Note 1:
 
 Corporate Information
 
 Tata Teleservices (Maharashtra) Limited (the Company), was
 incorporated on March 13, 1995. The Company is licensed to provide
 basic and cellular telecommunication services. The Company presently
 holds two Unified Access (Basic and Cellular) Service Licenses, one for
 Mumbai Service Area and another for Maharashtra and Goa and provides
 telecommunication services using Code Division Multiple Access (CDMA)
 technology/ Global System for Mobile Communications (GSM) technology
 under the aforesaid licenses. The Company also holds the National
 Internet Service provider - Internet Telephony license. The Company
 during the previous year had succeeded in winning the bid for 3G
 spectrum in Maharashtra and Goa circle (excluding Mumbai) (Also refer
 Note 24.12).
 
 The Company is a subsidiary of Tata Sons Limited, (the ultimate holding
 company)
 
 
 Notes:
 
 i) Stipulated securities for the loans are either one or more of the
 following as per terms of the arrangements with respective banks:
 
 - by first pari pasu charge on the assets of the Company,
 
 - by pledge of shares held by Tata Teleservices Limited in the Company,
 
 - by assignment of the proceeds on sale of network in the event of
 cancellation of the telecom license,
 
 - by assignment of telecom license,
 
 - by assignment of insurance policies and material project contracts,
 
 - by sponsor support undertaking of Tata Sons Limited (the Ultimate
 Holding Company).
 
 ii) Terms of repayment
 
 a) Long-term loans are repayable in 36 quarterly instalments ending on
 January 1,2019.
 
 b) ECB loans are repayable in 3 annual installments commencing from
 March 31,2020.
 
 1.1 Contingent liabilities:
 
 i) Claims against the company not acknowledged as debt
 Telecom Regulatory Matters* (Refer notes below)         208.90    223.69
 
 Others                                                  159.84    146.50
 
 * Amounts are net of provision for contingencies made aggregating to Rs
 198.88 Crores (previous year Rs. 185.60 Crores) (Also refer note 24.18)
 
 Notes:
 
 Contingent liabilities in respect of Telecom Regulatory
 
 Matters include:
 
 a) Bharat Sanchar Nigam Limited (BSNL) issued demand notices to pay
 Access Deficit Charge (ADC) aggregating to Rs.166.90 Crores, including
 interest, for the period November 14, 2004 upto February 28, 2006, the
 date after which ADC is payable on Net Adjusted Gross Revenue Basis.
 The demands stated that ''fixed wireless'' services provided by the
 Company under the brand name WALKY had mobility features and
 should be treated as mobile services for the purpose of Interconnect
 Usage Charges Regulations and ADC was payable on such calls. The
 Company filed an appeal to the Hon''ble Telecom Dispute and Settlement
 Appellate Tribunal (TDSAT) in this regard, wherein the TDSAT negated
 the Company''s appeal. The Company further filed an appeal before the
 Hon''ble Supreme Court (SC) who vide order dated April 30, 2008
 confirmed that ADC was payable and since there were claims and
 counter-claims between the Company and BSNL, the SC directed that
 quantification of amounts payable to each other be made by TDSAT. The
 Company had filed a review petition in SC which was rejected.
 
 The Company filed a petition in TDSAT to determine I reconcile amounts
 payable to each other and Hon''ble Telecom Dispute and Settlement
 Appellate Tribunal (TDSAT) vide its order dated August 12, 2008 held
 that BSNL and the Company should exchange relevant information and
 reconcile the differences.  However, on April 15, 2010, TDSAT confirmed
 BSNL demands for period up to August 25, 2005 and has given BSNL
 liberty to lodge its claim for a further period up to February 28,
 2006. The Company filed an appeal before SC against the aforesaid TDSAT
 order dated April 15, 2010. The SC vide its order dated July 23, 2010
 admitted the appeal but no stay has been granted. The SC had asked for
 details/break up of demands which have been filed. The Company has also
 filed stay application in the SC.
 
