Dear Shareholders,
 
 The Directors are pleased to present the sixteenth Annual Report,
 together with the audited financial statements of the Company for the
 financial year ended March 31, 2011.
 
 Financial Results
 
 The standalone and consolidated financial results of your Company for
 the financial year ended March 31, 2011 are summarised below:
 
                                                               Rs. Mn
 
 Particulars                     Standalone             Consolidated
 
                              2010-11    2009-10     2010-11   2009-10
 
 Income from Services         153,328    118,502     154,384   123,979
 
 Other Income                     562        801         648     1,011
 
 Total Revenue                153,890    119,303     155,032   124,990
 
 Operating Expenses           122,609     90,358     117,126    90,399
 
 EBITDA                        31,281     28,945      37,906    34,591
 
 Depreciation and 
 Amortisation                  19,730     15,512      23,973    20,149
 
 EBIT                          11,551     13,433      13,933    14,442
 
 Interest and 
 Financing charges              2,487      2,063       3,964     4,005
 
 Surplus from prepayment
 of loan                           -         317         -         317
 
 EBT                            9,063     11,687       9,969    10,754
 
 Taxes                            617       1150         982     1,215
 
 Net Profit after Tax           8,446     10,537       8,987     9,539
 
 Balance brought forward
 from previous year           (3,964)    (4,053)      (5,038)   (5,263)
 
 Accumulated Losses 
 acquired on 
 Amalgamation of Spice
 Communications Limited
 (net of withdrawals
 from General Reserve & 
 Deferred Tax effects)           -      (10,448)         -      (9,314)
 
 Cumulative Profit 
 / (Losses)                   4,482      (3,964)       3,949    (5,038)
 
 Operations Review
 
 Your Company''s total subscriber base as on March 31, 2011 stood at 89.5
 million, an increase of 40.2% over the previous year. On a national
 basis, your Company''s subscriber market share stood at 11.0% as of end
 March, 2011. Further, the Company''s revenue market share increased to
 13.2% for the year ended March, 2011 from 12.4% in the previous year.
 
 During the financial year, your Company''s total minutes of usage on the
 network crossed the daily one billion minutes mark in terms of daily
 voice traffic, placing the Company amongst the largest 10 telecom
 operators in the world. The Company grew its Optic Fibre network by ~
 7,000 route kilometers during the financial year to cater to almost all
 of its captive National Long Distance traffic.
 
 As a result of the above, on a standalone basis, the total revenues for
 the financial year were Rs. 153,890 Mn representing a growth of 29.0%
 over the previous year.
 
 During the last financial year (FY 10), your Company had launched 7 new
 service areas, which, in FY 11 operated for the first full financial
 year and are yet to generate cash from operations. The Profit after tax
 was lower at Rs. 8,446 Mn, a decrease of 19.8% as compared to the
 previous year. However, the brought forward losses from the previous
 years (including those acquired on amalgamation of Spice Communications
 Limited in March 2010) have been completely wiped off during this
 financial year. As of March 31, 2011, your company has carried the
 accumulated Profit and Loss balance of Rs. 4,482 Mn to Reserves and
 Surplus.
 
 On a consolidated basis, the total revenues were higher by 24.0% at Rs.
 155,032 Mn over the previous year. The consolidated Net Profit after
 tax stood at Rs. 8,987 Mn, a decrease of 5.8% compared to the previous
 year.
 
 Dividend
 
 The Company is in the telecommunication sector which continues to see
 tremendous growth and significant new investments. The Company''s capex
 requirements are presently higher than the cash profits and hence the
 company currently does not have free cash flows. Hence, your Directors
 do not recommend any dividend for the year ended March 31, 2011.
 
 Share Capital
 
 During the year under review, your Company issued and allotted
 3,433,713 Equity Shares of Rs. 10/- each, fully paid-up, to the option
 grantees pursuant to the exercise of stock options under Employee Stock
 Option Scheme, 2006 (ESOS-2006).
 
