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|  ̈ | Registration statement pursuant to section 12(b) or (g) of the Securities Exchange Act of 1934 |
|--------|-----------------------------------------------------------------------------------------------------|

| x | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-------------------------------------------------------------------------------------------|

|   | For the fiscal year ended March 31, 2009 |
|--------|-----------------------------------------------|

|  ̈ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|-----------------------------------------------------------------------------------------------|

|   | For the Transition period from              to             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | Shell Company Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|--------------------------------------------------------------------------------------------------|

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|                                        |   |                                      |
|---------------------------------------------|--------|-------------------------------------------|
| Title of Each Class                         |   | Name of Each Exchange on Which Registered |
| American Depositary Shares*                 |   | New York Stock Exchange                   |
| Equity Shares, par value Rs. 10 per share** |   |                                      |

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| US GAAP  x  |   | International Financial Reporting Standards as issuedby the International Accounting Standards Board   ̈ |   | Other   ̈ |
|---------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|

| *  | American Depositary Shares evidenced by American Depositary Receipts. Each American Depositary Share represents two Shares.                         |   |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ** | Not for trading, but only in connection with the listing of American Depositary Shares pursuant to the requirements of the New York Stock Exchange. |

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| ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
|--------------|----------------------------------------------|

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|                                         |   | 2008                  |   |   | 2009         |   | Increase /(Decrease) |                  | Increase /(Decrease) |
|----------------------------------------------|--------|-----------------------|--------|--------|--------------|--------|----------------------|-----------------------|----------------------|
|                                         |   | Rs.(in millions) |   |   | % ofrevenues |   |                 | Rs.(in millions) |                 |   | US $(in millions) |   |   | % ofrevenues |   | Rs.(in millions) |   | % |
| Revenues                                     |   | 82,331                |   |   | 100.00       |   |                 | 97,295                |                 |   | 1,913 |   |   | 100.00 |   | 14,964 |   | 18.18 |
| Operating costs                              |   | (82,123               | )      |   | 99.74        |   |                 | (92,638               | )                    |   | (1,821 | ) |   | 95.22 |   | 10,515 |   | 12.80 |
| Non-operating income, net                    |   | 710                   |   |   | 0.86         |   |                 | 3,019                 |                 |   | 59 |   |   | 3.10 |   | 2,309 |   | 325.21 |
| Income tax expense                           |   | (1,280                | )      |   | 1.55         |   |                 | (2,430                | )                    |   | (48 | ) |   | 2.50 |   | 1,150 |   | 89.84 |
| Dividend tax                                 |   | (218                  | )      |   | 0.26         |   |                 | (218                  | )                    |   | (5 | ) |   | 0.22 |   | — |   | — |
| Share in net loss of equity method investees |   | (393                  | )      |   | 0.48         |   |                 | (1,120                | )                    |   | (22 | ) |   | 1.15 |   | 727 |   | 184.99 |
| Minority interest                            |   | (1                    | )      |   | —      |   |                 | (22                   | )                    |   | — |   |   | 0.02 |   | 21 |   | 2,100.00 |
| Net income                                   |   | (974                  | )      |   | (1.17        | )      |                 | 3,886                 |                 |   | 76 |   |   | 4.00 |   | 4,860 |   | 498.97 |

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|                                            |   | 2008                        |   | 2009                  |   | Increase /(Decrease)   |   |                  | Increase /(Decrease) |   |
|-------------------------------------------------|--------|-----------------------------|--------|-----------------------|--------|------------------------|--------|-----------------------|----------------------|--------|
|                                            |   |  Rs.(in millions) |   | Rs.(in millions) |   | US $(in millions) |   | Rs.(in millions) |                 |   | % |   |
| Telephone:                                      |   |                        |   |                  |   |                   |   |                  |                 |   |   |   |
| International long distance (“ILD”) |   | 46,687                      |   | 50,207                |   | 987                    |   | 3,520                 |                 |   | 7.54 |   |
| National long distance (“NLD”)      |   | 3,767                       |   | 5,658                 |   | 111                    |   | 1,891                 |                 |   | 50.20 |   |
| Corporate data transmission:                    |   |                        |   |                  |   |                   |   |                  |                 |   |   |   |
| Leased circuits and IRUs                        |   | 10,998                      |   | 12,365                |   | 243                    |   | 1,367                 |                 |   | 12.43 |   |
| Frame relay and MDNS services                   |   | 932                         |   | 814                   |   | 16                     |   | (118                  | )                    |   | (12.66 | ) |
| Internet leased lines                           |   | 4,796                       |   | 5,549                 |   | 110                    |   | 753                   |                 |   | 15.70 |   |
| Internet (including Corporate IP Transit)       |   | 7,844                       |   | 9,114                 |   | 179                    |   | 1,270                 |                 |   | 16.19 |   |
| Other                                           |   | 7,307                       |   | 13,588                |   | 267                    |   | 6,281                 |                 |   | 85.96 |   |
| Total                                           |   | 82,331                      |   | 97,295                |   | 1,913                  |   | 14,964                |                 |   | 18.18 |   |

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|                                                          |   |                        |   |                  |   |                   |   |                  |                 |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------|--------|-----------------------|--------|------------------------|--------|-----------------------|----------------------|--------|--------|--------|
|                                                          |   | 2008                        |   | 2009                  |   | Increase /(Decrease)   |   |                  | Increase /(Decrease) |   |
|                                                          |   |  Rs.(in millions) |   | Rs.(in millions) |   | US $(in millions) |   | Rs.(in millions) |                 |   | %      |   |
| Network and transmission costs                                |   |                        |   |                  |   |                   |   |                  |                 |   |   |   |
| Interconnect charges                                          |   | 44,084                      |   | 48,875                |   | 961                    |   | 4,791                 |                 |   | 10.87  |   |
| Rent of landlines                                             |   | 969                         |   | 302                   |   | 6                      |   | (667                  | )                    |   | (68.83 | )      |
| Space segment utilization charges                             |   | 297                         |   | 318                   |   | 6                      |   | 21                    |                 |   | 7.07   |   |
| Other transmission costs                                      |   | 1,367                       |   | 1,706                 |   | 33                     |   | 339                   |                 |   | 24.80  |   |
| Total                                                         |   | 46,717                      |   | 51,201                |   | 1,006                  |   | 4,484                 |                 |   | 9.60   |   |
| License fees                                                  |   | 848                         |   | 863                   |   | 17                     |   | 15                    |                 |   | 1.77   |   |
| Other operating costs including depreciation and amortization |   | 34,558                      |   | 40,574                |   | 798                    |   | 6,016                 |                 |   | 17.41  |   |
| Total operating costs                                         |   | 82,123                      |   | 92,638                |   | 1,821                  |   | 10,515                |                 |   | 12.80  |   |

----

|   | ● |   | Depreciation and amortization charges increased from Rs. 7,358 million in fiscal 2008 to Rs. 10,180 million in fiscal 2009. Because of increase in capital expenditures from Rs. 39,460 million in fiscal 2008 to Rs. 47,328 million (US$ 930 million) in fiscal 2009, respectively, there was a corresponding increase in depreciation. The Company’s net block of PP&E increased from Rs. 74,084 million in fiscal 2008 to Rs. 103,713 million in fiscal 2009. The effective rate of depreciation on PP&E was 8.67% and 8.29% in fiscal 2008 and fiscal 2009, respectively. Because of investments in undersea cable assets, data centres, rollout of WIMAX networks and other PP&E, the Company expects its depreciation charge to continue to increase in the foreseeable future. |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Manpower costs constituted about 27.79% and 25.44% of other operating costs in fiscal 2009 and fiscal 2008, respectively. These costs increased by 28.26% in fiscal 2009 as against a decrease of 2% in fiscal 2008. The increase in fiscal 2009 was primarily due to an increase in manpower and normal increments. As of March 31, 2009, the Company had a total of 5,825 employees, of which 4,775 employees (82%) were based in India. |
|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Repairs and maintenance costs constituted about 12.80% and 12.85% of other operating costs in fiscal 2009 and fiscal 2008, respectively. These costs increased by 17.54% in fiscal 2009 and 4.42% in fiscal 2008 corresponding to increase in the asset base discussed above. |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Legal and professional fees constituted 0.05% and 14.13% of other operating costs in fiscal 2009 and fiscal 2008, respectively. These costs decreased by 99.58% in fiscal 2009 and increased by 249.21% in fiscal 2008. In fiscal 2008 the amount was higher due to the Company’s increased operations outside India, dispute resolution and flag arbitration costs and restructuring and compliance costs, described in more detail below. |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                |   | 2008                        |   |   | 2009                  |   |   | Increase /(Decrease)  |   |   | Increase /(Decrease)  |   |
|-----------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                                |   |  Rs.(in millions) |   |   | Rs.(in millions) |   |   | US$(in millions) |   |   | Rs.(in millions) |   |   | % |   |
| Gain on sale of investments (net)                   |   | 145                         |   |   | 4,289                 |   |   | 84                    |   |   | 4,144                 |   |   | 2,857.93 |   |
| Interest income / (expense) net                     |   | (1,369                      | )      |   | (2,241                | )      |   | (44                   | )      |   | 872                   |   |   | 63.70 |   |
| Dividend income                                     |   | 317                         |   |   | 225                   |   |   | 4                     |   |   | (92                   | )      |   | (29.02 | ) |
| Foreign exchange gains (loss) (net)                 |   | 3                           |   |   | (76                   | )      |   | (1                    | )      |   | (79                   | )      |   | (2,633.33 | ) |
| Liabilities not required to be settled written back |   | 229                         |   |   | 228                   |   |   | 4                     |   |   | (1                    | )      |   | (0.44 | ) |
| Other income                                        |   | 1,385                       |   |   | 594                   |   |   | 12                    |   |   | (791                  | )      |   | (57.11 | ) |
| Total                                               |   | 710                         |   |   | 3,019                 |   |   | 59                    |   |   | 2,309                 |   |   | 325.21 |   |

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|                                         |   |                        |   |   |         |   |   |                  |   |   |                |   |   |                  |   |   |    |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|--------------|--------|--------|-----------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|---------|--------|
|                                         |   | 2007                        |   |   | 2008         |   |   | Increase/(Decrease)   |   |   | Increase/(Decrease) |   |
|                                         |   |  Rs.(in millions) |   |   | % ofrevenues |   |   | Rs.(in millions) |   |   | % ofrevenues        |   |   | Rs.(in millions) |   |   | %       |   |
| Revenues                                     |   | 85,977                      |   |   | 100.00       |   |   | 82,331                |   |   | 100.00              |   |   | (3,646                | )      |   | (4.24   | )      |
| Operating costs                              |   | (82,535                     | )      |   | 96.00        |   |   | (82,123               | )      |   | 99.74               |   |   | (412                  | )      |   | (0.50   | )      |
| Non-operating income                         |   | 1,080                       |   |   | 1.26         |   |   | 710                   |   |   | 0.86                |   |   | (370                  | )      |   | (34.26  | )      |
| Income tax expense                           |   | (2,807                      | )      |   | 3.26         |   |   | (1,280                | )      |   | 1.55                |   |   | (1,527                | )      |   | (54.40  | )      |
| Dividend tax                                 |   | (180                        | )      |   | 0.21         |   |   | (218                  | )      |   | 0.26                |   |   | 38                    |   |   | 21.11   |   |
| Share in net loss of equity method investees |   | (96                         | )      |   | 0.11         |   |   | (393                  | )      |   | 0.48                |   |   | 297                   |   |   | 309.38  |   |
| Minority interest                            |   | —                     |   |   | —      |   |   | (1                    | )      |   | —             |   |   | (1                    | )      |   | — |   |
|                                         |   |                        |   |   |         |   |   |                  |   |   |                |   |   |                  |   |   |    |   |
| Net income                                   |   | 1,439                       |   |   | 1.67         |   |   | (974                  | )      |   | (1.17               | )      |   | (2,413                | )      |   | (167.69 | )      |

|                                            |   |                        |   |                  |   |                  |   |   |                |   |
|-------------------------------------------------|--------|-----------------------------|--------|-----------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                            |   | 2007                        |   | 2008                  |   | Increase/(Decrease)   |   |   | Increase/(Decrease) |   |
|                                            |   |  Rs.(in millions) |   | Rs.(in millions) |   | Rs.(in millions) |   |   | %                   |   |
| Telephone:                                      |   |                        |   |                  |   |                  |   |   |                |   |
| International long distance (“ILD”) |   | 53,047                      |   | 46,687                |   | (6,360                | )      |   | (11.99              | )      |
| National long distance (“NLD”)      |   | 3,377                       |   | 3,767                 |   | 390                   |   |   | 11.55               |   |
| Corporate data transmission:                    |   |                        |   |                  |   |                  |   |   |                |   |
| Leased circuits and IRUs                        |   | 10,329                      |   | 10,998                |   | 669                   |   |   | 6.48                |   |
| Frame relay and MDNS services                   |   | 2,794                       |   | 932                   |   | (1,862                | )      |   | (66.64              | )      |
| Internet leased lines                           |   | 4,038                       |   | 4,796                 |   | 758                   |   |   | 18.77               |   |
| Internet (including Corporate IP Transit)       |   | 5,357                       |   | 7,844                 |   | 2,487                 |   |   | 46.43               |   |
| Other                                           |   | 7,035                       |   | 7,307                 |   | 272                   |   |   | 3.87                |   |
|                                            |   |                        |   |                  |   |                  |   |   |                |   |
| Total                                           |   | 85,977                      |   | 82,331                |   | (3,646                | )      |   | (4.24               | )      |

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|                                                          |   | 2007                        |   | 2008                        |   | Increase/(Decrease)         |   |   | Increase/(Decrease) |   |
|---------------------------------------------------------------|--------|-----------------------------|--------|-----------------------------|--------|-----------------------------|--------|--------|---------------------|--------|
|                                                          |   | Rs. (in millions) |   | Rs. (in millions) |   | Rs. (in millions) |   |   | %                   |   |
| Network and transmission costs                                |   |                        |   |                        |   |                        |   |   |                |   |
| Interconnect charges                                          |   | 49,092                      |   | 44,084                      |   | (5,008                      | )      |   | (10.20              | )      |
| Rent of landlines                                             |   | 345                         |   | 969                         |   | 624                         |   |   | 180.87              |   |
| Space segment utilization charges                             |   | 583                         |   | 297                         |   | (286                        | )      |   | (49.06              | )      |
| Other transmission costs                                      |   | 1,425                       |   | 1,367                       |   | (58                         | )      |   | (4.07               | )      |
| Total                                                         |   | 51,445                      |   | 46,717                      |   | (4,728                      | )      |   | (9.19               | )      |
| License fees                                                  |   | 1,087                       |   | 848                         |   | (239                        | )      |   | (21.99              | )      |
| Other operating costs including depreciation and amortization |   | 30,003                      |   | 34,558                      |   | 4,555                       |   |   | 15.18               |   |
|                                                          |   |                        |   |                        |   |                        |   |   |                |   |
| Total operating costs                                         |   | 82,535                      |   | 82,123                      |   | (412                        | )      |   | (0.50               | )      |

----

|   | ● |   | Depreciation and amortization charges increased by 5.63% to Rs. 7,358 million in fiscal 2008 from Rs. 6,966 million in fiscal 2007, representing 21.29% and 23.22% of other operating costs in fiscal 2008 and fiscal 2007, respectively, primarily because of capital expenditures made by the Company of Rs. 39,460 million and Rs. 10,091 million in fiscal 2008 and fiscal 2007, respectively. Depreciation and amortization charges in fiscal 2007 included an impairment charge of Rs. 80 million taken to write-off the net book value of the distribution rights acquired through Teleglobe. The Company’s net block of property, plant and equipment (“PP&E”) increased to Rs. 74,084 million in fiscal 2008 from Rs. 59,640 million in fiscal 2007 and the effective rate of depreciation on PP&E was 8.67% and 9.05% in fiscal 2008 and fiscal 2007, respectively. |
|--------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Manpower costs decreased by 2% to Rs. 8,792 million in fiscal 2008 from Rs. 9,001 million in fiscal 2007, representing about 25% and 30% of other operating costs in fiscal 2008 and fiscal 2007, respectively. Manpower costs in fiscal 2007 included Rs. 239 million recorded as an expenditure toward the Voluntary Retirement and Separation schemes for VSNL India and Rs. 100 million toward severance payments for TGN employees and retention bonuses for TGN and Teleglobe employees pursuant to the integration and restructuring related to the TGN and Teleglobe acquisitions. Excluding these costs, manpower costs went up by 2% in fiscal 2008 as compared to fiscal 2007. This increase is primarily due to an increase in manpower. As of March 31, 2008 and 2007, respectively, the Company had a total of 5,147 (80% based in India) and 4,401 (72.73% based in India) employees. |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Repairs and maintenance costs increased by 4% to Rs. 4,419 million in fiscal 2008 from Rs. 4,232 million in fiscal 2007, representing 12.85% and 14.11% of other operating costs in fiscal 2008 and fiscal 2007, respectively, primarily due to the expansion of the Company’s asset base as a result of the TGN and Teleglobe acquisitions. |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● |   | Legal and professional fees increased by 249% to Rs. 4,861 million in fiscal 2008 from Rs. 1,392 million in fiscal 2007, representing 14.13% and 4.64% of other operating costs in fiscal 2008 and fiscal 2007, respectively, primarily due to the Company’s increased operations outside India, dispute resolution and arbitration costs, and restructuring and compliance costs. Polargrid LLC, initial bidders for TGN, brought suit against the Company in December 2004 in the U.S. District Court for the Southern District of New York in connection with an alleged breach of contract between the parties, and subsequently amended its complaint to add additional claims. Polargrid’s complaint sought in excess of US$1.5 billion in damages arising from the Company’s alleged breach and other alleged violations of common law. In April 2008, the Company settled all outstanding claims by Polargrid for an amount of Rs. 680 million (US$17 million), which was accrued in fiscal 2008 and included as a one-time, non-recurring cost under other operating costs in the income statement and under accrued expenses and other current liabilities in the balance sheet. Under the terms of our settlement with Polargrid, all claims and counterclaims in the New York federal action have been dismissed with prejudice, Polargrid ceased its opposition to the Tata Composite Scheme of Arrangement, and the parties released each other from all related claims and covenant not to sue each other for related matters, including any matters related to the Tyco Global Network or Polarnet project. |
|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   |                         |   |   |                  |   |   |                  |   |   |                |   |
|-----------------------------------------------------|--------|------------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                |   | 2007                         |   |   | 2008                  |   |   | Increase/(Decrease)   |   |   | Increase/(Decrease) |   |
|                                                |   |   Rs.(in millions) |   |   | Rs.(in millions) |   |   | Rs.(in millions) |   |   | %                   |   |
| Gain on sale of investments (net)                   |   |                         | 17     |   |                  |   | 145    |                  |   |   | 128                 |   |   |   | 752.94 |   |
| Interest income/(expense) (net)                     |   |                         | (1,317 | )      |                  |   | (1,369 | )                     |   |   | 52                  |   |   |   | 3.95 |   |
| Dividend income                                     |   |                         | 578    |   |                  |   | 317    |                  |   |   | (261                | )      |   |   | (45.16 | ) |
| Foreign exchange gains (loss) (net)                 |   |                         | 36     |   |                  |   | 3      |                  |   |   | (33                 | )      |   |   | (91.67 | ) |
| Liabilities not required to be settled written back |   |                         | 578    |   |                  |   | 229    |                  |   |   | (349                | )      |   |   | (60.38 | ) |
| Other income                                        |   |                         | 1,188  |   |                  |   | 1,385  |                  |   |   | 197                 |   |   |   | 16.58 |   |
|                                                |   |                         |   |   |                  |   |   |                  |   |   |                |   |   |   |   |   |
| Total                                               |   |                         | 1,080  |   |                  |   | 710    |                  |   |   | (370                | )      |   |   | (34.26 | ) |

