1.  Company background
 
 TataTeleservices (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 quarter ended June 30, 2010 had succeeded in winning the bid
 for 3G spectrum in Maharashtra and Goa circle (excluding Mumbai) (Also
 refer Note 22).
 
 The Company is a subsidiary of Tata Sons Limited (the ultimate holding
 company).
 
                                     As at             As at
 
                             March 31,2011      March 31,2010
 
                              Rs.in Crores       Rs.in Crores
 
 2.  Estimated amount of 
 contracts remaining to
 be executed on capital
 account and not provided 
 for(net of advances)                108.75            186.78
 
 3.  a) Bank Guarantees            271.88            249.45
 
 b) Letters of Credit                  -              22.43
 
 c) Counter guarantees given 
 by the Company on
 behalf of group company            39.00            200.00
 
 d) Guarantees given by a 
 group company on behalf
 of the Company                        -              80.00
 
 4.  Contingent liabilities:
 
 (i) Claims against the company 
 not acknowledged as debt
 
 Telecom Regulatory Matters*
 (Refer notes below)               223.69            273.56
 
 Others                            146.50            104.80
 
 * Amounts are net of provision for contingencies made aggregating to
 Rs. 185.60 Crores (previous year Nil) (Also refer note 27)
 
 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.161.27 Crores, including
 interest.  for the period November 14, 2004 upto February 2%.  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 / 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.161.27 Crores, the Company.  has, in earlier
 years, already provided for amounts aggregating to Rs.28.14 Crores
 pertaining to ADC for the period from August 26, 2005 upto February 28.
 2006. The balance amounts aggregating to Rs. 133.13 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 for the period before August 26, 2005;
 the actual date after which, as per the directions of the Department of
 Telecom, services provided under the brand name WALKY are to be
 considered as Wireless in Local Loop (Mobile) for the purposes of ADC.
 
 The Company during the earlier year had made on account payment to BSNL
 of Rs.75 Crores in relation to the above.
 
 b) The Company had received a demand letter dated March 17, 2008 from
 Department of Telecommunications (DoT) for Rs.8.38 Crore, 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 3o!  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 C''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. 75.47
 Crores from DoT on April 26, 2010 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 is hopeful of success in the
 matter.
 
 c) The definition of Adjusted Gross Revenue (AGR) does not specifically
 provide for exemption for proceeds of sale of shares/securities and
 deduction on account of bad debts in computation of Licence Fees (LF)
 payable to the Government. The Hon''ble Telecom Disputes Settlement and
 Appellate Tribunal (TDSAT) had vide its judgment 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 has filed an appeal in
 Supreme Court (SC) against the a fore said TDSAT ruling. Accordingly, the
 Company has considered Rs.154.36 Crores, being the LF on profit on sale
 of investment and bad debts written off during the current year, as
 contingent liability, pending disposal of the aforesaid appeal.
 
 iv) 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 millions (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 year, the Company has fulfilled the export obligation to
 the extent of Rs.52.79 Crores (previous year Rs.52.79 Crores). The
 Company has also requested the authorities for granting extension of
 time for fulfilling the obligations in respect of certain licenses for
 which the Company expects to receive the same in due course.
 
 v) The Company in 2002 had filed a petition before Hon''ble TDSAT
 claiming refund of Rs.50 Crores recovered by Department of
 Telecommunications (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 has 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 has reserved its judgment on January 25, 2011. The
 Company is hopeful of success in the matter.
 
 Counter guarantees have been given by the Company in the ordinary
 course of business and no liability is expected to accrue in this
 respect.
 
 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.
 
 5. In November 1999, the Company established the Employee Stock Option
 Plan (ESOP) under which Equity Shares are reserved for issuance to
 eligible employees of the Company. In terms of the plan, 1.20 Crores
 warrants were issued to Hughes Tele.com (India) Limited Employees Stock
 Option Trust, to be held by it on behalf of the Company for awarding
 eligible employees as and when advised by the Compensation Committee
 constituted for the purpose. Each allotted warrant carries with it a
 right to purchase one Equity Share of the Company at a price of
 Rs.10/- per share. Other than 2,40,000 fully vested warrants allotted
 in an earlier year, all allotted warrants vest at the rate of 25% on
 each successive anniversary of the grant date, until fully vested. The
 period during which the vested warrants may be exercised expires after
 10 years from the date of the vesting.
 
 6. 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.
 
 The agreements are executed for a period ranging from 6 months to 15
 years with a renewable clause and in many cases also provide for
 termination at will by either party giving a prior notice period
 ranging between 30 to 90 days.
 
 7. 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.
 
 8) Related Party disclosures (in terms of Accounting Standard -18)
 
 ii) Details of all Related Parties and their relationships
 
 A Ultimate Holding Company
 
 Tata Sons Ltd.
 
