The company, which is gearing up for a mega maiden public issue within the next couple of weeks, has clocked a total income of Rs 67.01 crore, while the net income from sale of telephone service was Rs 63.81 crore during the last fiscal.

The company has received an interest on deposits of Rs 3.09 crore during the period under review. It spent on network about Rs 83.1 crore and its staff cost was Rs 10.13 crore. Hughes Tele.com kicked off its commercial operations on December 18, 1998.

The poor performance is a common feature at the initial stages of operation of infrastructure projects in India. However, Hughes will expand its network substantially in the next year and install equipments to offer broadband telecom services, Hughes Tele.com said in its draft offer document with the Securities Exchange Board of India (Sebi). Hughes Tele.com is planning to achieve around 2 lakh lines in more than nine cities in its areas of operation over the next two years. At present, it has a total subscriber base of around 23,000 lines in Maharashtra.

In 15 years, Hughes Tele.com plans to have around 50 lakh lines in Goa and Maharashtra.

Hughes is required to pay corporate taxes at 35 per cent and an applicable surcharge (10 per cent in FY 2000 and 15 per cent in FY 2001). These rates are subject to change each year as part of the finance bill. The company paid no corporate tax expense for FY 1999 and FY 2000. However, it provided for Rs 0.34 lakh for FY 2000 towards wealth tax.

For the year ended March 31, 2000 network operation costs include Rs 6.62 crore NIU installation training fees and other operating and administration expenses include Rs 50 crore bid bond costs.

The company during December 18, 1998, to March 31, 1999, reported a net loss of Rs 63.16 crore on a total income of Rs 4.48 crore. During the period, the company had made provision for depreciation at Rs 14.1 crore. During the fiscal ended March 31, 2000, depreciation was Rs 59.95 crore.

The main promoters of Hughes Tele.com are the Ispat Industries group and its affiliates (51 per cent stake), Hughes Electronics Corporation and its affiliates (26.65 per cent), Alltel Corporation and its affiliates (13.35 per cent) and Kellerton Venture Corporation (nine per cent).