 Consequently, the issued, subscribed and paid-up equity share capital
 of your Company as on March 31, 2011 stood at 3,303,271,505 equity
 shares of Rs. 10/- each.
 
 Credit Rating
 
 Your Company continues to have credit rating of CARE A1  and CRISIL A1 
 for its short term debt program and CARE AA credit rating for its long
 term debt program.
 
 Capital Expenditure
 
 Your Company continues to expand network for enhanced coverage and
 quality. Your Company incurred a capex of Rs. 99,107 Mn (including Rs.
 57,686 Mn and Rs. 4,097 Mn, being payout for 3G spectrum fee and interest
 capilatised thereon) during the financial year 2010-11.
 
 The Company also made significant progress in rolling out its National
 Long Distance (NLD) network, and augmenting the International Long
 Distance (ILD) network. As at end March, 2011, it carried about 90% of
 its captive NLD and ILD outgoing traffic.
 
 Employee Stock Option Scheme
 
 During the year, the ESOS Compensation Committee granted 2,524,500
 options as fourth tranche under the Employee Stock Option Scheme, 2006
 (ESOS - 2006) to the eligible employees of the Company. Each option is
 convertible into one Equity
 
 Share of the Company upon vesting. These options will vest in 4 equal
 annual installments after one year of the grant and shall be
 exercisable within a period of 5 years from the date of the vesting.
 
 The disclosures in compliance with clause 12 of Securities and Exchange
 Board of India (Employees Stock Option Scheme and Employees Stock
 Purchase Scheme) Guidelines, 1999, as amended, are set out in Annexure
 ''A'' to this Report.
 
 Human Resources
 
 Your company continues to invest in building a strong performance
 culture through alignment, shared agreement, robust measurement and
 constructive performance conversations. Implementation of sophisticated
 management processes and continued investment in people have helped the
 Company set high standards of performance.
 
 Significant Developments:
 
 - Launch of 3G Services
 
 The Company was winner of 3G spectrum in 11 services areas.  During the
 period March''11 to July''11, the Company has launched 3G services in 9
 out of these 11 service areas. The Company is in the process of
 launching 3G services in Jammu and Kashmir service area. The 3G
 spectrum for Punjab service area has not been earmarked by DoT to the
 Company for commercial usage as yet, and hence Company has not been
 able to launch 3G service there until now.
 
 Besides providing 3G services in the service areas where the Company
 has won spectrum, the Company has also entered into bilateral roaming
 arrangements with other leading operators. Consequent to these
 arrangements, the Company is providing 3G services in 6 service areas
 through roaming arrangements, and is in talks to launch its 3G services
 in the remaining service areas.
 
 - ISO 9001:2008 Certification
 
 The Service Delivery function of the Company is ISO 9001:2008
 certified. The ISO 9001:2008 certification (by TUV-Nord) ensures a
 unified platform for providing consistent services to all the customers
 the Company serves across the markets and hence the processes that are
 implemented are customer centric, best in class and in line with the
 international quality management systems.
 
 - Change in Leadership
 
 Mr. Sanjeev Aga relinquished the office of the Managing Director of the
 Company from the close of business hours on March 31, 2011. Mr. Aga
 continues to be on the Board as a Non-Executive Director of the
 Company. Mr. Himanshu Kapania assumed the role of the Managing Director
 with effect from April 1, 2011. Mr. Kapania has over 26 years of
 experience and has indepth knowledge of the Telecom Industry including
 the current competitive landscape in India. Before taking over this
 current role, in the position as Director Operations, he has
 successfully led the numerous new service area roll outs in the last
 four years and also has led several Company-wide strategic initiatives
 contributing to the growth of the Company.
 
