1.  Basis of Preparation of Financial Statements:
 
 The Accounts have been prepared on a going concern basis under
 historical cost convention on accrual basis and in accordance with the
 generally accepted accounting principles in India and the provisions of
 Companies Act, 1956.
 
 2.  Use of Estimate:
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions to be made that affect the reported amount of
 assets and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting year. The
 difference between the actual results and estimates are recognised in
 the year in which the results are known / materialised.
 
 3.  Revenue Recognition:
 
 a.  Revenue from Infrastructure / Equipment provisioning is recognised
 in accordance with the Contract /Agreement entered into. Revenues are
 recognised when it is earned and no significant uncertainty exists as
 to its ultimate collection and includes service tax, wherever
 applicable.
 
 b.  Interest income is recognised on a time proportion basis. Dividend
 is considered when the right to receive is established.
 
 4.  Fixed Assets:
 
 a.  Fixed Assets are stated at cost net of eligible Cenvat and VAT less
 accumulated depreciation, amortisation and impairment loss, if any. All
 costs, including borrowing costs up to the date asset is ready to use
 are capitalised.
 
 b.  The Fixed Assets at the cellular sites, which are ready to use in
 the first fifteen days of a month are capitalised on the fifteenth day
 of that month, whereas, if they are ready to use in the second half of
 a month, they are capitalised on the last day of that month.
 
 c.  Expenses incurred relating to project, prior to commencement of
 commercial operation, are considered as pre-operative expenditure and
 shown under Capital Work-in-Progress.
 
 5.  Depreciation:
 
 a.  Depreciation on Fixed Assets is provided on Straight Line Method at
 the rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956 except in respect of certain Fixed Assets where the higher
 rates are applicable considering the estimated useful life as mentioned
 below and Towers:
 
 i.  Shelters 20 years
 
 ii.  Network Operation Assets 4 to 10 years
 
 iii.  Air Conditioners 9 years
 
 iv.  Electrical & Power Supply Equipments 6 to 9 years
 
 v.  Computers 3 years
 
 vi.  Office Equipments 3 to 5 years
 
 vii.  Furniture & Fittings 5 years
 
 viii.  Vehicle 5 years
 
 b.  The towers have been depreciated on straight line method at the
 rate of 2.72% per annum in terms of specific approval received from
 Ministry of Corporate Affairs, Government of India vide Order
 no.45/2/2010-CL-lll dated May 26,2010 issued under Section 205(2)(d) of
 the Companies Act, 1956.
 
 c.  The leasehold improvements have been depreciated over lease period.
 
 d.  In respect of additions forming an integral part of existing assets
 depreciation has been provided over residual life of the respective
 fixed assets.
 
 e.  In respect of Fixed Assets whose actual cost does not exceed Rs.
 5,000, depreciation is provided at 100% in the year of addition.
 
 f.  In respect of Fixed Assets acquired upon demerger pursuant to the
 Scheme of Arrangement between GTL Infrastructure Limited and GTL
 Limited, depreciation is provided for the balance period of economic
 useful life of those assets.
 
 6.  Intangible Assets:
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortisation. Software which is not an integral part of the related
 hardware is classified as an Intangible Asset and is amortised over the
 useful life of three years.
 
 7.  Investments:
 
 Current Investments are carried at the lower of cost or quoted / fair
 value computed scrip wise, Long Term Investments are stated at cost.
 Provision for diminution in the value of long term investments is made
 only if such decline is other than temporary.
 
 8.  Assignment of Recoverables:
 
 In case of assignment of recoverables, the amounts are derecognised
 when all the rights and titles in receivables are assigned and charges
 paid on assignment are charged to Profit and Loss account.
 
 9.  Inventory of Stores, Spares and Consumables:
 
 Inventory of stores, spares and consumables are accounted for at costs,
 determined on weighted average basis, or net realisable value,
 whichever is less.
 
 10.  Foreign Currency transactions:
 
 a.  Transactions in Foreign Currencies are normally recorded at the
 exchange rate prevailing on the date of the transaction.
 
 b.  Monetary items denominated in Foreign Currency at the Balance Sheet
 date are restated at the exchange rates prevailing at the Balance Sheet
 date.  In case of the items which are covered by forward exchange
 contracts, the difference between the exchange rates prevailing at the
 Balance Sheet date and rate on the date of the contract is recognised
 as exchange difference. The premium on forward contracts is amortised
 over the life of the contract.
 
 c.  Non monetary Foreign Currency items are carried at cost.
 
 d.  Any gain or loss on account of exchange difference either on
 settlement or on restatement is recognised in the Profit and Loss
 account.
 
 11.  Employee Benefits:
 
 a.  Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the Profit and Loss account of the year in which
 the related service is rendered.  |
 
 b.  Post employment and other long term employee benefits are
 recognised as an expense in the Profit and Loss account for the year in
 which the employee has rendered services. The expense is recognised at
 the present value of the amount payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to the Profit and
 Loss account.
 
 c.  In respect of employee''s stock options, the excess of market price
 on the date of grant over the exercise price is recognised as deferred
 employee compensation expense amortised over vesting period.
 
 12.  Borrowing costs:
 
 Borrowing costs that are attributable to acquisition or construction of
 a qualifying asset (net of income earned on temporary deployment of
 funds) are capitalised as a part of the cost of such assets. A
 qualifying asset is one that necessarily takes substantial period of
 time to get ready for intended use. All other borrowing costs are
 charged to Profit and Loss account.
 
 13.  Leases:
 
 In respect of operating leases, lease rentals are expensed with
 reference to the terms of lease and other considerations except for
 lease rentals pertaining to the period up to the asset put to use,
 which are capitalised.
 
 14.  Provision for Current and Deferred Tax:
 
 a.  Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income-tax Act, 1961.
 
 b.  Deferred tax resulting from the timing differences between taxable
 and accounting income is accounted for using the tax rates and laws
 that are enacted or substantively enacted as on the Balance Sheet date.
 The deferred tax asset is recognised and carried forward only to the
 extent that there is a virtual certainty that the assets will be
 realised in the future.
 
 15.  Impairment of Assets:
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss account in the year in which an asset is identified as
 impaired. The impairment loss recognised in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 17.  Financial Derivatives Hedging Transactions:
 
 In respect of derivatives contracts, premium paid, provision for tosses
 on restatement and gains / losses on settlement are recognised in the
 Profit and Loss account.
 
 18.  Issue Expenses:
 
 Expenses related to issue of equity and equity related instruments are
 adjusted against the Securities Premium Account.
 
 19.  Provision for Doubtful Debts and Loans and Advances:
 
 Provision is made in the accounts for doubtful debts and loans and
 advances in cases where the management considers the debts, loans and
 advances, to be doubtful of recovery.