1. The above financial results were reviewed by the Audit Committee and approved and taken on record by the Board of Directors at their meeting held on July 10, 2009.

2. The Board has recommended a dividend of Re 0.50 per share (5%) on 2,80,65,000 fully paid up Equity shares of Rs 10/- each for the year 2008-09.

3. Interest is considered on net basis.

4. Other Expenditure includes foreign exchange fluctuations and provision for doubtful debts.

5. In respect of debtors amounting to Rs 2,856.91 lakhs, and loans and advances amounting to Rs 309.15 lakhs, given the ageing the auditors are unable to comment on the extent of realisability of these amounts and its consequent impact, if any on the Company´s profits for the year.

However, the Company has initiated appropriate measures and is confident of realising the same.

6. During the year, the Company has sold Investments costing Rs 2350.15 lakhs and the profit on sale of these Investments is Rs 259.55 lakhs. Considering the terms of the agreement, the auditors are of the view that the sale has not been concluded at the year end.

However, the Company has already received the part sale consideration by virtue of execution of Sale and Share Purchase Agreement during the year under review and the balance consideration shall be received during the current year.

7. As per the notification dated March 31, 2009 issued by Government of India on Accounting Standard AS 11, the Company has opted to adjust the changes in foreign exchange rates relating to long term foreign currency monetary items to the carrying cost of fixed assets and to foreign currency monetary item translation difference account respectively. Accordingly during the year effect of restatement of Rs 397.64 lakhs relating to depreciable capital asset has been added to carrying cost of such assets and in respect of other cases, Rs 978.65 lakhs has been tranferred to foreign currency monetary item translation difference account. Out of this Rs 326.22 has been amortised during the year. Gain from changes in foreign exchange rates earlier credited to profit and loss account to the extent of Rs 42.10 lakhs has been reduced from general reserve. Had the Company continued to use the earlier basis of accounting for exchange differences arising on long-term foreign currency monetary items, the charge to the Profit and Loss Account after tax for the current period would have been higher by Rs 720.94 lakhs, the net block of fixed assets (capital work in progress) would have been lower by Rs 397.63 lakhs, and general reserve would have been higher Rs 42.10 lakhs.

8. Audit of some overseas subsidiaries of the Company is under process. Hence the Company has not prepared the Audited Consolidated Financial Results for the year ended March 31, 2009. However the same will be prepared and published upon receipt of audited financial statements of the said subsidiaries.

9. The financial results for the current year are not comparable with the corresponding previous year, as the Company now operates in single segment i.e. ´Telecom´ and therefore separate segment reporting for the year is not applicable.

10. Figures for previous year have been regrouped / reclassified / recast, wherever necessary.

Kapil Puri
Chairman & Managing Director