Indian economy is undergoing an accelerated growth phase with a GDP
 growth of over 7% in the last fiscal. India has already taken a giant
 step in the last few years towards becoming a global services hub with
 its services sector contributing more than 55% towards GDP. With over
 US $ 12 billion of service revenue, the India telecom industry is one
 of the most attractive and growing sectors in the Indian Economy.
 
 Indian telecom market is the fastest growing telecom market in the
 world. During the last fiscal, wireless industry grew by over 135% to
 cross the 33 million-subscriber mark. With wireless penetration
 
 levels still as low as 3%, there is tremendous growth potential in the
 sector.
 
 The year witnessed a lot of initiatives from the regulator, which has
 helped in attaining an environment conducive for explosive growth and
 healthy competition. These include introduction of Unified licensing
 regime and calling party pays regime, clearing the long pending issue
 of limited mobility, changes in the IUC regime, amongst others.
 
 Further, the competition intensified during the last 18 months with the
 nationwide launch of GSM mobile services by BSNL and launch of
 nationwide operations by Reliance.
 
 The year gone by has been one of the toughest in the history of Bharti
 Telecom. It has been a year that witnessed landmark regulatory changes,
 stiff competition in the form of new aggressive launches and bottoming
 out of tariffs. However, it gives me great satisfaction to bring to
 your knowledge, that despite these challenges, last financial year has
 been one of the most successful year in the history of Bharti Telecom.
 
 Bharti Tele-Ventures Limited has achieved a turnaround by attaining a
 net profit for the financial year 2003-04. Bharti has joined the elite
 club of companies, which have over I Billion revenues in the financial
 year,
 
 During the year, Bharti Tele-Ventures was assigned the highest Crisil
 GVC Level I credit rating in the corporate governance by CRISIL. In a
 survey conducted by Euromoney, Bharti has been ranked as the second
 best telecom company in Asia.
 
 I would like to take this opportunity to thank all Bharti employees for
 the dynamism they have shown in carrying forward Bhartis vision to
 become Globally Admired for Telecom Services that Delight Customers.
 I would also like to thank Government of India, our various partners,
 shareholders, lenders and other associates in supporting our mission.
 Together we look forward to capitalize fully the growth opportunities
 that lie ahead of us.
 
 Sunil Bharti Mittal 
 Chairman