Communications

Annual Report2011-12

Reliance Communications Limited

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ProfileReliance Communications Limited is the flagship Company of Reliance Group, one of the leading business houses in India.

Reliance Communications is Indias foremost and truly integrated telecommunications service provider. The Company, with a customer base of 161 million as on March 31, 2012 including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes over 35,000 Indian and multinational corporations including small and medium enterprises and over 800 global, regional and domestic carriers.

Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages.

Reliance Communications owns and operates the worlds largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

Mission: Excellence in Communication Arena To attain global best practices and become a world-class communication

service provider guided by its purpose to move towards greater degree of sophistication and maturity.

To work with vigour, dedication and innovation to achieve excellence in service, quality, reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity.

To be a technology driven, efficient and financially sound organisation.

To contribute towards community development and nation building.

To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people.

To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals.

To encourage ideas, talent and value systems.

To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

This Report is printed on environmental friendly paper.

Reliance Communications Limited

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Highlights - at a glance on consolidated basis

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Reliance Communications Limited

Business Mix

Home

DTH

Other businesses

Tech Services Leveraging Internal IT Development Capabilities

BPO Expertise in Telecom BFSI, Utilities & Media

Retail Reliance World Reliance Mobile Store

Wireless Mobile (CDMA, GSM & 3G) VAS (Mobile World) Wireless Data Fixed Wireless Public Access Business

Globalcom Submarine cable Ethernet Data services Global Managed Network Services Long Distance (NLD/ILD) Global Call

Telecom Infrastructure Multi tenancy towers Pan-India coverage Backhaul Support systems 3G

Enterprise Internet Data Center Broadband Leased Line Office Centrex MPLS & VPN WiMax

Highlights - at a glance on consolidated basis

19,068

22,94822,132

23,108

20,382

FY 08 FY 09 FY 10 FY 11 FY 12

Revenue (` in Cr.)

Wireless Subscribers (in Million)

FY 08 FY 09 FY 10 FY 11 FY 12

73

102

136153

46

Net Worth (` in Cr.)

FY 08 FY 09 FY 10 FY 11 FY 12

29,026

42,280 43,361 40,49936,721

EBITDA (` in Cr.)

FY 08 FY 09 FY 10 FY 11 FY 12

8,199

9,305

7,820

9,081

6,490

Reliance Communications Limited

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8th Annual General Meeting on Tuesday, September 4, 2012 at 12.00 noon or soon after conclusion of the

Annual General Meeting of Reliance Capital Limited convened on the same day, whichever is later,

at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.

Contents Page No.

Highlights at a glance ........................................................... 4

Letter to Shareowners .............................................................. 6

Notice of Annual General Meeting ......................................... 8

Directors Report ....................................................................... 12

Management Discussion and Analysis .................................... 17

Auditors Certificate on Corporate Governance ....................... 31

Corporate Governance Report ................................................. 32

Investor Information ................................................................. 42

Auditors Report ........................................................................ 48

Balance Sheet ........................................................................... 52

Statement of Profit and Loss .................................................. 53

Cash Flow Statement ............................................................... 54

Significant Accounting Policies and Notes to the

Financial Statements ................................................................ 56

Auditors Report on Consolidated

Financial Statements ................................................................ 83

Consolidated Balance Sheet .................................................... 84

Consolidated Statement of Profit and Loss ............................ 85

Consolidated Cash Flow Statement ........................................ 86

Significant Accounting Policies and Notes to the

Consolidated Financial Statements ......................................... 87

Financial Information of Subsidiary Companies ..................... 119

The Annual Report can be accessed at www.rcom.co.in

Board of Directors

Shri Anil Dhirubhai Ambani - ChairmanProf. J. RamachandranShri S. P. TalwarShri Deepak ShourieShri A. K. Purwar

Company Secretary and Manager

Shri Prakash Shenoy

Auditors

M/s. Chaturvedi & ShahM/s. B S R & Co.

Registered Office

H Block, 1st FloorDhirubhai Ambani Knowledge CityNavi Mumbai 400 710Maharashtra, India

Registrar and Transfer Agent

Karvy Computershare Private LimitedMadhura Estates, Municipal No. 1-9/13/CPlot No. 13 & 13C, Madhapur VillageHyderabad 500 081Andhra Pradesh, IndiaWebsite: www.karvy.com

Investor Helpdesk

Toll free no. (India) : 1800 4250 999Telephone no. : +91 40 4030 8000Fax no. : +91 40 2342 0859Email : rcom@karvy.comPost your request : http://kcpl.karvy.com/adag

Reliance Communications Limited

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Letter to Shareowners

My dear fellow Shareowners,

It gives me great pleasure that Reliance Communications (RCOM) has had another year of steady performance despite the recent slowdown in the Indian economy and the continuing global financial crisis. The steady results were achieved due to our unique position in the industry and our ability to offer our growing base of loyal subscribers the choice of world class services on CDMA, GSM and 3G technology platforms.

With a customer base of over 161 million individual, enterprise, and carrier customers as on March 31, 2012, RCOM is Indias one of the largest integrated communications service providers in the private sector. Our corporate clientele includes over 35,000 Indian and multinational corporations including small and medium enterprises and over 800 global, regional and domestic carriers. The enterprise customer base of the Company includes 850 of the top 1,000 enterprises in India.

Our superior 3G offering coupled with marquee partnerships will further accelerate the acquisition of high end customers helping us in generating higher incremental reveneue per customer. The high speed data offering on our CDMA network will also add to our undisputed leadership position in the wireless data space. Our mobile portal, R World, offers the widest range of mobile content spanning e-commerce, m-commerce, entertainment, music, news, astrology, cricket, bollywood, maps, search, one-click set-up, access to email and social networking. It provides full range of communication tools, information and entertainment that comes with a personal computer, at the price and convenience of a handset.

RCOM became the first telecom operator to enter the Android tablet space in the country with the launch of Reliance 3G Tab in August, 2011. Reliance 3G Tab is the first branded 3G+ WiFi Android Tablet by a service provider in India.

Data has been the key driver of growth over the last year. Our customers are increasingly drawn to the experience of the mobile internet and related services. In addition to continuing on conventional voice-based model, we are now focusing on providing innovative and affordable high-speed data services catering to the needs of all customer segments. We look forward to strengthening our leadership position in voice as well as in data services.

RCOM owns and operates the worlds largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 route kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. We offer the most comprehensive and competitive portfolio of enterprise, voice, data, video, internet and IT infrastructure services catering to large, medium and small enterprises for their communications, networking and IT infrastructure needs.

Performance review

The financial year 2012 wi