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Mr. G. D. Birla and Mr. Aditya Birla, our founding fathers.

We live by their values.
Integrity, Commitment, Passion, Seamlessness and Speed.

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Dear Fellow Shareholders,
India continues on its growth trajectory. Since the year
2003-04, our GDP growth has exceeded 8% year on year.
Today we can take justifiable pride in having joined the ranks of
the US$ trillion economies of the world. I do believe India will
continue its momentum despite some strong headwinds. For
instance inflation – where the Government is trying to pull out
all stops to stem it. Additionally we have to contend with the
hardening interest rates and the volatility in global financial
markets, consequent to the sub prime crises.
That despite these adverse factors enveloping the business
environment, India continues to grow is a validation of the
inherent fundamental strengths of our economy.
The Indian mobility industry is expanding at an aggressive
pace, with total mobility subscribers at 256 million by March
2008. The reduced low cost entry into the sector and
expanding coverage remain the growth drivers. The wireless
penetration level today stands at around 24%. So the growth
potential is indeed high.
Your Company's performance has been very impressive.
Its consolidated revenues stood at Rs. 67,374 million up by
54%. Its net profit at Rs. 10,423 million reflects a 108% growth.
Let me apprise you of some of the recent developments which
position your Company into a totally different league.
I am pleased to share with you that your Company is the fastest
growing telecom service provider in the country with more than
The Chairman’s Letter
to shareholders
28 million customers across 11 operational circles. Your
Company has an additional 10 licenses, of which spectrum has
been allotted in Bihar, Orissa and Tamil Nadu, which will all be
operational before the end of the financial year. With the
proposed merger of Spice, your Company's footprint will then
cross 90% of the national mobile telephony market. Mumbai
has just become the 12th service area to form part of your
Company's expanding reach.
Other highlights include Idea through its subsidiary becoming
one of the founder shareholders of the passive infrastructure
JV Indus Towers, and TMI recently coming in as a significant
shareholder. The association with TMI will provide synergies in
roaming, value-added services and other areas. Today your
Company boasts of a strong balance sheet with a sharply
reduced net debt.
Regardless of these heartening developments, your
management is deeply conscious of the task ahead as the
mobile telephony sector changes and mutates. To keep in step
with the changes in technology and customer needs, there are
profound stirrings of change in your Company as well.
We are sharpening our perspective and redesigning the
business model.
Currently Idea is among the top 25 telecom companies
in the world. We expect to step up our position in the
foreseeable future.
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I believe our people – our human capital is our key resource and
we owe a large part of our success to them. We have thought
leaders across the Company. A majority of our people tap into
each others knowledge-base and collaborate effectively to
achieve a shared vision.
A Performance Management Centre at our Group's
Headquarters has been set up with dedicated resources to
sharpen our high performance culture. This team's sole
responsibility is to assist in Institutionalising world-class
performance framework and leadership processes.

The Aditya Birla Group : In Perspective As in the past our high-calibre Management talent has been
put through our Development Assessment Centres and their
We are moving in sync with our vision to be a premium global
professional development plans drawn up. Gyanodaya, our
conglomerate with a clear focus at each business level. Our
Institute of Management Learning continues to provide a good
Group is now a US$ 28 billion meritocratic Corporation, with a
base for new learnings for our people, and honing
market cap in excess of US$ 31.5 billion, and a 100,000 strong
competencies. Up until now more than 4,500 colleagues have
human capital belonging to 25 nationalities, spanning 20
participated in its programmes.
countries across 5 continents. Our values – Integrity,
Commitment, Passion, Seamlessness and Speed bind us all We had said last year that we would introduce ESOP schemes
together regardless of geographies and nationalities. during the course of the year. In this year, we covered 700
employees under ESOP schemes, a significant move, for the
Our HR strategy ongoingly focuses on enhancing stakeholder
first time in the history of our Group. We will cover many more
value through superior organisation and people capability.
from now on.
Today, more than ever before, talent is at a premium, thanks to
globalisation and the multi-polar world, both of which afford Going forward in the next five years, I see our workforce mix
unique opportunities. At our Group attracting the best talent expanding to over 100 nationalities and our senior
and engaging them continues to be a key priority. We have management team becoming even more global. I visualise a
made huge investments in not only attracting but developing multi-generational workforce able to overcome generational
and retaining our human capital over the long-term. barriers, and effectively, feeding on each one's core offerings of
experience, raw energy, risk taking and organisational
To arrive at an employee proposition that would draw more
knowledge. Enhancing our attractiveness as an employer also
talent to our Group, we conducted an in-depth research aimed
calls for creating a workspace that accepts and encourages the
at finding out what is our DNA as an employer and what does
existence of a sharp sense of individual identity, even within the
our employer brand connote. Apart from trust and admiration
strong organisational brand and cultural fabric. We want to
for the Group as a professional values-driven organisation,
create top-notch leaders on virtually an assembly-line scale.
what also emerged strikingly was the fact of our diversity – the
And lastly, we want to be in that enviable position where the
number of countries and businesses in which we are engaged,
best talent globally wants to join us, just as much as we
that is an enduring characteristic of our Group.
seek them.
We have therefore positioned ourselves as an employer that
offers “a world of opportunities”, other factors being a given in
Best regards,
our case. I am happy to share with you that our employer brand
has attracted more than 50 top-notch professionals from India
and across the globe. To provide cross-functional,
cross-cultural and cross-country agility and learnings, as well
as to strengthen our leadership pipeline, more than 100
colleagues from middle management to senior management Kumar Mangalam Birla

have been job-rotated.

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Table of Contents
1 Corporate Information

2 Performance Highlights

3 Management Discussion and Analysis

6 Directors' Report

10 Report on Corporate Governance

19 Auditors' Report

22 Balance Sheet

23 Profit and Loss Account

24 Schedules to the Accounts

42 Cash Flow Statement

45 Consolidated Financial Statements

65 Statement pursuant to Section 212

Subsidiary Accounts
66 Aditya Birla Telecom Limited

79 Idea Cellular Services Limited

89 Idea Cellular Infrastructure Services Limited

98 Idea Cellular Towers Infrastructure Limited

106 Swinder Singh Satara & Co. Limited

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Corporate Information
Board of Directors
Mr. Kumar Mangalam Birla Chairman
Mrs. Rajashree Birla Non-Executive Director
Mr. Arun Thiagarajan Independent Director
Mr. Gian Prakash Gupta Independent Director
Mr. Mohan Gyani Independent Director
Ms. Tarjani Vakil Independent Director
Mr. Biswajit A. Subramanian Non-Executive Director
Mr. M.R. Prasanna Non-Executive Director
Mr. Saurabh Misra Non-Executive Director
Mr. Sanjeev Aga Managing Director

Chief Financial Officer

Akshaya Moondra

Company Secretary
Pankaj Kapdeo

Auditors
Deloitte Haskins and Sells
Chartered Accountants
706, B Wing, ICC Trade Tower,
Senapati Bapat Road,
Pune - 411 016

Registered Office
Suman Tower,
Plot No. 18, Sector - 11,
Gandhinagar – 382 011, Gujarat

Corporate Office
Windsor, 5th Floor,
Off CST Road, Near Vidya Nagari,
Kalina, Santacruz (East),
Mumbai – 400 098

Registrar and Share Transfer Agent

M/s Bigshare Services Private Limited
E/2 Ansa Industrial Estate,
Saki Vihar Road, Saki Naka,
Andheri (East),
Mumbai – 400 072

Website
http://www.ideacellular.com

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Performance Highlights
at a glance

Subscriber Base Robust Growth in Top Line

24.0 67
No. Mn. Rs. Bln.
25 70

60
20
44
14.0
50

15
40 30

23
7.4 30
10
5.1 13
20
2.7
5
10

0 0
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 04 Mar 05 Mar 06 Mar 07 Mar 08

Robust Growth in EBITDA Robust Growth in Net Profit

Rs. Bln. 23 Rs. Bln.

25 12 10.4

10
20
15 8
5.0
15 6
11

4 2.1
8
0.8
10
2
4
0
5
-2 (2.0)

0 -4
Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 04 Mar 05 Mar 06 Mar 07 Mar 08