----

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|   | ● | Wholesale Voice—global voice services; |
|--------|---------|----------------------------------------------|

|   | ● | Enterprise and Carrier Data—corporate data transmission services; |
|--------|---------|------------------------------------------------------------------------------|

|   | ● | Others—India voice, retail internet, data center, signaling, roaming and T.V. uplinking services. |
|--------|---------|---------------------------------------------------------------------------------------------------------|

| Segment                     |                | 2008   |   |          | 2009   |   |          | Increase /(Decrease) |   |           | Increase /(Decrease) |
|-----------------------------|---------------------|--------|--------|---------------|--------|--------|---------------|----------------------|--------|----------------|---------------------------|
|                        | Revenues            |   |   | Results       |   |   | Revenues      |                 |   | Results        |                      |   | Revenues |   |   | Results |   |   | Revenues |   |   | Results |
|                        |  Rs.(millions) |   |   | Rs.(millions) |   |   | Rs.(millions) |                 |   | US $(millions) |                      |   | Rs.(millions) |   |   | US $(millions) |   |   | Rs.(millions) |   |   | Rs.(millions) |   |   | % |
| Wholesale Voice             |                |   | 46,687 |          |   |   | 7,539         |                 |   |           | 50,207                    |   |   |   | 987 |   |   |   | 8,771 |   |   |   | 173 |   |   |   | 3,520 |   |   |   | 1,232 |   |   |   | 7.54 |   |   |   | 16.34 |   |
| Enterprise and Carrier Data |                |   | 18,809 |          |   |   | 15,977        |                 |   |           | 25,184                    |   |   |   | 495 |   |   |   | 22,500 |   |   |   | 442 |   |   |   | 6,375 |   |   |   | 6,523 |   |   |   | 33.89 |   |   |   | 40.83 |   |
| Others                      |                |   | 16,835 |          |   |   | 11,359        |                 |   |           | 21,904                    |   |   |   | 431 |   |   |   | 13,960 |   |   |   | 275 |   |   |   | 5,069 |   |   |   | 2,601 |   |   |   | 30.11 |   |   |   | 22.90 |   |
| Total                       |                |   | 82,331 |          |   |   | 34,875        |                 |   |           | 97,295                    |   |   |   | 1,913 |   |   |   | 45,231 |   |   |   | 890 |   |   |   | 14,964 |   |   |   | 10,356 |   |   |   | 18.18 |   |   |   | 29.69 |   |

----

| Segment                     |   | 2007                |   |   | 2008                |   |   | Increase/(Decrease) |   |   | Increase/(Decrease) |   |
|-----------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                        |   | Revenues            |   |   | Results             |   |   | Revenues            |   |   | Results             |   |   | Revenues |   |   | Results |   |   | Revenues |   |   | Results |   |
|                        |   | (Rs. millions) |   |   | (Rs. millions) |   |   | (Rs. millions) |   |   | (Rs. millions) |   |   | (Rs. millions) |   |   | (Rs. millions) |   |   | % |   |   | % |   |
| Wholesale Voice             |   |                | 53,047 |   |                |   | 7,234  |                |   |   | 46,687              |   |   |   | 7,539 |   |   |   | (6,360 | ) |   |   | 305 |   |   |   | (11.99 | ) |   |   | 4.22 |   |
| Enterprise and Carrier Data |   |                | 19,550 |   |                |   | 16,936 |                |   |   | 18,809              |   |   |   | 15,977 |   |   |   | (741 | ) |   |   | (959 | ) |   |   | (3.79 | ) |   |   | (5.66 | ) |
| Others                      |   |                | 13,380 |   |                |   | 9,400  |                |   |   | 16,835              |   |   |   | 11,359 |   |   |   | 3,455 |   |   |   | 1,959 |   |   |   | 25.82 |   |   |   | 20.84 |   |
|                        |   |                |   |   |                |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                       |   |                | 85,977 |   |                |   | 33,570 |                |   |   | 82,331              |   |   |   | 34,875 |   |   |   | (3,646 | ) |   |   | 1,305 |   |   |   | (4.24 | ) |   |   | 3.89 |   |

----

|                                                  |   | 2007                |    |   | 2008                |   |    | 2009                |   |
|-------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|---------------------|--------|
|                                                  |   | (Rs. millions) |    |   | (Rs. millions) |   |    | (Rs. millions) |   |   | (US $ millions) |   |
| Cash flows provided by operating activities           |   |                | 6192    |   |                |   | 10,401  |                |   |   | 14,724 |   |   |   | 289 |   |
| Cash flows used in investing activities               |   |                | (12,074 | )      |                |   | (16,674 | )                   |   |   | (35,116 | ) |   |   | (690 | ) |
| Cash flows provided by/(used in) financing activities |   |                | 3,806   |   |                |   | 6,738   |                |   |   | 22,548 |   |   |   | 443 |   |
| Effect of foreign exchange on cash flows              |   |                | (256    | )      |                |   | (57     | )                   |   |   | 445 |   |   |   | 9 |   |
| Cash and cash equivalents, beginning of year          |   |                | 4,373   |   |                |   | 2,041   |                |   |   | 2, 449 |   |   |   | 48 |   |
|                                                  |   |                |    |   |                |   |    |                |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of year                |   |                | 2,041   |   |                |   | 2,449   |                |   |   | 5, 050 |   |   |   | 99 |   |

----

----

----

|   |   | Loan balance as ofMarch 31, 2008 to whichFinancial Covenant isapplicable |   | Financial Covenant                                                                                                                                                                                                                                                                   |   | Compliance as of March 31, 2008 |
|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| 1.     |   | Rs. 19,610 million (US$490 million)                                                                         |   | Tangible Net Worth should not be less thanRs. 40 billion                                                                                                                                                                                                                             |   | In compliance.                                 |
|   |   |                                                                                                        |   |
| 2.     |   | Rs. 10,006 million (US$250 million)                                                                         |   | Net Debt should not exceed 3.25 times of EBITDA                                                                                                                                                                                                                                      |   | In compliance.                                 |
|   |   |                                                                                                        |   |
| 3.     |   | Rs. 8,804 million (US$220 million)                                                                          |   | Borrowings should not exceed 1.5 times Tangible Net Worth; Total Liabilities should not exceed 2 times Tangible Net Worth; EBITDA should not be less than 1.5 times Debt Service Obligation; and Total Net Fixed Assets should not be less than 1.50 times Borrowings |   | In compliance.                                 |

----

|   |   |                                          |   |                                                                                                                                                                                                           |   |           |
|--------|--------|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|   |   |                                          |   |
| 4.     |   | Rs. 800 million (US$20 million)     |   | Borrowings should not exceed 2 times Tangible Net worth Total Net Fixed Assets should not be less than 1.25 times Total Net Borrowings EBITDA should not be less than 2.5 times the Interest Expense |   | In compliance. |
|   |   |                                          |   |
| 5.     |   | Rs. 18,810 million (US$470 million) |   | EBITDA should not be less than 3 times the Interest Expense                                                                                                                                                    |   | In compliance. |

|   | a) | goodwill or other intangible assets; |
|--------|----|--------------------------------------|

|   | b) | amounts set aside for tax; |
|--------|----|----------------------------|

|   | c) | minority interests; |
|--------|----|---------------------|

|   | d) | the amount by which the net book value of any asset has been written up after 31 March 2005 (or, in the case of a person becoming a member of the Relevant Group after that date, the date on which that person became or becomes a member of the Relevant Group) by way of revaluation or on its transfer from one member of the Relevant Group to another; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | any dividend or other distribution declared, recommended or made by any member of the Relevant Group, |
|--------|----|-------------------------------------------------------------------------------------------------------|

| (a) | Interest Expense; |
|-----|-------------------|

| (b) | tax; |
|-----|------|

| (c) | any share of the profit of any associated company or undertaking, except for dividends received in cash by any member of the Relevant Group; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | extraordinary and exceptional items (excluding tax and licence fee refunds); and |
|-----|----------------------------------------------------------------------------------|

| (e) | after adding back all amounts provided for depreciation and amortisation for the relevant fiscal year, |
|-----|--------------------------------------------------------------------------------------------------------|

----

|   | (a) | excluding any working capital or similar facilities (the proceeds of which are applied solely towards working capital purposes) which are not made available in cash by way of short-term or long-term loans; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the interest element of leasing and hire purchase payments; |
|-----|-------------------------------------------------------------|

| (b) | commitment fees, commissions, arrangement fees and guarantee fees; and |
|-----|------------------------------------------------------------------------|

| (c) | amounts in the nature of interest payable in respect of any shares other than equity share capital, |
|-----|-----------------------------------------------------------------------------------------------------|

----

|   | (a) | excluding any working capital or similar facilities (the proceeds of which are applied solely towards working capital purposes) which are not made available in cash by way of short term or long term loans; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | reducing by any cash and/or cash equivalents and investments made in mutual funds, bank deposits and any other available means for surplus funds investment by the Relevant Group. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| No.    |   | Loan balance as ofMarch 31, 2009 towhich FinancialCovenant is applicable |   | Financial Covenant                                                                                                                                                   |   | Threshold level pertaining tothe financial covenant                                                                                                                                                                                                                              |   | Actual levelpertaining tofinancial covenantfor the fiscal 2009. |
|--------|--------|-------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|
| 1.     |   | Rs. 28,979 million(US$ 570 million)                                           |   | Tangible Net Worth of the Relevant Group                                                                                                                             |   | As of March 31, 2009 must exceed Rs. 40 billion. As of March 31, 2010, 2011 and 2012 must exceed Rs. 25 billion As of March 31, 2013 must exceed Rs. 35 billion. As of March 31, 2014 and annual periods ending beyond March 31, 2014 must exceed Rs. 42 billion. |   | Tangible net worth was Rs. 52.18 billion.                       |
|   |   |                                                                          |   |                                                                                                                                                                 |
| 2.     |   | Rs. 28,979 million(US$ 570 million)                                           |   | Ratio of Total Net Fixed Assets of the Relevant Group to Net Debt as of the year ended March 31, 2009 and for annual periods ending beyond March 31, 2009. |   | Should exceed 1.6 times                                                                                                                                                                                                                                                          |   | The ratio of Total Net Fixed Assets to Net Debt was 3.90 times. |

----

| 3.     |   | Rs. 28,979 million (US$ 570 million) |   | Ratio of Net Debt to EBITDA and limit on Net Debt |   | For any relevant fiscal year in which the ratio of Net Debt to EBITDA is greater than 3.25:1, Net Debt should not exceed US$ 2.3 billion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Net Debt to EBITDA ratio was 2.51 times and the Net Debt was US$ 865.71 million.             |
|--------|--------|--------------------------------------|--------|---------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|
|   |   |                                 |   |                                              |
| 4.     |   | Rs. 28,979 million (US$ 570 million) |   | The ratio of EBITDA to Net Interest Expense       |   | EBITDA in fiscals 2009 to 2014 should exceed Net Interest Expense as follows: 2009                 - 3.00 times 2010 and 2011 - 2.25 times 2012                 - 2.75 times 2013                 - 3.10 times 2014                 - 3.25 times |   | The ratio of EBITDA to Net Interest Expense was 7.65 times.                                  |
|   |   |                                 |   |                                              |
| 5.     |   | Rs. 28,979 million (US$ 570 million) |   | Ratio of Net Debt to EBITDA.                      |   | In fiscals 2013 and beyond, Net Debt should not exceed 3.25 times EBITDA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | This covenant is applicable from fiscal 2013 onwards and hence not relevant for fiscal 2009. |

|   | a. | goodwill; |
|--------|----|-----------|

|   | b. | amounts set aside for tax; |
|--------|----|----------------------------|

|   | c. | minority interests; |
|--------|----|---------------------|

|   | d. | the amount by which the net book value of any asset has been written up after 31 March 2006 (or, in the case of a person becoming a member of the Relevant Group after that date, the date on which that person became or becomes a member of the Relevant Group) by way of revaluation or on its transfer from one member of the Relevant Group to another; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | any dividend or other distribution declared, recommended or made by any member of the Group, |
|--------|----|----------------------------------------------------------------------------------------------|

----

|   | a. | the aggregate book value of all fixed assets less depreciation; |
|--------|----|-----------------------------------------------------------------|

|   | b. | the aggregate book value of all capital work in progress; |
|--------|----|-----------------------------------------------------------|

|   | c. | investments (but excluding the book value of the Tata Teleservices Limited (TTSL) Investment); and |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | d. | the last traded value of the TTSL Investment, |
|--------|----|-----------------------------------------------|

|   | a. | excluding any working capital or similar facilities (the proceeds of which are applied solely towards working capital purposes) which are (i) not made available in cash by way of short term or long term loans; and (ii) not exceeding an aggregate amount of US$75,000,000 (or its equivalent in any other currency or currencies); and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | reducing by any cash and/or cash equivalents and investments made in mutual funds, bank deposits and any other available means for surplus funds investment by the Relevant Group. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | before taking into account: |
|--------|----|-----------------------------|

|   | i. | Interest Expense; |
|--------|----|-------------------|

|   | ii. | tax; |
|--------|-----|------|

|   | iii. | any share of the profit of any associated company or undertaking, except for dividends received in cash by any member of the Relevant Group; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | extraordinary and exceptional items (excluding tax and licence fee refunds); and |
|--------|-----|----------------------------------------------------------------------------------|

|   | b. | after adding back all amounts provided for depreciation and amortisation for that Relevant Period, |
|--------|----|----------------------------------------------------------------------------------------------------|

| a. | the interest element of leasing and hire purchase payments; |
|----|-------------------------------------------------------------|

----

| b. | commitment fees, commissions, arrangement fees and guarantee fees; and |
|----|------------------------------------------------------------------------|

| c. | amounts in the nature of interest payable in respect of any shares other than equity share capital, adjusted (but without double counting) by adding back the net amount payable (or deducting the net amount receivable) by members of the Relevant Group in respect of that Relevant Period under any interest or (so far as they relate to interest) currency hedging arrangements and all as determined from the financial statements. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Payments Due by Period(Rs. millions) |   |
|---------------------------------------------|--------|--------------------------------------|--------|
|                                        |   | Total                                |   |   | Less Than1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More than5 years |   |
| Purchase Obligations                        |   |                                 | 24,382 |   |   |   | 20,798 |   |   |   | 3,584 |   |   |   | — |   |   |   | — |   |
| Other long term contractual commitments (1) |   |                                 | 11,257 |   |   |   | 5,697 |   |   |   | 5,524 |   |   |   | 36 |   |   |   | — |   |
| Operating Lease Obligations                 |   |                                 | 13,368 |   |   |   | 2,225 |   |   |   | 3,576 |   |   |   | 2,896 |   |   |   | 4,671 |   |
| Capital Lease Obligations                   |   |                                 | 3      |   |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |

| (1) | The other long term contractual commitments consist primarily of bank guarantees amounting to Rs. 2,206 million and standby letters of credit amounting to Rs. 5,142 million. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | ● | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that the receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on our financial statements. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | improving training and accounting reviews designed to ensure that all relevant personnel involved in accounting and reporting for income taxes understand and correctly apply the classification requirements of FIN 48. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 18. | FINANCIAL STATEMENTS |
|---------------|----------------------|

| ITEM 19. | EXHIBITS |
|---------------|----------|

----

|                         |                                          |
|------------------------------|-----------------------------------------------|
| TATA COMMUNICATIONS LIMITED, |
|                         |                                          |
| By:                          | /s/    Narasimhan Srinath |
| Name:                        | Narasimhan Srinath                            |
| Title:                       | Managing Director and CEO                     |
|                         |                                          |
| By:                          | /s/    Sanjay Baweja      |
| Name:                        | Sanjay Baweja                                 |
| Title:                       | Chief Financial Officer                       |

