Listed or not, Sistema Shyam wants to declare results

In an extraordinary move, Sistema Shyam Teleservices, the majority owned Indian subsidiary of Russia’s AFK Sistema and the owner of MTS brand, has said it will reveal its quarterly and full-year financial result on Friday.

The company is not listed on any stock exchange and is under no legal obligation to make its financial details public.

“Sistema Shyam Teleservices is credited to be the first telecom operator amongs the new entrants.. to disclose results,” a message from a public relations representative of the Indian firm said.

Almost no unlisted Indian firm makes its financial details public, partly because it helps in remaining competitive. Publication of financial results helps give the competition ideas about the strengths and weaknesses of the company.

According to the message, the Sistema Shyam will announce its full year as well as fourth quarter results tomorrow.

The $19 billion Russian parent is listed on the London Stock Exchange and is headed by business oligarch Vladimir Yevtushenkov.

Many new and old telecom operators in India are currently facing scrutiny for misrepresenting their credentials while applying for and acquiring telecom licenses three years ago, or failing to roll out the services in time.

Government has issued close to 200 show cause notices against the operators across the country in an effort to force operators to pay up or cancel their licenses.

It has said a decision on canceling around 70 licenses for misrepresenting credentials will be taken in two weeks.