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Management Discussion and Analysis
Industry growth
The Indian mobility industry continued its fast pace during the Financial
Year (FY) 2008 with the growth rate at around 58%. The total mobility
subscribers stood at 261 million as of March 31, 2008. The key drivers
attributable to this growth remained the reducing cost of handsets
along with falling tariffs. With wireless penetration levels still at around
28%, the Indian wireless market offers an attractive growth opportunity.
The Company’s growth in terms of net subscriber additions has been
better than the Industry average and has increased its subscriber base
from 14.01 million as of end March 2007 to 24.00 million as of end
March 2008, witnessing a growth of around 71%.
Regulatory Environment
Major regulatory developments for the period are as follows:
Regulation on Domestic leased circuits
In September 2007, TRAI issued a Regulation on Domestic Leased Circuits
(DLC), a framework aimed to bring in transparency and to allow provision
of DLC/local lead in a non-discriminatory manner. These regulations
would benefit both customers and the service providers since it may
lead to greater competitiveness in this segment and allow consumers a
wider choice of service providers at more reasonable prices. For service
providers these regulations open up the possibility of meeting customers’
demand for end-to-end leased circuits by obtaining DLC or Local Lead
from other service providers if such need arises.
DoT Press Release on review of license terms & conditions
On October 19, 2007, DoT issued a press release accepting TRAI
recommendations, specifically on expansion of network using
alternative technologies by existing Unified Access Services Licensees
i.e. CDMA players eligibility to use GSM to expand and vice versa
on payment of license fees. The TRAI proposed subscriber linked
criteria for spectrum allocation was also accepted, subject to Telecom
Engineering Centre (TEC) committee clearance.
TRAI Directive on VAS consent
On October 30, 2007, TRAI issued a directive that any offer to the
customer needs to be presented in such manner so as to ensure that
the customer understands the implications of such offer by the service
provider before giving his explicit consent for the value added services
offered and such explicit consent should be verifiable with reference
to records maintained by the service provider.
DoT Press Release on Guidelines for 3G services
In November 2007, DoT issued a press release on guidelines for 3G
services specifying that 3G spectrum would be permitted in 2.1GHz
spectrum and would be granted through e-auction. Besides one
time entry fee, the successful service provider would have to pay an
additional recurring spectrum charge of 0.5% of AGR for the first three
years after allocation of spectrum post which, this recurring spectrum
charge would increase to 1% of AGR. There would be stiff roll-out
obligations. Mergers and trading/reselling of spectrum would not be
allowed in the initial five year period.
DoT Press Release on Broadband Wireless Access services
In November 2007, DoT issued a press release on guidelines for BWA
services specifying that BWA services would be permitted in 2.5 GHz
band for UAS licensees & Category A ISPs. 3G spectrum would be
permitted in 2.1 GHz spectrum. Each service provider would be
permitted 2*10 MHz spectrum in 2.5 GHz band for use in FDD/TDD
mode. BWA services would be granted through an e-auction and
base price for auction would be 25% of the value derived from 3G
e-auction. Besides the one time entry fee, the successful service
provider would have to pay an additional recurring spectrum charge
of 0.5% of AGR for first three years after allocation of spectrum, post
which this recurring spectrum charge would increase to 1% of AGR.
There would be stiff roll-out obligations. Mergers and trading/reselling
of spectrum would not be allowed in the initial five year period.
DoT Press Releases on Subscriber base criteria for spectrum
allotment
On January 9, 2008, DoT had issued a press release through WPC for
subscriber base criteria for allotment of GSM/CDMA spectrum which
was silent regarding allocation of spectrum beyond 7.2 MHz for GSM
and 5 MHz for CDMA players. The criteria given in this press release
was revised vide a press release dated January 17, 2008 wherein DoT
has issued revised criteria for spectrum allotment upto 15 MHz to GSM
players and 7.5 MHz to CDMA players.
DoT Press Release on issue of Letter of Intent
On January 10, 2008, DoT issued a press release for issue of Letter of Intent
(LoI) to all the eligible applicants who had applied for UAS Licences
upto September 25, 2007. DoT has been implementing a policy of first
come first serve basis for grant of UAS Licences under which an initial
application which is received first will be processed first and thereafter if
found eligible will be granted LoI and then whosoever complies with the
condition of LoI first, will be granted UAS Licences.
Guidelines on Active infra sharing
In April 2008, the Department of Telecommunications has formulated
guidelines on active infrastructure sharing among the Service Providers
and Infrastructure Providers. Sharing will be limited to antenna, feeder
cable, Node B, Radio Access Network (RAN) and transmission systems
only. Sharing of the allocated spectrum will not be permitted.
Curb Unsolicited Commercial Calls
TRAI on March 17, 2008 vide Amendment to the Telecom Unsolicited
Commercial Communications (UCC) Regulations, 2007 decided
to make service provider liable to pay for unsolicited commercial
communication an amount not exceeding Rs. 5,000/- for the first
non-compliance and an amount not exceeding Rs. 20,000/- in case
of second or subsequent such non-compliance. Also to discourage
the registered telemarketers from sending Unsolicited Commercial
Communications, the Telecommunication Tariff Order, 1999 is also
being amended simultaneously so as to provide for Rs. 500/- payable
as tariff for each such first unsolicited communication and Rs. 1,000/-
for every subsequent unsolicited commercial communication.
ANNUAL REPORT 2007-08 
 Phasing Out of ADC
TRAI, on March 27, 2008 vide ninth amendment to the Interconnection
Usage Charges (IUC) regulation, which deals, among other things, with
the Access Deficit Charge (ADC) payable by private service providers
to BSNL, has decided to phase out the ADC. The ADC as it exists today
has two parts. The service providers pay 0.75% of their Adjusted
Gross Revenue (AGR) and the International Long Distance Service
Providers also pay Re. 1 per minute on international incoming calls to
BSNL respectively. Through the instant amendment the Authority has
decided to phase out ADC as a percentage of AGR from April 1, 2008.
Thus, all domestic calls have been made free from the incidence of
ADC with effect from April 1, 2008. The component on the international
incoming calls stands reduced to a rate of Rs. 0.50 (paise fifty only) for
the period from April 1, 2008 to September 30, 2008, subsequent to
which this component of ADC would also be phased out. BSNL to get
a subsidy of Rs. 2,000 crore per annum from the USO fund for a period
of 3 years from April 1, 2008.
Discussion on Financial and Operational Performance
Subscriber Base
As on March 31, 2008, the Company had an aggregate of 24.00 million
GSM subscribers representing an increase of 71% compared to the
base of 14.01 million as on March 31, 2007.
Service and Sales Revenues
During the year ended March 31, 2008, service revenues grew by
53.6% to Rs. 67,374 million from Rs. 43,873 million for the year ended
March 31, 2007. Value Added Services accounted for about 8.2% of
the service revenues for the year, and revenues from National Long
Distance services accounted for approximately Rs. 3,537 million, which
stood eliminated during the course of inter segment consolidation.
Other Income
Other income decreased by 16.3% from Rs. 209 million for FY 2007 to
Rs. 175 million for the FY 2008.
Operating Expenses
During the year ended March 31, 2008, the Company incurred
Operating Expenses of Rs. 44,662 million representing 66.3% of
service revenues. The chief contributors to the total Operating Expense
of 66.3% were, Roaming and Access Charges 16.8%, Subscriber
Acquisition and Servicing Expenses 9.6%, Network Operating
Expenses 15.5%, Personnel Expenditure 5.1%, License and WPC
charges 10.2%, Advertisement & Business Promotion expenditure
4.8% and Administration and Other expenditure 4.3%.
Profit before Interest, Depreciation and Amortisation
For the year ended March 31, 2008, the Company had a Profit before
Interest, Depreciation and Amortisation of Rs. 22,713 million; a growth of
52.8% compared to the year ended March 31, 2007. The operating profit
margins for 2007-08 and 2006-07 stood at 33.7% & 33.9% respectively.
Depreciation, Amortisation and Finance Charges
During the year ended March 31, 2008, the Company had depreciation
& amortisation expenses of Rs. 8,768 million. While the net finance
and treasury charges decreased by 9% due to increase in treasury
 IDEA CELLULAR LIMITED
income vis-à-vis 2006-07, finance charges on borrowings during the
year was Rs. 4,592 million against Rs. 3,293 million for the year ended
March 31, 2007. This increase is attributable to increased borrowings
in lieu of the aggressive capital expenditure by the Company as well as
the hardening of the domestic interest rates.
Profits and Taxes
The profit before tax for the year was Rs. 11,169 million, an increase
of 119.4%, as compared to the year ended March 31, 2007. The tax
charge for the current year is at Rs. 725 million mainly attributable to
the Deferred Tax Liability. The net profit for the year ended March 31,
2008 was Rs. 10,444 million resulting in a net profit margin of 15.5%.
The cash profit from operations for the year ended March 31, 2008
was Rs. 19,863 million, an increase of 69.1%, as compared to the year
ended March 31, 2007.
Capital Expenditure
During the year ended March 31, 2008, the Company incurred capital
expenditure of Rs. 51,209 million.
Balance Sheet
The carried forward closing debit balance of the Profit and Loss
Account is Rs. 14,065 million as at March 31, 2008 after taking into
account the net profits earned by the Company during FY 2008. The
Gross Tangible Block stood at Rs. 110,120 million and Net Tangible Block
including Capital Work in Progress (CWIP) stood at Rs. 88,293 million as
at March 31, 2008. Unamortised License Fee was Rs. 17,303 million as
at the March 31, 2008. The decrease in net current assets amounting
to Rs. 13,694 million is largely due to the decrease in deposits of IPO
proceeds along with increase in creditors for Capital Expenditure.
Human Resources
The Company through its participative work environment, skill development
activities and values of commitment, integrity, passion, seamlessness and
speed ensures a healthy relationship with its employees. During the year,
it has also undertaken sharing of value creation by granting employee
stock options to eligible employees. The findings of Organisation Health
Study (OHS) conducted yearly are analysed, and concern areas suitably
addressed. The employee strength grew by 31% during FY 2008 and
stood at 6,107 as on March 31, 2008.
Risk Management
The Risk management framework of the Company ensures compliance
with the requirements of Clause 49 of the Listing Agreement. The
framework establishes risk management across all service areas and
functions of the Company and has in place, procedures to inform the
Board Members about risk assessment and minimization process. These
processes are periodically reviewed to ensure that the management of
the Company controls risks through a proper defined framework. The
various risks including the risks associated with Economy, Regulations,
Competition, Foreign Exchange, Interest rate etc. are monitored and
managed in an effective manner.
Internal Control Systems
The Company has appropriate internal control system for business
processes, with regards to efficiency of operations, financial reporting,
compliance with applicable laws and regulations etc. Clearly defined
roles and responsibilities down the line for all managerial positions
have been institutionalized. All operating parameters are monitored
and controlled. Regular internal audits and checks ensure that
responsibilities are executed effectively. The audit committee of the
Board of Directors actively reviews the adequacy and effectiveness of
internal control system and suggests improvement for strengthening
them, from time to time.
Opportunities, Risks, Concerns and Threats
The Indian telecommunication industry is poised to continue its
growth backed by strong growth in GDP. The Indian wireless arena
has been acknowledged as the fastest growing and one of the most
attractive markets in the world today. Being still an under-penetrated
market, the potential is vast. The Company is well poised to exploit
this opportunity.
In a growing competitive environment, churn continues to be a threat
as well as an opportunity with respect to changes in market share.
The Company operates in an Industry which is highly competitive and
faces intense competition from other operators including some of the
state-owned enterprises which are controlled by the Government and
thus enjoy certain advantages. With the issue of 120 new UAS Licences
the Company may face additional competition from new players.
Competition from alternative or new mobile technologies cannot be
ruled out. However, the Company being an incumbent player in most
of the important service areas it operates in, is poised to withstand the
additional competition.
The Company requires certain approvals, licenses, registrations and
permissions for operating its business. In addition, regulators may impose
conditions in relation to the grant of licenses and approvals and any such
requirements could have a material adverse effect on Company’s business.
The Company however is confident that the regulatory changes will ensure
a level playing field for all service providers.
The Company’s business is dependent on a limited number of vendors
to supply critical network and other equipment and services. Besides
this, its ability to provide a quality mobile network and expanding the
areas of operations is also dependent on the Spectrum allocation.
To ensure smooth supply of network equipments, the Company has
entered into medium term contracts with equipment providers.
The Company believes that its success is substantially dependent
on the expertise and skill of its managerial personnel and places
considerable emphasis on development of leadership skills and
building employee motivation. As a retention strategy, an Employees’
Stock Option Scheme has been implemented by the Company.
Outlook
We believe the mobile telecom sector is poised for continued high growth,
and the Company is attractively placed to benefit from this. We aim to
strengthen our operations in existing service areas and expand to new
service areas. The Company aims to maintain and build upon its strong
brand identity and the quality services it provides to its subscribers.
Cautionary Statement
Statements in the management discussion and analysis describing
the Company’s objectives, projections, estimates, expectations may
be “forward-looking statement” within the meaning of applicable
securities laws and regulations. Actual results could differ materially
from those expressed on implied. Important factors that could make a
difference to the Company’s operations include economic conditions
affecting demand/supply and price conditions in the domestic
markets in which the Company operates, changes in the Government
Regulations, tax laws and other statutes and incidental factors.
ANNUAL REPORT 2007-08 
 Directors’ Report
Dear Shareholders, Company has incurred a capex of Rs. 54,994 million and had cash
outflows of Rs. 55,726 million during FY 2008.
The Directors are pleased to present their Thirteenth Annual Report
together with the Audited Accounts of your Company for the financial Employee Stock Option Scheme
year ended March 31, 2008.
Shareholders of the Company had approved the Employee Stock
Financial results Option Scheme – 2006 (“ESOS – 2006”) by way of postal ballot in the
month of November 2007. Further, the ESOS Compensation Committee
Financial highlights of the consolidated Statement of Operations of
granted 19,931,000 options to the eligible employees of the Company
your Company for the year 2007-08 are as under:
on December 31, 2007. Each option is convertible into one Equity
(Rs. in Million) Share of the Company upon vesting. These options will vest in 4 equal
Particulars 2007-08 2006-07 annual instalments after one year of the grant and shall be exercisable
within a period of 5 years from the date of the vesting.
Income from Services 67,200 43,664
Other Income 174 209 Details of the options issued under ESOS – 2006, as also the disclosures
in compliance with Clause 12 of Securities and Exchange Board of
Total Revenue 67,374 43,873
India (Employees Stock Option Scheme) Guidelines 1999, are set out
Operating Expenses 44,682 29,011 in the Annexure ‘A’ to this Report.
EBITDA 22,692 14,862
Human Resources
Depreciation and Amortisation 8,768 6,718
Your Company continuously invests in fostering people development,
EBIT 13,924 8,144
identifying and grooming management talent and has the culture of
Interest and Financing charges 2,776 3,051 harnessing employees’ potential to the maximum.
EBT 11,148 5,092
Significant corporate developments
Taxes 725 70
• In October 2007, your Company entered into a Long Term
Net Profit after Tax 10,423 5,022
Financing Arrangement for an additional amount of Rs. 32,000
Balance brought forward from
million with the IDBI led consortium. The facility is mainly
previous year (24,502) (17,088)
for capital expenditure requirement for Company’s existing
Accumulated Losses acquired on
operations and launch of services in Mumbai and Bihar.
amalgamation of subsidiaries &
Leave provisions for earlier years due • In February 2008, your Company has received the Unified Access
to revised AS-15 – (12,437) Services Licences for the telecom service areas of Punjab,
Cumulative Losses (14,079) (24,502) Karnataka, Tamilnadu including Chennai, North East, West Bengal,
Kolkatta, Jammu & Kashmir, Orissa and Assam. This makes your
Overview Company a Pan India License holder.
During the year ended March 31, 2008, consolidated revenue grew by • In December 2007, your Company announced the formation of
54% to Rs. 67,374 million from Rs. 43,873 million for the year ended Indus Towers, a joint venture with Bharti and Vodafone to provide
March 31, 2007. Your Company registered a net profit of Rs. 10,423 passive infrastructure services in India to all operators on a non
million against a net profit of Rs. 5,022 million in 2006-07. discretionary basis. Your Company will hold around 16% stake in
Indus Towers.
Dividend
New products and initiatives
As your Company is yet to recoup the accumulated losses, your Directors
have not recommended any payment of dividend for the year. Your Company has made extensive progress on the marketing front
by introducing various unique and innovative products and services
Review of Consolidated Operations across all service areas of operation. Some of the major initiatives are:
Your Company recorded an increase of 71% in its subscriber base • Your Company has become part of 'Asia Mobility Initiative’ (AMI)
from 14.01 million as of March 31, 2007 to 24.00 million as of March Alliance - Asia’s premier regional international roaming alliance.
31, 2008. Your Company has increased its market share from 8.6% in This alliance, will give IDEA customers an assured and seamless
2006-07 to 9.4% in 2007-08 on a national basis. The total Minutes roaming experience along with great value in terms of support
of Usage increased from 46 billion minutes in 2006-07 to 86 billion for best practices in the global telecom industry and access to
minutes in 2007-08, showing an increase of 86%. Your Company products and services across all the represented countries.
has expanded its network from 4432 cities and towns at the end of
FY 2006-07 to 13308 cities and towns at the end of FY 2007-08. • Your Company has tied up with Southern Biotechnologies Ltd. for
provision of bio-diesel for operating IDEA's gensets at all towers
Capital Expenditure in the Andhra Pradesh region. The bio-diesel thus procured will
Your Company continues its aggressive pursuit of network expansion be blended in a ratio of 2:8 with ordinary petro-refinery diesel
along with an improved quality experience to the customers. Your to yield a 20% bio-diesel blend. Usage of this 20% blended
bio-diesel can reduce pollution emissions by up to 40%, making