----

|          |   |                                                                                                                   |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber |   | Description                                                                                                            |
|          |   |
| 12.1          |   | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|          |   |
| 12.2          |   | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|          |   |
| 13.1          |   | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|                                                                                                               |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|
| Consolidated Financial Statements of Tata Communications Limited                                                   |   |   |
|                                                                                                               |   |
| Report of Independent Registered Public Accounting Firm                                                            |   | F-2    |
| Consolidated Balance Sheets as of March 31, 2008 and 2009 (Restated)                                          |   | F-4    |
| Consolidated Statements of Operations for each of the years ended March 31, 2007, 2008 and 2009               |   | F-5    |
| Statement of Changes in Shareholders’ Equity for each of the years ended March  31, 2007, 2008 and 2009 |   | F-6    |
| Consolidated Statements of Cash Flows for each of the years ended March 31, 2007, 2008 and 2009               |   | F-7    |
| Notes to Consolidated Financial Statements                                                                         |   | F-8    |

----

----

----

|                                                                                                                                                                                                                                                         |   | Rs.2008Restated-See Note 30                                                          |    |   | Rs.2009Restated- See Note 30 |   |    | US$2009Restated-See Note 30 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------|--------|------------------------------|--------|---------|-----------------------------|--------|
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |
|                                                                                                                                                                                                                                                         |   | (in millions, except share and per share amounts) |    |
| ASSETS                                                                                                                                                                                                                                                       |   |                                                                                 |    |   |                         |   |    |                        |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |
| Current assets                                                                                                                                                                                                                                               |   |                                                                                 |    |   |                         |   |    |                        |   |
| Cash and cash equivalents                                                                                                                                                                                                                                    |   |                                                                                 | 2,449   |   |                         |   | 5,050   |                        |   |   | 99 |   |
| Short-term bank deposits                                                                                                                                                                                                                                     |   |                                                                                 | 9       |   |                         |   | 2,671   |                        |   |   | 53 |   |
| Investments                                                                                                                                                                                                                                                  |   |                                                                                 | 123     |   |                         |   | 7,089   |                        |   |   | 139 |   |
| Accounts receivable (net of allowances of Rs.2,696 million and Rs.3,218 million as of March 31, 2008 and 2009) (includes Rs.1,518 million and Rs.1,434 million as of March 31, 2008 and 2009 due from related parties)                   |   |                                                                                 | 16,624  |   |                         |   | 25,851  |                        |   |   | 508 |   |
| Prepaid expenses and other current assets (net of allowances of Rs.613 million and Rs.663 million, as of March 31, 2008 and 2009) (includes Rs.820 million and Rs.6 million as of March 31, 2008 and 2009 due from related parties) |   |                                                                                 | 9,227   |   |                         |   | 10,405  |                        |   |   | 205 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Total current assets                                                                                                                                                                                                                                         |   |                                                                                 | 28,432  |   |                         |   | 51,066  |                        |   |   | 1,004 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Investments                                                                                                                                                                                                                                                  |   |                                                                                 | 8,634   |   |                         |   | 4,103   |                        |   |   | 81 |   |
| Investments in equity method investees                                                                                                                                                                                                                       |   |                                                                                 | 117     |   |                         |   | 120     |                        |   |   | 2 |   |
| Advances against investment                                                                                                                                                                                                                                  |   |                                                                                 | — |   |                         |   | 712     |                        |   |   | 14 |   |
| Property, plant and equipment, net                                                                                                                                                                                                                           |   |                                                                                 | 74,084  |   |                         |   | 103,713 |                        |   |   | 2,039 |   |
| Intangible assets, net                                                                                                                                                                                                                                       |   |                                                                                 | 2,822   |   |                         |   | 3,237   |                        |   |   | 64 |   |
| Goodwill                                                                                                                                                                                                                                                     |   |                                                                                 | 5,469   |   |                         |   | 6,287   |                        |   |   | 123 |   |
| Advance income taxes (net)                                                                                                                                                                                                                                   |   |                                                                                 | 12,183  |   |                         |   | 14,205  |                        |   |   | 279 |   |
| Other non-current assets (includes Rs.126 million and Rs.2,965 million as of March 31, 2008 and 2009 due from related parties)                                                                                                                |   |                                                                                 | 4,582   |   |                         |   | 8,890   |                        |   |   | 175 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                 |   |                                                                                 | 136,323 |   |                         |   | 192,333 |                        |   |   | 3,781 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                   |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Current liabilities                                                                                                                                                                                                                                          |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Accounts payable (includes Rs.779 million and Rs.1,341 million as of March 31, 2008 and 2009 due to related parties)                                                                                                                               |   |                                                                                 | 22,245  |   |                         |   | 34,063  |                        |   |   | 670 |   |
| Short-term debt and current portion of long-term debt                                                                                                                                                                                                        |   |                                                                                 | 10,036  |   |                         |   | 11,628  |                        |   |   | 228 |   |
| Accrued expenses and other current liabilities (includes Rs.2,693 million and Rs.3,228 million as of March 31, 2008 and 2009 due to related parties)                                                                                          |   |                                                                                 | 16,134  |   |                         |   | 21,299  |                        |   |   | 419 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                    |   |                                                                                 | 48,415  |   |                         |   | 66,990  |                        |   |   | 1,317 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Long-term debt, net of current portion                                                                                                                                                                                                                       |   |                                                                                 | 20,384  |   |                         |   | 48,601  |                        |   |   | 956 |   |
| Other non-current liabilities                                                                                                                                                                                                                                |   |                                                                                 | 16,707  |   |                         |   | 24,225  |                        |   |   | 476 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |
| Total liabilities                                                                                                                                                                                                                                            |   |                                                                                 | 85,506  |   |                         |   | 139,816 |                        |   |   | 2,749 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Commitments and contingencies (See Note 28)                                                                                                                                                                                                                  |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Minority interest                                                                                                                                                                                                                                            |   |                                                                                 | 32      |   |                         |   | 50      |                        |   |   | 1 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Shareholders’ equity                                                                                                                                                                                                                                   |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Equity shares par value Rs.10 each                                                                                                                                                                                                                           |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Authorized: 300,000,000 shares                                                                                                                                                                                                                               |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
| Issued and outstanding 285,000,000 shares as of March 31, 2008 and 2009                                                                                                                                                                                 |   |                                                                                 | 2,850   |   |                         |   | 2,850   |                        |   |   | 56 |   |
| Additional paid-in-capital                                                                                                                                                                                                                                   |   |                                                                                 | 15,770  |   |                         |   | 15,770  |                        |   |   | 310 |   |
| Retained earnings                                                                                                                                                                                                                                            |   |                                                                                 | 31,418  |   |                         |   | 34,021  |                        |   |   | 669 |   |
| Accumulated other comprehensive income /(loss)                                                                                                                                                                                                               |   |                                                                                 | 747     |   |                         |   | (174    | )                           |   |   | (4 | ) |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Total shareholders’ equity                                                                                                                                                                                                                             |   |                                                                                 | 50,785  |   |                         |   | 52,467  |                        |   |   | 1,031 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                                                             |   |                                                                                 | 136,323 |   |                         |   | 192,333 |                        |   |   | 3,781 |   |
|                                                                                                                                                                                                                                                         |   |                                                                                 |    |   |                         |   |    |                        |   |   |   |   |

----

|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|
|                                                                                                                                                                      |   | Rs.2007                                                                                                 |   |   | Rs.2008     |   |   | Rs.2009     |   |   | US$2009     |   |
|                                                                                                                                                                      |   |                                                                                                    |   |
|                                                                                                                                                                      |   | (in millions, except share, per share and per ADS amounts) |   |
| Operating revenues:                                                                                                                                                       |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Revenues from telecommunication services (includes Rs.4,193 million, Rs.5,114 million and Rs.5,846 million in fiscals 2007, 2008 and 2009 from related parties) |   | 85,977                                                                                                  |   |   | 82,331      |   |   | 97,295      |   |   | 1,913       |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Cost of revenues                                                                                                                                                          |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Network and transmission costs (excluding depreciation of Rs.5,552 million, Rs.6,668 million and Rs.8,114 million in fiscals 2007, 2008 and 2009)               |   | 51,445                                                                                                  |   |   | 46,717      |   |   | 51,201      |   |   | 1,006       |   |
| Licence fees                                                                                                                                                              |   | 1,087                                                                                                   |   |   | 848         |   |   | 863         |   |   | 17          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Total cost of revenues                                                                                                                                                    |   | 52,532                                                                                                  |   |   | 47,565      |   |   | 52,064      |   |   | 1,023       |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Operating costs                                                                                                                                                           |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Depreciation and amortization                                                                                                                                             |   | 6,966                                                                                                   |   |   | 7,358       |   |   | 10,180      |   |   | 200         |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Other operating costs (includes Rs.674 million, Rs.698 million and Rs.1,028 million in fiscals 2007, 2008 and 2009 to related parties)                          |   | 23,037                                                                                                  |   |   | 27,200      |   |   | 30,394      |   |   | 598         |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Total operating costs                                                                                                                                                     |   | 30,003                                                                                                  |   |   | 34,558      |   |   | 40,574      |   |   | 798         |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Operating income                                                                                                                                                          |   | 3,442                                                                                                   |   |   | 208         |   |   | 4,657       |   |   | 92          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Non-operating income, net:                                                                                                                                                |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Gain on sale of investments                                                                                                                                               |   | 17                                                                                                      |   |   | 145         |   |   | 4,289       |   |   | 84          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Interest income from banks and others (includes Rs.2 million, Rs.40 million and Rs.188 million in fiscals 2007, 2008 and 2009 from related parties)                       |   | 63                                                                                                      |   |   | 100         |   |   | 491         |   |   | 10          |   |
| Interest expense                                                                                                                                                          |   | (1,380                                                                                                  | )      |   | (1,469      | )      |   | (2,732      | )      |   | (54         | )      |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Other non-operating income, net (includes Rs.85 million, Rs.123 million and Rs.100 million in fiscals 2007, 2008 and 2009 from related parties)                 |   | 2,380                                                                                                   |   |   | 1,934       |   |   | 971         |   |   | 19          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Total non-operating income, net                                                                                                                                           |   | 1,080                                                                                                   |   |   | 710         |   |   | 3,019       |   |   | 59          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Income before income taxes                                                                                                                                                |   | 4,522                                                                                                   |   |   | 918         |   |   | 7,676       |   |   | 151         |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Income tax expense                                                                                                                                                        |   | (2,807                                                                                                  | )      |   | (1,280      | )      |   | (2,430      | )      |   | (48         | )      |
| Dividend tax                                                                                                                                                              |   | (180                                                                                                    | )      |   | (218        | )      |   | (218        | )      |   | (5          | )      |
| Equity in net loss of equity method investees                                                                                                                             |   | (96                                                                                                     | )      |   | (393        | )      |   | (1,120      | )      |   | (22         | )      |
| Minority interest                                                                                                                                                         |   | —                                                                                                 |   |   | (1          | )      |   | (22         | )      |   | —     |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Net income (loss)                                                                                                                                                         |   | 1,439                                                                                                   |   |   | (974        | )      |   | 3,886       |   |   | 76          |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
|                                                                                                                                                                      |   |                                                                                                    |   |   |
| Per share Information:                                                                                                                                                    |   |                                                                                                    |   |   |        |   |   |        |   |   |        |   |
| Basic earning (loss) per equity share                                                                                                                                     |   | 5.05                                                                                                    |   |   | (3.42       | )      |   | 13.64       |   |   | 0.27        |   |
| Weighted number of equity shares outstanding                                                                                                                              |   | 285,000,000                                                                                             |   |   | 285,000,000 |   |   | 285,000,000 |   |   | 285,000,000 |   |
| Basic earning (loss) per ADS (each ADS represents two equity shares)                                                                                                      |   | 10.10                                                                                                   |   |   | (6.84       | )      |   | 27.28       |   |   | 0.54        |   |

----

|                                                                                                                |   | Number of equityshares              |   | Equity sharecapital |   | Additionalpaid-incapital |   | Retainedearnings |   |   | Accumulated othercomprehensiveincome /(loss) |   | Totalshareholders’equity |               |   | Comprehensiveincome / (loss) |   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------------------------|--------|--------------------------|--------|------------------|--------|--------|---------------------------------------------------|--------|--------------------------------|--------------------|--------|------------------------------|--------|--------|
|                                                                                                                |   |                                          |   |
|                                                                                                                |   | (in millions, except number of equity shares) |   |
| Balance at March 31, 2006                                                                                      |   | 285,000,000                                   |   | Rs.                      | 2,850  |                     | Rs.    | 15,770           |   | Rs.    | 33,521                                            |   |                           | Rs.  25  |   | Rs.                          | 52,166 |   |   |   |   |   |
| Net income                                                                                                          |   |                                          |   |                     |   |                     |   |             |   |   | 1,439                                             |   |                           |               |   |                         | 1,439  |   |   | 1,439 |   |   |
| Net unrealized gain on available-for-sale securities, net of realized gains and net of tax of Rs. 25 million        |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 42                 |   |                         | 42     |   |   | 42 |   |   |
| Foreign currency translation adjustment                                                                             |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 38                 |   |                         | 38     |   |   | 38 |   |   |
| Dividends paid                                                                                                      |   |                                          |   |                     |   |                     |   |             |   |   | (1,283                                            | )      |                           |               |   |                         | (1,283 | )      |   |   |   |   |
| Effective portion of net loss on derivative instrument designated as cash flow hedge                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (4)                |   |                         | (4     | )      |   | (4 | ) |   |
| Change in accounting principle in respect of actuarial gain/(loss), net of taxes                                    |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (90)               |   |                         | (90    | )      |   |   |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Comprehensive income                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   | 1,515 |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Balance at March 31, 2007                                                                                      |   | 285,000,000                                   |   |                     | 2,850  |                     |   | 15,770           |   |   | 33,677                                            |   |                           | 11                 |   |                         | 52,308 |   |   |   |   |   |
| Net loss                                                                                                            |   |                                          |   |                     |   |                     |   |             |   |   | (974                                              | )      |                           |               |   |                         | (974   | )      |   | (974 | ) |   |
| Net unrealized gain on available-for-sale securities, net of realized gains and net of tax of Rs. 63 million        |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 175                |   |                         | 175    |   |   | 175 |   |   |
| Foreign currency translation adjustment                                                                             |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 387                |   |                         | 387    |   |   | 387 |   |   |
| Dividends paid                                                                                                      |   |                                          |   |                     |   |                     |   |             |   |   | (1,283                                            | )      |                           |               |   |                         | (1,283 | )      |   |   |   |   |
| Effective portion of net loss on derivative instrument designated as cash flow hedge                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (248)              |   |                         | (248   | )      |   | (248 | ) |   |
| Actuarial gains on employee benefit plans                                                                           |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 422                |   |                         | 422    |   |   | 422 |   |   |
| Cumulative effect of a change in accounting-principle adoption of FIN 48                                            |   |                                          |   |                     |   |                     |   |             |   |   | (2                                                | )      |                           |               |   |                         | (2     | )      |   |   |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Comprehensive loss                                                                                                  |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   | (238 | ) |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Balance at March 31, 2008                                                                                      |   | 285,000,000                                   |   |                     | 2,850  |                     |   | 15,770           |   |   | 31,418                                            |   |                           | 747                |   |                         | 50,785 |   |   |   |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |
| Net income                                                                                                          |   |                                          |   |                     |   |                     |   |             |   |   | 3,886                                             |   |                           |               |   |                         | 3,886  |   |   | 3,886 |   |   |
| Net unrealized loss on available-for-sale securities, net of realized loss and net of tax benefit of Rs. 90 million |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (219)              |   |                         | (219   | )      |   | (219 | ) |   |
| Foreign currency translation adjustment                                                                             |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (937)              |   |                         | (937   | )      |   | (937 | ) |   |
| Dividends paid                                                                                                      |   |                                          |   |                     |   |                     |   |             |   |   | (1,283                                            | )      |                           |               |   |                         | (1,283 | )      |   |   |   |   |
| Effective portion of net loss on derivative instrument designated as cash flow hedge                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | (28)               |   |                         | (28    | )      |   | (28 | ) |   |
| Actuarial gains on employee benefit plans net of tax of Rs. 271 million                                             |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           | 263                |   |                         | 263    |   |   | 263 |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Comprehensive income                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   | 2,965 |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
| Balance at March 31, 2009                                                                                      |   | 285,000,000                                   |   |                     | 2,850  |                     |   | 15,770           |   |   | 34,021                                            |   |                           | (174)              |   |                         | 52,467 |   |   |   |   |   |
|                                                                                                                |   |                                          |   |                     |   |                     |   |             |   |   |                                              |   |                           |               |   |                         |   |   |   |   |   |   |
|                                                                                                                |   |                                          |   | US$                      | 56     |                     | US$    | 310              |   | US$    | 669                                               |   |                           | US$  (4) |   | US$                          | 1,031  |   |   | US$                58 |   |   |

