1.  BASIS OF PREPARATION
 
 The financial statements have been prepared to comply in all material
 respects with the Notifi ed accounting standards issued by Companies
 (Accounting Standards) Rules, 2006, (''as amended'') and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis
 except in case of assets for which revaluation is carried out. The
 accounting policies have been consistently applied by the Company and
 are consistent with those used in the previous year.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the
 reporting year end. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 3.  FIXED ASSETS
 
 Fixed Assets are stated at cost of acquisition and subsequent
 improvements thereto, including taxes and duties (net of cenvat
 credit), freight and other incidental expenses related to acquisition
 and installation. Capital work-in-progress is stated at cost.
 
 Site restoration cost obligations are capitalised when it is probable
 that an outfl ow of resources will be required to settle the obligation
 and a reliable estimate of the amount can be made.
 
 The intangible component of license fee payable by the Company for
 cellular and basic circles, upon migration to the National Telecom
 Policy (NTP 1999), i.e. Entry Fee, has been capitalised as an asset and
 the one time license fee paid by the Company for acquiring new licences
 (post NTP 1999) (basic, cellular, national long distance and
 international long distance services) has been capitalised as an
 intangible asset.
 
 4.  DEPRECIATION/AMORTISATION
 
 Depreciation on fixed assets is provided on the straight line method
 based on useful lives of respective assets as estimated by the
 management or at the rates prescribed under Schedule XIV of the
 Companies Act, 1956, whichever is higher. Leasehold land is amortised
 over the period of lease. Depreciation rates adopted by the Company are
 as follows:
 
 Useful lives
 
 Leasehold Land Period of lease
 
 Building 20 years
 
 Building on Leased Land 20 years
 
 Leasehold Improvements Period of lease or 10 years
 
 whichever is less
 
 Plant and Machinery 3 years to 20 years
 
 Computer and Software 3 years
 
 Offi ce Equipment 2 years/5 years
 
 Furniture and Fixtures 5 years
 
 Vehicles 5 years
 
 Software up to Rs. 500 thousand is fully amortised within one year from
 the date it is placed in service.
 
 Bandwidth capacity is amortised on straight-line basis over the period
 of the agreement subject to a maximum of 18 years i.e. estimated useful
 life of bandwith.
 
 The Entry Fee capitalised is amortised over the period of the license
 and the one time licence fee is amortised over the balance period of
 licence from the date of commencement of commercial operations.
 
 3G spectrum fees is being amortised over the period of license from the
 effective date of launch of 3G services.
 
 The site restoration cost obligation capitalised is depreciated over
 the period of the useful life of the related asset.
 
 Fixed Assets costing up to Rs. 5 thousand (other than identifi ed CPE)
 are being fully depreciated within one year from the date of
 acquisition.
 
 5.  REVENUE RECOGNITION AND RECEIVABLES
 
 Mobile Services
 
 Service revenue is recognised on completion of provision of services.
 Service revenue includes income on roaming commission and an access
 charge recovered from other operators, and is net of discounts and
 waivers. Revenue, net of discount, is recognised on transfer of all
 signifi cant risks and rewards to the customer and when no signifi cant
 uncertainty exists regarding realisation of consideration.
 
 Processing fees on recharge is being recognised over the estimated
 customer relationship period or voucher validity period, as applicable.
 
 Revenue from prepaid calling cards packs is recognised on the actual
 usage basis.
 
 Telemedia Services
 
 Service revenue is recognised on completion of provision of services.
 Revenue is recognised when no signifi cant uncertainty exists regarding
 realisation of consideration. Service Revenue includes access charges
 recovered from other operators, and is net of discounts and waivers.
 
 Enterprise Services
 
 Revenue, net of discount, from sale of goods is recognised on transfer
 of all signifi cant risks and rewards to the customer and when no
 signifi cant uncertainty exists regarding realisation of consideration.
 Revenue on account of bandwidth service is recognised on time
 proportion basis in accordance with the related contracts.
 
 Service Revenue includes access charges recovered from other operators,
 revenues from registration, installation and provision of Internet and
 Satellite services. Registration fees is recognised at the time of
 dispatch and invoicing of Start up Kits. Installation charges are
 recognised as revenue on satisfactory completion of installation of
 hardware and service revenue is recognised from the date of
 satisfactory installation of equipment and software at the customer
 site and provisioning of Internet and Satellite services.
 
 Activation Income
 
 Activation revenue and related direct activation costs, not exceeding
 the activation revenue, are deferred and amortised over the related
 estimated customer relationship period, as derived from the estimated
 customer churn period.
 
 Investing and other Activities
 
 Income on account of interest and other activities are recognised on an
 accrual basis. Dividends are accounted for when the right to receive
 the payment is established.
 