 IDEA CELLULAR LIMITED

 your Company the first telecom operator in the country to adopt Management, confirm that:
this environment friendly fuel.
a) in the preparation of the annual accounts, the applicable
• Your Company has launched 'Idea Radio’, a truly differentiated accounting standards have been followed and that there are no
mobile music service for its customers in collaboration with material departures;
Geodesic, an innovator in communication, collaboration and
b) they have, in the selection of the accounting policies consulted
entertainment applications on mobile and Internet platforms. For
the Statutory Auditors and have applied them consistently,
this service, Geodesic has extended its technological expertise
and, made judgements and estimates that are reasonable and
to your Company, to develop and support the customized
prudent, so as to give a true and fair view of the state of affairs of
mobile internet radio service that is available to more than 24
the Company at the end of the financial year and of the profit of
million IDEA subscribers.
the Company for that period;
Subsidiaries
c) they have taken proper and sufficient care, to the best of
Three new subsidiaries have been formed during FY 2007-08 namely, their knowledge and ability, for the maintenance of adequate
Idea Cellular Services Limited (ICSL), Idea Cellular Infrastructure Services accounting records, in accordance, with the provisions of the
Limited (ICISL) and Idea Cellular Tower Infrastructure Limited (ICTIL). Companies Act, 1956, for safeguarding the assets of the Company
ICSL and ICISL are wholly owned subsidiaries of Idea Cellular Limited and for preventing and detecting fraud and other irregularities;
whereas ICTIL is wholly owned subsidiary of ICISL.
d) they have prepared the annual accounts on a going concern
The main purpose of ICSL is to provide manpower services to Idea basis.
Cellular and ICISL & ICTIL are meant for hiving off Idea’s passive
Board of Directors
infrastructure network.
In accordance with the Articles of Association of your Company,
The statement of your Company’s interest in the above subsidiaries
Mrs. Rajashree Birla, Mr. M.R. Prasanna and Mr. Arun Thiagarajan retire
as at March 31, 2008, prepared in accordance with the provisions of
from office by rotation, and being eligible, offer themselves for
Section 212 (3) of the said Act, is attached to the Balance Sheet.
re-appointment at the ensuing Annual General Meeting of the
Fixed deposits Company. Brief resumes of the Directors proposed to be re-appointed
as required under Clause 49 of the Listing Agreement are provided in
Your Company does not accept or hold any deposits and, as such, no
the Notice of the Annual General Meeting forming part of the Annual
amount of principal or interest on fixed deposits was outstanding on
Report.
the date of the Balance Sheet.
Auditors
Corporate Governance
M/s. Deloitte Haskins and Sells, Chartered Accountants retire as
Your Directors reaffirm their continued commitment to good corporate
Statutory Auditors of the Company at the conclusion of the ensuing
governance practices. Your Company adheres to all major stipulations
Annual General Meeting. The Statutory Auditors’ have confirmed their
laid down in this regard, as provided in Clause 49 of the Listing
eligibility and willingness to accept the office on re-appointment.
Agreement with the Stock Exchanges which relates to Corporate
Governance. A detailed report on Corporate Governance, together Auditors’ Report
with, a certificate from Statutory Auditors forms part of this report.
The Board has duly reviewed the Statutory Auditors’ report on the
Conservation of Energy, Technology Absorption, Foreign accounts. With regard to Note 4 of the Auditors’ Report, it is being
Exchange Earnings & Outgo clarified that the procedural amendment to the license agreements
incorporting the name of the Company in place of the erstwhile Idea
The particulars as required to be disclosed pursuant to Section 217(1)
Mobile Communications Limited, BTA Cellcom Limited and Idea
(e) of the Companies Act, 1956 read with the Companies (Disclosures
Telecommunications Limited, following the amalgamation, will be
of Particulars in the Report of Board of Directors) Rules, 1988, are given
received shortly from Department of Telecommunications.
in the Annexure forming part of this Report.
Acknowledgements
Particulars of Employees
Your Directors wish to convey their appreciation to all subscribers,
The particulars of employees as required under Section 217(2A) of the
promoters, lenders, trading partners, suppliers and the Government
Companies Act, 1956, and the Companies (Particulars of Employees)
for their invaluable support and look forward to continued support in
Rules, 1975, as amended, forms part of this report. However, in
the future. Your Directors wish to place on record their appreciation to
pursuance of Section 219(1)(b)(iv) of the Companies Act, 1956, this
employees at all levels for their hard work, dedication and commitment,
report is being sent to all the shareholders of the Company excluding
which has enabled the Company to march ahead.
the aforesaid information and the said particulars are made available
at the registered office of the Company. The members interested in
obtaining such particulars may write to the Company Secretary at the
For and on behalf of the Board
registered office of the Company.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Date: April 24, 2008 Kumar Mangalam Birla
Directors, based on the representations received from the Operating Place: Mumbai Chairman

ANNUAL REPORT 2007-08 

 Annexure to the Directors’ Report
Particulars pursuant to the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rule 1988 are furnished hereunder:

A. CONSERVATION OF ENERGY : Not Applicable

B. RESEARCH & DEVELOPMENT (R & D) : Not Applicable
1. Specific areas in which R & D is carried out by the Company : Not Applicable
2. Benefits derived as a result of the above R & D : Not applicable
3. Future Plan of action : Not Applicable
4. Expenditure on R&D:
a) Capital : Nil
b) Recurring : Nil
c) Total : Nil
d) Total R & D expenditure as percentage of total turnover : Nil
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
1. Efforts in brief towards technology absorption, adaptation and innovation : Development of a skilled team of engineers in the area of radio
engineering, installation of base station and operation of mobile
telecom services.
2. Benefits derived as a result of the above efforts : Cost of installation of base station reduced due to better network
planning and designing. Achieved better coverage and high
quality of reception.
3. Particulars of imported technology in the last five years
a) Technology imported : Not applicable
b) Year of import : Not applicable
c) Has the technology been fully absorbed? : Not applicable
If not fully absorbed areas where this has not taken place, reasons
thereof and future plans of action
4. Foreign exchange earnings and outgo : Earnings: Rs. 790.26 million
(Outgo includes CIF value of imports) : Outgo: Rs. 16,342.50 million

For and on behalf of the Board

Kumar Mangalam Birla

Chairman
Date: April 24, 2008
Place: Mumbai

 IDEA CELLULAR LIMITED

Annexure A to the Directors’ Report
Disclosure pursuant to the provisions of the Securities and Exchange Board of India (Employee Stock Option Scheme) Guidelines, 1999

Nature of disclosure Particulars

a) Options granted 19,931,000
b) The pricing formula The exercise price was determined by averaging the daily closing
price of the Company’s equity shares during 7 days immediately
preceding the date of grant and discounting it by 15%.
Exercise price : Rs. 112.57 per option
c) Options vested NIL
d) Options exercised NIL
e) The total number of shares arising as a result of exercise of NIL
options
f) Options lapsed 264,000
g) Variation of terms of options NIL
h) Money realized by exercise of options NIL
i) Total number of options in force 19,667,000
j) Employee wise details of options granted:
i) Senior managerial personnel Mr. Sanjeev Aga (Managing Director) : 1,712,000
ii) Any other employee who received a grant in any one year NIL
of option amounting to 5% or more of options granted during
that year
iii) Identified employees who were granted option, during any NIL
one year, equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the
Company at the time of grant
k) Diluted Earnings Per Share N.A.
l) Difference between the employee compensation cost, Rs. 100.93 million
computed using the intrinsic value of the stock options and the
employee compensation cost that shall have been recognised
if the fair value of the options were used
The impact of this difference on profits and on EPS of the The effect of adopting the fair value on the net income and earnings
company per share for 2007-08 is as presented below:
Particulars Rs. in Million
Net Income 10,443.62
Add: Intrinsic value compensation cost 37.59
Less: Fair Value Compensation Cost 138.52
Adjusted Net Income 10,342.69
Earnings Per share (Rs.) Basic Diluted
As reported 3.96 3.96
As adjusted 3.96 3.92
m) Weighted-average exercise prices and weighted-average fair Weighted average exercise price of option : Rs. 112.57
values of options whose exercise price is less than the market Weighted average fair value of option : Rs. 68.99
price of the stock on the grant date
n) A description of the method and significant assumptions used
during the year to estimate the fair values of options, including the
following weighted-average information:
(i) risk-free interest rate (%) 7.78
(ii) expected life (No. of years) 6 years 6 months
(iii) expected volatility (%) 40.00
(iv) dividend yield (%) Nil
(v) the price of the underlying share in market at the time of option Rs. 139.10
grant

