Dear Shareholder''s,
 
 It gives me great pleasure that Reliance Communications (RCOM) has had
 another year of steady performance despite the recent slowdown in the
 Indian economy and the continuing global financial crisis. The steady
 results were achieved due to our unique position in the industry and
 our ability 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 over 161 million individual, enterprise, and
 carrier customers as on March 31, 2012, RCOM is India''s one of the
 largest integrated communications service providers in the private
 sector. Our corporate clientele includes over 35,000 Indian and
 multinational corporations including small and medium enterprises and
 over 800 global, regional and domestic carriers. The enterprise
 customer base of the Company includes 850 of the top 1,000 enterprises
 in India.
 
 Our superior 3G offering coupled with marquee partnerships will further
 accelerate the acquisition of high end customers helping us in
 generating higher incremental reveneue per customer. The high speed
 data offering on our CDMA network will also add to our undisputed
 leadership position in the wireless data space. Our mobile portal, R
 World, offers the widest range of mobile content spanning e-commerce,
 m-commerce, entertainment, music, news, astrology, cricket, bollywood,
 maps, search, one-click set- up, access to email and social networking.
 It provides full range of communication tools, information and
 entertainment that comes with a personal computer, at the price and
 convenience of a handset.
 
 RCOM became the first telecom operator to enter the Android tablet
 space in the country with the launch of ''Reliance 3G Tab'' in August,
 2011. ''Reliance 3G Tab'' is the first branded 3G  WiFi Android Tablet by
 a service provider in India.
 
 Data has been the key driver of growth over the last year. Our
 customers are increasingly drawn to the experience of the mobile
 internet and related services. In addition to continuing on
 conventional voice-based model, we are now focusing on providing
 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.
 
 RCOM owns and operates the world''s largest next generation IP enabled
 connectivity infrastructure, comprising over 2,77,000 route kilometers
 of fibre optic cable systems in India, USA, Europe, Middle East and the
 Asia Pacific region. We offer the most comprehensive and competitive
 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.
 
 Performance review
 
 The financial year 2012 witnessed highly competitive environment in the
 telecom industry resulting in substantial decrease in tariff rates.
 Despite this, RCOM was able to achieve steady growth during the year.
 
 The key financial highlights on a consolidated basis are:
 
 a) Total revenues of Rs. 20,382 crore (US$ 4,006 million).
 
 b) Net profit after tax Rs. 988 crore (US$ 194 million).
 
 c) Total operating expenditure Rs. 13,892 crore (US$ 2,737 million).
 
 d) Total assets of Rs. 92,690 crore (US$ 18,219 million).  Stakeholders
 equity was Rs. 36,721 crore (US$ 7,218 million), while net debt
 (excluding cash and cash equivalents) was Rs. 35,849 crore (US$ 7,047
 million), giving a net debt to equity ratio of 0.98 times.
 
 Segments
 
 1) Wireless
 
 RCOM offers CDMA and GSM based wireless services on a nationwide basis.
 We are among the top two providers of wireless communication services
 in the country, with a wireless subscriber base of over 153 million as
 of March 31, 2012 representing a market share of 16.7 per cent.
 
 We have rolled out 3G services in all telecom circles where we have won
 3G spectrum, covering over 333 towns. On CDMA platform, our high speed
 data offering Netconnect Broadband  services are available in over
 1,000 cities with seamless handover to 1x service across 20,000 towns.
 
 After the success of the ''Reliance 3G Tab'', we launched the Reliance
 CDMA Tab that would allow roaming in over 1.000 towns in the High Speed
 Data mode and across 20.000 towns on 1x mode.
 
 We not only provide telecom connectivity to the mass market consumer
 segment but also, as an Integrated Telecom Service Provider, we offer
 total telecom solutions to our Corporate, SME and SoHo customers.
 Additionally, we provide connectivity for devices such as point of sale
 terminals and ATM terminals.
 
 2) Global and Enterprise
 
 In order to maximise operating synergies, the business units of Global
 and Enterprise Broadband have been combined into an integrated Global
 Enterprise Business Unit (GEBU).  The GEBU offers the most
 comprehensive portfolio of Enterprise, IT infrastructure, National and
 International long distance voice, video and data network services on
 an integrated and highly scalable platform. Our business segments
 comprise Carrier, Enterprise and Consumer business units.
 