 - Merger of Spice Communications Limited
 
 The Department of Telecommunications (DoT) had obtained an
 
 ex-parte stay on March 30, 2011 from the Hon''ble High Court of Delhi
 against its order dated February 5, 2010 sanctioning the Scheme of
 Amalgamation of Spice Communications Limited (Spice) with the Company.
 The Hon''ble High Court of Delhi while pronouncing its judgment on July
 4, 2011, reaffirmed the amalgamation of Spice with the Company.
 However, the said judgment transferred and vested unto the DoT, the six
 licenses granted to erstwhile Spice along with the spectrum (including
 the two operational licenses for Punjab & Karnataka service areas),
 till the time permission of DoT is obtained. Upon an appeal filed by
 the Company before the Appellate Bench, challenging the above judgment
 of July 4, 2011, the Appellate Bench through interim orders, has
 directed DoT to:- (i) Accept the License Fee from the Company without
 prejudice, as the Company is continuing to operate the licenses for
 Punjab & Karnataka service areas granted to erstwhile Spice;
 
 (ii) Maintain status quo in relation to the aforesaid two operating
 licenses and not to take any coercive steps in relation to any demand
 pertaining to the four non operating licenses till the next date of
 hearing.
 
 The matter remains sub-judice.
 
 - 3G Spectrum for Punjab Service Area
 
 The Company had participated in the 3G auction conducted by the
 Department of Telecommunications (DoT), basis the 2G licenses held by
 it for various service areas and was declared winner for the allotment
 of 3G spectrum in 11 service areas on May 21, 2010, including Punjab
 service area. The DoT accordingly issued Letters of Intent for
 earmarking of 3G spectrum, inter-alia, for Punjab service area.
 Thereafter the Company approached DoT for carrying out license
 amendment, enabling the Company for commercial usage of 3G spectrum.
 Though DoT carried the requisite amendments to 2G licenses for 10
 service areas, it, however, is yet to carry license amendment and allow
 commercial usage of earmarked 3G spectrum in respect of Punjab service
 area.
 
 As the Company did not receive any response to repeated requests made
 to DoT, it approached Telecom Disputes Settlement and Appellate
 Tribunal (TDSAT) and filed Petition for necessary direction to the DoT
 to allow the commercial usage of allocated 3G Spectrum for Punjab
 service area. The TDSAT has dismissed the said petition in view of
 order passed by Delhi High Court in July, 2011 concerning amalgamation
 of erstwhile Spice Communications Limited with the Company, which was
 holding the operative 2G license in respect of Punjab service area. The
 Company has filed necessary appeal before the Appellate Bench of Delhi
 High Court against the July, 2011 order passed by the single judge and
 would decide the next course of action at an appropriate time, basis
 the outcome of appeal.
 
 - Notices from DoT for alleged violation of terms and conditions of
 License Agreement
 
 Due to the DoTs alleged contention that the acquisition of erstwhile
 Spice Communications Limited and its subsequent amalgamation violates
 certain license conditions / guidelines, the Company had received
 various Show Cause / Demand Notices from the DoT in respect of the
 operational and non- operational licenses including for alleged failure
 to meet roll- out obligations. Your Company is contesting the same
 before the appropriate forums. More details are provided in Note B4 of
 Schedule 22 – Notes to Accounts.
 
 Corporate Sustainability
 
 Your Company, part of the Aditya Birla Group which is India''s first
 truly global conglomerate, is one of the oldest players in the Indian
 telecom industry and has played a key role in the development of mobile
 telephony, particularly in rural India. As part of a socially
 responsible corporate group, your Company has and continues to adopt
 policies, and business strategies to effectively integrate emerging
 environmental, social and economic considerations.
 
 Whether it''s through conserving energy, recycling, or finding
 innovative solutions to environmental and social challenges, your
 Company is committed to being a respectful, responsible and positive
 influence on the environment and the society in which it operates.
 Efficient power management, infrastructure sharing, use of eco-friendly
 renewable energy sources, leveraging the latest in technology to reach
 out to a large audience in most energy efficient manner such as video
 and teleconferencing, smart logistics, etc. are some of the best
 practices in our network infrastructure and day-to-day business
 operations, to ensure a clean and green environment.
 