ANNUAL REPORT 2007-08 

 Corporate Governance Report
Governance Philosophy
The Aditya Birla Group is committed to the adoption of best
governance practices and its adherence in the true spirit, at all times.
Our governance practices are self-driven, reflecting the culture of the
trusteeship that is deeply ingrained in our value system and reflected in
our strategic thought process. The principles of Corporate Governance
in Idea Cellular Limited are based on five basic tenets:
• Board accountability to the Company and shareholders;
• Strategic guidance and effective monitoring by the Board;
• Protection of minority interests and rights;
• Equitable treatment of all shareholders;
• Superior transparency and timely disclosure.
In line with this philosophy, Idea Cellular Limited is striving for
excellence through adoption of best governance and disclosure
practices. Your Company is fully compliant with all the provisions of
Clause 49 of the Listing Agreement of the Stock Exchanges. The details
of the compliance are as follows:
1. BOARD OF DIRECTORS
Composition of the Board
The Board of your Company consisted of 10 Directors as on
March 31, 2008, comprising of a Non-Executive Chairman, a Managing
Director, 4 Independent Directors and 4 Non-Executive Directors
with considerable experience in their respective fields. The Board is
headed by a Non-Executive Chairman and the number of Independent
Directors exceeds one-third of the total strength of the Board, the
composition of the Board is in conformity with Clause 49 of the Listing
Agreement entered with the stock exchanges.
None of the Directors on the Board is a Member on more than 10
Committees or a Chairman of more than 5 Committees (as specified in
Clause 49), across all the companies in which he/she is a Director. The
necessary disclosures regarding committee positions have been made
by the Directors.
The composition of the Board of Directors as on March 31, 2008 is as
follows:

Name of Director Category No. of Outside Directorship(s) Held1 Outside Committee Positions Held2
Public Private Member Chairman/
Chairperson
Mr. Kumar Mangalam Birla Non-Executive 10 12 – –
Mrs. Rajashree Birla Non-Executive 6 12 – –
Mr. M.R. Prasanna Non-Executive 9 4 – –
Mr. Saurabh Misra Non-Executive 2 1 – –
Mr. Biswajit A. Subramanian Non-Executive – – – –
Mr. Arun Thiagarajan Independent 11 4 6 1
Mr. G.P. Gupta Independent 12 1 5 4
Mr. Mohan Gyani Independent – – – –
Ms. Tarjani Vakil Independent 5 1 1 4
Mr. Sanjeev Aga Managing Director 7 – – –
1. Excluding Directorship in foreign companies and companies under Section 25 of the Companies Act, 1956.
2. Only two Committees viz. Audit Committee and Shareholders’/Investors’ Grievance Committee are considered.

Non-Executive Directors’ Compensation and Disclosure The attendance of Directors at Board Meetings held and at the last
Annual General Meeting is as under:
Apart from sitting fees that are paid to the non-executive directors
including independent directors for attending Board/Committee Name of Director No. of Board Meetings Attended
meetings, no other fees/commission were paid during the year. held during the tenure Last AGM
No significant material transactions have been made with non-executive Held Attended
Directors vis-à-vis your Company.
Mr. Kumar Mangalam Birla 6 4 No
Board Meetings and Procedure Mrs. Rajashree Birla 6 5 No
The Company has a well-defined process of placing vital and Mr. M.R. Prasanna 6 5 No
sufficient information before the Board pertaining to the matters to Mr. Saurabh Misra 6 5 No
be considered at each Board and Committee meetings, to enable the
Mr. Biswajit A. Subramanian 6 4 No
Board to discharge its responsibilities effectively.
Mr. Arun Thiagarajan 6 4 No
The Company Secretary in consultation with the concerned person in
the senior management finalises the agenda, which is distributed to Mr. G.P. Gupta 6 6 Yes
the Board members in advance of the meetings. Mr. Mohan Gyani 6 1 No

The Board Meetings are generally held at least once in a quarter. During Ms. Tarjani Vakil 6 5 No
the year 2007-08, the Board met six times on April 25, 2007, July 24, Mr. Sanjeev Aga 6 6 Yes
2007, September 10, 2007, October 11, 2007, October 25, 2007 and
January 19, 2008. The time gap between two meetings was not more
than four months. The Board Meetings are generally held in Mumbai.

10 I D E A C E L L U L A R L I M I T E D
Code of Conduct:
The Board of Directors play an important role in ensuring good
governance and have laid down the Code of Conduct for all Board
members and senior management of the Company. The code is also
posted on the website of the company (www.ideacellular.com). All
Board members and senior management have confirmed compliance
to the Code of Conduct. A declaration signed by the Managing Director
regarding affirmation of the compliance with the Code of Conduct by
the Board and senior management of the Company is appended at the
end of this report.
2. COMMITTEES OF THE BOARD
A. Audit Committee
Composition, Meetings and Attendance
The Company has an Audit Committee at the Board level with the
powers and the role that are in accordance with Clause 49 of the
Listing Agreement and Section 292A of the Companies Act, 1956. The
Committee acts as a link between the Management, the Statutory and
Internal Auditors and the Board of Directors and oversees the financial
reporting process. All the members of the Audit Committee including
the Chairman are Independent Directors. The majority of the Audit
Committee members have accounting and financial management
expertise. The Managing Director and the Chief Financial Officer of
the Company are permanent invitees of the Audit Committee and
representatives of the Statutory Auditors and Internal Auditors of
the Company are also invited to the Audit Committee Meetings. The
Company Secretary acts as Secretary to the Committee.
During the year 2007-08, the Audit Committee met six times on
April 25, 2007, July 24, 2007, October 11, 2007, October 25, 2007,
January 19, 2008 and February 29, 2008.
The composition of the Audit Committee as on March 31, 2008 and the
attendance of the members at the meetings held are as follows:
Name of Director Category No. of No. of meetings
Meetings held attended
during the
tenure
Mr. G.P. Gupta Independent 6 6
(Chairman)
Mr. Arun Thiagarajan Independent 6 5
Ms. Tarjani Vakil Independent 6 5
Terms of reference
The broad terms of reference of Audit Committee include the following
as mandated in Clause 49 of the Listing Agreement and Section 292A
of the Companies Act, 1956:
a) Oversight of the Company’s financial reporting process and the
disclosure of its financial information to ensure that the financial
statement is correct, sufficient and credible;
b) Recommending to the Board, the appointment, re-appointment
and if required, the removal of external auditor, determination of
audit fee and also approval of payment for any other services;
c) Reviewing with the management, the annual financial statements
before submission to the Board, with particular reference to:
• Changes in accounting policies and practices;
• Major accounting entries based on exercise of judgement
by the management;
• Qualifications in Draft Audit Report;
• Significant adjustments made in financial statements arising
out of audit findings;
• The Going Concern assumption;
• Compliance with Accounting Standards;
• Compliance with listing and other legal requirements
concerning financial statements;
• Any related party transactions i.e. transactions of the Company
of material nature, with promoters or the management, their
subsidiaries or relatives etc. that may have potential conflict
with the interests of Company at large;
• Matters required to be included in the Directors’
Responsibility Statement, in terms of Section 217 (2AA) of
the Companies Act, 1956.
d) Reviewing the adequacy of internal audit function, including the
structure of the internal audit department, staffing and seniority
of the official heading the department, reporting structure, cover-
age and frequency of internal audit;
e) Discussion with internal auditors on any significant findings and
follow up thereon;
f) Reviewing the findings of any internal investigations by the
internal auditors into matters where there is suspected fraud or
irregularity or a failure of internal control systems of a material
nature and reporting the matter to the Board;
g) Reviewing with the management, the performance of external and
internal auditors, and the adequacy of internal control systems;
h) Discussion with external auditors before the audit commences
on the nature and scope of audit as well as having post-audit
discussions to ascertain any area of concern;
i) Reviewing with the management, the quarterly financial statements
before submission to the Board for approval;
j) Reviewing the reasons for substantial defaults in the payment
to the depositors, debenture holders, shareholders (in case of
non-payment of declared dividends) and creditors;
k) Review of Management Discussion and Analysis of financial
condition and results of operations;
l) Review of Management Letters/Letters of Internal Control
Weaknesses issued by the Statutory/Internal Auditors;
m) Reviewing of functioning of ‘Whistle Blower Mechanism’ in case
the same exists; and
n) Carrying out any other function as and when referred by the Board.
B. Remuneration Committee
The Company has constituted a Remuneration Committee
comprising of three Non-Executive Directors, of which two are
Independent Directors. Presently, the Committee comprises
of Mr. Arun Thiagarajan, Ms. Tarjani Vakil and Mr. M.R. Prasanna.
During the year, the Remuneration Committee met once on September
10, 2007 and all the three members attended the said meeting.
Terms of reference
The broad terms of reference of Remuneration Committee include the
following:
a) Review of remuneration payable to Directors and senior
officials of the Company;
b) Reviewing and advising the Board over the remuneration
policies of the Company generally; and
A N N U A L R E P O R T 2 0 0 7 - 0 8 11
 c) Such other matters as may be decided by the Board from the Committee comprises of Mr. M.R. Prasanna, Mr. Saurabh Misra and
time to time. Mr. Sanjeev Aga.
C. Shareholders’/Investors’ Grievance Committee During the year, five meetings of the Finance Committee were held.
The Shareholders’/Investors’ Grievance Committee oversees the F. IPO Committee
redressal of shareholders’/investors’ complaints/grievances like transfer
The IPO Committee of the Company was constituted to give effect to
of shares, non receipt of annual report, dividend payment, issue of
the Initial Public Offering of the Company. The Committee comprises
duplicate share certificates, transmission of shares and other related
of three Directors of whom two are Non-Executive Directors. Presently,
complaints.
the Committee comprises of Mr. M.R. Prasanna, Mr. Saurabh Misra and
The Committee also monitors dematerialisation, rematerialisation, splitting Mr. Sanjeev Aga.
and consolidation of shares and debentures issued by the Company.
During the year one meeting of the IPO Committee was held.
During the year 2007-08, the Shareholders’/Investors’ Grievance
3. SUBSIDIARY COMPANIES
Committee met three times on October 19, 2007, January 21, 2008
and March 29, 2008. The Company does not have any material non-listed Indian subsidiary,
whose turnover or net worth (i.e. paid-up capital and free reserves)
The composition of the Shareholders’/Investors’ Grievance Committee
exceeds 20% of the consolidated turnover or net worth respectively,
as on March 31, 2008 and the attendance of the members at the
of the Company.
meetings held are as follows:
4. DISCLOSURES
Name of Director Category No. of Meet- No. of meetings
ings held attended a) Disclosure on materially significant related party
during the transactions
tenure The related party transactions are placed before Audit
Mr. Sanjeev Aga Executive 3 3 Committee on a quarterly basis. For the financial year
Mr. Saurabh Misra Non-Executive 3 3 ended March 31, 2008, there were no transactions of
material nature with related parties which are not in the
Mr. M.R. Prasanna Non-Executive 3 2
normal course of business. The related party transactions
Compliance Officer have been disclosed under Note 27 of Schedule 22B of the
Balance Sheet forming part of the Annual Report.
Mr. Pankaj Kapdeo, General Manager (Legal) & Company Secretary, acts
as the Compliance Officer of the Company. The Compliance Officer b) Disclosure of Accounting Treatment
can be contacted at: There is no deviation in following the treatments prescribed
“Windsor”, 5th Floor, in any Accounting Standard in preparation of financial
Off CST Road, Near Vidya Nagari, statements of the Company during the year.
Kalina, Santacruz (E), c) Details of non-compliance with regard to the Capital
Mumbai – 400 098 Market
Tel: +91-22-66820106 The Company has complied with all the requirements of the
Fax: +91-22-66820499 stock exchanges as well as the regulations and guidelines
Email: shs@idea.adityabirla.com prescribed by the Securities and Exchange Board of India.
D. Compensation Committee There were no penalties or strictures imposed on the
A Compensation Committee known as (“ESOS Compensation Company by stock exchanges or SEBI, or, any statutory
Committee”) has been constituted in accordance with SEBI (Employee authority on any matter related to capital markets during the
Stock Option Scheme and Employee Stock Purchase Scheme) last three years.
Guidelines, 1999 for formulation of an Employee Stock Option d) Board Disclosures - Risk Management
Scheme. The Committee oversees the implementation of the Scheme, The Company has an integrated approach to managing the
its administration, supervision, and formulating detailed terms and risks inherent in the various aspects of business. The Audit
conditions in accordance with SEBI Guidelines. Committee of the Board is regularly informed about the
The Compensation Committee comprises three Non-Executive business risks and steps taken to mitigate the same.
Directors, of whom two members are Independent Directors of the e) Proceeds from Public Issue
Company. Presently, the Committee comprises of Mr. Kumar Mangalam
Birla, Mr. Arun Thiagarajan and Ms. Tarjani Vakil. The Company discloses to the Audit Committee, the uses/
applications of proceeds/funds raised from Initial Public
During the year, the Committee met once on September 10, 2007 and Offering as part of quarterly review of financial results.
all the three members attended the said meeting.
The status of utilisation of IPO proceeds upto March 31,
E. Finance Committee 2008 has been disclosed under Note 2 of Schedule 22B
The Company has constituted a Finance Committee to approve matters of the Balance Sheet forming part of the Annual Report and
relating to availing of financial facilities. The Committee comprises of a detailed statement has been placed before the Audit
three Directors of whom two are Non-Executive Directors. Presently, Committee meeting held on April 24, 2008.

