To the Members,
 
 The Directors have great pleasure in presenting the 15th Annual Report
 of business and operation together with Audited Financial Statement of
 Accounts for the financial year April 01 2010 to March 31 2011.
 
 RESULTS OF OPERATIONS
 
                                                       In Rs.
 
 Financial performance of the Company (Standalone):
 
                                              Results     Results
 
 Particulars                            March 31, 2011  March 31, 2010
 
 Income from operations                   28 70 50 801   51 05 54 953
 
 Operating Profit (EBIDTA)                 5 45 47 723   10 93 26 111
 
 Less: Depreciation & amortisation        31 21 72 843   18 14 96 395
 
 Operating Profit before Tax             (25 76 25 120)  (7 21 70 283)
 
 Add: Other Income                           53 40 458    6 68 36 431
 
 Profit Before Tax                       (25 22 84 661)    (53 33 852)
 
 Less: Provision for Tax                  (7 37 93 030)  (3 79 83 035)
 
 Profit after Tax                        (17 84 91 631)   3 26 49 183
 
 Dividend (incl. dividend tax)             1 18 33 408    1 18 72 605
 
 Transfer to General Reserve                                 8 16 230
 
 Net Profit Transferred to Reserves      (19 03 25 039)   1 99 60 349
 
 Earnings per share: Basic / Diluted 
 (Rs.1 each)                                     (1.76)          0.33
 
 Dividend Rate                                     10%            10%
 
 Share Capital                            10 14 79 593   10 00 28 376
 
 Reserves & Surplus                      627 00 98 828  646 04 23 867
 
 Total shareholders funds                637 15 78 421  656 04 52 243
 
 Book value per share (Rs.1 each)                62.79          65.59
 
 SUBSIDIARIES
 
 The subsidiaries of Tanla Solutions Limited are (i) Mufi Thumb
 Entertainment Pvt Ltd, India (ii) Tanla Mobile Asia Pacific Pte Ltd,
 Singapore (iii) Tanla Solutions (UK) Ltd., UK and (iv) Tanla Mobile
 Private Limited, India
 
 Tanla Mobile Ltd ,UK is a subsidiary of Tanla Solutions (UK) Ltd. UK.
 Tanla Mobile Spain SL, Spain, is a subsidiary of Tanla Mobile Ltd, UK
 
 (i)Tanla Mobile Middle East FZ LLC, Dubai,
 
 (ii)Tanla Mobile Inc, USA,
 
 (iii)Tanla Mobile South Africa Proprietary Ltd, South Africa
 
 (iv)Tanla Mobile South Asia Pvt Ltd, Srilanka and
 
 (v) Tanla Mobile Ireland Pvt Ltd, Ireland are subsidiaries of Tanla
 Mobile Asia Pacific Pte Ltd, Singapore.
 
 Tanla Oy, Finland is a subsidiary of Tanla Mobile Finland Oy which is a
 subsidiary of Tanla Mobile Middle East FZ LLC, Dubai.
 
 TZ Mobile Private Limited, incorporated in July 2009 is a Joint Venture
 Company between Tanla Mobile Private Limited and Zed Worldwide Holdings
 SL, Spain each holding 50% of shareholding.
 
 DIVIDEND
 
 The Board recommends a Dividend of 10 % (Re.0.10 per equity share of
 Rs. 1/- each), as per Companies (Declaration of Dividend out of
 Reserves) Rules, 1975, subject to the approval of the shareholders at
 the ensuing Annual General Meeting. The Dividend will be paid in
 compliance with applicable regulations. The dividend if declared as
 above, would involve an outflow of Rs.10, 147, 959 towards dividend and
 Rs.1,685,449 towards dividend tax.
 
 The registers of members and share transfer books shall remain closed
 from September 28th, 2011 to September 30th, 2011 (both days
 inclusive).
 
 ISSUE OF EQUITY SHARES ON PREFERENTIAL BASIS
 
 The company has not issued Equity Shares on Preferential basis during
 the financial year ended 31st March, 2011.
 