 Network Infrastructure Initiatives
 
 In our effort to give back to the environment and reduce the collective
 carbon foot print of the telecom sector in India, your Company
 pioneered the concept of ''Shared Telecom Infrastructure'' services,
 along with a few other industry leaders in the wireless space. This
 initiative is committed towards continuous innovation endeavors;
 optimization of future tower rollouts; and enhanced operational
 efficiencies leading to a substantial reduction of carbon foot print.
 
 The Indian telecom industry''s first collaborative, cross-industry
 consortium to encourage the development of environmentally sustainable
 mobile networks was also led by your Company, which was supported by
 the GSMA. The pilot, aimed at developing biofuels as a source of power
 for wireless networks in rural India which are located beyond the reach
 of the national electricity grid, was conducted in parts of Andhra
 Pradesh and Maharashtra. The learnings of the research were later
 handed to the infrastructure company which owns the towers, to explore
 broad basing of the program.
 
 In a bid to reduce energy consumption by our BTS, your Company chose OD
 BTS (outdoor BTS) as our preferred BTS type in 2007. Currently, over
 40% of our total BTS portfolio comprises of OD BTS, which has resulted
 in reducing our conventional energy consumption by about 25% as
 compared to the ID BTS (indoor BTS). Efforts are also on to re-deploy
 ID BTS to OD BTS sites, in some locations, which will further reduce
 energy consumption at these sites by 25%.
 
 Your Company has explored a Solar Hybrid Solution for running our BTS
 in parts of rural Bihar. This will reduce the fuel consumption of power
 generator from running for 15-16 hours to less than 5 hours a day in
 these locations.
 
 Your Company is also part of the Fuel Cell project, initiated by
 
 our Group. The project aims at exploring the usage of hydrogen as an
 alternate energy source to power mobile base stations.  Currently, at
 trial stage, if successful, this program has the potential of reducing
 the usage of a regular power generator to Zero.
 
 Communication Initiatives
 
 With a current subscriber base of nearly 10 crore, there is an
 opportunity to influence a large mass of people by promoting green
 initiatives through our various communication programs and customer
 service initiatives.
 
 Your Company germinated the thought of ''Use Mobile, Save Paper'' in the
 minds of millions of mobile users in India, with its aggressive yet
 thought provoking campaign. The campaign was designed to highlight
 numerous ways of saving paper, and thereby saving the green cover
 necessary for the health of the planet, by using a range of mobile
 based value added services in day-to-day activities to replace paper.
 
 Your Company was amongst the first mobile operators in India to promote
 V-Top up recharges for prepaid users, in a major way, which led to
 virtual phasing out of paper-based recharge vouchers, ultimately
 resulting in saving tonnes of paper.
 
 Another recent and ongoing initiative is e-Bill, which is being
 consistently promoted to ensure that more and more users opt for this
 service, and contribute towards saving paper.
 
 Breaking all conventions, your Company has conceived another innovative
 program which is aimed at reducing plastic consumption on a large
 scale. In a major overhaul of its logistics management, it introduced
 the ''PICO'' card, which is a half- size plastic card that bears the SIM
 card. Your Company is one of the first operators, globally, to
 introduce the new PICO card which is expected to save over 90% of
 plastic used in manufacturing regular cards.
 
 Employee Based Initiatives
 
 Your Company''s HR operations have all been enabled online for its over
 7,000 employees, to ensure that there is minimal paper documentation.
 This will save tonnes of paper and help maintain otherwise fragile
 eco-balance.
 
 The Company uses smart ICT solutions such as teleconferencing,
 videoconferencing, web chats etc. for internal communication amongst
 employees to minimize travel.
 