12 I D E A C E L L U L A R L I M I T E D
 f) Remuneration of Directors
i) Remuneration paid/payable to the Executive Director for the financial year ended March 31, 2008 is given as under:
The remuneration package of Executive Director i.e. Mr. Sanjeev Aga, Managing Director comprises of a fixed salary component and a
performance linked bonus. The remuneration package as recommended by the Board has been approved by the shareholders in the Annual
General Meeting held on December 12, 2007.

Executive Director Relationship Business relationship Remuneration during 2007-08

with other with the Company, if All elements of Fixed component Service Stock Option
Directors any remuneration & performance Contract, details, if any
package i.e. linked incentives, notice
salary, benefits, along with period,
bonuses, performance severance fee
pension etc. criteria
Mr. Sanjeev Aga _ Managing Director Rs. 40.64 Million See note (a) See note (b) See note (c)

a) Mr. Sanjeev Aga was paid a sum of Rs. 14.40 Million towards performance incentive linked to achievement of targets.
b) The appointment is for a period of five years w.e.f. November 1, 2006. The appointment is subject to termination by three months notice on
either side. No severance fees is payable to the Managing Director.
c) During the year 2007-08, the Company granted 17,12,000 Stock Options at an exercise price of Rs. 112.57 per option to the Managing
Director. Each option is convertible into one Equity Share of the Company upon vesting. These options will vest in 4 equal annual instalments
after one year of the grant and shall be exercisable within a period of 5 years from the date of the vesting.
ii) Remuneration paid/payable to the Non-Executive Director for subsidiaries or relatives etc., that may have a potential conflict
the financial year ended March 31, 2008 is given as under: with the interests of the Company.
The Non-Executive Directors are not paid any remuneration except 6. Shareholders
sitting fees for meeting of the Board and Committees, if any, i) Disclosure regarding appointment or re-appointment
attended by them. The sitting fees, as determined by the Board, of Directors
are presently Rs. 20,000/- and Rs. 10,000/- for each meeting of the
Board and other Board Committees respectively. The details of the The Company has provided all the details of the Directors
sitting fees paid to Non-Executive Directors are as under: seeking appointment or re-appointment in the AGM Notice
enclosed with this Annual Report.
Name of the Non-Executive Director Sitting Fees (Rs.) ii) Communication to Shareholders
Mr. Kumar Mangalam Birla 90,000
The Company’s quarterly financial results, investor updates,
Mrs. Rajashree Birla 100,000 official news releases and other general information about
Mr. M.R. Prasanna 120,000 the Company are posted on the Company’s website (www.
Mr. Saurabh Misra* – ideacellular.com). The quarterly financial results of the
Mr. Biswajit A. Subramanian 80,000 Company are generally published in The Economic Times
and Western Times (a regional daily published from Gujarat).
Mr. Arun Thiagarajan 150,000
At the end of each quarter, we organise an earning call with
Mr. G.P. Gupta 180,000 analysts and investors and the transcripts are posted on the
Mr. Mohan Gyani 20,000 website thereafter.
Ms. Tarjani Vakil 170,000 iii) General Body Meetings
* Mr. Saurabh Misra has expressed his unwillingness to accept The last three Annual General Meetings were held as under:
sitting fees. He is not being paid any sitting fees for attending the
meeting of Board of Directors of the Company. Financial Date Time Venue
Year
iii) Details of Shareholding of Directors are given as under:
2006-07 December 12, 2007 2:00 p.m.Emerald Hall, Haveli Arcade,
Hotel Haveli, Sector 11,
Name of the Director No. of Equity Shares
Gandhinagar - 382 011
Mr. Kumar Mangalam Birla 233,333 2005-06 September 30, 2006 11:30 a.m. Suman Tower, Plot No. 18,
Mr. M.R. Prasanna 1,873 Sector 11,
Gandhinagar - 382 011
Mr. G.P. Gupta 4,192
2004-05 September 22, 2005 11:30 a.m. Suman Tower, Plot No. 18,
Ms. Tarjani Vakil 147 Sector 11,
Mr. Sanjeev Aga 142,868 Gandhinagar – 382 011
Special Resolutions passed at the last 3 AGMs
5. Management
a) 2006-07 – Annual General Meeting held on December 12, 2007
A detailed Management Discussion and Analysis forms part of
the Directors’ Report. • Increase in Remuneration of Managing Director
• Consider enhancement of Authorised Share Capital
No material transaction has been entered into by the Company
• Proposal to amend the Articles of Association of the
with the Promoters, Directors or the Management, their
Company
A N N U A L R E P O R T 2 0 0 7 - 0 8 13
 b) 2005-06 – Annual General Meeting held on September 30, 2006 c) 2004-05 – Annual General Meeting held on September 22, 2005
No Special Resolution was passed • Consider fresh issue of shares
• Consider enhancement of Authorised Share Capital
iv) Special Resolution through Postal Ballot
During the year, consent of the members of the Company was sought by Special Resolution, through Postal Ballot Notice dated
September 10, 2007. The results of the Postal Ballot were declared on November 5, 2007.

No. of valid Postal Votes Cast

Particulars of Postal Ballot
Ballot Forms received For Against
Special Resolution under Section 81(1A) of the Companies Act, 1956 9758 1,537,145,249 6,902,273
and SEBI (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 for approval of the Employee Stock
Option Scheme – 2006 and issue of equity shares under the Employee
Stock Option Scheme to employees including Managing / Whole Time
Director(s) of the Company.
Special Resolution under Section 81(1A) of the Companies Act, 1956 and 9758 1,537,052,230 6,934,806
SEBI (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 for extending benefit of the Employee
Stock Option Scheme to employees including Managing / Whole Time
Director(s) of subsidiary companies of the Company.
Mr. Umesh Ved, Practicising Company Secretary, Ahmedabad was appointed as Scrutinizer for conducting postal ballot voting process for the
above resolutions.
Accordingly the said Resolutions were approved by the shareholders, with requisite and overwhelming majority of 99.55%.
7. CEO/CFO CERTIFICATION 3. Book Closure Date : September 19, 2008 to
September 29, 2008
As required by Clause 49 of the Listing Agreement, the CEO/CFO
(both days inclusive)
certification is given elsewhere in the Annual Report.
4. Dividend Payment Date : Not Applicable
8. REPORT ON CORPORATE GOVERNANCE
(Since no dividend
This Corporate Governance Report forms part of the Annual Report. is proposed for the
The Company is fully compliant with all the provisions of Clause 49 Financial Year 2007-08)
of the Listing Agreement of the Stock Exchanges of India.
5. Registered Office : Suman Tower,
9. COMPLIANCE Plot No. 18, Sector-11,
Gandhinagar – 382 011
A Certificate from the Statutory Auditors of the Company,
Gujarat (India)
confirming compliance with all the conditions of Corporate
Tel: +91-79-66714000
Governance, as stipulated in Clause 49 of the Listing Agreement
Fax: +91-79-23232251
of the stock exchanges is annexed to the Directors’ Report and
forms part of the Annual Report. 6. Listing Details
GENERAL SHAREHOLDERS’ INFORMATION The Equity Shares of the Company are listed on:
1. Annual General Meeting National Stock Exchange of India Limited
“Exchange Plaza”, Bandra-Kurla Complex,
Day and Date : Monday, September 29, 2008
Bandra (East), Mumbai – 400 023
Time : 2.00 p.m.
Venue : Emerald Hall, Haveli Arcade, Bombay Stock Exchange Limited
Hotel Haveli, Sector 11, Phiroze Jeejeebhoy Towers,
Gandhinagar-382 011 (Gujarat) Dalal Street,
Mumbai - 400 001.
2. Financial Calendar for 2008-09 (Tentative)
The Company’s payment of Listing Fees is up-to-date.
Financial reporting for the quarter ending
June 30, 2008 : End July 2008 7. Stock Codes
Financial reporting for the quarter ending
September 30, 2008 : End October 2008 Stock Code Reuters Bloomberg
Financial reporting for the quarter Bombay Stock 532822 IDEA.BO IDEA IN
ending December 31, 2008 : End January 2009 Exchange,
Financial reporting for the quarter National Stock IDEA IDEA.NS NIDEA IN
ending March 31, 2009 : End April 2009 Exchange
Annual General Meeting for the year 2008-09 : July/August 2009 ISIN INE669E01016