----

|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
|                                                                                                                                               |   | Rs.2007       |    |   | Rs.2008 |   |    | Rs.2009 |   |   | US$2009 |   |
|                                                                                                                                               |   |          |    |
|                                                                                                                                               |   | (in millions) |    |
| Cash flows from operating activities:                                                                                                              |   |          |    |   |    |   |    |    |   |   |    |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |
| Net income (loss)                                                                                                                                  |   |          | 1,439   |   |    |   | (974    | )       |   |   | 3,886   |   |   |   | 76 |   |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                                           |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Depreciation and amortization                                                                                                                      |   |          | 6,966   |   |    |   | 7,358   |    |   |   | 10,180  |   |   |   | 200 |   |
| Deferred income tax (benefit) expense                                                                                                              |   |          | 261     |   |    |   | (308    | )       |   |   | 650     |   |   |   | 13 |   |
| Minority interest                                                                                                                                  |   |          | — |   |    |   | 1       |    |   |   | 22      |   |   |   | — |   |
| Loss on sale of investment in subsidiary                                                                                                           |   |          | — |   |    |   | 4       |    |   |   | — |   |   |   | — |   |
| Gain on sale of property, plant and equipment                                                                                                      |   |          | (427    | )      |    |   | (4      | )       |   |   | 15      |   |   |   | — |   |
| Equity in net loss of equity method investees                                                                                                      |   |          | 96      |   |    |   | 393     |    |   |   | 1,120   |   |   |   | 22 |   |
| Gain on sale of investment, at cost                                                                                                                |   |          | — |   |    |   | — |    |   |   | (3,904  | )      |   |   | (76 | ) |
| Gain on sale of available-for-sale investments                                                                                                     |   |          | (110    | )      |    |   | (145    | )       |   |   | (385    | )      |   |   | (8 | ) |
| Net change in:                                                                                                                                     |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Accounts receivable                                                                                                                                |   |          | (1,997  | )      |    |   | (643    | )       |   |   | (6,464  | )      |   |   | (127 | ) |
| Prepaid expenses and other current assets                                                                                                          |   |          | 16      |   |    |   | (4,908  | )       |   |   | (811    | )      |   |   | (16 | ) |
| Advance income taxes, net                                                                                                                          |   |          | (395    | )      |    |   | (2,422  | )       |   |   | (1,892  | )      |   |   | (37 | ) |
| Other non-current assets                                                                                                                           |   |          | (1,529  | )      |    |   | 485     |    |   |   | (623    | )      |   |   | (12 | ) |
| Accounts payable                                                                                                                                   |   |          | (733    | )      |    |   | 3,797   |    |   |   | 8,130   |   |   |   | 160 |   |
| Accrued expenses and other current liabilities                                                                                                     |   |          | (25     | )      |    |   | 4,383   |    |   |   | 644     |   |   |   | 13 |   |
| Other non-current liabilities                                                                                                                      |   |          | 2,630   |   |    |   | 3,384   |    |   |   | 4,156   |   |   |   | 81 |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Net cash provided by operating activities                                                                                                          |   |          | 6,192   |   |    |   | 10,401  |    |   |   | 14,724  |   |   |   | 289 |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                              |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Purchase of property, plant and equipment                                                                                                          |   |          | (11,655 | )      |    |   | (21,927 | )       |   |   | (28,571 | )      |   |   | (562 | ) |
| Purchase of intangible assets                                                                                                                      |   |          | (510    | )      |    |   | (380    | )       |   |   | (494    | )      |   |   | (10 | ) |
| Proceeds from sale of property, plant and equipment                                                                                                |   |          | 766     |   |    |   | 60      |    |   |   | 44      |   |   |   | 1 |   |
| Purchase of available - for - sale investments                                                                                                     |   |          | (67,107 | )      |    |   | (66,450 | )       |   |   | (78,402 | )      |   |   | (1,541 | ) |
| Proceeds from sale of available - for - sale investments                                                                                           |   |          | 67,349  |   |    |   | 72,185  |    |   |   | 75,733  |   |   |   | 1,489 |   |
| Proceeds from sale of investment in subsidiary                                                                                                     |   |          | — |   |    |   | 27      |    |   |   | — |   |   |   | — |   |
| Purchase of convertible promissory note                                                                                                            |   |          | — |   |    |   | — |    |   |   | (585    | )      |   |   | (11 | ) |
| Advance against investment                                                                                                                         |   |          | — |   |    |   | — |    |   |   | (712    | )      |   |   | (14 | ) |
| Proceeds from sale of investment, at cost                                                                                                          |   |          | — |   |    |   | — |    |   |   | 4,242   |   |   |   | 83 |   |
| Acquisition of business, net of cash acquired                                                                                                      |   |          | (871    | )      |    |   | — |    |   |   | — |   |   |   | — |   |
| Purchase of shares in equity method investees                                                                                                      |   |          | (107    | )      |    |   | (92     | )       |   |   | (890    | )      |   |   | (18 | ) |
| Loans given to equity method investees                                                                                                             |   |          | (130    | )      |    |   | (219    | )       |   |   | (2,862  | )      |   |   | (56 | ) |
| Restricted cash                                                                                                                                    |   |          | — |   |    |   | 93      |    |   |   | 43      |   |   |   | 1 |   |
| Short-term bank deposits                                                                                                                           |   |          | 191     |   |    |   | 29      |    |   |   | (2,662  | )      |   |   | (52 | ) |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Net cash used in investing activities                                                                                                              |   |          | (12,074 | )      |    |   | (16,674 | )       |   |   | (35,116 | )      |   |   | (690 | ) |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                              |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Proceeds from long-term borrowings                                                                                                                 |   |          | 12,112  |   |    |   | 1,018   |    |   |   | 21,991  |   |   |   | 431 |   |
| Repayment of long-term borrowings                                                                                                                  |   |          | (71     | )      |    |   | (871    | )       |   |   | (71     | )      |   |   | (1 | ) |
| Proceeds from short-term borrowings                                                                                                                |   |          | 7,797   |   |    |   | 25,226  |    |   |   | 19,865  |   |   |   | 391 |   |
| Repayment of short-term borrowings                                                                                                                 |   |          | (14,721 | )      |    |   | (17,455 | )       |   |   | (17,629 | )      |   |   | (347 | ) |
| Availment /(repayment) of bank overdrafts                                                                                                          |   |          | 133     |   |    |   | 201     |    |   |   | (220    | )      |   |   | (4 | ) |
| Repayment of finance lease obligations                                                                                                             |   |          | (161    | )      |    |   | (98     | )       |   |   | (101    | )      |   |   | (2 | ) |
| Dividends paid to minority shareholders of subsidiary                                                                                              |   |          | — |   |    |   | — |    |   |   | (4      | )      |   |   | — |   |
| Dividends paid (includes Rs. 903 million and Rs. 966 million and Rs. 966 million in fiscals 2007, 2008 and 2009 paid to related parties) |   |          | (1,283  | )      |    |   | (1,283  | )       |   |   | (1,283  | )      |   |   | (25 | ) |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Net cash provided by financing activities                                                                                                          |   |          | 3,806   |   |    |   | 6,738   |    |   |   | 22,548  |   |   |   | 443 |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Net change in cash flows                                                                                                                           |   |          | (2,076  | )      |    |   | 465     |    |   |   | 2,156   |   |   |   | 42 |   |
| Effect of foreign exchanges differences on cash                                                                                                    |   |          | (256    | )      |    |   | (57     | )       |   |   | 445     |   |   |   | 9 |   |
| Cash and cash equivalents, beginning of year                                                                                                       |   |          | 4,373   |   |    |   | 2,041   |    |   |   | 2,449   |   |   |   | 48 |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Cash and cash equivalents, end of year                                                                                                             |   |          | 2,041   |   |    |   | 2,449   |    |   |   | 5,050   |   |   |   | 99 |   |
|                                                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Supplementary cash flow information:                                                                                                               |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Interest paid (net of interest capitalized)                                                                                                        |   |          | 1,454   |   |    |   | 1,390   |    |   |   | 2,433   |   |   |   | 48 |   |
| Income taxes (including advance taxes) paid                                                                                                        |   |          | 3,316   |   |    |   | 4,219   |    |   |   | 3,774   |   |   |   | 74 |   |
| Supplementary disclosure of non-cash investing activity:                                                                                           |   |          |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Payables for capital purchases                                                                                                                     |   |          | (763    | )      |    |   | 1,283   |    |   |   | (186    | )      |   |   | (4 | ) |

----

----

| Nature of Intangibles                  |   | Useful lives (years) |
|----------------------------------------|--------|--------------------------------|
| Customer relationships                 |   | 1.25 to 14.5         |
| Internally developed computer software |   | 3 to 5                         |
| Spectrum                               |   | 1.8                            |

----

| Nature of Assets                                         |   | Years                                                                     |
|----------------------------------------------------------|--------|---------------------------------------------------------------------------|
| Leasehold improvements                                   |   | Lesser of useful life or term of lease |
| Leased properties                                        |   | Lesser of useful life or term of lease                                    |
| Buildings                                                |   | 12 to 58                                                                  |
| Plant and machinery – Telecommunication equipment: |   |                                                                      |
| Earth stations and exchanges                             |   | 12                                                                        |
| Cables                                                   |   | 12 to 18                                                             |
| Other network equipment                                  |   | 3 to 20                                                              |
| Office equipment                                         |   | 3 to 20                                                                   |
| Computers                                                |   | 3 to 6                                                                    |
| Motor vehicles                                           |   | 5 to 10                                                                   |
| Furniture and fixtures                                   |   | 3 to 15                                                              |

----

|            |   | (Amounts in Rs. Million)                        |
|-----------------|--------|-------------------------------------------------|
|            |   | Balance as atMarch 31, 2006 |   | Incurred |   | AmountsPaid |   |   | Amountswritten off |   | Ending Balance as atMarch 31, 2007 |   |
| Retention Bonus |   | —                                         |   | 87 |   | — |   |   | — |   | 87 |   |

|            |   | Balance as atMarch 31, 2007 |   | Incurred |   | AmountsPaid |   |   | Amountswritten off |   | Ending Balance as atMarch 31, 2008 |   |
|-----------------|--------|-----------------------------|--------|----------|--------|-------------|--------|--------|-------------------------|--------|------------------------------------|--------|
| Retention Bonus |   | 87                          |   | 103      |   | (190        | )      |   | —                 |   | —                            |   |

----

----

----

----

|                                                                   | As of March 31,                                                                                                                                                              |
|------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                   | 2008                                                                                                                                                                              |   | 2009 |
|                                                                   | (In millions)                                                                                                                                                                     |
|                                                                   |                                                                                                                                                                              |      |   |   |   |
|  Cash and cheques on hand                                         |  Rs.            181                                                                                              |   |   Rs.                         560 |   | US$     11 |
|                                                                   |                                                                                                                                                                              |   |   |   |   |
| Current account balances and deposits with banks in Indian rupees      |   614                                                                                                                                                                        |   |   555 |   |   11 |
|                                                                   |                                                                                                                                                                              |   |   |   |   |
| Current account balances and deposits with banks in foreign currencies |   1,654                                                                                                                                                                      |   |   3,935 |   |   77 |
|                                                                   |                                                                                                                                                                              |   |   |       |   |
| Total                                                                  |   Rs.                           2,449 |   | Rs.                    5,050 |   |  US$                    99 |

----

|                                    |   | As of March 31, |   |
|-----------------------------------------|--------|----------------------|--------|
|                                    |   | 2008                 |   |   | 2009 |   |
|                                    |   | (In millions)        |   |
| Beginning balance                       |   | Rs.1,937             |   |   | Rs.2,696 |   |   |   |   | US$            53 |   |
| Additional allowances for the year      |   |                 | 1,710  |   |   |   | 2,847 |   |   |   |   | 56 |   |
| Recoveries                              |   |                 | (686   | ) |   |   | (1,181 | ) |   |   |   | (23 | ) |
| Uncollectible receivables written off   |   |                 | (241   | ) |   |   | (1,298 | ) |   |   |   | (26 | ) |
| Foreign currency translation adjustment |   |                 | (24    | ) |   |   | 154 |   |   |   |   | 3 |   |
|                                    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                          |   | Rs.2,696             |   |   | Rs.3,218 |   |   |   |   |  US$        63 |   |

|                                             | As of March 31, 2008 |   |
|--------------------------------------------------|---------------------------|--------|
| (In millions, except percentages) |                      |
| Customer I                                       | Rs.                       | 868    |   | 5 | % |
| Customer F                                       |                      | 799    |   | 5 | % |
| Customer A                                       |                      | 635    |   | 4 | % |
| Customer G                                       |                      | 485    |   | 3 | % |
| Customer B                                       |                      | 386    |   | 2 | % |
| Others                                           |                      | 13,451 |   | 81 | % |
|                                             |                      |   |   |   |   |
| Total                                            | Rs.                       | 16,624 |   | 100 | % |

|       |   | As of March 31, 2009                        |   |
|------------|--------|--------------------------------------------------|--------|
|       |   | (In millions, except percentages) |   |
| Customer F |   | Rs.                                              | 925    |   | US$ | 18 |   | 4 | % |
| Customer K |   |                                             | 826    |   |   | 16 |   | 3 | % |
| Customer L |   |                                             | 737    |   |   | 14 |   | 3 | % |
| Customer M |   |                                             | 704    |   |   | 14 |   | 3 | % |
| Customer A |   |                                             | 652    |   |   | 13 |   | 2 | % |
| Others     |   |                                             | 22,007 |   |   | 433 |   | 85 | % |
|       |   |                                             |   |   |   |   |   |   |   |
| Total      |   | Rs.                                              | 25,851 |   | US$ | 508 |   |  100 | % |

|                                                                                                                                                       |   |       | As of Mar. 31 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------------|
|                                                                                                                                                       |   |       | 2008          |   | 2009 |
|                                                                                                                                                       |   |       | (In millions) |
| Prepaid expenses                                                                                                                                           |   |   Rs. | 1,303         |   | Rs. | 2,120 |   | US$ | 42 |
| Advances to suppliers and contractors (net of allowances of Rs. 76 million and Rs. 126 million, as of March 31, 2008 and 2009 respectively) |   |       | 452           |   |   | 272 |   |   | 5 |
| Deferred income taxes (see note 18)                                                                                                                        |   |       | 1,809         |   |   | 1,776 |   |   | 35 |
| License fees paid recoverable from GOI                                                                                                                     |   |       | 820           |   |   | 6 |   |   | — |
| License fees paid under protest                                                                                                                            |   |       | 2,950         |   |   | 2,950 |   |   | 58 |
| Recoverable indirect tax                                                                                                                                   |   |       | 775           |   |   | 1,389 |   |   | 27 |
| Operating lease and other deposits                                                                                                                         |   |       | 557           |   |   | 606 |   |   | 12 |
| Others (net of allowances of Rs 537 million as of March 31, 2008 and 2009 respectively)                                                          |   |       | 561           |   |   | 1,286 |   |   | 26 |
|                                                                                                                                                       |   |       |          |   |   |   |   |   |   |
| Total                                                                                                                                                      |   |  Rs.  | 9,227         |   | Rs. | 10,405 |   | US$ | 205 |

----

|                                          |   | As of March 31, |
|-----------------------------------------------|--------|-----------------|
|                                          |   | 2008            |   | 2009 |
|                                          |   | (In millions)   |
| Current investments                           |   |            |   |   |   |   |   |   |   |
| Investments available-for-sale, at fair value |   | Rs.             | 123 |   | Rs. | 7,089 |   | US$ | 139 |
| Non-current investments                       |   |            |   |   |   |   |   |   |   |
| Investments available-for-sale, at fair value |   |            | 4,198 |   |   | — |   |   | — |
| Investments at cost, net                      |   |            | 4,436 |   |   | 4,103 |   |   | 81 |
|                                          |   |            |   |   |   |   |   |   |   |
| Total                                         |   | Rs.             | 8,757 |   | Rs. | 11,192 |   | US$ | 220 |

|                                |   | As of March 31, |
|-------------------------------------|--------|----------------------|
|                                |   | Amortized cost  |   | Gross Unrealizedgains (losses) |   |   | Fair value |
|                                |   |                 |   | (In millions) |   |   |   |
| Available-for-sale securities       |   |                 |   |   |   |   |   |   |   |   |
| As of March 31, 2008;          |   |                 |   |   |   |   |   |   |   |   |
| Mutual Funds                        |   | Rs.                  | 3,919 |   | Rs. | 279 |   |   | Rs. | 4,198 |
| Equity shares                       |   |                 | 82 |   |   | 41 |   |   |   | 123 |
|                                |   |                 |   |   |   |   |   |   |   |   |
| Total available-for-sale securities |   | Rs.                  | 4,001 |   | Rs. | 320 |   |   | Rs. | 4,321 |
|                                |   |                 |   |   |   |   |   |   |   |   |
| As of March 31, 2009;          |   |                 |   |   |   |   |   |   |   |   |
| Mutual Funds                        |   | Rs.                  | 6,990 |   | Rs. | 16 |   |   | Rs. | 7,006 |
| Equity shares                       |   |                 | 85 |   |   | (2 | ) |   |   | 83 |
|                                |   |                 |   |   |   |   |   |   |   |   |
| Total available-for-sale securities |   | Rs.                  | 7,075 |   | Rs. | 14 |   |   | Rs. | 7,089 |
|                                |   | US$                  | 139 |   | US$ | — |   |   | US$ | 139 |
|                                |   |                 |   |   |   |   |   |   |   |   |