 Provision for doubtful debts
 
 The Company provides for amounts outstanding for more than 90 days in
 case of active subscribers, roaming receivables, receivables for data
 services and for entire outstanding from deactivated customers net off
 security deposits or in specifi c cases where management is of the view
 that the amounts from certain customers are not recoverable.
 
 For receivables due from the other operators on account of their
 National Long Distance (NLD) and International Long Distance (ILD)
 traffi c for voice and Interconnect Usage charges (IUC), the Company
 provides for amounts outstanding for more than 120 days from the date
 of billing, net of any amounts payable to the operators or in specifi c
 cases where management is of the view that the amounts from these
 operators are not recoverable.
 
 Accrued Billing revenue
 
 Accrued billing revenue represent revenue recognized in respect of
 Mobile, Broadband and Telephone, and Long Distance services provided
 from the bill cycle date to the end of each month. These are billed in
 subsequent periods as per the terms of the billing plans.
 
 6.  INVENTORY
 
 Inventory is valued at the lower of cost and net realisable value.
 Cost is determined on First-in-First-out basis. Net realisable value is
 the estimated selling price in the ordinary course of business, less
 estimated costs of completion and the estimated costs necessary to make
 the sale.
 
 The Company provides for obsolete and slow-moving inventory based on
 management estimates of the usability of inventory.
 
 7.  INVESTMENT
 
 Current Investments are valued at lower of cost and fair market value
 determined on individual basis.
 
 Long-term Investments are valued at cost. Provision is made for
 diminution in value to recognise a decline, if any, other than that of
 temporary nature.
 
 8.  LICENSE FEES – REVENUE SHARE
 
 With effect from August 1, 1999, the variable Licence fee computed at
 prescribed rates of revenue share is charged to the Profit and Loss
 Account in the year in which the related revenues are recognised.
 Revenue for this purpose identifi ed as adjusted gross revenue as per
 the respective license agreements.
 
 9.  FOREIGN CURRENCY TRANSLATION, ACCOUNTING FOR FORWARD CONTRACTS AND
 DERIVATIVES
 
 Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 restatement of the Company''s monetary items at rates different from
 those at which they were initially recorded during the year, or
 reported in previous financial statements, are recognised as income or
 as expenses in the year in which they arise as mentioned below.
 
 Forward Exchange Contracts covered under AS 11, ''The Effects of Changes
 in Foreign Exchange Rates''
 
 Exchange differences on forward exchange contracts and plain vanilla
 currency options for establishing the amount of reporting currency and
 not intended for trading and speculation purposes, are recognised in
 the Profit and Loss account in the year in the which the exchange rate
 changes. The premium or discount arising at the inception of forward
 exchange contracts is amortised as expense or income over the life of
 the contract.  Any Profit or loss arising on cancellation or renewal
 of such forward exchange contract is recognised as income or expense
 for the year.
 
 Exchange difference on forward contracts which are taken to establish
 the amount other than the reporting currency arising due to the
 difference between forward rate available at the reporting date for the
 remaining maturity period and the contracted forward rate (or the
 forward rate last used to measure a gain or loss on the contract for an
 earlier period) are recognised in the Profit and loss account for the
 year.
 
 Other Derivative Instruments, not in the nature of AS 11, ''The Effects
 of Changes in Foreign Exchange Rates''
 
 The Company enters into various foreign currency option contracts and
 interest rate swap contracts that are not in the nature of forward
 contracts designated under AS 11 as such and contracts that are not
 entered to establish the amount of the reporting currency required or
 available at the settlement date of a transaction; to hedge its risks
 with respect to foreign currency fl uctuations and interest rate
 exposure arising out of import of capital goods using foreign currency
 loan. At every year end all outstanding derivative contracts are fair
 valued on a mark-to-market basis and any loss on valuation is
 recognised in the Profit and loss account, on each contract basis. Any
 gain on mark-to-market valuation on respective contracts is not
 recognised by the Company, keeping in view the principle of prudence as
 enunciated in AS 1, ''Disclosure of Accounting Policies''. Any reducti on
 to fair values and any reversals of such reductions are included in
 Profit and loss statement of the year.
 