14 I D E A C E L L U L A R L I M I T E D
8. Market Price Data

Month Bombay Stock Exchange Limited National Stock Exchange of India Limited
High Low Close Avg. Vol. High Low Close Avg. Vol.
(in Rs.) (in Rs.) (in Rs.) (in Nos.) (in Rs.) (in Rs.) (in Rs.) (in Nos.)
April – 07 119.95 91.00 114.50 2,694,339 120.25 91.00 114.20 7,187,747
May – 07 129.95 112.00 126.10 2,354,117 129.45 112.10 125.85 6,919,907
June – 07 128.60 110.60 124.60 1,723,202 128.10 110.00 124.50 5,910,342
July – 07 135.55 118.00 129.55 1,831,384 135.40 118.05 129.60 5,558,878
Aug – 07 134.00 104.95 122.70 1,441,097 129.10 104.75 122.75 4,172,595
Sept – 07 129.10 104.75 119.20 3,911,221 132.00 118.50 125.15 1,407,271
Oct – 07 161.00 121.05 135.20 2,926,255 160.90 121.15 135.15 8,302,535
Nov – 07 137.80 110.00 122.40 974,033 138.80 115.10 122.65 2,549,041
Dec – 07 142.85 123.50 138.70 1,541,771 150.10 123.50 139.10 5,085,604
Jan – 08 148.90 99.00 123.65 1,405,185 149.50 96.10 123.45 4,015,083
Feb – 08 129.30 100.20 110.15 508,733 129.50 100.35 108.80 1,702,657
Mar – 08 108.00 89.00 102.75 625,224 108.00 88.00 102.65 3,609,854
9. Stock Performance
a) Comparison of the Company’s share price with BSE Sensex

145 21000
140
145 21000
20000
135
140 20000
19000
130
135 19000
18000
125
130
18000
17000
120
125
17000
16000
115
120
16000
15000
110
115
105
110 15000
14000

100
105 14000
13000
Apr 2007

May 2007

Jun 2007

Jul 2007

Aug 2007

Sep 2007

Oct 2007

Nov 2007

Dec 2007

Jan 2008

Feb 2008

Mar 2008
100 13000
Apr 2007

May 2007

Jun 2007

Jul 2007

Aug 2007

Sep 2007

Oct 2007

Nov 2007

Dec 2007

Jan 2008

Feb 2008

Mar 2008
Idea Share Price BSE Sensex
Idea Share Price BSE Sensex
b) Comparison of the Company’s share price with NSE Nifty
145 6500
140
145 6500
135
140 6000

130
135 6000
5500
125
130
5500
120
125
5000
115
120
5000
110
115 4500
105
110 4500
100
105 4000
Apr 2007

May 2007

Jun 2007

Jul 2007

Aug 2007

Sep 2007

Oct 2007

Nov 2007

Dec 2007

Jan 2008

Feb 2008

Mar 2008

100 4000
Apr 2007

May 2007

Jun 2007

Jul 2007

Aug 2007

Sep 2007

Oct 2007

Nov 2007

Dec 2007

Jan 2008

Feb 2008

Mar 2008

Idea Share Price NSE Sensex

Idea Share Price NSE Sensex

A N N U A L R E P O R T 2 0 0 7 - 0 8 15
 10. Registrar and Share Transfer Agents 14. Shareholding Pattern
Bigshare Services Private Limited The shareholding pattern of the Company as on March 31, 2008 is
as follows:
E/2 Ansa Industrial Estate,
Sakivihar Road, Saki Naka, Andheri (East) Category No. of % Share-
Shares holding
Mumbai – 400 072
Promoters 1,520,445,714 57.69
Tel: +91-22- 28470652 Foreign Institutional Investors 203,215,148 7.71
Fax: +91-22- 28475207 Non-Resident Indians/
Overseas Corporate Bodies 750,585,790 28.48
11. Share Transfer System
Mutual Funds, Insurance
Transfer of shares in physical form are processed within a period Companies Financial
of 12 days from the date of the lodgement subject to documents Institutions and Banks 68,638,300 2.60
being valid and complete in all respects. There have been no Bodies Corporate 11,489,673 0.44
instances of transfer of shares in the physical form during the
financial year 2007-08. Resident Indians 80,985,914 3.08

12. Investor Services 15. Dematerialisation of Shares and Liquidity

The status of investors’ complaints as on March 31, 2008 is as The Shares of the Company are compulsorily traded in
follows: dematerialised form. The shares of the Company are admitted
for trading under both the Depository Systems in India – NSDL
No. of complaints as on April 1, 2007 680 and CDSL. A total number of 2,635,353,145 Equity Shares of the
No. of complaints received during the financial year 25612 Company constituting over 99.99% of the issued and subscribed
2007-08 Share Capital were in dematerialised form as on March 31, 2008.
No. of complaints resolved upto March 31, 2008 26286
16. Outstanding GDRs/ADRs etc.
No. of complaints pending as on March 31, 2008 6
No GDRs/ADRs/Warrants or Convertible Instruments are
All these complaints/queries have been resolved. outstanding as on date of this report.
13. Distribution of Shareholding 17. Investor Correspondence
The distribution of shareholding of the Company as on March 31, In order to facilitate quick redressal of the grievances/queries, the
2008 is as follows: Investors and Shareholders may contact at the under mentioned
Number of Number % to total No. of % to
address for any assistance:
Equity of Share- Share- Shares total Mr. Pankaj Kapdeo
Shares held holders holders held Share- General Manager (Legal) & Company Secretary
holding
“Windsor” 5th Floor,
Upto 5000 332,087 95.95 48,054,151 1.82 Off CST Road, Near Vidya Nagari,
5001 – 10000 8,075 2.33 6,364,795 0.24 Kalina, Santacruz (East),
10001– 20000 2,930 0.85 4,359,739 0.17 Mumbai – 400 098
Tel: +91-22-66820000
20001– 30000 940 0.27 2,387,620 0.09
Fax: +91-22-66820499
30001– 40000 407 0.12 1,430,132 0.05 E-Mail: shs@idea.adityabirla.com
40001– 50000 419 0.12 1,974,719 0.08
50001–100000 656 0.19 4,627,352 0.18
100001& above 576 0.17 2,566,162,031 97.37
Total 346090 100.00 2,635,360,539 100.00

16 I D E A C E L L U L A R L I M I T E D
Declaration
As provided under Clause 49 of the Listing Agreement with the Stock Exchange(s), it is hereby declared that all the Board Members and Senior
Management personnel of the Company have affirmed the compliance with the Code of Conduct for the year ended March 31, 2008.

Sanjeev Aga
Date : April 24, 2008 Managing Director
Place : Mumbai

CEO/CFO Certification
We, Sanjeev Aga, Managing Director and AJS Jhala, Chief Financial Officer certify that:
a) We have reviewed the financial statements and cash flow statements for the year ended March 31, 2008 and to the best of our knowledge
and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing Accounting
Standards, applicable laws and regulations.
b) To the best of our knowledge and belief, no transactions entered into by the Company during the year ended March 31, 2008 are fraudulent,
illegal or violative of the Company’s code of conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal
control systems of the Company pertaining to financial reporting. We have disclosed to the Auditors and the Audit Committee, deficiencies in the
design and operations of such internal controls, if any, of which we are aware and steps have been taken to rectify these deficiencies.
d) We have indicated to the Auditors and the Audit Committee:
i) Significant changes in the internal control over financial reporting during the year;
ii) Significant changes in the accounting policies during the year and that the same has been disclosed in the notes to the financial
statements; and
iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or any employee
having a significant role in the Company’s internal control system over financial reporting.
Sanjeev Aga AJS Jhala
Managing Director Chief Financial Officer
Date : April 24, 2008
Place : Mumbai

Certificate
To the Members of
Idea Cellular Limited
We have examined the compliance of conditions of Corporate Governance by Idea Cellular Limited, for the year ended on March 31, 2008, as
stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination has been limited to a review of
the procedures and implementation thereof adopted by the Company for ensuring compliance with the conditions of Corporate Governance as
stipulated in the said Clause. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors
and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the
above mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi
Partner
Membership No:38019
Date: April 24, 2008
Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 17
 List of Persons constituting “Group” under SEBI Takeover Regulaltions
List of persons constituting “Group” as required under Clause 3 (1)(e)(i) of the Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997

1. BGH Exim Limited

2. Birla TMT Holdings Private Limited
3. Essel Mining & Industries Limited
4. Heritage Housing Finance Limited
5. IGH Holdings Private Limited
6. Infocyber (India) Private Limited
7. Mangalam Carbide Limited
8. Mangalam Services Limited
9. Naman Finance & Investments Private Limited
10. Pilani Investment and Industries Corporation Limited
11. Surya Abha Investments Pte Limited
12. Surya Kiran Investments Pte Limited
13. Surya Viniyog Pte Limited
14. Calyx Investments Pte Limited
15. Kiran Investments Pte Limited
16. Indogenious Holdings Pte Limited
17. Abha Investments Pte Limited
18. Big Banyan Investments Pte Limited
19. Blue Bucks Investments Pte Limited
20. Trapti Trading & Investments Private Limited
21. Turquoise Investments and Finance Private Limited
22. Umang Commercial Company Limited