----

|                 |          | 2007      |      | 2008   |      |        | 2009   |
|----------------------|---------------|-----------|-----------|--------|-----------|-------------|--------|
|                 | (In millions) |
| Revenues             |          |  Rs. |  124 |   |  Rs. |  1,300 |   |   |  Rs. |  6,159 |   |   |  US$ | 121 |   |
| Gross Profit/ (loss) |          |      | (22       | )      |      | 462         |   |   |   | 2,980 |   |   |   | 59 |   |
| Net loss             |          |      | 427       |   |      | 1,816       |   |   |   | 4,421 |   |   |   | 87 |   |

|                    |          | As of March 31, |
|-------------------------|---------------|----------------------|
|                    | 2008          |                 |   | 2009 |
|                    | (In millions) |
| Current Assets          |          |  Rs.       | 6,281 |   |   |  Rs. |  5,348 |   |   |  US$ | 105  |   |
| Non Current Assets      |          |                 | 1,714 |   |   |   | 13,115 |   |   |   | 258 |   |
| Current Liabilities     |          |                 | 6,745 |   |   |   | 5,059 |   |   |   | 99 |   |
| Non Current Liabilities |          |                 | 2,638 |   |   |   | 18,147 |   |   |   | 357 |   |

|                                                     |   | As of March 31, |    |
|----------------------------------------------------------|--------|----------------------|---------|
|                                                     |   | 2008                 |    |   | 2009 |   |
|                                                     |   | (In millions)        |    |
| Land                                                     |   | Rs.                  | 685     |   |   | Rs. | 832 |   |   | US$ | 16 |   |
| Leasehold improvements                                   |   |                 | 794     |   |   |   | 987 |   |   |   | 20 |   |
| Buildings                                                |   |                 | 3,716   |   |   |   | 5,055 |   |   |   | 100 |   |
| Plant and machinery – telecommunications equipment |   |                 | 68,035  |   |   |   | 99,368 |   |   |   | 1,953 |   |
| Computers                                                |   |                 | 3,732   |   |   |   | 5,665 |   |   |   | 111 |   |
| Motor vehicles                                           |   |                 | 16      |   |   |   | 16 |   |   |   | — |   |
| Furniture and fixtures                                   |   |                 | 777     |   |   |   | 1,070 |   |   |   | 21 |   |
|                                                     |   |                 |    |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment, at cost                   |   |                 | 77,755  |   |   |   | 112,993 |   |   |   | 2,221 |   |
| Less: Accumulated depreciation                           |   |                 | (22,812 | ) |   |   | (33,545 | ) |   |   | (659 | ) |
|                                                     |   |                 |    |   |   |   |   |   |   |   |   |   |
|                                                     |   |                 | 54,943  |   |   |   | 79,448 |   |   |   | 1,562 |   |
| Add: Construction in progress                            |   |                 | 19,141  |   |   |   | 24,265 |   |   |   | 477 |   |
|                                                     |   |                 |    |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment, net                       |   | Rs.                  | 74,084  |   |   | Rs. | 103,713 |   |   | US$ | 2,039 |   |
|                                                     |   |                 |    |   |   |   |   |   |   |   |   |   |

----

|                     |   | As of March 31, |   |
|--------------------------|--------|----------------------|--------|
|                     |   | 2008                 |   |   | 2009 |   |
|                     |   | (In millions)        |   |
| IRUs                     |   | Rs.                  | 13,596 |   |   | Rs. | 16,371 |   |   | US$ | 322 |   |
| Accumulated amortization |   |                 | (2,725 | ) |   |   | (4,184 | ) |   |   | (82 | ) |
|                     |   |                 |   |   |   |   |   |   |   |   |   |   |
| IRUs, net                |   | Rs.                  | 10,871 |   |   | Rs. | 12,187 |   |   | US$ | 240 |   |

| Year ending March 31, |   | (In millions) |
|----------------------------|--------|---------------|
| 2010                       |   | Rs.           | 1,096 |   | US$ | 22 |
| 2011                       |   |          | 1,096 |   |   | 22 |
| 2012                       |   |          | 1,096 |   |   | 22 |
| 2013                       |   |          | 1,096 |   |   | 22 |
| 2014                       |   |          | 1,096 |   |   | 22 |
| Thereafter                 |   |          | 6,707 |   |   | 130 |

|                                        |   | (In millions) |
|---------------------------------------------|--------|---------------|
| Year ending March 31, 2010             |   | Rs.           | 3 |   | US$ | — |
| Year ending March 31, 2011             |   |          | 0 |   |   | — |
|                                        |   |          |   |   |   |   |
| Total                                       |   |          | 3 |   |   | — |
|                                        |   |          |   |   |   |   |
| Less: amounts representing interest         |   |          | 0 |   |   | — |
|                                        |   |          |   |   |   |   |
| Present value of net minimum lease payments |   | Rs.           | 3 |   | US$ | — |

|                                         |   | 2008          |    |   | 2009   |   |
|----------------------------------------------|--------|---------------|---------|--------|--------|--------|
|                                         |   | (In millions) |    |
| Asset retirement obligations, April 1,  |   | Rs.           | 212     |   |   | Rs.    | 204 |   |   | US$ | 5 |   |
| Liabilities incurred during the year         |   |          | — |   |   |   | 128 |   |   |   | 2 |   |
| Accretion expense                            |   |          | 7       |   |   |   | 11 |   |   |   | — |   |
| Liabilities settled during the year          |   |          | — |   |   |   | (58 | ) |   |   | (1 | ) |
| Foreign currency translation adjustments     |   |          | (15     | )      |   |   | 53 |   |   |   | 1 |   |
|                                         |   |          |    |   |   |   |   |   |   |   |   |   |
| Asset retirement obligations, March 31, |   | Rs.           | 204     |   |   | Rs.    | 338 |   |   | US$ | 7 |   |

----

|                                   |   | (In millions)                   |
|----------------------------------------|--------|---------------------------------|
|                                   |   |  Gross carryingamount |   | Accumulatedamortization |   | Net carryingamount |
| As of March 31, 2008:             |   |                            |   |   |   |   |   |   |   |
| Internally developed computer software |   | Rs.                             | 1,648 |   | Rs. | 531 |   | Rs. | 1,117 |
| Customer relationships                 |   |                            | 2,425 |   |   | 720 |   |   | 1,705 |
| Spectrum                               |   |                            | 49 |   |   | 49 |   |   | — |
|                                   |   |                            |   |   |   |   |   |   |   |
|                                   |   | Rs.                             | 4,122 |   | Rs. | 1,300 |   | Rs. | 2,822 |
|                                   |   |                            |   |
| As of March 31, 2009:             |   |                            |   |   |   |   |   |   |   |
| Internally developed computer software |   | Rs.                             | 2,648 |   | Rs. | 1,055 |   | Rs. | 1,593 |
| Customer relationships                 |   |                            | 2,958 |   |   | 1,314 |   |   | 1,644 |
| Spectrum                               |   |                            | 49 |   |   | 49 |   |   | — |
|                                   |   |                            |   |   |   |   |   |   |   |
|                                   |   | Rs.                             | 5,655 |   | Rs. | 2,418 |   | Rs. | 3,237 |
|                                   |   |                            |   |   |   |   |   |   |   |
|                                   |   | US$                             | 111 |   | US$ | 47 |   | US$ | 64 |

|                            |   | (In millions) |
|---------------------------------|--------|---------------|
| Year ending March 31, 2010 |   | Rs.           | 792 |   | US$ | 16 |
| Year ending March 31, 2011 |   |          | 790 |   |   | 16 |
| Year ending March 31, 2012 |   |          | 680 |   |   | 13 |
| Year ending March 31, 2013 |   |          | 329 |   |   | 6 |
| Year ending March 31, 2014 |   |          | 17 |   |   | — |
| Thereafter                      |   |          | 99 |   |   | 2 |

|                                                               |   | As of March 31, |   |
|--------------------------------------------------------------------|--------|----------------------|--------|
|                                                               |   | 2008                 |   |   | 2009 |   |
|                                                               |   | (In millions)        |   |
| Beginning balance                                                  |   | Rs.                  | 5,821  |   |   | Rs. | 5,469 |   |   | US | $107 |   |
| Reduction in goodwill due to adjustment of past NOLs (See note 18) |   |                 | (52    | ) |   |   | (80 | ) |   |   | (2 | ) |
| Foreign currency translation adjustment                            |   |                 | (300   | ) |   |   | 898 |   |   |   | 18 |   |
|                                                               |   |                 |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                     |   | Rs.                  | 5,469  |   |   | Rs. | 6,287 |   |   | US | $123 |   |

|                                     |   | As of March 31, |
|------------------------------------------|--------|----------------------|
| Reporting Unit                           |   | 2008                 |   | 2009 |
|                                     |   | (In millions)        |
| International Voice                      |   | Rs.                  | 3,354 |   | Rs. | 4,172 |   | US$ | 82 |
| Broadband internet through optical fiber |   |                 | 629 |   |   | 629 |   |   | 12 |
| Broadband and Dial-up internet           |   |                 | 1,486 |   |   | 1,486 |   |   | 29 |
|                                     |   |                 |   |   |   |   |   |   |   |
| Total                                    |   | Rs.                  | 5,469 |   | Rs. | 6,287 |   | US$ | 123 |
|                                     |   |                 |   |   |   |   |   |   |   |

----

|                                |   | As of March 31, |
|-------------------------------------|--------|----------------------|
|                                |   | 2008                 |   | 2009 |
|                                |   | (In millions)   |   |   |   |   |
| Prepaid rent                        |   |   Rs.           | 1,893 |   | Rs. | 1,922 |   | US$ | 38 |
| Deferred income taxes (see note 18) |   |                 | 782 |   |   | 649 |   |   | 13 |
| Prepaid pension asset               |   |                 | 1,372 |   |   | 2,363 |   |   | 46 |
| Loans to equity method investee     |   |                 | 126 |   |   | 2,965 |   |   | 58 |
| Others                              |   |                 | 409 |   |   | 991 |   |   | 20 |
|                                |   |                 |   |   |   |   |   |   |   |
| Total                               |   |   Rs.           | 4,582 |   | Rs. | 8,890 |   | US$ | 175 |

|                                    |   | As of March 31, |
|-----------------------------------------|--------|----------------------|
|                                    |   | 2008                 |   | 2009 |
|                                    |   | (In millions)        |
| Interconnect charges payable            |   | Rs.                  | 15,301 |   | Rs. | 24,817 |   | US$ | 488 |
| Payables for capital and other supplies |   |                 | 6,944 |   |   | 9,246 |   |   | 182 |
|                                    |   |                 |   |   |   |   |   |   |   |
| Total                                   |   | Rs.                  | 22,245 |   | Rs. | 34,063 |   | US$ | 670 |

|                                                    |   | As of March 31, |
|---------------------------------------------------------|--------|----------------------|
|                                                    |   | 2008                 |   |   | 2009 |
|                                                    |   | (In millions)        |
| Buyers credit                                           |   | Rs.                  | 570 |   |   | Rs. | 1,729 |   |   | US$ | 34 |
| Post-shipment loans                                     |   |                 | 195 |   |   |   | 138 |   |   |   | 3 |
| Other bank loans*                                       |   |                 | 9,200 |   |   |   | 8,114 |   |   |   | 159 |
| Current portion of long-term debt                       |   |                 | 71 |   |   |   | 1,647 |   |   |   | 32 |
|                                                    |   |                 |   |   |   |   |   |   |   |   |   |
| Total                                                   |   | Rs.                  | 10,036 |   |   | Rs. | 11,628 |   |   | US$ | 228 |
|                                                    |   |                 |   |   |   |   |   |   |   |   |   |
| Maximum amount of bank debt outstanding during the year |   | Rs.                  | 13,047 |   |   | Rs. | 17,814 |   |   | US$ | 350 |
| Weighted average interest rate                          |   |                 | 7.62 | % |   |   | 9.67 | % |   |   |   |
| Unutilized lines of short-term credit                   |   | Rs.                  | 7,820 |   |   | Rs. | 7,345 |   |   | US$ | 144 |

| * | Other bank loans as of March 31, 2008 and 2009 represents loans obtained from a bank Rs.3,500 million and Rs.4,000 million, respectively. The loans have a maturity period of 7 years. These loans have embedded call and put options, exercisable by the bank and the Company, respectively. These options can accelerate payment of the principal at par and any unpaid accrued interest. The options have not been bifurcated as these are clearly and closely related to the loans, as the payoff on exercise of the option is not adjusted based on changes in any index and the loan at inception did not involve any discount or premium. Additionally, the Company does not have contractual right to make settlement such that the lender will not recover substantially all of the loan balance and any unpaid accrued interest. In accordance with the loan agreement the lender does not have right to receive any higher rate of return, that will at least double the initial rate of return on the loan and which will result in a rate of return i.e. twice than current market return for a similar loan which involves debtor with credit quality similar to the Company. The contractual interest rate is the market rate. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | As of 31st March                                                                   |
|-----------------------------------------|--------|-----------------------------------------------------------------------------------------|
|                                    |   | 2008                                                                                    |   | 2009 |
|                                    |   |                                                                                    |   | (In millions) |   |   |
| Unearned revenues                       |   | Rs.              1,681 |   | Rs.       4,743 |   | US$ | 93 |
| License fees                            |   | 2,457                                                                                   |   | 2,637 |   |   | 52 |
| Book overdraft                          |   | 593                                                                                     |   | 1,054 |   |   | 21 |
| Deposits from customers and contractors |   | 4,992                                                                                   |   | 4,977 |   |   | 98 |
| Accrued payroll                         |   | 1,511                                                                                   |   | 2,221 |   |   | 44 |
| Accrued expenses                        |   | 3,428                                                                                   |   | 4,098 |   |   | 80 |
| Other current liabilities               |   | 1,472                                                                                   |   | 1,569 |   |   | 31 |
|                                    |   |                                                                                    |   |   |   |   |   |
| Total                                   |   | Rs.          16,134                   |   | Rs.   21,299 |   | US$ | 419 |
|                                    |   |                                                                                    |   |   |   |   |   |

----

|                                                                |   |                       |   |                            |   | As of March 31, |
|---------------------------------------------------------------------|--------|----------------------------|--------|---------------------------------|--------|----------------------|
|                                                                |   | Interest Rates % |   | Maturities                      |   | 2008                 |   | 2009 |
|                                                                |   |                       |   |                            |   | (In millions)        |
| Foreign currency loans from banks                                   |   | LIBOR + 3.0%     |   | August 2009-January 2014   |   | Rs.                  | 19,610 |   | Rs. | 28,978 |   | US$ | 570 |
| Foreign currency loans from banks (refer note a)                    |   | LIBOR + 4.70%    |   | October 2011-October 2013  |   |                 | — |   |   | 5,084 |   |   | 100 |
| Foreign currency loans from banks                                   |   | JIBAR + 1.26%    |   | May 2011                        |   |                 | — |   |   | 560 |   |   | 11 |
| Foreign currency loans from banks                                   |   | JIBAR + 0.48%    |   | May 2010                        |   |                 | 386 |   |   | 560 |   |   | 11 |
| Foreign currency loans from banks (refer note b)                    |   | JIBAR + 4.4%     |   | August 2012 -August 2014        |   |                 | — |   |   | 1,678 |   |   | 33 |
| Non Convertible Debentures to Financial Institutions (refer note c) |   | 11% - 11.70%     |   | November 2011-January 2019 |   |                 | — |   |   | 12,500 |   |   | 246 |
| Term loan from bank                                                 |   | 10.70% - 11.75%  |   | June 2014 -December 2015        |   |                 | 459 |   |   | 888 |   |   | 17 |
|                                                                |   |                       |   |                            |   |                 |   |   |   |   |   |   |   |
| Total                                                               |   |                       |   |                            |   | Rs.                  | 20,455 |   | Rs. | 50,248 |   | US$ | 988 |
| Less: Current portion of long-term debt                             |   |                       |   |                            |   | Rs.                  | 71 |   | Rs. | 1,647 |   | US$ | 32 |
|                                                                |   |                       |   |                            |   |                 |   |   |   |   |   |   |   |
| Long-term debt, net of current portion                              |   |                       |   |                            |   | Rs.                  | 20,384 |   | Rs. | 48,601 |   | US$ | 956 |

|                              |   | As at March 31, 2009in millions |
|-----------------------------------|--------|--------------------------------------|
| Due in the years ending March 31, |   |                                 |   |   |   |   |
| 2010                              |   | Rs.                                  | 1,647 |   | US$ | 32 |
| 2011                              |   |                                 | 13,035 |   |   | 256 |
| 2012                              |   |                                 | 5,393 |   |   | 106 |
| 2013                              |   |                                 | 11,694 |   |   | 230 |
| 2014                              |   |                                 | 9,721 |   |   | 191 |
| 2015                              |   |                                 | 4,519 |   |   | 89 |
| 2016                              |   |                                 | 2,495 |   |   | 49 |
| 2017                              |   |                                 | 1,694 |   |   | 34 |
| Thereafter                        |   |                                 | 50 |   |   | 1 |