 FIXED DEPOSITS
 
 During the financial year 2010-11, the Company has not accepted any
 deposit under Sections 58A and 58AA of the Companies Act, 1956 read
 with the Companies (Acceptance of Deposits) Rules, 1975
 
 MANAGEMENT DISCUSSION AND ANALYSIS
 
 A detailed section on ''Management Discussion and Analysis'' (MDA),
 pursuant to Clause 49 of the Listing Agreement forms an integral part
 of this Annual Report.
 
 PARTICULARS PURSUANT TO EXEMPTION UNDER SEC 212 OF THE COMPANIES ACT,
 1956
 
 Pursuant to the provisions of Section 212 of the Companies Act, 1956,
 documents in respect of the various subsidiaries viz., Directors''
 Report, Auditors'' Report, Balance Sheet and Profit and Loss Account,
 are required to be attached to the Balance Sheet of the holding
 company. However, the Government of India, Ministry of Corporate Aff
 airs, has vide letter No.47/15/2011-CL-III dated 27 January 2011,
 granted a general exemption to applicability of the provisions of
 Section 212(1) of the Companies Act, 1956. As required under the
 circular the Company shall make available the audited annual accounts
 of the subsidiary companies and related detailed information to the
 shareholders upon request in accordance with the applicable law. These
 documents are also available for inspection at the Registered Offi ce
 of the Company during business hours.
 
 Information pertaining to the subsidiary companies to be declared as a
 part of the consolidated financial statements is in page no. 54.
 
 DIRECTORS
 
 In accordance with the provisions of the Companies Act, 1956 and
 Articles of Association of the Company, Mr. Shrikanth Madan Chitnis,
 Mr. Surjeet Kumar Palhan, Mr.Satish Kathirisetti and Mr. Anoop Roy
 Kundal, retire by rotation at the forthcoming Annual General Meeting
 and being eligible, off er themselves for re-appointment.
 
 A Brief resume of each of the Directors proposed to be
 appointed/re-appointed, their expertise in specific functional areas
 and names of the Companies in which they hold
 Directorship/membership/chairmanship of the Board Committees, as
 stipulated under Clause 49 of the Listing Agreement with the Stock
 Exchanges has been provided elsewhere in this Annual Report.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 The Board of Directors in terms of Section 217 (2AA) states that:
 
 a) in the preparation of the annual accounts the applicable accounting
 standards have been followed along with proper explanation relating to
 material departures from the same;
 
 b) the Directors have selected such accounting policies and applied
 them consistently and made judgment and estimates that are reasonable
 and prudent, so as to give true and fair view of the state of aff airs
 of the Company as at March 31st 2011 and of the Loss of the Company for
 the year ended on that date;
 
 c) the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 d) the Directors have prepared the annual accounts on a going concern
 basis.
 
 CORPORATE GOVERNANCE
 
 Our Directors reaffi rm their continued commitment to good corporate
 governance practices and Our Company adheres to all major stipulations
 in this regard as provided in Clause 49 of the Listing Agreement which
 relate to Corporate Governance. A detailed report on the Corporate
 Governance, together with, a certificate from Ms Chada Srivani,
 Practicing Company Secretary, BS & Co., Company Secretaries forms part
 of this report.
 
 INTERNAL CONTROL SYSTEM
 
 The Company has proper and adequate systems of internal control system
 commensurate with the size and nature of its business to ensure
 protection of assets, proper financial & operating functions and
 compliance with the policies, procedures, applicable Acts and Rules.
 The company''s internal controls are supplemented by sound internal
 audit practices. The Audit Committee at their meetings regularly
 reviews the financial, operating, internal audit & compliance reports
 to improve performance. Further, the company has an independent
 internal audit system. The process of internal audit involves,
 reviewing of existing controls and systems. Internal Audit also
 recommends actions for strengthening of the business processes. The
 internal audit ensures adherence to operating guidelines, regulatory
 and legal requirements.
 
 RISK MANAGEMENT SYSTEM
 
 Risk is an integral part of the business process. To enhance the risk
 management process, the company has mapped the risks. A system has been
 formulated based on Balanced Score Card with various appropriate
 measures and accountabilities to identify, assess, prioritise and
 mitigate the risks. Reports generated from the system are monitored
 regularly to ensure that appropriate corrective actions are taken.
 
 The company manages business risks through strict compliance and
 internal checks. It will not be out of context to state that the system
 has worked very effectively during the year under review.
 