 Driven by its socially conscious parent Group, your Company stays
 committed to the cause of giving back to the environment and will
 continue to drive the efforts towards environment sustainability by
 reducing carbon foot print and energy consumption.
 
 Awards and Recognitions
 
 Your Company''s contribution and efforts is being recognised through
 prestigious awards and recognitions in various fora.  Some of them are
 listed below:
 
 - Your company has been ranked 1st in the Telecommunications sector and
 ranked 12th in the country under India''s Best Companies to Work for –
 2011 Study conducted by Great Place to Work® Institute, India, in
 partnership with The Economic Times.
 
 - Your Company has also been adjudged amongst the Top 3 companies in
 Telecommunications sector in the Best Companies to Work For Study
 conducted by Business Today.
 
 - Your Company has been ranked 3rd in Best Investor Relations category
 for Telecommunications sector (Nominated by Sell Side) in 2011 All-Asia
 Executive Team rankings by Institutional Investor magazine in a sector
 based survey, which had a participation of 522 portfolio managers and
 investors, as well as 348 sell-side analysts.
 
 - Brand Idea has been ranked the 4th Buzziest Brand by Agencyfaqs for
 second consecutive year.
 
 - Outdoor Innovation for Break the Language Barrier campaign won two
 Silver Awards at the OAC (Outdoor Advertising Convention) Awards 2011
 for Telecom Category for Multiple Executions and Best New Media Format
 Innovation.
 
 - The ''Use Mobile Save Paper'' campaign was one of the most awarded
 campaigns with over 7 awards in various media awards like the EMVIES
 2010, EFFIES 2010, Digital Media Awards 10-11 and Yahoo big Chair
 Awards 10-11.  The campaign was also creditably nominated at the Asian
 Marketing Effectiveness Awards and it also won us the Olive Crown Gold
 Award for the Green Brand of the Year at Goafest 2011.
 
 - The Company also received the award for ''Most outstanding use of
 Radio in an Ad campaign'' at the India Radio Forum 2011, Best Televised
 Event - EEMAX Awards 2010 for ''Idea Rocks India'' and an award for Rural
 Marketing Programme at the WOW Awards.
 
 New Initiatives and Alliances
 
 During the year under review, your Company made extensive progress on
 the marketing and customer care front by introducing various innovative
 products and services and also entered into various alliances. Some of
 these are:
 
 - IMAGINE promotions management system won the Prepaid Excellence
 Awards 2011 for Best Product Innovation category. This system enables
 the Company to launch targeted promotions for the prepaid subscribers
 and ensures enhancement in take rate of the promotions.
 
 - Matrix, the number and SIM management system is being rolled out to
 enable seamless provisioning of numbers and starter packs in the
 various network elements.
 
 - Siebel CRM (Christened as Crystal) was successfully rolled out in the
 Company. This is the largest Implementation of Siebel in a single
 instance in the world. Crystal implementation has ensured, reduced
 cost, increased customer satisfaction through better customer service.
 
 - To facilitate higher adoption of 3G services by customers and to
 provide better face-to-face service, 3G Experience Zones have been
 established at the Service Centers across various cities. The 3G
 Experience Zones are managed by trained Data Specialist equipped with
 TV, Netbook, 3G compatible handset, NetSetter and device simulators for
 demonstration and query handling.
 
 - The Company launched a unique Interactive Voice Response rural
 service called ''Behtar Zindagi'' in 16 regional languages, which
 provides information on key requirements of the rural segment like
 mandi rates, livestock, weather information, agriculture etc.
 
 - Classified Services have been launched as a new VAS service, offering
 access to Jobs, Real Estate, Matrimony, Best Deals etc.
 
 - Idea continued on its ''What an Idea Sirji'' campaign and launched the
 much appreciated ''Break the Language Barrier'' campaign. It was
 supported with a unique service of ''Idea Language Helpline'' offering
 instant translations in 15 Indian languages.
 
 - The Idea 3G media campaign was launched to support Idea''s 3G rollout.
 