----

| a. | On December 21, 2007, Tata Communications (Bermuda) Limited, a wholly owned subsidiary of Tata Communications International Pte Limited, entered into a short-term loan agreement with a bank for principal amount of Rs. 2,542 million (US$ 50 million). The loan was obtained as a bridge for a long-term loan to fund the construction of an undersea cable in Asia. The initial maturity of the loan was June 21, 2008 which was subsequently extended to March 30, 2009. The loan was increased to Rs. 5,084 million (US$ 100 million) on March 30, 2009 which was initially payable by May 31, 2009, which was extended by the lender up to July 29, 2009. The loan was converted into a long term loan by August 27, 2009 carrying interest at LIBOR + 470 basis points per annum. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b. | On January 16, 2009, VSNL SNOSPV Pte Ltd, a wholly owned subsidiary of Tata Communications Limited, entered into a short term loan agreement with a bank for a principal amount of Rs. 1,678 million (US$ 33 million) with a variable interest rate of Johannesburg Interbank Agreed Rate (JIBAR) plus 1%. The loan was obtained as a bridge for a long- term loan to fund the acquisition of 27% ownership interest in Neotel. The initial maturity of the short- term loan was April 16, 2009, which was extended to June 19, 2009. On August 19, 2009 the short-term loan was replaced by the long term loan carrying interest ranging from JIBAR + 4.4% to 6.0%. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c. | The non-convertible debentures of Rs. 12,500 million (US$ 246 million) are secured against the Company’s property, plant and equipment with carrying amount of Rs. 15,051 million (US$ 296 million). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | For the year ended March 31, |
|-------------------------------------|--------|-----------------------------------|
|                                |   | 2007                              |   |   | 2008 |   |   | 2009 |
|                                |   | (In millions)                     |
| Income / (loss) before income taxes |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                            |   | Rs.                               | 5,741 |   |   | Rs. | 1,794 |   |   | Rs. | 7,481 |   |   | US$ | 147 |
| Foreign                             |   |                              | (1,219 | ) |   |   | (876 | ) |   |   | 195 |   |   |   | 4 |
|                                |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                              | 4,522 |   |   |   | 918 |   |   |   | 7,676 |   |   |   | 151 |
| Current income tax expense:         |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                            |   |                              | 2,301 |   |   |   | 1,404 |   |   |   | 1,503 |   |   |   | 30 |
| Foreign                             |   |                              | 245 |   |   |   | 184 |   |   |   | 277 |   |   |   | 5 |
| Deferred income tax:                |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                            |   |                              | 29 |   |   |   | (255 | ) |   |   | 684 |   |   |   | 13 |
| Foreign                             |   |                              | 232 |   |   |   | (53 | ) |   |   | (34 | ) |   |   | 0 |
|                                |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                               |   | Rs.                               | 2,807 |   |   | Rs. | 1,280 |   |   | Rs. | 2,430 |   |   | US$ | 48 |

|                                                                                                    |   | For the year ended March 31, |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
|                                                                                                    |   | 2007                              |   |   | 2008 |   |   | 2009 |
|                                                                                                    |   | (In millions)                     |
| Differences in carrying amounts of property, plant and equipment for accounting and income tax purposes |   | Rs.                               | 883 |   |   | Rs. | 195 |   |   | Rs. | 742 |   |   | US$ | 15 |   |
| Unearned revenues                                                                                       |   |                              | (578 | ) |   |   | 40 |   |   |   | (219 | ) |   |   | (4 | ) |
| Allowances for uncollectible receivables and other current assets                                       |   |                              | (76 | ) |   |   | (232 | ) |   |   | 56 |   |   |   | 1 |   |
| Expense on account of arbitration settlement                                                            |   |                              |   |   |   |   | (293 | ) |   |   | 293 |   |   |   | 5 |   |
| Others                                                                                                  |   |                              | 32 |   |   |   | (18 | ) |   |   | (222 | ) |   |   | (4 | ) |
|                                                                                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                   |   | Rs.                               | 261 |   |   | Rs. | (308) |   |   | Rs. | 650 |   |   | US$ | 13 |   |

|                                                                                 |   | For the year ended March 31, |
|--------------------------------------------------------------------------------------|--------|-----------------------------------|
|                                                                                 |   | 2007                              |   |   | 2008 |   |   | 2009 |
|                                                                                 |   | (In millions)                     |
| Income (loss) before income tax                                                      |   | Rs.                               | 4,522 |   |   | Rs. | 918 |   |   | Rs. | 7,676 |   |   | US$ | 151 |   |
| Statutory income tax rate                                                            |   |                              | 33.66 | % |   |   | 33.99 | % |   |   | 33.99 | % |   |   |   |   |
|                                                                                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected income tax expense at statutory rate                                        |   |                              | 1,522 |   |   |   | 312 |   |   |   | 2,609 |   |   |   | 51 |   |
| Adjustments to reconcile expected income tax expense to reported income tax expense: |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State taxes, net of federal tax benefits                                             |   |                              | 55 |   |   |   | 102 |   |   |   | 24 |   |   |   | — |   |
| Differences arising from different tax rates inother tax jurisdictions               |   |                              | 458 |   |   |   | 241 |   |   |   | 40 |   |   |   | 1 |   |
| Changes in enacted tax rate for subsidiaries inother tax jurisdictions               |   |                              | (221 | ) |   |   | 173 |   |   |   | 97 |   |   |   | 2 |   |
| Changes in valuation allowance                                                       |   |                              | 1,424 |   |   |   | 1,415 |   |   |   | (38 | ) |   |   | (0 | ) |
| Non deductible interest expense                                                      |   |                              | — |   |   |   | 61 |   |   |   | 471 |   |   |   | 9 |   |
| Tax rate difference on gains on sale ofinvestments                                   |   |                              | — |   |   |   | (40 | ) |   |   | (766 | ) |   |   | (15 | ) |
| Others, net                                                                          |   |                              | (431 | ) |   |   | (984 | ) |   |   | (7 | ) |   |   | 0 |   |
|                                                                                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   | Rs.                               | 2,807 |   |   | Rs. | 1,280 |   |   | Rs. | 2,430 |   |   | US$ | 48 |   |

----

|                                                                                                                                                |   |      | Year ended March 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------------------------|
|                                                                                                                                                |   |      | 2008                      |   | 2009 |
|                                                                                                                                                |   |      | (In millions)             |
| Beginning Balance                                                                                                                                   |   | Rs.  | (8,346)                   |   | Rs. | (6,007) |   | US$ | (118 | )  |
| Change during the year                                                                                                                              |   |      | (1,415)                   |   |   | 38 |   |   | 0 |   |
| Reduction in deferred tax asset and corresponding valuation allowance on net operating loss carry forwards in US due to Section 382 evaluation |   |      | 2,605                     |   |   | — |   |   | — |   |
| Reduction in deferred tax asset and corresponding valuation allowance on net operating loss carry forwards due to liquidation of a subsidiary       |   |      | 420                       |   |   | — |   |   | — |   |
| Tax benefit allocated to reduce goodwill                                                                                                            |   |      | 52                        |   |   | 80 |   |   | 2 |   |
| Effect of foreign currency translation                                                                                                              |   |      | 677                       |   |   | (1,327) |   |   | (25 | )  |
|                                                                                                                                                |   |      |                      |   |   |   |   |   |   |   |
| Ending Balance                                                                                                                                      |   | Rs.  | (6,007)                   |   | Rs. | (7,216) |   | US$ | (141 | ) |

|                                                                                                   |   | As of March 31, |      |
|--------------------------------------------------------------------------------------------------------|--------|----------------------|-----------|
|                                                                                                   |   | 2008                 |      |   | 2009 |   |
|                                                                                                   |   |                 |      |   | (In millions) |   |
| Tax effect of:                                                                                         |   |                 |      |   |   |   |   |   |   |   |   |   |
| Deferred tax assets:                                                                                   |   |                 |      |   |   |   |   |   |   |   |   |   |
| Net operating losses carry-forwards                                                                    |   | Rs.                  | 2,991     |   |   | Rs. | 3,944 |   |   | US$ | 77 |   |
| Losses of Equity Method investee                                                                  |   |                 | 172  |   |   |   | 553  |   |   |   | 11  |   |
| Differences in carrying amounts of property, plant and equipment foraccounting and income tax purposes |   |                 | 2,483     |   |   |   | 2,166 |   |   |   | 42 |   |
| Allowances for uncollectible receivables and other current assets                                      |   |                 | 861       |   |   |   | 857 |   |   |   | 17 |   |
| Unearned revenues                                                                                      |   |                 | 1,930     |   |   |   | 2,234 |   |   |   | 44 |   |
| Employee severance costs                                                                               |   |                 | 49        |   |   |   | 32 |   |   |   | 1 |   |
| National long distance license fees                                                                    |   |                 | 233       |   |   |   | 215 |   |   |   | 4 |   |
| Expense on account of arbitration settlement                                                           |   |                 | 293       |   |   |   | — |   |   |   | — |   |
| Others                                                                                                 |   |                 | 1,104     |   |   |   | 1,536 |   |   |   | 30 |   |
|  Gross deferred tax assets                                                                        |   |                 | 10,116    |   |   |   | 11,537 |   |   |   | 226 |   |
| Less : Valuation allowance                                                                             |   |                 | (6,007    | ) |   |   | (7,216 | ) |   |   | (141 | ) |
|  Net deferred tax assets                                                                          |   |                 | 4,109     |   |   |   | 4,321 |   |   |   | 85 |   |
| Deferred tax liabilities:                                                                              |   |                 |      |   |   |   |   |   |   |   |   |   |
| Differences in carrying amounts of property, plant and equipment foraccounting and income tax purposes |   |                 | 3,977     |   |   |   | 4,873 |   |   |   | 96 |   |
| Prepaid pension asset                                                                                  |   |                 | 305       |   |   |   | 525 |   |   |   | 10 |   |
| Others                                                                                                 |   |                 | 259       |   |   |   | 150 |   |   |   | 3 |   |
|                                                                                                   |   |                 |      |   |   |   |   |   |   |   |   |   |
| Total                                                                                                  |   |                 | 4,541     |   |   |   | 5,548 |   |   |   | 109 |   |
|  Net deferred tax liability                                                                  |   | Rs.             | 432  |   |   | Rs.  | 1,227  |   |   | US$  | 24  |   |
| Current deferred tax asset, net                                                                        |   | Rs.                  | 1,809     |   |   | Rs. | 1,776 |   |   | US$ | 35 |   |
| Non-current deferred tax asset, net                                                                    |   |                 | 782       |   |   |   | 649 |   |   |   | 13 |   |
| Current deferred tax liability, net                                                                    |   |                 | 132       |   |   |   | 22 |   |   |   | 1 |   |
| Non-current deferred tax liability, net                                                                |   |                 | 2,891     |   |   |   | 3,630 |   |   |   | 71 |   |

| Jurisdiction |   | Million Rs. Fiscal 2009 |   | Million US $Fiscal 2009 |   | Expiration of operating losses |
|--------------|--------|----------------------------------------|--------|----------------------------------------|--------|-----------------------------------------------|
| US           |   | 1,131                                  |   | 22                                     |   | Between 2010 and 2021          |
| Canada       |   | 772                                    |   | 15                                     |   | Between 2012 and 2027                         |
| India        |   | 478                                    |   | 9                                      |   | 2014 to 2017                                  |
| Others       |   | 50                                     |   | 1                                      |   | 5 years and higher                            |

----

|                                            |   | Year ended March 31, |
|-------------------------------------------------|--------|---------------------------|
|                                            |   | 2008                      |   | 2009 |
|                                            |   | (In millions)             |
| Beginning Balance                               |   | Rs.                       | 6,879 |   | Rs. | 7,681 |   |   | US$ | 151 |
| Increases related to current year tax positions |   |                      | 802 |   |   | 384 |   |   |   | 7 |
| Decreases related to prior year tax positions   |   |                      |   |   |   | (12 | ) |   |   | 0 |
|                                            |   |                      |   |   |   |   |   |   |   |   |
| Ending Balance                                  |   | Rs.                       | 7,681 |   | Rs. | 8,053 |   |   | US$ | 158 |

|                                |   | As of March 31, |
|-------------------------------------|--------|----------------------|
|                                |   | 2008                 |   | 2009 |
|                                |   | (In millions)        |
| Deferred income taxes (See note 18) |   | Rs.                  | 2,891 |   | Rs. | 3,630 |   | US$ | 71 |
| Unearned revenues                   |   |                 | 11,445 |   |   | 18,386 |   |   | 361 |
| Employee retirement benefits        |   |                 | 815 |   |   | 617 |   |   | 12 |
| Others                              |   |                 | 1,556 |   |   | 1,592 |   |   | 32 |
|                                |   |                 |   |   |   |   |   |   |   |
| Total                               |   | Rs.                  | 16,707 |   | Rs. | 24,225 |   | US$ | 476 |

|                                                                                 |   | As of March 31, |   |
|--------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                 |   | 2008                 |   |   | 2009 |   |
|                                                                                 |   | In millions)         |   |
| Net unrealized gain on available-for-sale securities, net of taxes                   |   | Rs.                  | 229    |   |   | Rs. | 10 |   |   | US$ | — |   |
| Foreign currency translation adjustment                                              |   |                 | 438    |   |   |   | (499 | ) |   |   | (9 | ) |
| Effective portion of net loss on derivative instrument designated as cash flow hedge |   |                 | (252   | ) |   |   | (280 | ) |   |   | (6 | ) |
| Unamortized actuarial gains and (losses)/ prior service cost (net of deferred tax)   |   |                 | 332    |   |   |   | 595 |   |   |   | 11 |   |
|                                                                                 |   |                 |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                |   | Rs.                  | 747    |   |   | Rs. | (174 | ) |   | US$ | (4 | ) |

|                                                                     | As of March 31, |    |
|--------------------------------------------------------------------------|----------------------|---------|
|                                                                     | 2007                 |    | 2008 |   | 2009 |   |
|                                                                     | (In millions)        |    |
| Dividend income                                                          | Rs.                  | 578     |   | Rs. | 317 |   | Rs. | 225 |   | US$ | 4 |   |
| Foreign exchange gain (loss), net                                        |                 | 36      |   |   | 3 |   |   | (76 | ) |   | (1 | ) |
| Liabilities no longer required to be settled that have been written back |                 | 578     |   |   | 229 |   |   | 228 |   |   | 4 |   |
| Rent received                                                            |                 | 123     |   |   | 149 |   |   | 148 |   |   | 3 |   |
| License Fee reimbursement from DoT                                       |                 | — |   |   | 278 |   |   | — |   |   | — |   |
| Liabilities written back on dispute settlement                           |                 | — |   |   | 162 |   |   | — |   |   | — |   |
| Interest income on income tax refunds                                    |                 | 63      |   |   | 167 |   |   | — |   |   | — |   |
| Other                                                                    |                 | 1,002   |   |   | 629 |   |   | 446 |   |   | 9 |   |
|                                                                     |                 |    |   |   |   |   |   |   |   |   |   |   |
| Total                                                                    | Rs.                  | 2,380   |   | Rs. | 1,934 |   | Rs. | 971 |   | US$ | 19 |   |

----

|                                                                                      |                                                                                                                                          | As of March 31, |    |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|----------------------|---------|
|                                                                                      |                                                                                                                                          | 2008                 |    |   | 2009 |   |
|                                                                                      |                                                                                                                                          | (In millions)        |    |
| Change in benefit obligation:                                                             |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Benefit obligation, beginning of the year                                                 |                                                                                                                                          | Rs.                  | 298     |   |   | Rs. | 287 |   |   | US$ | 6 |   |
| Service cost                                                                              |                                                                                                                                          |                 | 26      |   |   |   | 29 |   |   |   | 1 |   |
| Interest cost                                                                             |                                                                                                                                          |                 | 20      |   |   |   | 21 |   |   |   | — |   |
| Liabilities transferred (to) from other companies                                         |                                                                                                                                          |                 | (14     | ) |   |   | 5 |   |   |   | — |   |
| Actuarial (gain) loss on obligation                                                       |                                                                                                                                          |                 | (33     | ) |   |   | 21 |   |   |   | — |   |
| Benefits paid                                                                             |                                                                                                                                          |                 | (13     | ) |   |   | (16 | ) |   |   | — |   |
| Others                                                                                    |                                                                                                                                          |                 | 3       |   |   |   |   |   |   |   | — |   |
|                                                                                      |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Benefit obligation, end of the year                                                       |                                                                                                                                          | Rs.                  | 287     |   |   | Rs. | 347 |   |   | US$ | 7 |   |
|                                                                                      |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Change in plan assets:                                                                    |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Fair value of plan assets, beginning of the year                                          |                                                                                                                                          |                 | 302     |   |   |   | 308 |   |   |   | 6 |   |
| Actual return on plan assets                                                              |                                                                                                                                          |                 | 33      |   |   |   | 4 |   |   |   | — |   |
| Employer contributions                                                                    |                                                                                                                                          |                 | — |   |   |   | 2 |   |   |   | — |   |
| Transfer to other company (to) from                                                       |                                                                                                                                          |                 | (14     | ) |   |   | 5 |   |   |   | — |   |
| Benefits paid                                                                             |                                                                                                                                          |                 | (13     | ) |   |   | (16 | ) |   |   | — |   |
|                                                                                      |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Fair value of plan assets, end of the year                                                |                                                                                                                                          | Rs.                  | 308     |   |   | Rs. | 303 |   |   | US$ | 6 |   |
|                                                                                      |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| Prepaid pension asset (accrued liability included in other non- current liabilities)      |                                                                                                                                          | Rs.                  | 21      | ** |   | Rs. | (44 | ) |   | US$ | (1 | ) |
| Actuarial (gain) loss recognized as a component of accumulated other comprehensive income |                                                                                                                                          |                 | *(43    | ) |   |   | *41 |   |   |   | — |   |
|                                                                                      |                                                                                                                                          |                 |    |   |   |   |   |   |   |   |   |   |
| *                                                                                         | This amount includes actuarial loss of Rs. 10 million and Rs. 20 million on plan assets for fiscal year 2008 and 2009 respectively. |
| **                                                                                        | This amount is net of Rs. 33 million prepaid pension asset and Rs. 12 million of accrued liability.                                 |                 |    |   |   |

|                                 |   | As of March 31, |
|--------------------------------------|--------|----------------------|
|                                 |   | 2007                 |   |   | 2008 |   |   | 2009 |   |
|                                 |   | (In millions)        |
| Service cost                         |   | Rs.                  | 28 |   |   | Rs. | 26 |   |   | Rs. | 29 |   |   | US$ | 1 |   |
| Interest cost                        |   |                 | 22 |   |   |   | 20 |   |   |   | 21 |   |   |   | — |   |
| Net actuarial (gain) loss recognized |   |                 | (13 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Expected Return on plan assets       |   |                 | (21 | ) |   |   | (23 | ) |   |   | (24 | ) |   |   | — |   |
|                                 |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net gratuity cost                    |   | Rs.                  | 16 |   |   | Rs. | 23 |   |   | Rs. | 26 |   |   | US$ | 1 |   |

|                                                         |   |                                                                         |   |    |   |    |
|--------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|---------|--------|---------|
|                                                         |   | Years ended March 31,                                         |
|                                                         |   | 2007                                                                         |   | 2008    |   | 2009    |
|                                                         |   |              (%) |
| Discount rate                                                |   | 8.0                                                                          |   | 8.0     |   | 7.5     |
|                                                         |   |                                                                         |   |
| Rate of increase in compensation levels of covered employees |   | 6.0                                                                          |   | 5.0-7.0 |   | 5.0-7.0 |
| Rate of return on plan assets                                |   | 8.0                                                                          |   | 8.0     |   | 8.0     |

