My dear fellow Shareowners,
 
 I am delighted to say that Reliance Communications (RCOM) has turned in
 a year of steady performance in the face of ferce and intensifying
 competition in the telecom sector. Through the year, we consolidated
 our position in the market and are now on the verge of reaching the
 magic 150 million wireless subscribers mark. As before, we remain
 uniquely placed in the industry in being able to offer our growing base
 of loyal subscribers the choice of world class services on CDMA, GSM
 and 3G technology platforms.
 
 With a customer base of 142 million as on March 31, 2011, RCOM is today
 the world''s 4th largest operator in terms of number of customers in a
 single country. Our corporate clientele includes over 35,000 Indian and
 multinational corporations including small and medium enterprises and
 over 800 global, regional and domestic carriers. Our enterprise
 customers include 850 of the top 1,000 enterprises in India.
 
 We have come a long way since launching our pan-India services 8 years
 ago, and even more so since kicking off our- pan-India GSM services a
 little over 2 years ago. During this period, we have been widely
 recognized in the industry for pioneering Telecom Inclusion in India
 by giving the aam aadmi the opportunity to avail of world class
 communication services at amazingly affordable prices. As a result, a
 mobile phone connection, which was regarded as a luxury by most people
 less than 10 years ago, is now seen as an absolute necessity for
 practically everyone in the country.
 
 RCOM alongwith its wholly owned subsidiary Reliance Telecom Limited has
 won 3G spectrum in 13 circles, the highest number of circles won by any
 operator in the auction. RCOM demonstrated its all round execution and
 innovation capabilities by becoming the first operator to offer 3G
 services to customers in the top 3 metro circles of Delhi, Mumbai and
 Kolkata in a record time of 100 days of receiving 3G spectrum. As on
 date, we have rolled out 3G services in all the circles for which we
 won 3G spectrum, covering nearly 330 census towns. Today, our Company
 is the only operator in India that has both the highest,13 circle,
 coverage in 3G as well as a pan- India 3G-like capability in CDMA
 technology. These initiatives will help us in achieving our vision of
 creating a Wirefree India powered by our world-class ''affordable 3G
 for All'' platform.  During this fiscal and going forward, we expect new
 data- centric innovations in terms of products and services on the 3G
 platform, which will give new impetus to data traffic growth in the
 industry. In addition to continuing on conventional voice- based model,
 we are now focusing to provide innovative and affordable high-speed
 data services catering to the needs of all customer segments. We look
 forward to strengthening our leadership position in voice as well as in
 data services.
 
 Performance review
 
 The financial year 2011 witnessed hyper competitive environment
 in the telecom industry resulting in substantial decrease in tariff
 rates. Despite this, RCOM was able to achieve reasonable top
 -line growth during the year.
 
 The key financial highlights on a consolidated basis are:
 
 Total income of Rs. 23,108 crore (US$ 5,182 million), as against
 Rs. 22,132 crore (US$ 4,903 million) in last financial year.
 
 Net profit of Rs. 1,346 crore (US$ 302 million), as against
 Rs. 4,655 crore (US$ 1,031 million) in previous financial year.
 
 Cash Earnings Per Share (Cash EPS) of Rs. 38.81 (US$ 0.87) as against Rs.
 41.30 (US$ 0.91) in the previous year and Basic Earnings Per Share
 (EPS) of Rs. 6.52 (US$ 0.15), as against Rs. 22.55 (US$ 0.50) in the
 previous financial year.
 
 Our Net Worth of Rs. 35,752 crore (US$ 8,017 million) puts us among the
 top Indian private sector companies.
 
 Treading along Growth path
 
 RCOM is India''s truly integrated and fully-converged telecommunications
 service provider. We operate across the full spectrum of wireless,
 wireline, voice, data, video and Internet communication services. We
 also have an extensive international presence through the provision of
 long distance voice, data and Internet services and submarine cable
 network infrastructure globally.
 
 - Our customer base exceeds 142 million as on March 31, 2011 and
 includes over 2.5 million overseas retail customers and 3.5 million
 Reliance Digital TV customers.
 
 - We are the world''s 4th largest operator in terms of number of
 customers in a single country.
 
 - We own and operate the world''s largest next generation IP-enabled
 connectivity infrastructure, comprising over 277,000 route kilometers
 of fibre optic cable systems in India, USA, Europe, Middle East and the
 Asia Pacific region.
 
 - Our corporate clientele includes over 35,000 Indian and multinational
 corporations including small and medium enterprises and over 800
 global, regional and domestic carriers.
 
 - Our enterprise customers include 850 of the top 1000 enterprises in
 India.
 
 - We have built India''s one of the largest portfolio of multi- tenancy
 towers offering integrated infrastructure solutions.
 