 Embedded Derivative Instruments
 
 The Company occasionally enters into contracts that do not in their
 entirety meet the defi nition of a derivative instrument that may
 contain embedded derivative instruments – implicit or explicit terms
 that affect some or all of the cash fl ow or the value of other
 exchanges required by the contract in a manner similar to a derivative
 instrument. The Company assesses whether the economic characteristics
 and risks of the embedded derivative are clearly and closely related to
 the economic characteristics and risks of the remaining component of
 the host contract and whether a separate, non-embedded instrument with
 the same terms as the embedded instrument would meet the defi nition of
 a derivative instrument. When it is determined that (1) the embedded
 derivative possesses economic characteristics and risks that are not
 clearly and closely related to the economic characteristics and risks
 of the host contract and (2) a separate, standalone instrument with the
 same terms would qualify as a derivative instrument, the embedded
 derivative is separated from the host contract, carried at fair value
 as a trading or non-hedging derivative instrument. At every year end,
 all outstanding embedded derivative instruments are fair valued on
 mark-to-market basis and any loss on valuation is recognised in the
 Profit and loss account for the year. Any reduction in mark to market
 valuations and reversals of such reductions are included in Profit and
 loss statement of the year.
 
 Translation of Integral and Non-Integral Foreign Operation
 
 The financial statements of an integral foreign operation are
 translated as if the transactions of the foreign operation have been
 those of the Company itself.
 
 In translating the financial statements of a non-integral foreign
 operation for incorporation in financial statements, the assets and
 liabilities, both monetary and non-monetary are translated at the
 closing rate; income and expense items are translated at exchange rate
 at the date of transaction for the year; and all resulting exchange
 differences are accumulated in a foreign currency translation reserve
 until the disposal of the net investment.
 
 Foreign exchange contracts for trading and speculation purpose
 
 Foreign exchange contracts intended for trading and/or speculation are
 fair valued on a mark-to-market basis and any gain or loss on such
 valuation is recognised in the Profit and Loss Account for the year.
 
 10.  EMPLOYEE BENEFITS
 
 (a) Short-term employee benefi ts are recognised in the year during
 which the services have been rendered.
 
 (b) All employees of the Company are entitled to receive benefi ts
 under the Provident Fund, which is a defi ned contribution plan. Both
 the employee and the employer make monthly contributions to the plan at
 a predetermined rate (presently 12%) of the employees'' basic salary.
 These contributions are made to the fund administered and managed by
 the Government of India.  In addition, some employees of the Company
 are covered under the employees'' state insurance schemes, which are
 also defi ned contribution schemes recognised and administered by the
 Government of India.
 
 The Company''s contributions to both these schemes are expensed in the
 Profit and Loss Account. The Company has no further obligations under
 these plans beyond its monthly contributions.
 
 (c) Some employees of the Company are entitled to superannuation, a
 defi ned contribution plan which is administered through Life Insurance
 Corporation of India (LIC). Superannuation benefi ts are recorded as
 an expense as incurred.
 
 (d) Short-term compensated absences are provided for, based on
 estimates. Long-term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method at the end of each period/year.
 
 (e) The Company provides for gratuity obligations through a defi ned
 benefi t retirement plan (the ''Gratuity Plan'') covering all employees.
 The Gratuity Plan provides a lump sum payment to vested employees at
 retirement or termination of employment based on the respective
 employee salary and years of employment with the Company. The Company
 provides for the Gratuity Plan based on actuarial valuations as per the
 Projected Unit Credit Method at the end of each period/year in
 accordance with Accounting Standard 15, Employee Benefi ts. The
 Company makes annual contributions to the LIC for the Gratuity Plan in
 respect of employees at certain circles.
 
 (f) Other Long-term employee benefi ts are provided based on actuarial
 valuation made at the end of each period/ year. The actuarial valuation
 is done as per projected unit credit method.
 
 (g) Actuarial gains and losses are recognised as and when incurred.
 
 11.  PRE-OPERATIVE EXPENDITURE
 
 Expenditure incurred by the Company from the date of acquisition of
 license for a new circle or from the date of start-up of new venture or
 business, up to the date of commencement of commercial operations of
 the circle or the new venture or business, not directly attributable to
 fixed assets are charged to the Profit and Loss account in the year
 in which such expenditure is incurred.
 
 12.  LEASES
 
 a) Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefi ts of ownership of the leased term, are classifi ed as
 operating leases. Lease Rentals with respect to assets taken on
 ''Operating Lease'' are charged to the Profit and Loss Account on a
 straight-line basis over the lease term.
 
 Leases which effectively transfer to the Company substantially all the
 risks and benefi ts incidental to ownership of the leased item are
 classifi ed as fi nance lease.  Assets acquired on ''Finance Lease''
 which transfer risk and rewards of ownership to the Company are
 capitalised as assets by the Company at the lower of fair value of the
 leased property or the present value of the minimum lease payments.
 
 Amortisation of capitalised leased assets is computed on the Straight
 Line method over the useful life of the assets.  Lease rental payable
 is apportioned between principal and fi nance charge using the internal
 rate of return method.  The fi nance charge is allocated over the lease
 term so as to produce a constant periodic rate of interest on the
 remaining balance of liability.
 
 b) Where the Company is the lessor
 
 Lease income in respect of ''Operating Lease'' is recognised in the Profi
 t and Loss Account on a straight-line basis over the lease term.
 