 - Idea strengthened its brand through a series of media properties with
 associations with Kaun Banega Crorepati, Koffee With Karan, Mission
 Army and Grammy Awards on VH1, in addition to existing marquee
 properties like Idea Filmfare Awards, Idea Present Citizens Journalist
 and other regional media properties. The brand continued its
 association with the Delhi Daredevils team in IPL4.
 
 - Idea launched a unique National Inter School Skill fest called Kaho
 Whats Your Idea in association with renowned Quizmaster Derek O Brien.
 The program was very well received as it became one of the largest
 National School Connect Programs in the country touching 2.5 Lakh
 students across 3000 schools in 100 cities.
 
 Subsidiaries and Joint Ventures
 
 Your Company has the following subsidiaries and joint ventures:
 
 Subsidiaries
 
 - Aditya Birla Telecom Limited, holds 16% shareholding in Indus Towers
 Limited and 100% shareholding in Idea Cellular Towers Infrastructure
 Limited.
 
 - Idea Cellular Services Limited, provides manpower services to the
 Company.
 
 - Idea Cellular Infrastructure Services Limited, is a tower company
 owning towers in Bihar and Orissa service areas and provides passive
 infrastructure services in these service areas.
 
 - Idea Cellular Towers Infrastructure Limited (ICTIL), holds towers
 de-merged from the Company. ICTIL has filed a scheme of arrangement in
 the Hon''ble High Court of Delhi which provides for its merger into
 Indus Towers Limited.
 
 - Idea Mobile Commerce Services Limited (Formerly Carlos Towers
 Limited), is engaged in the business of Mobile Banking, though it is
 yet to commence commercial operations.
 
 - Swinder Singh Satara and Company Limited, is engaged in the trading
 of Data Cards, mobile handsets and Fixed Wireless Phones.
 
 In terms of general exemption granted by the Ministry of Corporate
 Affairs, Government of India, vide its circular
 
 no. 2/2011 dated February 8, 2011, and in compliance with the
 conditions enlisted therein, the reports and annual accounts of the
 subsidiary companies for the financial year ended March 31, 2011 have
 not been attached to the Company''s accounts.
 
 The annual accounts and other related information of the Subsidiary
 Companies shall be available for inspection during business hours by
 the members at the Registered Office of the Company. The copies of
 these documents will also be made available to the members upon
 request.
 
 Joint Ventures
 
 Indus Towers Limited, in which Aditya Birla Telecom Limited (ABTL)
 holds a 16% stake, is a joint venture between the Bharti group,
 Vodafone Essar group and the Company (through ABTL), and provides
 passive infrastructure services in 16 service areas.
 
 Fixed Deposits
 
 Your Company does not accept or hold any deposits and as such, no
 amount of principal or interest on fixed deposits was outstanding on
 the date of the Balance Sheet.
 
 Corporate Governance
 
 The Company is committed to maintain the highest standards of Corporate
 Governance. Your Directors adhere to all the requirements as provided
 in clause 49 of the Listing Agreement which relates to Corporate
 Governance.
 
 A Report on Corporate Governance as stipulated under clause 49 of the
 Listing Agreement forms part of the Annual Report. A certificate from
 the statutory auditors of the Company, confirming compliance with the
 conditions of Corporate Governance, as stipulated under clause 49 forms
 part of this report.
 
 Management Discussion and Analysis
 
 The Management Discussion and Analysis Report for the year under
 review, as stipulated under clause 49 of the Listing Agreement is
 presented in a separate section forming part of the Annual Report.
 
 Board of Directors
 
 Mr. Sanjeev Aga relinquished the office of the Managing Director of the
 Company from the close of business hours on March 31, 2011. Taking into
 account the significant contribution made by Mr. Aga during his tenure
 as the Managing Director, in the growth of the Company, the Board
 decided to avail his services as a Non-Executive Director on the Board
 of the Company with effect from April 1, 2011.
 