 Out of the aforesaid Rs.166.90 Crores, the Company, has, till date,
 provided for amounts aggregating to Rs.30.14 Crores pertaining to ADC
 for the period from August 26, 2005 upto February 28, 2006. The balance
 amounts aggregating to Rs.136.76 Crores have been disclosed as
 Contingent Liability under ''Telecom Regulatory Matters'' as the
 Company is of the view that these demands include amounts relating to
 ''wireline'' services and ADC.
 
 The Company during the year has made an on account payment to BSNL of
 Rs.35.95 Crores; aggregating payments made till year end Rs.110.95
 Crores (previous year - Rs.75 Crores) in relation to the above.
 
 b) The Company had received a demand letter dated March 1 7, 2008 from
 Department of Telecommunications (DoT) for Rs.8.38 Crores, being a
 demand for spectrum charges for the period from April 1, 2005 to
 February 29, 2008. This demand was subsequently revised to Rs.184.69
 Crores by DoT, vide its demand letters dated July 3, 2008, for the
 period from October 1, 1998 to June 30, 2008 which was further
 increased to Rs. 266.00 Crores vide letter dated February 28, 2009. The
 amount was again revised to Rs.259.70 Crores vide letter dated November
 25, 2009 for the extended period till November 30, 2009. The Company
 had represented to the Wireless Planning Commission (WPC) various items
 of differences mentioned in the demand orders, vide letter dated
 September 24, 2008. Though the Company has now received a revised
 demand of Rs.  71.39 Crores from DoT on August 5, 2011 the
 reconciliation process with WPC is in progress.  Hon''ble TDSAT vide
 its order dated August 25, 2010 has held that the Company should be
 given credit for all payments made on producing proof and no penalty
 should be levied and only simple interest should be charged. The
 Company has been following up the matter with WPC and had also filed an
 execution petition before Hon''ble TDSAT on April 27, 2012.  TDSAT has
 asked the Company to file the application as a Misc. Petition which the
 Company will do.
 
 c) The definition of Adjusted Gross Revenue (AGR) does not
 specifically include capital gain from sale of shares/securities and
 does not specifically allow exemption for bad debts in computation of
 License Fees (LF) payable to the Government. The TDSAT had vide
 its'' Order dated August 30, 2007, held that income from sale of
 securities is not related to licensed activity and hence should not
 attract LF and that bad debts written off, waivers and discounts are
 actual monies lost by service providers and hence should be deducted
 from AGR. The DoT had filed an appeal in SC against the aforesaid TDSAT
 Order. The Company has considered Rs.154.36 Crores, being the LF on
 profit on sale of investment and bad debts written off during the
 previous year, as contingent liability and has also made payment of the
 same to DoT under protest. (Also refer * under Note 24.3 above).The SC
 vide its'' Order dated October 11, 2011 has set aside the Order passed
 by TDSAT and has given leave to the licensees to approach TDSAT in case
 if specific demands have been raised by DoT not in accordance with the
 Licence Agreement. Prior to the aforesaid judgment, the Company had
 received provisional assessment orders from DoT, against which
 applications have now been filed with the TDSAT in line with the
 aforesaid judgement. The Company has not received any further demands
 on this matter and hence no accounting treatment for the said order is
 considered necessary in the books of account, at this stage.
 
 v) The Company has imported certain capital equipment under Export
 Promotion of Capital Goods Scheme of the Central Government at a
 concessional rate of Customs Duty. The Company has undertaken export
 obligation to the extent of USD 100.8 million (Rs. 404.41 Crores) to be
 fulfilled during a period of 8 years commencing from the January 29,
 2003, failing which the Company will be liable to pay the differential
 customs duty, together with interest and penalties, if imposed. Up-till
 the end of the period, the Company has fulfilled the export obligation
 to the extent of Rs.65.53 Crores (previous year Rs.52.79 Crores). The
 Company has received extension of time for fulfilling the obligations
 in respect of certain licenses. Besides, the Company has also filed a
 writ petition in Bombay High Court regarding interpretation of term
 ''group company''.
 
