Mumbai: Videsh Sanchar Nigam Ltd (VSNL) on August 6 said its exposure to WorldCom, US-based troubled telecom giant, was approximately Rs 294-440 crore ($ 60 to 90 million) as on July 31, 2002 even as it sounded a note of caution that "there are risks inherent in any bankruptcy proceedings".

"Though it will continue to collect dues from WorldCom, there can be no assurance that the Tata group company "will be able to collect its WorldCom receivables or that VSNL will not be adversely affected by WorldCom 's financial difficulties", the company informed the Bombay Stock Exchange (BSE) on August 6.

Tata group received Rs 336 crore in dues from WorldCom in recent weeks. While the income from WorldCom represented 14 per cent of VSNL's total operating revenues, its shares in dues (to VSNL) was approximately 37.7 per cent of total dues as of March 31, 2002, it added.

VSNL remains optimistic that its relationship with WorldCom will continue to the benefit of each company and it would collect the Monies due to it from WorldCom.

VSNL has been in discussions with management at WorldCom and has been monitoring WorldCom 's financial situation since its financial problems were first disclosed.

VSNL intends to take necessary steps to recover the amount owed to it by WorldCom, including seeking payment of VSNL's pre-petition claims from WorldCom in accordance with orders of the bankruptcy court, it said.

PTI