1.  Summary of significant accounting policies
 
 a) Basis of preparation
 
 The financial statements have been prepared under the historical cost
 convention, on the accrual basis of accounting in accordance with the
 Generally Accepted Accounting Principles and mandatory accounting
 standards as notified under the said Companies (Accounting Standards)
 Rules, 2006 and in accordance with the presentational requirement of
 the Companies Act, 1956.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent assets and liabilities
 on the date of the financial statements and the results of operations
 during the reporting period. Actual results could differ from those
 estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 
 c) Revenues recognition and receivables
 
 Service income
 
 Cellular service revenues are recognised net of applicable discounts,
 service tax, surcharge, cess etc. as and when services are rendered on
 an accrual basis and when no significant uncertainty exists regarding
 the amount of consideration that will be derived from rendering the
 service.
 
 Activation fee, not exceeding the related direct activation costs is
 recognised upfront for both prepaid and post paid products. (Refer note
 B 3(a) to Schedule 23)
 
 In respect of prepaid validity products of over 30 days, recharge fee
 on recharge vouchers (not exceeding the related direct costs) is
 recognised upfront, except for those products having recharge fee which
 subsidise the base tariff. In such cases, the recharge fee is
 recognised over the validity period. (Refer note B 3(a) to Schedule 23)
 
 Handset sales
 
 Handset sales, are recognised on transfer of title of such handsets to
 customers over the counter.  Handset sales are recognised net of sales
 tax.
 
 Interest income
 
 Interest income is recognised on accrual basis at applicable interest
 rates and time period.
 
 Provision for doubtful debts
 
 Provision for doubtful debts is made for dues (net of security deposit
 and service tax) outstanding for more than 90 days in case of active
 and barred subscriber and for the entire dues outstanding in case of
 customers who have been deactivated.
 
 Provision for doubtful debts on Interconnect Usage Charges (IUC),
 Roaming Charges and passive infrastructure sharing is made for dues
 outstanding beyond 180 days from the date of billing except in specific
 cases when management is of the view that the amounts are recoverable.
 
 d) Fixed assets and depreciation
 
 Fixed assets are stated at cost less accumulated depreciation. The
 Company capitalises all direct costs (including direct relatable
 interest costs, if any) relating to the acquisition and installation of
 fixed assets, excluding recoverable taxes. Fixed assets are depreciated
 from the date on which the asset is put to use, on the straight-line
 method, based on the estimated economic useful lives of the assets as
 stated below after considering the estimated residual value, which in
 the opinion of management reflects the economic useful life of the
 underlying assets.
 
 Leasehold improvements are being amortised over the period of lease
 including the optional period, if any, available to the Company, where
 it is reasonably certain at the inception of lease that such option
 would be exercised by the Company.
 
 These rates are higher than/equal to the minimum rates specified in
 Schedule XIV to the Companies Act, 1956.
 
 The Company has evaluated the estimated useful life of certain class of
 fixed assets as stated below.  Accordingly, effective 1st October 2008,
 depreciation has been charged at revised rates over the remaining
 useful life of the assets. Assets under
 
 e) Intangible assets and amortisation
 
 The GSM licence fee paid by the Company upon migration to the National
 Telecom Policy (NTP1999) i.e., entry fee, has been capitalised and is
 amortised over the licence period of 20 years from commencement of
 operations on a straight line basis, reflecting economic useful life of
 the asset.
 
 The licence fee paid by the Company for National Long Distance and
 International Long Distance services has been capitalised and is being
 amortised over the licence period of 20 years from the effective
 licence date on a straight line basis.  The unamortised portion of the
 licence fees has been disclosed in schedule of fixed assets as
 Intangible assets.
 
 f) Investments
 
 Long term investments are stated at cost. Any diminution in the value
 of investments which is other than temporary is charged to the Profit
 and Loss Account.
 
 Current Investments are stated at lower of cost or fair value in
 respect of each investment separately.
 
 g) Retirement benefits
 
 (i) All employee benefits payable/available within twelve months of
 rendering the service are classified as short-term employee benefits.
 Benefits such as salaries, wages and bonus etc., are recognised in the
 profit and loss account in the period in which the employee renders the
 related service.
 
 (ii) Contribution to Provident Fund - Contributions payable by the
 Company to a provident fund trust set up for the employees is charged
 to the profit & loss account along with short fall if any which has
 been contributed due to deficiency in earning over the rates payable by
 the said PF Trust. Contribution paid in excess is treated as
 pre-payment.
 