18 I D E A C E L L U L A R L I M I T E D
Auditors’ Report
To the Members of
Idea Cellular Limited
1. We have audited the attached Balance Sheet of Idea Cellular
Limited (‘the Company’) as at March 31, 2008 and also the Profit
and Loss Account and the Cash Flow Statement of the Company
for the year ended on that date, annexed thereto (together referred
to as ‘financial statements’). These financial statements are the
responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements based on
our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003,
(‘the said Order’) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act,
1956, on the basis of such checks of the books and records of
the Company as we considered necessary and appropriate, and
according to information and explanations given to us during the
course of the audit, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Attention is invited to Note 12 of Schedule 22 B of the
Financial Statements. As detailed in the said note, pending
the transfer of Telecom licences of the erstwhile Idea Mobile
Telecommunications Limited, BTA Cellcom Limited and Idea
Telecommunications Limited in the name of the Company, the
Company has given effect to the scheme of Amalgamation with
effect from April 1, 2006. Implications if any, in the event of non
transfer of the licences are not ascertainable at this stage.
5. Further to our comments in the Annexure referred to in paragraph
3 above, we report that:
a) we have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our
examination of those books;
c) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with
the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement dealt with by this report comply
with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956 so far as
they apply to the Company;
e) on the basis of the written representations received from
the directors as on March 31, 2008 and taken on record by
the Board of Directors, we report that none of the directors
is disqualified as on March 31, 2008 from being appointed
as a director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956; and
f) subject to what has been stated in paragraph 4 above, in our
opinion and to the best of our information and according
to the explanations given to us, the said financial statements
read together with the notes thereon give the information
required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2008;
(ii) in the case of the Profit and Loss Account, of the profit
of the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date: April 24, 2008
Place: Mumbai
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date)
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b) Fixed Assets have been physically verified by the
management according to the regular programme of
periodical verification in phased manner which in our
opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. Pursuant to
the programme, a portion of the fixed assets has been
physically verified by the management during the year and
no material discrepancies between the book records and
the physical inventory have been noticed.
c) During the year the Company has not disposed off
substantial part of the fixed assets.
2. In respect of its inventories:
a) The inventories, except for those lying with the third parties,
have been physically verified by the management at the
year-end. In our opinion, the frequency of such verification
is reasonable.
b) In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the management
are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of the records of inventory
and according to the information and explanations given to
us, we are of the opinion that the Company is maintaining
proper records of inventory. The discrepancies noticed
A N N U A L R E P O R T 2 0 0 7 - 0 8 19
 on verification between the physical stock and the book commensurate with the size and nature of its business.
records were not material.
8. We have broadly reviewed the books of account maintained
3. According to the information and explanations given to us, the by the Company pursuant to the rules prescribed by the
Company has not granted/taken any loans, secured or unsecured, Central Government for maintenance of cost records under
to/from companies, firms or other parties covered in the register Section 209(1)(d) of the Companies Act, 1956 in respect of
maintained under Section 301 of the Companies Act, 1956. telecommunication activities and are of the opinion that prima
4. In our opinion, and according to the information and explanations facie, the prescribed accounts and records have been made and
given to us, having regard to explanation that major capital goods maintained. However, we have not made a detailed examination
and spares thereof purchased are of special nature and suitable of the records.
alternative sources do not exist for obtaining comparable quotations, 9. In respect of statutory dues:
there are adequate internal control procedures commensurate with a) According to the information and explanations given to us and
the size of the Company and the nature of its business with regard the records of the Company examined by us, in our opinion,
to purchase of inventory and fixed assets and for the sale of goods the Company is generally regular in depositing the undisputed
and services. During the course of our audit we have not observed statutory dues including provident fund, employees’ state
any continuing failure to correct major weaknesses in such internal insurance, income-tax, sales tax, wealth tax, service tax,
controls systems with regard to purchase of inventory and fixed customs duty, excise duty, cess and any other statutory dues
assets and for the sale of goods and services. as applicable with the appropriate authorities.
5. In our opinion and according to the information and explanations b) According to the information and explanations given to
given to us, there were no contracts, particulars of which needed us, no undisputed amount payable in respect of provident
to be entered in the register maintained under Section 301 of the fund, employees’ state insurance, income-tax, sales tax,
Companies Act, 1956 and hence provisions of paragraph 4(v)(b) wealth tax, service tax, customs duty, excise duty, cess and
of the said Order relating to reasonableness of price having regard any other statutory dues applicable to it were in arrears, as
to prevailing market price is not applicable to the Company. at March 31, 2008 for a period of more than six months from
6. In our opinion and according to the information and explanations the date they became payable.
given to us, the Company has not accepted any deposits from the c) According to the information and explanations given to
public to which the directives issued by the Reserve Bank of India us, there are no dues of Excise duty, Wealth tax, Customs
and the provisions of Sections 58A and 58AA of the Companies duty, Employees’ State Insurance which have not been
Act, 1956 and the rules framed there under are applicable. deposited on account of any dispute. The dues of Income
7. In our opinion, the Company has an internal audit system tax, Service tax and Sales tax as disclosed below have not
been deposited by the Company on account of disputes.
Name of the Statute Nature of Period to which the Amount Forum where the
Dues amount pertains (Rs. Million) dispute is pending
Andhra Pradesh General Sales Tax Act, 1957 Sales Tax 1997-98 2.89 Andhra Pradesh High Court
Uttar Pradesh Trade Tax Act, 1948 Sales Tax 2004-05 0.05 Joint Commissioner (Appeals)
Delhi Sales Tax Act, 1975 Sales Tax 2003-04 2.65 Additional Commissioner (Appeals)
Delhi Sales Tax Act, 1975 SalesTax 2004-05 90.10 Additional Commissioner of Sales Tax
(Appeals)
Gujarat Sales Tax Act, 1969 Sales Tax 1998-99 to 2001-02 7.04 Sales Tax Tribunal
Gujarat Sales Tax Act, 1969 Sales Tax 2006-07 0.83 Deputy Commissioner of Commercial Tax,
(Appeals)
Chhattisgarh Commercial Tax Act, 1994 Sales Tax 2001-02 to 2003-04 1.30 Deputy Commissioner (Appeals)
Madhya Pradesh Commercial Tax Act, 1994 Sales Tax 2003-04 0.79 Deputy Commissioner (Appeals)
Chhattisgarh Commercial Tax Act, 1994 Sales Tax 2000-01 0.31 Appellate Board
Kerala Sales tax Act, 1963 Sales Tax 1997-98 to1998-99 15.36 Kerala High Court
Kerala Sales tax Act, 1963 Sales Tax 1998-99 0.06 Deputy Commissioner Sales tax
Kerala Sales tax Act, 1963 Sales Tax 1997-98 0.40 Sales Tax Appellate Tribunal
Uttar Pradesh Trade Tax Act, 1948 Sales Tax 2003-04 0.22 Joint Commissioner (Appeals)
Uttar Pradesh Trade Tax Act, 1948 Sales Tax 2007-08 0.58 Allahabad High Court
Income Tax Act, 1961 Income-tax 1997-98,1998-99 & 2000-2001 1.90 Assessing Officer (TDS)/ITAT
Income Tax Act, 1961 Income-Tax 2004-05 3.98 Commissioner of Income Tax (Appeals)
Income Tax Act, 1961 Income-Tax 2002-03 2.61 Income Tax Appellate Tribunal, Hyderabad
Income Tax Act, 1961 Income-Tax 2000-01 6.00 Commissioner of Income Tax (Appeals)
Finance Act, 1994 (Service Tax provisions) Service Tax 2003-04 0.75 Commissioner Appeal, Central Excise
Finance Act, 1994 (Service Tax provisions) Service Tax 2004-05 & 2005-06 2.45 Central Excise, Service Tax Appellate Tribunal
Finance Act, 1994 (Service Tax provisions) Service Tax 2004-05, 2005-06 & 2006-07 19.12 Central Excise, Service Tax Appellate Tribunal
Finance Act,1994 (Service Tax provisions) Service Tax 2004-05 & 2005-06 5.54 Commissioner (Appeals), Central Excise
Finance Act, 1994 (Service Tax provisions) Service Tax 2004-05 & 2005-06 15.57 Central Excise, Service Tax Appellate Tribunal
Finance Act, 1994 (Service Tax provisions) Service Tax 2004-05, 2005-06 & 2006-07 209.45 Central Excise, Service Tax Appellate Tribunal
Finance Act, 1994 (Service Tax provisions) Service Tax 2004-05, 2005-06 & 2006-07 503.24 Commissioner Central Excise

20 I D E A C E L L U L A R L I M I T E D
10. The accumulated losses of the Company are less than fifty percent
of its net worth and the Company has not incurred cash losses
during the current financial year covered by our audit and the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues
to the financial institutions and banks.
12. According to the information and explanations given to us,
the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. The Company is not a chit fund or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of paragraph 4(xiii) of the said
Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by
the Company for loans taken by others from banks and financial
institutions are not prima facie prejudicial to the interest of the
Company.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been
applied for the purpose for which they were raised to the extent
utilised.
17. On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information
and explanations given to us, as at the balance sheet date funds
amounting to Rs. 8,845.90 million raised on a short-term basis
have been used for long-term purpose.
18. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956, during the year.
19. The Company has not issued any debentures during the year.
20. The management has disclosed the end use of money raised by
public issue and the same has been verified by us.
21. During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing
practices in India, and according to the information and
explanations given to us, we have neither come across any
incidence of material fraud on or by the Company, noticed or
reported during the year, nor have we been informed of any such
case by the management.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date: April 24, 2008
Place: Mumbai
A N N U A L R E P O R T 2 0 0 7 - 0 8 21
 Balance Sheet as at March 31, 2008

(Rupees in Million)
Schedules As at As at
March 31, 2008 March 31, 2007

SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 26,353.61 25,928.60
Outstanding Employee Stock Options 37.59
Reserves and Surplus 2 23,134.00 20,371.49
49,525.20 46,300.09
Loan Funds
Secured 3 54,544.33 35,397.68
Unsecured 4 10,603.26 7,107.36
65,147.59 42,505.04
Deferred Tax Liability(Net) (Refer Note B 31 to Schedule 22) 661.85 10.55
TOTAL 115,334.64 88,815.68
APPLICATION OF FUNDS
Fixed Assets
Gross Block (At Cost) 5A 110,119.82 70,466.21
Less: Depreciation 31,238.26 26,305.48
Net Block 78,881.56 44,160.73
Intangible Assets (Net) 5B 17,792.38 11,763.58
Capital Work-in-Progress 9,411.27 5,065.15
106,085.21 60,989.46
Investments 6 5,699.31 138.31
Current Assets, Loans and Advances
Current Assets
Inventories 7 276.15 179.10
Sundry Debtors 8 1,985.93 1,524.77
Cash and Bank Balances 9 4,970.55 18,197.28
Other Current Assets 10 520.66 757.40
Loans and Advances 11 7,986.73 4,040.57
15,740.02 24,699.12
Less : Current Liabilities and Provisions 12 26,254.84 21,519.77
Net Current Assets (10,514.82) 3,179.35
Profit and Loss Account 14,064.94 24,508.56
TOTAL 115,334.64 88,815.68
Significant Accounting Policies and Notes to the Accounts 22
The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019
Date: April 24, 2008 AJS Jhala Pankaj Kapdeo
Place: Mumbai Chief Financial Officer Company Secretary

22 I D E A C E L L U L A R L I M I T E D
Profit and Loss Account for the year ended March 31, 2008

(Rupees in Million)
Schedules For the For the
year ended year ended
March 31, 2008 March 31, 2007

INCOME
Service Revenue 67,199.83 43,500.16
Sales of Trading Goods 0.07 163.84
Other Income 13 174.55 209.29
TOTAL 67,374.45 43,873.29
OPERATING EXPENDITURE
Cost of Trading Goods Sold 14 0.06 51.73
Personnel Expenditure 15 3,417.82 2,608.46
Network Operating Expenditure 16 10,469.53 5,335.72
Licence and WPC Charges 17 6,851.03 4,487.01
Roaming and Access Charges 18 11,334.41 7,320.96
Subscriber Acquisition and Servicing Expenditure 19 6,469.63 5,643.27
Advertisement and Business Promotion Expenditure 3,224.29 2,006.20
Administration and other Expenses 20 2,895.03 1,560.31
44,661.80 29,013.66
PROFIT BEFORE FINANCE CHARGES, DEPRECIATION, AMORTISATION & TAXES 22,712.65 14,859.63
Finance and Treasury Charges (Net) 21 2,776.42 3,051.06
Depreciation 5A 7,568.52 5,636.66
Amortisation of Intangible Assets 5B 1,199.10 1,081.39
PROFIT BEFORE TAX 11,168.61 5,090.52
Provision for taxation – Current 425.33 –
– Deferred 651.30 10.55
– Fringe Benefit Tax 73.69 59.36
– MAT Credit (425.33) –
PROFIT AFTER TAX 10,443.62 5,020.61
Balance of Loss brought forward from previous year (24,508.56) (16,738.39)
Accumulated Losses acquired on amalgamation – (12,668.11)
Leave Encashment Provision for earlier years – (122.67)
BALANCE OF LOSS CARRIED FORWARD TO BALANCE SHEET (14,064.94) (24,508.56)
EARNINGS PER SHARE (in Rupees) (Refer Note B 30 to Schedule 22 )
Basic 3.96 2.19
Diluted 3.96 2.15
Significant Accounting Policies and Notes to the Accounts 22

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019
Date: April 24, 2008 AJS Jhala Pankaj Kapdeo
Place: Mumbai Chief Financial Officer Company Secretary