----

|               |   | Years ended March 31, |   |
|--------------------|--------|--------------------------------------|--------|
|               |   | 2008                                 |   |   | 2009 |   |
| Category of Assets |   |                                 |   |   |   |   |
| Equity Securities  |   | 7                                    | %      |   | 5 | % |
| Debt securities    |   | 87                                   | %      |   | 95 | % |
| Others             |   | 6                                    | %      |   | — |   |
| Total              |   | 100                                  | %      |   | 100 | % |

| Year ending March 31, |   | (In millions) |
|----------------------------|--------|--------------------|
| 2010                       |   | Rs.                | 19 |
| 2011                       |   |               | 31 |
| 2012                       |   |               | 21 |
| 2013                       |   |               | 12 |
| 2014                       |   |               | 14 |
| 2015-2019                  |   |               | 89 |

|                                                                              |   | As of March 31,                         |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                              |   | 2008                                         |   |   | 2009 |   |
|                                                                              |   |       (In millions) |   |
| Change in benefit obligation:                                                     |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Benefit obligation, beginning of the year                                         |   | Rs.                                          | 285    |   |   | Rs. | 315 |   |   | US$ | 6 |   |
| Service cost                                                                      |   |                                         | 42     |   |   |   | 40 |   |   |   | 1 |   |
| Interest cost                                                                     |   |                                         | 23     |   |   |   | 25 |   |   |   | 1 |   |
| Actuarial loss                                                                    |   |                                         | 6      |   |   |   | 67 |   |   |   | 1 |   |
| Benefits paid                                                                     |   |                                         | (41    | ) |   |   | (91 | ) |   |   | (2 | ) |
|                                                                              |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Benefit obligation, end of the year (included in other non currentliabilities)    |   | Rs.                                          | 315    |   |   | Rs. | 356 |   |   | US$ | 7 |   |
| Actuarial loss recognized as a component of accumulated othercomprehensive income |   |                                         | 6      |   |   |   | 67 |   |   |   | 1 |   |

|                 |   | 2007          |   | 2008   |   | 2009   |
|----------------------|--------|---------------|--------|--------|--------|--------|
|                 |   | (In millions) |
| Current Service cost |   | Rs.           | 40     |   | Rs.    | 42     |   | 40 |   | US$ | 1 |
| Interest cost        |   |          | 18     |   |   | 23     |   | 25 |   |   | — |
|                 |   |          |   |   |   |   |   |   |   |   |   |
| Net Medical cost     |   | Rs.           | 58     |   | Rs.    | 65     |   | 65 |   | US$ | 1 |

|                                         |   | Years ended March 31, |   |
|----------------------------------------------|--------|--------------------------------------|--------|
|                                         |   | 2008                                 |   |   | 2009 |   |
|                                         |   | 1-Percentage-Point                   |   |
|                                         |   | (Rs. millions)                       |   |
|                                         |   | Increase                             |   | Decrease |   |   | Increase |   | Decrease |   |
| Effect on Service Cost                       |   | 5                                    |   | (5 | ) |   | 4 |   | (4 | ) |
| Effect on Interest Cost                      |   | 3                                    |   | (3 | ) |   | 3 |   | (4 | ) |
| Effect on post-retirement benefit obligation |   | 34                                   |   | (34 | ) |   | 39 |   | (38 | ) |

----

|                                                         |   | 2008 |   | 2009 |
|--------------------------------------------------------------|--------|------|--------|------|
|                                                         |   | (%)  |   | (%)  |
| Discount rate                                                |   | 8.0  |   | 7.5  |
| Rate of increase in compensation levels of covered employees |   | 6.0  |   | 6.0  |

| Year ending March 31, |   | (In millions) |
|----------------------------|--------|--------------------|
|                       |   | Rs.                |
| 2010                       |   | 77                 |
| 2011                       |   | 79                 |
| 2012                       |   | 80                 |
| 2013                       |   | 83                 |
| 2014                       |   | 92                 |
| 2015-2019                  |   | 321                |

|                                                                                      |   | Pension Plans  |   |
|-------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                      |   | Contributory   |   |   | Non-contributory |   |
|                                                                                      |   | 2008           |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |
|                                                                                      |   | (In millions)  |   |
| Benefit obligation, beginning of period                                                   |   | Rs. 3,557 |   |   | Rs. 3,513 |   |   | US$ | 69 |   |   | 3,276 |   |   | Rs 2,975 |   |   | US$ | 58 |   |
| Service cost                                                                              |   | 29             |   |   | 20 |   |   |   | — |   |   | 100 |   |   | 81 |   |   |   | 2 |   |
| Interest cost                                                                             |   | 190            |   |   | 205 |   |   |   | 4 |   |   | 172 |   |   | 177 |   |   |   | 3 |   |
| Benefits paid                                                                             |   | (175           | )      |   | (219 | ) |   |   | (4 | ) |   | (413 | ) |   | (212 | ) |   |   | (4 | ) |
| Actuarial loss (gain)                                                                     |   | (223           | )      |   | (814 | ) |   |   | (16 | ) |   | (282 | ) |   | (751 | ) |   |   | (15 | ) |
| Effect of foreign exchange rate changes                                                   |   | 135            |   |   | 133 |   |   |   | 3 |   |   | 122 |   |   | 110 |   |   |   | 2 |   |
| Benefit obligation, end of period                                                         |   | 3,513          |   |   | 2,838 |   |   |   | 56 |   |   | 2,975 |   |   | 2,380 |   |   |   | 46 |   |
| Fair value of plan assets, beginning of period                                            |   | 4,468          |   |   | 4,609 |   |   |   | 91 |   |   | 3,217 |   |   | 3,218 |   |   |   | 63 |   |
| Actual return on plan assets                                                              |   | 260            |   |   | 258 |   |   |   | 5 |   |   | 185 |   |   | 183 |   |   |   | 4 |   |
| Contributions                                                                             |   | —        |   |   | — |   |   |   | — |   |   | 191 |   |   | 154 |   |   |   | 3 |   |
| Benefits paid                                                                             |   | (175           | )      |   | (219 | ) |   |   | (4 | ) |   | (413 | ) |   | (212 | ) |   |   | (4 | ) |
| Actuarial gain (loss)                                                                     |   | (114           | )      |   | (407 | ) |   |   | (8 | ) |   | (83 | ) |   | (289 | ) |   |   | (6 | ) |
| Effect of foreign exchange rate changes                                                   |   | 170            |   |   | 169 |   |   |   | 3 |   |   | 121 |   |   | 117 |   |   |   | 2 |   |
| Fair value of plan assets, end of period                                                  |   | 4,609          |   |   | 4,410 |   |   |   | 87 |   |   | 3,218 |   |   | 3,171 |   |   |   | 62 |   |
| Funded status                                                                             |   | 1,096          |   |   | 1,574 |   |   |   | 31 |   |   | 243 |   |   | 791 |   |   |   | 16 |   |
| Prepaid pension asset (Accrued liability included in Other non-current liabilities)       |   | 1,096          |   |   | 1,572 |   |   |   | 31 |   |   | 243 |   |   | 791 |   |   |   | 16 |   |
| Actuarial (gain) loss recognized as a component of accumulated other comprehensive income |   | (109           | )      |   | (407 | ) |   |   | (8 | ) |   | (199 | ) |   | (462 | ) |   |   | (9 | ) |

----

|                                                                                      |   |       | Supplemental EmployeeRetirement Plan |   |
|-------------------------------------------------------------------------------------------|--------|------------|--------------------------------------|--------|
|                                                                                      |   |       | 2008                                 |   |   | 2009 |   |
|                                                                                      |   |       | (In. millions)                       |   |
| Benefit obligation, beginning of period                                                   |   |   Rs. | 87                                   |   |   Rs. | 112 |   |   | US$ | 2 |   |
| Service Cost                                                                              |   |       | 3                                    |   |   | 5 |   |   |   | — |   |
| Interest Cost                                                                             |   |       | 5                                    |   |   | 7 |   |   |   | — |   |
| Benefits paid                                                                             |   |       | —                              |   |   | (2 | ) |   |   | — |   |
| Actuarial (gain) loss                                                                     |   |       | 13                                   |   |   | (52 | ) |   |   | (1 | ) |
| Effect of foreign exchange rate changes                                                   |   |       | 4                                    |   |   | 4 |   |   |   | — |   |
|                                                                                      |   |       |                                 |   |   |   |   |   |   |   |   |
| Benefit obligation, end of period                                                         |   |       | 112                                  |   |   | 74 |   |   |   | 1 |   |
|                                                                                      |   |       |                                 |   |   |   |   |   |   |   |   |
| Funded Status                                                                             |   |       | (112                                 | )      |   | (74 | ) |   |   | (1 | ) |
| Unamortized actuarial differences                                                         |   |       | —                              |   |   | — |   |   |   | — |   |
|                                                                                      |   |       |                                 |   |   |   |   |   |   |   |   |
| Prepaid pension assets / (Accrued liability included in Other non- current liabilities)   |   |       | (112                                 | )      |   | (74 | ) |   |   | (1 | ) |
|                                                                                      |   |       |                                 |   |   |   |   |   |   |   |   |
| Actuarial (gain) loss recognized as a component of accumulated other comprehensive income |   |       | 13                                   |   |   | (52 | ) |   |   | — |   |

|                                         |   | Years ended March 31, |   |
|----------------------------------------------|--------|--------------------------------------|--------|
|                                         |   | 2008                                 |   |   | 2009 |   |
|                                         |   | 1-Percentage-Point                   |   |
|                                         |   | (Rs. millions)                       |   |
|                                         |   | Increase                             |   | Decrease |   |   | Increase |   | Decrease |   |
| Effect on post-retirement benefit obligation |   | 6                                    |   | (6 | ) |   | 5 |   | (4 | ) |

|                                                                                                                             |   | Years ended March 31, |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                                                                             |   | 2008                                 |   | 2009 |
|                                                                                                                             |   | (%)                                  |   | (%) |
| The assumptions used in accounting for the pension plans and the other benefit plans on a weighted-average basis are as follows: |   |                                 |   |   |
| Discount rate used for benefit costs                                                                                             |   | 5.25                                 |   | 5.75 |
| Discount rate used for benefit obligations                                                                                       |   | 5.75                                 |   | 8.00 |
| Expected long-term return on plan assets                                                                                         |   | 5.75                                 |   | 5.50 |
| Inflation                                                                                                                        |   | 2.50                                 |   | 2.50 |
| Rate of compensation increase                                                                                                    |   | 3.50                                 |   | 3.50 |

|                                                                                      |   | Other PostretirementPlans(OPEB) |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                      |   | 2008                            |   |   | 2009 |   |
|                                                                                      |   | (In millions)                   |   |
| Accumulated benefit obligation, beginning of period                                       |   | Rs. 91                     |   |   | Rs. 84 |   |   | US$ | 2 |   |
| Acquired accumulated benefit obligation                                                   |   | —                         |   |   | — |   |   |   | — |   |
| Service Cost                                                                              |   | 1                               |   |   | 1 |   |   |   | — |   |
| Interest Cost                                                                             |   | 5                               |   |   | 5 |   |   |   | — |   |
| Benefits paid                                                                             |   | (7                              | )      |   | (10 | ) |   |   | — |   |
| Actuarial loss (gain)                                                                     |   | (8                              | )      |   | (11 | ) |   |   | — |   |
| Effect of foreign exchange rate changes                                                   |   | 2                               |   |   | 4 |   |   |   | — |   |
| Accumulated benefit obligation, end of period                                             |   | 84                              |   |   | 73 |   |   |   | 2 |   |
| Prepaid pension asset / (Accrued liability included in other long term liabilities)       |   | (84                             | )      |   | (73 | ) |   |   | (2 | ) |
| Actuarial (gain) loss recognized as a component of accumulated other comprehensive income |   | (8                              | )      |   | (11 | ) |   |   | — |   |

----

|                                  |   |   |    |   | Year ended March 31, |   |
|---------------------------------------|--------|--------|---------|--------|-------------------------------------|--------|
|                                  |   | 2007   |    |   | 2008                                |   |   | 2009 |   |
|                                  |   |   |    |   | (In millions)                  |   |
| Service cost                          |   | Rs.    | 159     |   |                                | Rs.    | 133 |   |   | Rs. | 107 |   |   | US$ | 2 |   |
| Interest cost                         |   |   | 381     |   |                                |   | 372 |   |   |   | 394 |   |   |   | 8 |   |
| Return on assets                      |   |   | (492    | )      |                                |   | (445 | ) |   |   | (441 | ) |   |   | (9 | ) |
| Amortization of actuarial loss (gain) |   |   | — |   |                                |   | — |   |   |   | 1 |   |   |   | — |   |
|                                  |   |   |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net pension cost                      |   | Rs.    | 48      |   |                                | Rs.    | 60 |   |   | Rs. | 61 |   |   |   | 1 |   |

|                   |   | Plan Assets as of March 31 |   |
|------------------------|--------|---------------------------------|--------|
|                   |   | 2008                            |   |   | 2009 |   |
|                   |   | Actual                          |   |   | Target |   |   | Actual |   |   | Target |   |
| Asset Category         |   |                            |   |   |   |   |   |   |   |   |   |   |
| Debt Securities        |   | 76                              | %      |   | 75 | % |   | 76 | % |   | 75 | % |
| Equity securities      |   | 19                              | %      |   | 20 | % |   | 19 | % |   | 20 | % |
| Short term investments |   | 5                               | %      |   | 5 | % |   | 5 | % |   | 5 | % |
|                   |   |                            |   |   |   |   |   |   |   |   |   |   |
| Total                  |   | 100                             | %      |   | 100 | % |   | 100 | % |   | 100 | % |

|                        |   | Pension Benefits(Contributory andNon Contributory) |   | Other Benefits |
|-----------------------------|--------|---------------------------------------------------------|--------|----------------|
|                        |   | (In millions)                                           |
| Years ending March 31, |   |                                                    |   |           |   |   |   |   |   |   |   |   |
| 2010                        |   | Rs                                                      | 402    |           | US$ | 8 |   | Rs. | 8 |   | US$ | — |
| 2011                        |   |                                                    | 411    |           |   | 8 |   |   | 8 |   |   | — |
| 2012                        |   |                                                    | 421    |           |   | 8 |   |   | 8 |   |   | — |
| 2013                        |   |                                                    | 432    |           |   | 8 |   |   | 9 |   |   | — |
| 2014                        |   |                                                    | 444    |           |   | 9 |   |   | 9 |   |   | — |
| 2015-2019                   |   |                                                    | 2,429  |           |   | 48 |   |   | 39 |   |   | 1 |

----

| Years ending March 31,     |   | (In millions) |
|---------------------------------|--------|---------------|
| 2010                            |   | Rs.           | 2,225 |   | US$ | 44 |
| 2011                            |   |          | 1,914 |   |   | 37 |
| 2012                            |   |          | 1,662 |   |   | 33 |
| 2013                            |   |          | 1,467 |   |   | 29 |
| 2014                            |   |          | 1,429 |   |   | 28 |
| Thereafter                      |   |          | 4,671 |   |   | 92 |
|                            |   |          |   |   |   |   |
| Total minimum lease commitments |   | Rs.           | 13,368 |   | US$ | 263 |

| Years ending March 31,  |   | (In millions) |
|------------------------------|--------|---------------|
| 2010                         |   | Rs.           | 278 |   | US$ | 5.4 |
| 2011                         |   |          | 278 |   |   | 5.4 |
| 2012                         |   |          | 278 |   |   | 5.4 |
| 2013                         |   |          | 278 |   |   | 5.4 |
| 2014                         |   |          | 278 |   |   | 5.4 |
| Thereafter                   |   |          | 1,468 |   |   | 29 |
|                         |   |          |   |   |   |   |
| Total minimum lease receipts |   | Rs.           | 2,858 |   | US$ | 56 |

----

| Particulars                      |   | Fair Value measurements as at Reporting date |
|----------------------------------|--------|----------------------------------------------------------------------------|
|                             |   | Level 1                                                               |   | Level 2 |   | Level 3 |   | Total |
|                             |   | In Rs. million                                                             |
| Assets                           |   |                                                                       |   |   |   |   |   |   |
| Available-for-sale investments   |   | 7,089                                                                      |   |   |   | — |   | 7,089 |
| Derivative financial instruments |   | —                                                                    |   | 12 |   | — |   | 12 |
| Total                            |   | 7,089                                                                      |   | 12 |   | — |   | 7,101 |
| Liabilities                      |   |                                                                       |   |   |   |   |   |   |
| Derivative financial instruments |   | —                                                                    |   | 521 |   | — |   | 521 |
|                             |   |                                                                       |   |   |
| Total                            |   | —                                                                    |   | 521 |   | — |   | 521 |

|                                     |   | (In millions)                           |
|------------------------------------------|--------|-----------------------------------------|
|                                     |   | Year endedMarch 31, 2008 |   | Year endedMarch 31, 2009 |
| Beginning balance                        |   | Rs.                                     | 4 |   | Rs. | 252 |   |   | US$ | 5 |
| Net unrealized loss / (gains)            |   |                                    | 238 |   |   | (11 | ) |   |   | — |
| Realized loss reclassified into earnings |   |                                    | 10 |   |   | 39 |   |   |   | 1 |
|                                     |   |                                    |   |   |   |   |   |   |   |   |
| Ending balance                           |   | Rs.                                     | 252 |   | Rs. | 280 |   |   | US$ | 6 |