 vi) The Company in 2002 had filed a petition before Hon''ble TDSAT
 claiming refund of Rs.50 Crores recovered by DoT in 1999 alleging
 failure to sign basic services license agreement for Karnataka circle
 after accepting Letter of Intent (Lol). DoT during the proceedings
 before TDSAT claimed from the Company Rs.303 Crores towards loss of
 (opportunity to earn) license fee and Rs.351 Crores as interest till
 October 31, 2002. TDSAT allowed refund of Rs.50 Crores to the Company
 with interest of 17% p.a.  and dismissed the counter-claim based on a
 law point (i.e.TDSAT had no jurisdiction) and facts. DoT appealed to
 the Hon''ble Supreme Court which without commenting on the merits of
 the counter-claim confirmed that TDSAT had jurisdiction and remanded
 the matter to TDSAT for fresh adjudication. DoT had filed with TDSAT a
 counter- claim of Rs.2,015 Crores which includes Rs.303 Crores towards
 loss of (opportunity to earn) license fee and interest of Rs.1,712
 Crores calculated up to March 31, 2008. The matter has been argued on
 merits and TDSAT on July 11, 2011 dismissed DoT counter-claim. TDSAT
 also dismissed TTML claim of refund of Rs.50 Crores.  DoT has recovered
 Rs.50 Crores from the Company.
 
 vii) During the year, the Company has received show cause notice (SCN)
 from DoT based on special audit conducted for the financial years
 2006-07 and 2007-08, towards alleged short payment of license fees and
 interest thereon aggregating Rs.49.38 Crores. The Company has replied
 to DoT against the SCN in the last quarter of the current year.
 
 viii) As regards disputes and claims referred to above against the
 Company, appropriate competent professional advice is available to the
 Company based on which, favorable outcomes are anticipated and no
 liability is expected to accrue to the Company.
 
 1.2 Information regarding the total outstanding dues of Micro
 Enterprises and Small Enterprises in Note 9 is given to the extent the
 same is available with the Company.
 
 1.3 The Central Government, vide notification dated March 31, 2009,
 amended AS 11 on The Effect of Changes in Foreign Exchange Rates'',
 whereby, companies have been given an option to account for exchange
 differences arising on reporting of long-term foreign currency monetary
 items (assets/liabilities) in so far as they relate to acquisition of a
 depreciable capital asset, to be added/deducted from the cost of the
 asset and for others to be accumulated in a separate reserve to be
 amortized over the balance life of the asset/liability but not beyond
 March 31, 2011. The aforesaid option is effective with retrospective
 effect in respect of accounting periods commencing on or after December
 7, 2006. Accordingly, the Company opted to exercise this option during
 the year ending March 31, 2009 and had given the effect of the same in
 the accounts upto financial year 2010-11, the date upto which the
 Company had exercised the same. The Central Government, vide
 notification dated May 11, 2011, has extended the applicability of the
 earlier notification upto March 31, 2012 and vide notification dated
 December 29, 2011, has further extended the applicability of the
 aforesaid notification upto March 31, 2020.
 
 Accordingly, pursuant to the aforesaid extension of the notification,
 the Company continued to exercise the option and has adjusted the
 exchange loss aggregating to Rs.258.67 Crores for the year from April 1,
 2011 to March 31, 2012 (Previous year Rs.6.81 Crores) against the
 carrying value of fixed assets.
 
 The balance amount, based on aforesaid adjustments, of Plant and
 Machinery to be amortized, as at the year-end, aggregates to Rs. 247.54
 Crores (Previous year Nil).
 
 ii) The mark to market loss of outstanding derivative contracts as at
 the year-end aggregate to Rs 0.71 Crores (Previous year - Rs. 1.92
 Crores)
 
 iii) The foreign currency exposure that are not hedged by derivative
 instruments:
 
 1.4 The Company during the previous year, succeeded in winning the
 bid for 3G spectrum in Maharashtra circle (including Goa and excluding
 Mumbai). The bid price paid towards the related spectrum fees
 aggregating to Rs.1,257.82 Crores have been capitalised under License
 under Fixed Assets.
 
 In accordance with the accounting policy followed in this regard, the
 Company commenced amortization of the aforesaid payment in the previous
 year, on commencement of 3G operations and the same is being amortized
 over a period of 20 years in-line with the Unified Access services
 (UAS) License agreement, as amended.
 
 The borrowing costs attributable to the aforesaid aggregating Rs. Nil
 (Previous year Rs.62.82 Crores) have been capitalized during the year
 in accordance with AS 16 on ''Borrowing Costs''.
 
