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VSNL was incorporated on 19th March 1986 with the object of assuming responsibilities for providing international telecommunication services which were being provided by the erstwhile OCS Department of Telecommunications Ministry of Communications. GoI vide its Order NoG25015/6/86-OC dated 27th March 1986 transferred all the assets and liabilities of OCS as appearing in the Balance Sheet as at 31st March 1986 to the Company with effect from 1st April 1986. A regular transfer deed transferring all the assets and liabilities from Ministryof Communications GoI to the Company remains to be executed. VSNL was given exclusive licence to operate international telecommunication services. VSNL continues to hold the exclusive licence to provide international voice communication service until 31st March 2004. After take over of the business the Company in view of the rapid increase in demand for international telecommunication services has upgraded and expanded its infrastructure and facilities to further develop and provide all types of international networks systems and services. The capacity of international voice circuits has increased from 966 in 1986 to 17922 as on 31st March 1999. The Company provides international telephony telex data transmission value added services including Internet maritime communication services etc.GOI had granted enhanced autonomy and delegation of powers to selected public sector enterprises (the "Navratna") subject to certain guidelines as indicated in the Office Memorandum dated 22nd July 1997 issued by Department of Public Enterprises Ministry of Industry GoI. VSNL is one of such selected "Navratna" public sector enterprises. The objective behind such delegation is to support these public sector enterprises in their drive to become global giants. VSNL enjoys "Navratna" status. For the sixth successive year VSNL has qualified for being rated "Excellent" amongst MOU-signing Public SectorUndertakings with GoI for 1998-99 based on achievements against targets set out in the MOU for that year.On 1st April 1986 the assets and liabilities of OCS within DoT were transferred to the Company. The Company issued 600000 fully paid equity shares of Rs 1000/- each aggregating Rs. 60 crores to GoI towards purchase consideration. In March 1991 the Company subdivided its equity shares having a face value of Rs. 1000/- each into 100 equity shares of Rs. 10/- each. In February 1992 the Company issued bonus shares on the basis of one share for every three shares held. The Company has enhanced its paid up capital from Rs 80 crores to Rs. 95 crores through a GDR issue which was successfully concluded in March/April 1997. There have no further equity issues from the Company.OBJECTS OF THE COMPANYThe main objects of the Company to be pursued by it on its incorporation as set out in the Memorandum of Association inter alia are as under :1. Pursuant to an agreement to be entered into to take over the entire management control operations and maintenance of the Overseas Communications Service (OCS) of the Department of Telecommunications Ministry of Communications Govt. of India with all its assets and liabilities including contractual rights and obligations on such terms and conditions as may be prescribed by the Govt. of India from time to time.2. To plan establish develop provide operate and maintain all types of international telecommunication networks systems and services including Telephone Telex Message Relay Data transmission Facsimile Television Telematics Value Added Network Services New Business Services Audio and Video Services Maritime and Aeronautical Communication Services and other international telecommunications services as are in use elsewhere or to be developed in future.3. To plan establish develop provide operate and maintain telecommunications systems and networks within India as are found necessary for international telecommunications.4. To provide and maintain international leased telecommunication services.5. To raise necessary financial resources for its development needs for telecommunication services/facilities.SUBSIDIARY COMPANIESVSNL does not have any subsidiary company. However the shareholders of VSNL have accorded approval to set up a subsidiary company to provide value added services in India with a share capital of upto Rs. 80 crores at the 10th Annual General Meeting of the Company held on the 22nd November 1996 and have authorised the Board of Directors to take necessary action. In pursuance thereof the Board of Directors haveinitiated steps for obtaining the required approvals from the Government of India as well as the shareholders.