 In India, we provide long distance business services including
 wholesale voice, bandwidth and infrastructure services, national and
 international private leased circuits, broadband internet access, audio
 and video conferencing, MPLS-VPN, remote access VPN, Centrex, toll-free
 services voice services for offices, voice VPN for corporates and
 managed Internet Data Centre (IDC) services.
 
 We are leveraging our existing metro fibre optic networks to establish
 direct building connectivity. Currently we are operating in 44 cities
 in India with more than 1.16 million buildings connected directly to
 our network, serviced by more than 1.52 million access lines. We have
 established an enterprise customer base of over 35,000 corporations and
 SMEs which include over 850 of the Top 1,000 Indian enterprises and
 MNCs. We are the clear market leader in IDC services (Reliance Data
 Center) with more than 60 per cent market share.
 
 Globally, we provide carrier''s carrier voice, carrier''s carrier
 bandwidth, enterprise data and consumer voice services.  We entered the
 long distance market in India in mid- 2003 and are one of the largest
 carriers of international voice minutes with a market share of 30 per
 cent for ILD wholesale inbound traffic.
 
 As part of our Consumer voice offering, we offer virtual international
 calling services to retail customers for calls to 230 international
 destinations including India under the brand Reliance Global Call. Our
 retail services are available to customers in 14 countries. We have
 over 2.5 million customers for our Reliance Global Call service.
 
 Our international data business is underpinned by our ownership of the
 largest private submarine cable system in the world, directly
 connecting 40 countries from the East coast of the United States, to
 Europe, the Middle East, India, South and East Asia, through Japan. The
 network seamlessly interconnects with our 1,90,000 route Kilometres
 fibre optic cables within India.
 
 As part of wholesale offering, we offer national and international
 (submarine cable) network infrastructure on both an Indefeasible Right
 of Use (IRU) and leased circuit basis, internet bandwidth, IPLC to
 carriers, ISPs, content providers and enterprises globally.
 
 We have a very strong and rapidly growing enterprise business segment
 outside India. We are among the top 10 Managed Ethernet service
 providers in the US and have a strong position in the global enterprise
 data market. We have over 2,100 enterprise customers globally in
 developed markets of the US, UK, France, Germany, Benelux, Singapore
 and Australia.
 
 3) Telecom Infrastructure
 
 Reliance Infratel Limited, a subsidiary of RCOM has signed contracts
 with new and existing operators for providing passive infrastructure
 which has been an effective strategy for our customers for cost
 effective network rollout and improvement in quality of service.
 
 We own 190,000 route kilometres of optical fibre network, providing a
 more economical and better quality linking for our tenants as compared
 to microwave connectivity.  RCOM''s current utilisation of tower slot
 assets is nearly 50 per cent and this provides significant potential
 for 3rd party tenants.  It complements the existing passive
 infrastructure and provide an integrated solution to tenants.
 
 As such, we offer our customers an extensive and diverse portfolio of
 well-positioned assets and we believe that our wide and expanding
 portfolio of tower sites positions us to be able to address the needs
 of national, regional, local and emerging wireless service providers in
 India.
 
 4) Home
 
 Our Direct-To-Home (DTH) digital TV Business has moved into its 4th
 full year of operations. Reliance Digital TV offers a full combo of
 Standard Definition, High Definition- DVR STBs, along with largest
 channel bouquet. We also introduced a new technology advancement which
 made us the 1st operator to offer all 250 channels in HD like quality
 Reliance offers nationwide Direct-To-Home satellite TV services,
 employing state-of-the-art MPEG4 technology.
 
 Reliance Digital TV is available across 8,300 towns in the country.
 Reliance Digital TV currently has 4.3 million subscribers, with 10 per
 cent share of the DTH market in India. This year we launched India''s
 first High Definition cum advanced Digital Video Recorder (HD DVR) STB.
 
 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
 six 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
 
 We will continue our journey towards becoming a truly global Company.
 Our vision is continued growth and improved operational efficiency. 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