCN2 i2i BBG Ocean Ngwe Saung Vung Tau C2C Djibouti WE5 ME SEA SEA ME WE4 SEA ME WE3 BBG Kochi Barranquilla Maiquetia TGN-TIC AAE-1 SEACOM Addis Ababa Lome Satun Songkhla Lagos TEAMs Colombo Mt. Lavinia We carry GlobeNet SEA ME WE3 Abidjan Ratmalana Penang Matara APG TGN-IA Accra Cotonou SEA ME WE5 Kuantan Tungku Douala FEA Kuala Lumpur Telisai AAE-1 Medan SAT3 Dumai Mersing SAFE Tuas SEA ME WE3 Melaka Libreville Kampala Singapore Kigali Nairobi WACS Mombasa Ocean Fortaleza Pointe Noire SEACOM Madang Muanda Indian Ocean GlobeNet Jakarta ~30% Dar Es Salaam Luanda SAT3 of the world’s internet routes 1 Seabras GlobeNet WACS Port Louis St. Paul Bay Jacotet Rio de Janeiro Toliary Sao Paulo WE3 ME SEA Praia Grande Ocean Swakopmund SEACOM Witibank Maputo SAFE WACS PC-1 P SAT3 Mtunzini We connect