 STATEMENT PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956
 
 In terms of the amended Companies (Particulars of Employees) Rules,
 1975 read with Section 217(2A) of the Companies Act, 1956, no
 employee/Whole time Director has been paid a remuneration equal to or
 exceeding the remuneration prescribed under the above amended rules.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS & OUTGO
 
 Conservation of energy
 
 Our operations are not energy intensive; however significant measures
 are taken to reduce energy consumption by using energy efficient
 computers and purchasing energy efficient equipment. We constantly
 evaluate new technologies and invest to make our infrastructure more
 energy efficient.
 
 Technology Absorption
 
 Research and development of new products, processes and methodologies
 continue to be of importance to us.  This allows us to enhance quality,
 productivity and customer satisfaction through continuous innovation.
 
 Our Company continues to invest in rapidly changing technologies and
 use them to improve the quality of the products, service offerings,
 this has resulted in overall reduction in defect rates and a higher
 level of customer satisfaction.
 
 Foreign Exchange earnings & outgo:
 
 The particulars regarding foreign exchange earnings and expenditure are
 annexed hereto and forms part of this report.
 
 TRANSFER OF UNCLAIMED SHARES TO SUSPENSE ACCOUNT
 
 As on 31st March, 2011, 870 Unclaimed Equity Shares held by 15
 Shareholders , were held in the  Tanla Solutions Limited - Demat
 Suspense Account in Axis Bank, Jubilee Hills, Hyderabad in compliance
 with the provisions of Clause 5A of the Listing Agreement. The voting
 rights on these shares shall remain frozen till the rightful owner of
 such shares claims the shares.
 
 TRANSFER OF UNPAID/UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND
 PROTECTION FUND
 
 According to Section 205A(5) of the Companies Act, 1956, unpaid and
 unclaimed dividend in the dividend account of the Company has to be
 transferred to Investor Education and Protection Fund after seven years
 of declaration.  Hence pursuant to Sec 205 (A) of the Companies
 Act,1956 and other applicable guidelines, Rs. 41,000 representing the
 unpaid and unclaimed dividend for the year 2003-04 has been transferred
 to Investor Education and Protection Fund.
 
 HUMAN RESOURCES
 
 Our Company believes that the quality of employees is the key to its
 success in the long run and is committed to provide necessary human
 resource development and training opportunities to equip them with
 required skills.  Our Company constantly strives to provide the
 employees with the required training to hone their skills.
 
 AUDITORS AND AUDITORS'' REPORT
 
 M/s.Ramasamy Koteswara Rao, Chartered Accountants, Hyderabad, Statutory
 Auditors of the Company, shall hold offi ce until the conclusion of the
 ensuing Annual General Meeting and are recommended for re-appointment.
 certificate from the Auditors has been obtained to the effect that
 their re-appointment, if made, would be within the limits specified
 under Section 224 (IB) of the Companies Act, 1956.
 
 The Auditors Report to the shareholders for the year ended March 31,
 2011 does not contain any qualifi cation and therefore does not call
 for any explanation/comments.
 
 GROUP
 
 List of Promoters including the Promoter Group of the Company
 comprising Group as defined under the Monopolies and Restrictive
 Trade Practices Act, 1969 (54 of 1969) pursuant to Regulation
 3(1)(e)(i) of SEBI (Substantial Acquisition of Shares & Takeovers)
 Regulations, 1997 are:
 
 1.  Mr. D.Uday Kumar Reddy
 
 2.  Mrs.D.Tanuja Reddy
 
 3.  Mr.Satish Kathirisetti
 
 4.  Mr.Anoop Roy Kundal
 
 5.  Mr.Navnit Chachan
 
 6.  Mr.Amit Gupta
 
 7.  Mr.Gautam Sabarwal
 
 ACKNOWLEDGEMENT
 
 Our Directors wish to place on record their appreciation for the
 support extended by government authorities, bankers, customers and
 shareholders of the Company.
 
 Our Directors also wish to place on record their appreciation for the
 sincere services rendered by the employees of our Company during the
 year. Their dedication, teamwork and efficiency are commendable.
 
                                                         Sd/-
 Date: September 05, 2011                       D. Uday Kumar Reddy
 
 Place:Hyderabad                       Chairman & Managing Director