 (iii) Gratuity: Gratuity benefit is applicable to all permanent and
 full time employees of the Company. Gratuity paid out is based on last
 drawn basic salary and dearness allowance at the time of termination or
 retirement. The scheme takes into account each completed year of
 service or part thereof in excess of six months. Annual contributions
 to the employees gratuity fund, established with the Life Insurance
 Corporation of India (LIC) are determined based on an actuarial
 valuation by the LIC as at the year end. The net obligation in respect
 of gratuity has been determined based on actuarial valuation performed
 by a qualified actuary as at the year end, using the projected unit
 credit method.
 
 (iv) Leave encashment: Provision in accounts for leave benefits to
 employees is based on actuarial valuation at the period end.
 
 i) Leases
 
 Operating lease
 
 Lease of assets under which significant risk and rewards of ownership
 are effectively retained by the lessor are classified as operating
 leases. Lease payments under operating leases are recognised as an
 expense in the Profit and Loss account on a straight line basis over
 the lease term. Operating lease revenue in respect of optic fibre
 cables leased out to other operators is recognised as income in Profit
 and Loss account on a straight line basis over the lease term.
 
 Finance Lease
 
 Leased assets acquired on which significant risk and reward of
 ownership have been effectively transferred to the Company are
 capitalised at lower of fair value or the present value of the minimum
 lease payments made under such lease arrangements. Such assets are
 amortised over the period of lease.
 
 h) Inventories
 
 Inventories comprise handsets and data cards held for resale, which are
 recorded at lower of cost and net realisable value. Subscriber Identity
 Modules (SIM) inventory is being valued at cost. Cost of inventories
 is determined on a first in first out basis.  Consumable stores and
 spares are charged off in the year of consumption
 
 i) Taxation
 
 Income tax expense comprises current tax, being the amount of tax for
 the year determined in accordance with the Income tax Act, 1961, fringe
 benefit tax and deferred tax charge or credit (reflecting the tax
 effects of timing difference between accounting income and taxable
 income for the year). The deferred tax charge or credit and the
 corresponding deferred tax liability or deferred tax asset are
 recognised using the tax rates that have been enacted or substantially
 enacted by the Balance Sheet date. Deferred tax assets are recognised
 only to the extent there is virtual certainty of realisation supported
 by convincing evidence that such deferred tax assets can be realised in
 future. Such deferred assets are reviewed at each Balance Sheet date to
 reassess realisation.
 
 j) Provisions, contingent liabilities and contingent assets
 
 A provision is recognised when the Company has a present obligation as
 a result of a past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and reliable estimate can be made of the amount of the obligation. A
 contingent liability is recognised where there is a possible obligation
 or a present obligation that may, but probably will not, require an
 outflow of resources. The Company does not recognise assets which are
 of contingent nature until there is virtual certainty of realisability
 of such assets. However, if it has become virtually certain that an
 inflow of economic benefits will arise; the asset and related income
 are recognised in the financial statements of the year in which the
 change occurs.
 
 k) Impairment
 
 The carrying value of assets is reviewed at each Balance Sheet date to
 determine whether there is any indication of impairment. If any such
 indication exists, the amount recoverable towards such assets is
 estimated. An impairment loss is recognised whenever the carrying
 amount of an asset or its cash generating unit exceeds its recoverable
 amount. Impairment losses are recognised in the Profit and Loss
 Account. An impairment loss is reversed if there is a change in the
 estimate used to determine the recoverable amount. An impairment loss
 is reversed only to the extent the carrying amount of the asset that
 does not exceed the carrying amount that would have been determined net
 off depreciation or amortisation, if no impairment loss had been
 recognised.
 
 l) Borrowing costs and amortisation
 
 Borrowing costs are interest and other costs incurred by the Company in
 connection with borrowing of funds. The exchange differences arising on
 foreign currency borrowings to the extent that they are regarded as an
 adjustment to interest cost are recognised as an expense in the year in
 which they are incurred.
 
 m) Events occurring after the balance sheet date
 
 Adjustments to assets and liabilities are made for events occurring
 after the balance sheet date that provide additional information
 materially affecting the determination of the amounts of assets or
 liabilities relating to conditions existing at the balance sheet date.
 
 n) Earning Per Share
 
 The earnings considered in ascertaining the Companys Earnings per
 Share (EPS) comprise the net profit after tax. The number of shares
 used in computing basic EPS is the weighted average number of shares
 outstanding during the year. The diluted EPS is calculated on the same
 basis as basic EPS, after adjusting for the effects of potential
 dilutive equity shares unless impact is anti dilutive.