 Finance leases as a dealer lessor are recognized as a sale transaction
 in the Profit and Loss Account and are treated as other outright
 sales.
 
 Finance Income is recognised based on a pattern refl ecting a constant
 periodic rate of return on the net investment of the lessor outstanding
 in respect of the lease.
 
 c) Initial direct costs are expensed in the Profit and Loss Account at
 the inception of the lease.
 
 13.  TAXATION
 
 Current Income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with Indian Income Tax Act, 1961.
 
 Deferred income taxes refl ects the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years.  Deferred tax is
 measured based on the tax rates and the tax laws enacted or
 substantively enacted at the balance sheet date.  Deferred tax assets
 are recognised and reviewed at each balance sheet date, only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. In situations where the Company has unabsorbed
 depreciation or carry forward tax losses, all deferred tax assets are
 recognised only if there is virtual certainty supported by convincing
 evidence that they can be realised against future taxable Profits. At
 each balance sheet date, unrecognised deferred tax assets of earlier
 years are re-assessed and recognised to the extent that it has become
 reasonably or virtually certain, as the case may be, that future
 taxable income will be available against which such deferred tax assets
 can be realised.
 
 Minimum Alternative Tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specifi ed period. In the year in
 which the MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the ICAI, the said asset is created by way of a credit to the Profi
 t and Loss account and shown as MAT Credit Entitlement. The Company
 reviews the same at each balance sheet date and writes down the
 carrying amount of MAT Credit Entitlement to the extent there is no
 longer convincing evidence to the effect that Company will pay normal
 Income Tax during the specifi ed period.
 
 14.  BORROWING COST
 
 Borrowing cost attributable to the acquisition or construction of fi
 xed assets which takes substantial period of time to get ready for its
 intended use is capitalised as part of the cost of that asset. Other
 borrowing costs are recognised as an expense in the year in which they
 are incurred. The interest cost incurred for funding a qualifying asset
 during the acquisition/construction period is capitalised based on
 actual investment in the asset at the average interest rate.
 
 15.  IMPAIRMENT OF ASSETS
 
 The carrying amounts of assets are reviewed at each balance sheet date
 for impairment whenever events or changes in circumstances indicate
 that the carrying amount may not be recoverable. An impairment loss is
 recognised for the amount by which the assets'' carrying amount exceeds
 its recoverable amount. The recoverable amount is the higher of the
 assets'' fair value less costs to sell and value in use.
 
 For the purpose of assessing impairment, assets are grouped at the
 lowest levels for which there are separately identifi able cash flows
 (cash generating units).
 
 16.  SEGMENTAL REPORTING
 
 a) Primary Segment
 
 The Company operates in three primary business segments viz. Mobile
 Services, Telemedia Services and Enterprise Services.
 
 b) Secondary Segment
 
 The Company has operations within India as well as in other countries
 through entities located outside India.  The operations in India
 constitute the major part, which is the only reportable segment, the
 remaining portion being attributable to others.
 
 17.  EARNINGS PER SHARE
 
 The earnings considered in ascertaining the Company''s Earnings Per
 Share (''EPS'') comprise the net Profit after tax. The number of shares
 used in computing basic EPS is the weighted average number of shares
 outstanding during the period. The weighted average number of equity
 shares outstanding during the year is adjusted for events of share
 splits/bonus issue post year end and accordingly, the EPS is restated
 for all periods presented in these financial statements. The diluted
 EPS is calculated on the same basis as basic EPS, after adjusting for
 the effects of potential dilutive equity shares unless impact is anti
 dilutive.
 
 The weighted average number of equity shares outstanding during the
 year are adjusted for events of bonus issue; bonus element in a rights
 issue to existing shareholders; share split; and reverse share split
 (consolidation of shares).
 
 18.  ASSET RETIREMENT OBLIGATIONS (ARO)
 
 Provision for ARO is based on past experience and technical estimates.
 
 19.  PROVISIONS
 
 Provisions are recognised when the Company has a present obligation as
 a result of past event; it is more likely than not that an outfl ow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to refl ect the current best
 estimates.
 
 20.  EMPLOYEE STOCK OPTIONS OUTSTANDING
 
 Employee Stock options outstanding are valued using Black Scholes/
 Monte Carlo/ Lattice valuation option – pricing model and the fair
 value is recognised as an expense over the period in which the options
 vest. The difference between the actual purchase cost of shares issued
 upon exercise of options and the sum of fair value of the option and
 exercise price is adjusted against General Reserve.
 
 21.  CASH AND CASH EQUIVALENTS
 
 Cash and Cash equivalents in the Balance Sheet comprise cash in hand
 and at bank and short-term investments.