 We offer nationwide Direct-To-Home satellite TV services, employing
 state-of-the-art MPEG4 technology to deliver over 250 channels in
 HD-like quality.
 
 Segments
 
 1) Wireless
 
 We are among India''s top two operators with over 136 million wireless
 subscribers as on March 31, 2011 across a comprehensive portfolio of
 services, including mobile, PCO, fixed wireless and data card segments.
 
 We have been at the forefront of innovation in the wireless sector:
 
 - Following the success of our first three Simply Reliance Initiatives,
 we have announced the extension of Simply Reliance through another
 ground-breaking ''Simply Unlimited CDMA'' Offer, as part of 100 Million
 Customers Milestone celebrations
 
 - During the year, we expanded our CDMA wireless broadband (High Speed
 Data) service coverage to 518 towns
 
 - We have soft-launched 3G services in 330 towns in 13 circles where we
 won spectrum in auction
 
 - Pan-India data footprint
 
 2) Global
 
 Reliance Globalcom spearheads the global telecom operations of RCOM.
 Our global business serves over 2,100 enterprises, 250 carriers and 2.5
 million retail customers over 160 countries across 5 continents.
 Reliance Globalcom brings together the synergies of Global Business
 encompassing Enterprise Services, Capacity Sales, Managed Services and
 a highly successful bouquet of retail products and services comprising
 Global Voice, Internet Solutions and Value Added Services.
 
 Reliance Globalcom owns and operates the world''s largest next
 generation IP-enabled connectivity infrastructure, comprising over
 277,000 route kilometers of fibre optic cable systems in India, USA,
 Europe, Middle East and the Asia Pacific region. In India, we provide
 long distance business services including wholesale voice, bandwidth
 and infrastructure services. Globally, we are the carrier''s carrier for
 voice, bandwidth and enterprise data services.
 
 3) Enterprise Broadband
 
 RCOM offers the most comprehensive portfolio of enterprise voice, data,
 video, Internet and IT infrastructure services catering to large,
 medium and small enterprises for their communications, networking and
 IT infrastructure needs.  Currently, we operate in almost 50 cities of
 India with over 1.1 million buildings connected directly to our
 network. In all, we serve nearly 1.5 million access lines. Over 850 of
 the top 1,000 companies in India are our customers.  Our Optical Fiber
 Cable backbone network of 190,000  route kms supports seamless last
 mile Broadband connectivity to over 1.1 million building across 1,400
 cities.  Our Metro Ethernet network is one of the largest in the world,
 having currently approx. 37,000  nodes.  We have one of the largest
 Internet Data Center (IDC) capacities occupying more than 450,000 sq ft
 in India, across 9 data centers with a market share of more than 60 per
 cent.
 
 4) Telecom Infrastructure
 
 We are leveraging our extensive capability to offer a wide range of
 services as an integrated service provider across the whole
 infrastructure value chain. Our aim is to provide a fast track solution
 to our clients, both for ongoing expansion of our existing telecom
 operators and the roll out plans of the new ones.
 
 We have achieved a unique position vis-à-vis other providers with
 better quality tower, carriage and transport infrastructure backed by a
 unified approach as an integrated service provider.
 
 5) Home
 
 Our Direct To Home (DTH) digital TV Business has moved into its 3rd
 full year of operations. This financial year, we have launched the stand
 alone High Definition (HD) Set Top Box (STB), completing the most
 comprehensive product line up inclusive of Standard Definition (SD), HD
 and HD Digital Video Recorder(DVR) STB. We also introduced a new
 technology advancement which made us the 1st operator to offers all 250
 channels in HD like quality.
 
 Corporate Governance
 
 RCOM has always maintained the best governance standards and practices
 by adopting, as is the norm for all constituent companies of the Group,
 the Reliance Group - Corporate Governance Policies and Code of
 Conduct. These Policies and Code prescribe a set of systems, processes
 and principles, which conform to the highest international standards
 and are reviewed periodically to ensure their continuing relevance,
 effectiveness and responsiveness to the needs of investors, both local
 and global, and all other stakeholders.
 
 Social Commitment
 
 We have undertaken several important initiatives and measures in the 6
 core areas of environment, community development, education, women''s
 empowerment, social awareness and health, signifying our continued and
 long-standing commitment to social and community welfare.
 
 Our Commitment
 
 Our founder, the legendary Shri Dhirubhai Ambani, gave us a simple
 mantra: to aspire to the highest global standards of quality,
 efficiency, operational performance and customer care. We remain
 committed to upholding that vision. Dhirubhai exhorted us to think big.
 With your continued support, we will think bigger.  Indeed not just
 bigger but better, creating ever greater value for all our
 stakeholders.
 
                                             Anil Dhirubhai Ambani
 
                                                          Chairman