 1.5 The Company is engaged in providing Telecommunication Services
 under Unified Access License. These, in the context of Accounting
 Standard 17 on Segment reporting, are considered to constitute a
 single reportable segment.
 
 ii) Details of all Related Parties and their relationships A Holding
 Company
 
 Tata Sons Limited
 
 B List of Fellow Subsidiaries
 
 1 Tata Teleservices Limited
 
 2 Tata Internet Services Limited
 
 3 Tata Business Support Services Limited
 
 4 Tata Consultancy Services Limited
 
 5 Tata Housing Development Company Limited
 
 6 Tata Realty & Infrastructure Limited
 
 7 Tata AIG Life insurance Company Limited
 
 8 Tata AIG General Insurance Company Limited
 
 9 Tata Sky Limited
 
 10 CMC Limited
 
 11 Tata Asset Management Limited
 
 12 Tata Securities Limited
 
 13 Infiniti Retail Limited
 
 14 e-Nxt Financials Limited
 
 15 Tata Consulting Engineers Limited
 
 16 Tata Petrodyne Limited
 
 17 Computational Research Laboratories Limited
 
 18 Tcs E-Serve Limited
 
 19 TC Travel And Services Limited
 
 20 Tata Capital Limited
 
 21 Tata Investment Corporation Limited
 
 22 Ewart Investments Limited
 
 23 Tata Trustee Company Private Limited
 
 24 Tata Advanced Systems Limited
 
 25 Viom Networks Limited (Formerly known as Wireless TT Info Services
 Limited)
 
 26 Drive India Enterprise Solutions Limited
 
 27 Viom Infra Networks (Maharashtra) Limited (Formerly known as 21st
 Century Infra Tele Limited)
 
 28 Tata International Limited
 
 C Kev Management Personnel (Managing Director)
 
 1 Mr. N.Srinath
 
 1.6 No provision for current income-tax has been made in the
 accounts, since the Company estimates that there will be no taxable
 profits for the year. Deferred Tax charges/ credits have not been
 recognized in view of the tax holiday enjoyed by the Company and on
 considerations of prudence as set out in AS 22 on Accounting for
 Taxes on Income.
 
 a.  Figures pertaining to the previous year have been disclosed in
 brackets.
 
 b.  Provision for contingencies are primarily towards the outstanding
 claims / litigations against the Company relating to DoT and other
 parties.
 
 1.7 The Company in an earlier year had entered in to a share purchase
 agreement with Viom Networks Limited for selling its stake in its
 wholly owned subsidiary viz. 21st Century Infra Tele Limited. The
 Company had, accordingly, accounted for profit (net of related
 expenses) on the aforesaid sale aggregating to Rs.834.93 Crores during
 the previous year, on completion of the necessary formalities.
 
 1.8 During the last quarter of the previous year, the Company
 re-estimated the balance useful life of certain items of plant and
 machinery considering up-gradation of equipment on account of
 enhancement of technology and the consequent enhanced pace of planned
 replacement. As a result the depreciation charge for the previous year
 was higher by Rs. 184.81 Crores.
 
 1.9 The accumulated losses of the Company at the close of the year
 have exceeded its paid-up capital and reserves due to the high
 operation costs and on account of the industry being inherently capital
 intensive. However, the Company is consistently making operating cash
 profits over the past few years.
 
 The Company has successfully launched services using
 
 GSM technology in an earlier year and 3G services more recently in the
 previous year with added focus on acquiring revenue earning
 subscribers. The Company has also introduced measures for operational
 efficiency to enable optimal use of facilities and resources. The
 Company has already tied up and is utilizing sanction limits from banks
 besides availing additional long term funding through External
 Commercial Borrowings (ECBs) to support the ongoing expansion plans.
 
 Accordingly, based on the aforesaid considerations, the Company is
 confident of its'' ability to continue its'' business as a going concern
 and the accounts have been prepared on that basis.
 
 1.10 The figures of the previous year have been regrouped wherever
 necessary to correspond with those of the current year in-line with the
 Revised Schedule VI to the Companies Act, 1956.