 Mr. Himanshu Kapania has been appointed as the Managing Director of the
 Company for a period of 5 years with effect from April 1, 2011. An
 abstract of the terms and conditions of his appointment and memorandum
 of interest under Section 302 of the Act have been sent to the Members
 of the Company in February, 2011.
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Mr. Kumar Mangalam Birla, Mr.
 Gian Prakash Gupta, Mr. Sanjeev Aga, and Dr. Rakesh Jain retire from
 office by rotation, and being eligible, offer themselves for
 re-appointment at the ensuing Annual General Meeting of the Company.
 
 Brief profile of the Directors proposed to be appointed / re- appointed
 as required under Clause 49 of the Listing Agreement are annexed to the
 Notice convening the 16th Annual General Meeting forming part of this
 Annual Report.
 
 Conservation of Energy, Technology Absorption, Foreign Exchange
 Earnings & Outgo
 
 The particulars as required to be disclosed pursuant to Section
 217(1)(e) of the Companies Act, 1956, read with the Companies
 (Disclosures of Particulars in the Report of Board of Directors) Rules,
 1988, are given to the extent applicable in the Annexure ''B'' forming
 part of this Report.
 
 Particulars of Employees
 
 In accordance with the provisions of Section 217(2A) of the Companies
 Act, 1956, read with the Companies (Particulars of Employees) Rules,
 1975, the names and other particulars of employees have been set out in
 the annexure to this report.  However, in terms of the provisions of
 Section 219(1)(b)(iv) of the Act, the report and accounts, as therein
 set out, are being sent to all the members of the Company excluding the
 aforesaid information about employees. Any member, who is interested in
 obtaining such particulars about employees, may write to the Company
 Secretary at the Registered Office of the Company.
 
 Directors'' Responsibility Statement
 
 Your Directors affirm that the audited accounts containing the
 financial statements for the Financial Year 2010-11 are in conformity
 with the requirements of the Companies Act, 1956.  They believe that
 the financial statements reflect fairly the form and substance of
 transactions carried out during the year and reasonably present the
 Company''s financial condition and results of operations.
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
 confirm that:
 
 a) in the preparation of the annual accounts, the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures;
 
 b) the accounting policies have been applied consistently and judgments
 and estimates made are reasonable and prudent, so as to give a true and
 fair view of the state of affairs of the Company as at the end of the
 financial year and of the profit of the Company for that period;
 
 c) proper and sufficient care has been taken to the best of their
 knowledge and belief for the maintenance of adequate accounting records
 in accordance with the provisions of the Companies Act, 1956, for
 safeguarding the assets of the Company and for preventing and detecting
 fraud and other irregularities;
 
 d) the annual accounts have been prepared on a going concern basis.
 
 Auditors
 
 The Statutory Auditors of the Company, M/s. Deloitte Haskins & Sells,
 Chartered Accountants, Mumbai, retire at the conclusion of the ensuing
 Annual General Meeting. The Statutory Auditors have confirmed their
 eligibility and willingness to accept the office on re-appointment. The
 Board recommends their re-appointment for the next term.
 
 Auditors'' Report and Notes to Accounts
 
 The Board has duly reviewed the Statutory Auditors'' Report on the
 Accounts. The observations appearing in the Auditors'' Report, including
 on the sub-judice matter, does not call for any further
 explanation/clarification by the Board of Directors under Section
 217(3) of the Companies Act, 1956.
 
 Acknowledgements
 
 Your Directors wish to express their sincere appreciation to the
 Department of Telecommunications, the Central Government, the State
 Governments, bankers and all the business associates for their support
 and look forward to continued support in future. Your Directors also
 wish to place on record their appreciation to the employees for their
 commitment in the progress of the Company.
 
                                        For and on behalf of the Board
 
 Place: Mumbai                                    Kumar Mangalam Birla
 
 Date: July 29, 2011                                          Chairman