 B Subsidiary Company
 
 21st Century Infra Tele Ltd. (till 20.05.2010)
 
 C List of Fellow Subsidiaries
 
 1 Tata Teleservices Ltd.
 
 2 Tata Internet Services Ltd.
 
 3 Tata Business Support Services Ltd.
 
 4 Tata Consultancy Services Ltd.
 
 5 Tata Housing Development Company Ltd.
 
 6 Tata Realty & Infrastructure Ltd.
 
 7 Tata AIG Life Insurance Company Ltd.
 
 8 Tata AIG General Insurance Company Ltd.
 
 9 Tata Sky Ltd.
 
 10 CMC Ltd.
 
 11 Tata Asset Management Ltd.
 
 12 Tata Securities Ltd.
 
 13 Infiniti Retail Ltd.
 
 14 e-Nxt Financials Ltd.
 
 15 Tata Consulting Engineers Ltd.
 
 16 Tata Petrodyne Ltd.
 
 17 Computational Research Laboratories Ltd.
 
 18 Tcs E-Serve Ltd.
 
 19 TC Travel And Services Ltd.
 
 20 Tata Capital Ltd.
 
 21 Tata Investment Corporation Ltd.
 
 22 Ewart Investments Ltd.
 
 23 Tata Trustee Company Private Ltd.
 
 24 Tata Advanced Systems Ltd.
 
 25 Viom Networks Ltd. (Formerly known as Wireless TT Info Services
 Ltd.)
 
 26 Drive India Enterprise Solutions Ltd.
 
 27 21st Century Infra Tele Ltd. (w.e.f. 21.05.2010)
 
 
 D Key Management Personnel (Managing Director!
 
 1 Dr. Mukund Govind Rajan (till 20.05.2010)
 
 2 Mr. Anil Kumar Sardana (till 31.01.2011)
 
 3 Mr. N. Srinath (w.e.f. 01.02.2011)
 
 
 Note:
 
 a) 2010-11 figures include Rs.0.56 Crores paid during the year for
 2009-10 on account of bonus /performance pay.
 
 b) 2009-10 figures include Rs.0.50 Crores paid during the year for
 2008-09 on account of bonus/ performance pay.
 
 c) The above represents the remuneration of erstwhile Managing
 Directors.
 
 9.  The Company, had identified certain Network Interface Units
 (NIU''s), which had been disconnected and were not in use (including not
 retrieved) and also had been fully depreciated in the books of account.
 The management, having regard to the present condition of the said
 NIUs, their future usability and the fact that these NIUs have been fully
 depreciated, had decided to write-off the same.  Accordingly during the
 current year the said NIU''s aggregating Nil (Previous Year Rs.104.54
 Crores) were written off and removed from the block of fixed assets.
 
 10.  The Company during the quarter ended June 30, 2010, succeeded in
 winning the bid for 3G spectrum in Maharashtra circle (including Goa
 and excluding Mumbai).  The bid price paid towards the related license
 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 has commenced amortization of the aforesaid license fees, on
 commencement of 3G operations and such fees will be amortised over the
 remaining life of the license.
 
 The borrowing costs attributable to the aforesaid aggregating Rs. 62.82
 Crores (Previous year Rs.18.79 Crores towards GSM operations) have been
 capitalized during the year in accordance with AS 16 on ''Borrowing
 Costs''.
 
 11.  Information regarding the total outstanding dues of Micro
 Enterprises and Small Enterprises in Schedule 11 is given to the extent
 the same is available with the Company.
 
 12.  The Company in the previous year had entered in to a share
 purchase agreement with Viom Networks Limited (formerly Wireless-TT
 Info Services Limited ) for selling its stake in its wholly owned
 subsidiary viz. 21st Century Infra Tele Limited. The Company has,
 accordingly, accounted for profit (net of related expenses) on the
 aforesaid sale aggregating to Rs.834.93 Crores during the year, on
 completion of the necessary formalities.
 
 13.  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 of the said year.
 
 During the current year, pursuant to the said option, the Company has
 adjusted exchange loss aggregating to Rs.  6.81 Crores (Previous year
 Rs.34.65 Crores (exchange gain))agains tthe carrying value of fixed
 assets.
 
 The amount (after the aforesaid adjustments) of Plant and Machinery as
 at the year-end aggregates to Rs.2.80 Crores (credit) (Previous Year
 Rs. 7.54 Crores (credit)) which has been adjusted by way of
 depreciation on the grounds of materiality.
 
 14.  During the 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 current year is higher by Rs.  184.81 Crores.
 
 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 Department of
 Telecommunication (DoT) and other parties.
 
 15.  The accumulated losses of the Company at the close of the year
 have exceeded its paid-up capital and reserves. This, however, is not
 uncommon for telecommunication service providers, 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 ove rthe past few years.
 
 The subscriber base of the Company has further increased with the
 launch of services using the GSM technology during the previous year.
 The Company has also received sanctions from banks for additional
 long-term funds for future expansion. Further, during the current year
 the Company succeeded in winning the bid for 3G spectrum in Maharashtra
 circle (including Goa and excluding Mumbai) and has also commenced 3G
 services.
 
 Accordingly, based on the aforesaid considerations, the Company is
 confident of it''s ability to continue it''s business as a going concern
 and the accounts have been prepared on that basis.
 
 16.  Figures of the previous year are regrouped and reclassified
 wherever necessary to correspond to figures of the current year.