----

|                                       |   |                                                                                                                             |
|--------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
| Wholesale Voice                       |   | : Global voice services                                                                                                     |
| Enterprise and Carrier Data |   | : Corporate Data Transmission services                                                                                      |
| Others                                     |   | : Primarily comprises national voice services, retail internet, data centers, signaling and roaming services and television |

|                                          |   | Year ended March 31, 2007 |   |
|-----------------------------------------------|--------|--------------------------------|--------|
|                                          |   | WholesaleVoice                 |   | Enterprise andCarrier Data |   | Others |   | Total |   |
|                                          |   | (In millions)                  |   |
| Revenues                                      |   | Rs.                            | 53,047 |   | Rs. | 19,550 |   | Rs. | 13,380 |   | Rs. | 85,977 |   |
| Interconnection Charges                       |   |                           | 45,274 |   |   | 1,716 |   |   | 2,102 |   |   | 49,092 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues                                  |   | Rs.                            | 7,773  |   | Rs. | 17,834 |   | Rs. | 11,278 |   | Rs. | 36,885 |   |
| Other network and telecommunication costs     |   |                           | 334    |   |   | 377 |   |   | 1,642 |   |   | 2,353 |   |
| License fees                                  |   |                           | 205    |   |   | 521 |   |   | 236 |   |   | 962 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Segment results                               |   | Rs.                            | 7,234  |   | Rs. | 16,936 |   | Rs. | 9,400 |   | Rs. | 33,570 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Unallocable costs:                            |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| License fees                                  |   |                           |   |   |   |   |   |   |   |   |   | 125 |   |
| Depreciation and amortization                 |   |                           |   |   |   |   |   |   |   |   |   | 6,966 |   |
| Other operating costs                         |   |                           |   |   |   |   |   |   |   |   |   | 23,037 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                              |   |                           |   |   |   |   |   |   |   |   |   | 3,442 |   |
| Non operating income, net                     |   |                           |   |   |   |   |   |   |   |   |   | 1,080 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax                      |   |                           |   |   |   |   |   |   |   |   |   | 4,522 |   |
| Income tax expense                            |   |                           |   |   |   |   |   |   |   |   |   | (2,807 | ) |
| Dividend tax                                  |   |                           |   |   |   |   |   |   |   |   |   | (180 | ) |
| Equity in net loss of equity method investees |   |                           |   |   |   |   |   |   |   |   |   | (96 | ) |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                    |   |                           |   |   |   |   |   |   |   |   | Rs. | 1,439 |   |

|                                          |   | Year ended March 31, 2008 |   |
|-----------------------------------------------|--------|--------------------------------|--------|
|                                          |   | WholesaleVoice                 |   | Enterprise andCarrier Data |   | Others |   | Total |   |
|                                          |   | (In millions)                  |   |
| Revenues                                      |   | Rs.                            | 46,687 |   | Rs. | 18,809 |   | Rs. | 16,835 |   | Rs. | 82,331 |   |
| Interconnection Charges                       |   |                           | 38,925 |   |   | 2,083 |   |   | 3,076 |   |   | 44,084 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues                                  |   | Rs.                            | 7,762  |   | Rs. | 16,726 |   | Rs. | 13,759 |   | Rs. | 38,247 |   |
| Other network and telecommunication costs     |   |                           | 166    |   |   | 330 |   |   | 2,137 |   |   | 2,633 |   |
| License fees                                  |   |                           | 57     |   |   | 419 |   |   | 263 |   |   | 739 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Segment results                               |   | Rs.                            | 7,539  |   | Rs. | 15,977 |   | Rs. | 11,359 |   | Rs. | 34,875 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Unallocable costs:                            |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| License fees                                  |   |                           |   |   |   |   |   |   |   |   |   | 109 |   |
| Depreciation and amortization                 |   |                           |   |   |   |   |   |   |   |   |   | 7,358 |   |
| Other operating costs                         |   |                           |   |   |   |   |   |   |   |   |   | 27,200 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                              |   |                           |   |   |   |   |   |   |   |   |   | 208 |   |
| Non operating income, net                     |   |                           |   |   |   |   |   |   |   |   |   | 710 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax                      |   |                           |   |   |   |   |   |   |   |   |   | 918 |   |
| Income tax expense                            |   |                           |   |   |   |   |   |   |   |   |   | (1,280 | ) |
| Dividend tax                                  |   |                           |   |   |   |   |   |   |   |   |   | (218 | ) |
| Equity in net loss of equity method investees |   |                           |   |   |   |   |   |   |   |   |   | (393 | ) |
| Minority Interest                             |   |                           |   |   |   |   |   |   |   |   |   | (1 | ) |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                      |   |                           |   |   |   |   |   |   |   |   | Rs. | (974 | ) |

----

|                                          |   | Year ended March 31, 2009 |   |
|-----------------------------------------------|--------|--------------------------------|--------|
|                                          |   | WholesaleVoice                 |   | Enterprise andCarrier Data |   | Others |   | Total |   |
|                                          |   | (In millions)                  |   |
| Revenues                                      |   | Rs.                            | 50,207 |   | Rs. | 25,184 |   | Rs. | 21,904 |   | Rs. | 97,295 |   |   | US$ | 1,913 |   |
| Interconnection Charges                       |   |                           | 41,231 |   |   | 2,014 |   |   | 5,630 |   |   | 48,875 |   |   |   | 961 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues                                  |   | Rs.                            | 8,976  |   | Rs. | 23,170 |   | Rs. | 16,274 |   | Rs. | 48,420 |   |   | US$ | 952 |   |
| Other network and telecommunication costs     |   |                           | 120    |   |   | 207 |   |   | 1,999 |   |   | 2,326 |   |   |   | 45 |   |
| License fees                                  |   |                           | 85     |   |   | 463 |   |   | 315 |   |   | 863 |   |   |   | 17 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment results                               |   | Rs.                            | 8,771  |   | Rs. | 22,500 |   | Rs. | 13,960 |   | Rs. | 45,231 |   |   | US$ | 890 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocable costs:                            |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                 |   |                           |   |   |   |   |   |   |   |   |   | 10,180 |   |   |   | 200 |   |
| Other operating costs                         |   |                           |   |   |   |   |   |   |   |   |   | 30,394 |   |   |   | 598 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                              |   |                           |   |   |   |   |   |   |   |   |   | 4,657 |   |   |   | 92 |   |
| Non operating income, net                     |   |                           |   |   |   |   |   |   |   |   |   | 3,019 |   |   |   | 59 |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax                      |   |                           |   |   |   |   |   |   |   |   |   | 7,676 |   |   |   | 151 |   |
| Income tax expense                            |   |                           |   |   |   |   |   |   |   |   |   | (2,430 | ) |   |   | (48 | ) |
| Dividend tax                                  |   |                           |   |   |   |   |   |   |   |   |   | (218 | ) |   |   | (5 | ) |
| Equity in net loss of equity method investees |   |                           |   |   |   |   |   |   |   |   |   | (1,120 | ) |   |   | (22 | ) |
| Minority Interest                             |   |                           |   |   |   |   |   |   |   |   |   | (22 | ) |   |   | — |   |
|                                          |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                             |   |                           |   |   |   |   |   |   |   |   | Rs. | 3,886 |   |   | US$ | 76 |   |

|                     |   | As of March 31, 2007 |   | As of March 31, 2008 |   | As of March 31, 2009 |
|--------------------------|--------|------------------------------------------|--------|------------------------------------------|--------|---------------------------|
|                     |   | (In millions)                            |
| India                    |   | Rs.                                      | 23,820 |                                     | Rs.    | 35,448                    |   | Rs. | 31,984 |   | US$ | 629 |
|                     |   |                                     |   |                                     |
| United States Of America |   |                                     | 18,714 |                                     |   | 17,817                    |   |   | 16,683 |   |   | 328 |
|                     |   |                                     |   |                                     |
| United Kingdom           |   |                                     | 7,296  |                                     |   | 5,306                     |   |   | 6,791 |   |   | 134 |
|                     |   |                                     |   |                                     |
| Canada                   |   |                                     | 4,307  |                                     |   | 4,349                     |   |   | 3,976 |   |   | 78 |
|                     |   |                                     |   |                                     |
| Rest of the world        |   |                                     | 31,840 |                                     |   | 19,411                    |   |   | 37,861 |   |   | 744 |
|                     |   |                                     |   |                                     |   |                      |   |   |   |   |   |   |
|                     |   |                                     |   |                                     |
| Total                    |   | Rs.                                      | 85,977 |                                     | Rs.    | 82,331                    |   | Rs. | 97,295 |   | US$ | 1,913 |

----

|                                                                                                                                                                 |   | Years ended March 31,       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                                                                                                                 |   | Beneficial Owner andSubsidiaries |   | Principal Owners |   | Equity MethodInvestees |   | Total |
| Nature of transactions                                                                                                                                               |   | 2007                             |   | 2008 |   | 2009 |   | 2007 |   | 2008 |   | 2009 |   | 2007 |   | 2008 |   | 2009 |   | 2007 |   | 2008 |   | 2009 |   | 2009 |   |
|                                                                                                                                                                 |   | (In millions)                    |
|                                                                                                                                                                 |   | Rs.                              |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | (US$) |   |
| Revenues from telecommunication services:-                                                                                                                           |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale Voice (including Rs. 883 Million, Rs. 1,335 Million and Rs. 1718 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd)          |   | 1,160                            |   | 1,632 |   | 1,988 |   | — |   | — |   | — |   | 123 |   | 239 |   | 227 |   | 1,283 |   | 1,871 |   | 2,215 |   | 43 |   |
| Enterprise and Carrier Data (including Rs. 208 Million, Rs. 250 Million and Rs. 358 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd) |   | 634                              |   | 788 |   | 1,023 |   | — |   | — |   | — |   | — |   | 50 |   | 29 |   | 634 |   | 838 |   | 1,052 |   | 21 |   |
| Others (including Rs. 1,771 Million, Rs. 1678 Million and Rs. 1,360 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd.)                |   | 2,260                            |   | 2,135 |   | 2,080 |   | — |   | — |   | — |   | 16 |   | 270 |   | 499 |   | 2,276 |   | 2,405 |   | 2,579 |   | 51 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                |   | 4,054                            |   | 4,555 |   | 5,091 |   | — |   | — |   | — |   | 139 |   | 559 |   | 755 |   | 4,193 |   | 5,114 |   | 5,846 |   | 115 |   |
| Capacity contract provided (including Rs. 150 Million for fiscal 2008 respectively from Tata Teleservices Ltd.)                                                      |   | —                          |   | 162 |   | 4 |   | — |   | — |   | — |   | — |   | — |   | — |   | — |   | 162 |   | 4 |   | 0 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                                                                                                      |   | —                          |   | — |   | — |   | — |   | — |   | — |   | 2 |   | 40 |   | 188 |   | 2 |   | 40 |   | 188 |   | 4 |   |
| Network & transmission costs :-                                                                                                                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wholesale Voice (including Rs. 71 Million, Rs. 94 Million and Rs. 102 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd)               |   | 88                               |   | 127 |   | 155 |   | — |   | — |   | — |   | 205 |   | 342 |   | 566 |   | 293 |   | 469 |   | 721 |   | 14 |   |
| Enterprise and Carrier Data (including Rs. 25 Million, Rs. 11 Million and Rs. 5 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd)     |   | 31                               |   | 20 |   | 10 |   | — |   | — |   | — |   | — |   | — |   | — |   | 31 |   | 20 |   | 10 |   | 0 |   |
| Others (including Rs. 777 Million, Rs. 728 Million and Rs. 254 Million for fiscals 2007, 2008 and 2009 respectively from Tata Teleservices Ltd.)                     |   | 1,015                            |   | 1,121 |   | 713 |   | — |   | — |   | — |   | — |   | — |   | — |   | 1,015 |   | 1,121 |   | 713 |   | 14 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                |   | 1,134                            |   | 1,268 |   | 878 |   | — |   | — |   | — |   | 205 |   | 342 |   | 566 |   | 1,339 |   | 1,610 |   | 1,444 |   | 28 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| License fees                                                                                                                                                         |   | —                          |   | — |   | — |   | 1,087 |   | 848 |   | 863 |   | — |   | — |   | — |   | 1,087 |   | 848 |   | 863 |   | 17 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans given                                                                                                                                                          |   | —                          |   | — |   | — |   | — |   | — |   | — |   | 136 |   | 245 |   | 3,179 |   | 136 |   | 245 |   | 3,179 |   | 62 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances given                                                                                                                                                       |   | —                          |   | — |   | — |   | — |   | — |   | — |   | 30 |   | 1 |   | — |   | 30 |   | 1 |   | — |   | — |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances repaid                                                                                                                                                      |   | —                          |   | — |   | — |   | — |   | — |   | — |   | — |   | 42 |   | — |   | — |   | 42 |   | — |   | — |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid                                                                                                                                                       |   | 47                               |   | 109 |   | 109 |   | 856 |   | 857 |   | 857 |   | — |   | — |   | — |   | 903 |   | 966 |   | 966 |   | 19 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Other non-operating income                                                                                                                                           |   | 85                               |   | 123 |   | 100 |   | — |   | — |   | — |   | — |   | — |   | — |   | 85 |   | 123 |   | 100 |   | 2 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Other operating costs                                                                                                                                                |   | 674                              |   | 698 |   | 1,028 |   | — |   | — |   | — |   | — |   | — |   | — |   | 674 |   | 698 |   | 1,028 |   | 20 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of property, plant & equipment                                                                                                                     |   | 1,028                            |   | 50 |   | 436 |   | — |   | — |   | — |   | — |   | — |   | — |   | 1,028 |   | 50 |   | 436 |   | 9 |   |
|                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale of property, plant & equipment                                                                                                                         |   | 948                              |   | 8 |   | — |   | — |   | — |   | — |   | — |   | — |   | — |   | 948 |   | 8 |   | — |   | — |   |

----

|                                                                                                                                             |   | As of March 31             |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|
|                                                                                                                                             |   | BeneficialOwner andSubsidiaries |   | PrincipalOwners |   | EquityMethodInvestees |   | Total |   |
| Year End Balances                                                                                                                                |   | 2008                            |   | 2009 |   | 2008 |   | 2009 |   | 2008 |   | 2009 |   | 2008 |   | 2009 |   | 2009 |   |
|                                                                                                                                             |   | (In millions)                   |
|                                                                                                                                             |   | Rs.                             |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | Rs. |   | (US$) |   |
| Accounts receivables (including Rs. 644 million and Rs. 500 million for fiscals 2008 and 2009 respectively from Tata Teleservices Ltd) |   | 1,176                           |   | 1,192 |   | — |   | — |   | 342 |   | 242 |   | 1,518 |   | 1,434 |   | 28 |   |
| Accounts payables (including Rs. 390 million and Rs. 237 million for fiscals 2008 and 2009 respectively from Tata Teleservices Ltd)    |   | 654                             |   | 1,199 |   | — |   | — |   | 125 |   | 142 |   | 779 |   | 1,341 |   | 26 |   |
| Advances given                                                                                                                                   |   | 31                              |   | 30 |   | — |   | — |   | 23 |   | 23 |   | 54 |   | 53 |   | 1 |   |
| License Fees recoverable                                                                                                                         |   |                            |   |   |   | 820 |   | 6 |   |   |   |   |   | 820 |   | 6 |   | — |   |
| Loans provided (net of adjusted loss in equity method investee of Rs. 580 million as at fiscal 2009)                                        |   | —                         |   | — |   | — |   | — |   | 126 |   | 2,965 |   | 126 |   | 2,965 |   | 58 |   |
| Interest receivable                                                                                                                              |   | —                         |   | — |   | — |   | — |   | 37 |   | 413 |   | 37 |   | 413 |   | 8 |   |
| Accrued Expenses and Other Current Liabilities:                                                                                                  |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances received                                                                                                                                |   | 2                               |   | 60 |   | — |   | — |   | — |   | — |   | 2 |   | 60 |   | 1 |   |
| License Fees payable                                                                                                                             |   | —                         |   | — |   | 2,457 |   | 2,637 |   | — |   | — |   | 2,457 |   | 2,637 |   | 52 |   |
| Deferred revenues                                                                                                                                |   | 234                             |   | 476 |   | — |   | — |   | — |   | 55 |   | 234 |   | 531 |   | 10 |   |
|                                                                                                                                             |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                            |   | 236                             |   | 536 |   | 2,457 |   | 2,637 |   | — |   | 55 |   | 2,693 |   | 3,228 |   | 63 |   |

----

|                      |   | As of March 31, 2009 |
|---------------------------|--------|------------------------------------------|
|                      |   | (In millions)                            |
| Standby Letters of Credit |   |                                     |   |   |   |   |
| Less than 1 year          |   | Rs.                                      | 1,986 |   | US$ | 39 |
| 1 to 3 years              |   |                                     | 3,154 |   |   | 62 |
| More than 3 years         |   |                                     | 2 |   |   | — |
|                      |   |                                     |   |   |   |   |
| Total amount committed    |   | Rs.                                      | 5,142 |   | US$ | 101 |

|               | March 31, 2008         | March 31, 2009 |
|--------------------|------------------------|----------------|
|               | As previously reported | As restated    | As previously reported | As restated |
|               | Rs. millions           | Rs. millions   | Rs. millions | Rs. millions |
| Current assets     | 40,615                 | 28,432         | 65,271 | 51,066 |
| Non-current assets | 95,708                 | 107,891        | 127,062 | 141,267 |