A N N U A L R E P O R T 2 0 0 7 - 0 8 23
 Schedules forming part of the Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 1
SHARE CAPITAL
Authorised (Refer Note B 1 (a) to Schedule 22)
4,275,000,000 (Previous year 3,775,000,000) Equity Shares of Rs.10 each 42,750.00 37,750.00
1500 (Previous year 500) Redeemable Cumulative
Non Convertible Preference Shares of Rs.10 million Each 15,000.00 5,000.00
57,750.00 42,750.00
Issued, Subscribed and Paid-Up
Equity Share Capital (Refer Note B 1 (b) to Schedule 22)
2,635,360,539 (Previous year 2,592,860,539) Equity Shares of Rs. 10 each fully paid up 26,353.61 25,928.60
26,353.61 25,928.60
SCHEDULE 2
RESERVES AND SURPLUS
Amalgamation Reserve
Opening Balance 643.57 998.41
Less: Adjustment on Amalgamation of Subsidaries – (354.84)
643.57 643.57
Capital Reserve 1,414.56 1,414.56
Share Premium Account
Premium on issue of Equity Shares 18,313.36 21,666.66
Less: Share Issue Expenses – (620.04)
Less: Premium on redemption of Preference Shares – (2,733.26)
Add: Preimum on issue of shares under GSO (Refer Note B 1(b) to Schedule 22) 2,762.51
21,075.87 18,313.36
23,134.00 20,371.49
SCHEDULE 3
SECURED LOANS
Term Loan (Refer Note B 7 (a) to Schedule 22)
Foreign Currency Loan
– From Banks 5,658.20 –
Rupee Loan
– From Banks 41,480.20 29,170.50
– From Financial Institutions 7,099.70 6,029.50
(Loan Repayable within one year Rs. 1,425.20 million, Previous year Rs. 880.00 million)
Vehicle Loan (Refer Note B 7 (b) to Schedule 22) 306.23 197.19
(Loan Repayable within one year Rs. 103.08 million, Previous year Rs. 47.98 million)
Working Capital Loan
– From Banks – 0.49
54,544.33 35,397.68
SCHEDULE 4
UNSECURED LOANS
Term Loan
From Others (Refer Note B 11 to Schedule 22) 1,757.36 1,757.36
Short Term Loan
From Banks 8,845.90 5,350.00
10,603.26 7,107.36

24 I D E A C E L L U L A R L I M I T E D
 Schedules forming part of the Accounts
Schedule 5A – FIXED ASSETS (Refer Note B 7 to Schedule 22)
(Rupees in Million)
Gross Block Depreciation Net Block
Particulars As at Additions for Sale/Adjustment As at As at Additions for Sale/Adjustment As at As at As at
April 1, 2007 the year ended for the year ended March 31, 2008 April 1, 2007 the year ended for the year ended March 31, 2008 March 31, 2008 March 31, 2007
March 31, 2008 March 31, 2008 March 31, 2008 March 31, 2008
Land 68.20 9.56 – 77.76 – – – – 77.76 68.20
Leasehold Land 190.01 19.98 – 209.99 58.52 9.41 – 67.94 142.05 131.49
Building 653.69 10.51 44.97 619.23 204.54 30.82 44.94 190.42 428.82 449.15
Plant & Machinery 68,110.95 41,866.28 2,682.36 107,294.88 25,183.29 7,275.34 2,559.81 29,898.82 77,396.05 42,927.65
Furniture & Fixture 524.57 236.59 10.28 750.88 332.86 68.81 4.69 396.98 353.89 191.71
Office Equipment 563.00 96.90 13.02 646.88 430.10 76.23 12.20 494.13 152.75 132.90
Vehicles 355.79 201.54 37.12 520.21 96.16 107.90 14.10 189.96 330.24 259.63
TOTAL 70,466.21 42,441.36 2,787.75 110,119.82 26,305.48 7,568.52 2,635.74 31,238.26 78,881.56 44,160.73
Previous Year 31,663.73 * 38,922.16 119.68 70,466.21 11,510.04 ** 14,897.92 102.48 26,305.48 44,160.73
* Includes additions on account of amalgamation Rs. 16,280.33 million.
** Includes additions on account of amalgamation Rs. 9,254.89 million & Rs. 6.37 million on account of Pre-operative charge capitalised.
Notes:
1. Exchange Difference of Rs. Nil (Previous year Gain Rs. 51.75 million) being gain on foreign exchange fluctuation relating to acquisition of fixed assets has been adjusted to relevant fixed assets.
2. As per the AS-11 on “The Effects of Changes in Foreign Exchange Rates”, during the current year exchange difference amounting to Rs. 515.63 million being gain on foreign exchange fluctuation relating to
acquisition of fixed assets has been charged to Profit and Loss Account.
3. Plant & Machinery includes assets held for disposal- Gross Block Rs. 1,988.03 million and Net Block Rs. 45.00 million.
4. Plant & Machinery includes Gross Block of assets capitalised under finance lease Rs. 975.01 million (Previous year Rs.Nil) and corresponding Accumulated Depreciation being Rs. 134.43 million (Previous year Rs. Nil).

Schedule 5B – INTANGIBLE ASSETS

(Rupees in Million)
Gross Block Amortisation Net Block
Particulars As at Additions for Sale/Adjustment As at As at Additions for Sale/Adjustment As at As at As at
April 1, 2007 the year ended for the year ended March 31, 2008 April 1, 2007 the year ended for the year ended March 31, 2008 March 31, 2008 March 31, 2007
March 31, 2008 March 31, 2008 March 31, 2008 March 31, 2008
Entry/Licence Fees 20,706.72 6,845.90 – 27,552.62 9,255.12 994.53 – 10,249.65 17,302.97 11,451.60
Computer - Software 764.82 383.66 26.05 1,122.43 536.86 198.16 18.37 716.65 405.78 227.96
Bandwidth 88.03 6.03 – 94.06 4.01 6.40 – 10.41 83.65 84.02
TOTAL 21,559.57 7,235.59 26.05 28,769.11 9,795.98 1,199.10 18.37 10,976.71 17,792.40 11,763.58
Previous Year 14,845.45 # 6,714.12 – 21,559.57 6,824.78 ## 2,971.20 – 9,795.98 11,763.59

# Includes additions on account of amalgamation Rs. 4323.93 million.

## Includes additions on account of amalgamation Rs. 1867.38 million & Rs. 22.43 million on account of Pre-operative charge capitalised.
Notes:
1. Computer – Software include Gross Block of assets capitalised under finance lease Rs. 38.28 million (Previous year Rs.Nil) and corresponding Accumulated Depreciation being Rs. 4.88 million (Previous year Rs.Nil).
2. The remaining amortisation period of licence fees as at March 31, 2008 ranges between 7 to 20 years based on the respective Telecom Service Licence period.

A N N U A L R E P O R T 2 0 0 7 - 0 8 25
 Schedules forming part of the Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 6
INVESTMENTS
Long-term Trade Investment (Unquoted)
Investments in Shares of Subsidiaries
Aditya Birla Telecom Limited 100.00 100.00
10,000,000 fully paid equity shares of Rs. 10 each
Idea Cellular Infrastructure Services Limited (Refer Note B 3 to Schedule 22) 0.50 –
50,000 fully paid equity shares of Rs. 10 each
Idea Cellular Services Limited (Refer Note B 3 to Schedule 22) 0.50 –
50,000 fully paid equity shares of Rs. 10 each
Swinder Singh Satara & Company Limited 38.31 38.31
50,000 fully paid equity shares of Rs. 10 each
Current Investment
Investments in Units of Mutual Funds (Refer Note B 19 to Schedule 22) 5,560.00 –
(Includes unutilised Initial Public Offer proceeds of Rs. 4,885.90 million)
5,699.31 138.31
SCHEDULE 7
INVENTORIES
(At lower of cost or estimated realisable value)
Trading Goods 0.45 0.45
Sims and Other Cards 275.70 178.65
276.15 179.10
SCHEDULE 8
SUNDRY DEBTORS
Debts outstanding for over six months
Unsecured – Considered good 95.31 26.39
– Considered doubtful 2,356.33 2,081.18
2,451.64 2,107.57
Other Debts
Unsecured – Considered good 1,890.62 1,498.38
– Considered doubtful 106.80 144.54
1,997.42 1,642.92
Less: Provision for doubtful debts 2,463.13 2,225.72
Total 1,985.93 1,524.77
Sundry Debtors include certain parties from whom Security Deposits of Rs. 225.77 million
(Previous year Rs 161.12 million) have been taken and are lying with the Company

SCHEDULE 9
CASH AND BANK BALANCES
Cash and Cheques on Hand 296.92 229.22
Balances with Scheduled Banks
– in Current Accounts 1,179.81 998.40
– in Deposit Accounts 3,493.82 16,969.66
(Includes unutilised Initial Public Offer proceeds of Rs.3,150.00 million, Previous year
Rs.15,504.50 million) and Rs. 71.90 million (Previous year Rs. 108.70 million) as margin money)
4,970.55 18,197.28
SCHEDULE 10
OTHER CURRENT ASSETS
Unbilled Revenue 476.82 640.15
Interest Receivable on Deposits with Scheduled Banks
43.84 117.25
520.66 757.40

26 I D E A C E L L U L A R L I M I T E D
Schedules forming part of the Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 11
LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind or for value to be received
– Considered good 6,286.75 3,284.12
– Considered Doubtful 90.75 90.84
Less: Provision for doubtful advances 90.75 90.84
6,286.75 3,284.12
Deposits with Subsidiaries 272.16 47.62
Deposits and Balances with Govt. Authorities 241.10 109.83
Deposits with others 609.58 382.34
Advance Income Tax (Net of Provision of Rs. 425.33 million) 151.81 210.67
MAT Credit Entitlement 425.33 –
Advance Fringe Benefit Tax (Previous year Net of Provision of Rs. 87.46 million) – 5.99
7,986.73 4,040.57
SCHEDULE 12
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry Creditors (Refer Note B 20 to Schedule 22) 16,854.57 16,108.74
Book Bank Overdraft 2,255.71 665.03
Advances from Customers 4,054.32 2,565.34
Deposits from Customers 557.44 570.08
Other Liabilities 1,621.88 1,054.58
Interest accrued but not due 92.71 17.61
25,436.63 20,981.38
Provisions
Gratuity (Refer Note B 25 to Schedule 22) 23.38 29.41
Leave Encashment 315.28 255.72
Site Restoration Cost (Refer Note B 32 to Schedule 22) 473.58 253.26
Provision for Fringe Benefit Tax (Net of Advance of Rs. 174.66 million) 5.97 –
818.21 538.39

Total 26,254.84 21,519.77

A N N U A L R E P O R T 2 0 0 7 - 0 8 27
 Schedules forming part of the Accounts
(Rupees in Million)
For the year For the year
ended ended
March 31, 2008 March 31, 2007

SCHEDULE 13
OTHER INCOME
Liabilities/Provisions no longer required written back 139.73 174.94
Gain on Sale of Fixed Assets/Asset disposed off – 1.92
Miscellaneous Receipts 34.82 32.43
174.55 209.29
SCHEDULE 14
COST OF TRADING GOODS SOLD (Refer Note B 18 to Schedule 22)
Opening Stock 0.45 0.22
Add: Opening Stock acquired on amalgamation – 12.19
Add: Purchases (net of consumables) 0.06 40.60
Less: Consumption – 0.83
Closing Stock 0.45 0.45
0.06 51.73
SCHEDULE 15
PERSONNEL EXPENDITURE
Salaries and Allowances etc. 3,022.78 2,253.45
Contribution to Provident and Other Funds 147.41 127.15
Staff Welfare 158.57 133.72
Recruitment and Training 89.06 94.14
3,417.82 2,608.46
SCHEDULE 16
NETWORK OPERATING EXPENDITURE
Security Service Charges 777.55 559.57
Power and Fuel 2,244.04 1,094.57
Repairs and Maintenance - Plant and Machinery 1,330.28 1,170.32
Switching and Cellsites Rent 829.38 495.58
Lease Line and Connectivity Charges 2,268.96 1,382.78
Network Insurance 26.50 17.47
Other Network Operating expenses 2,992.82 615.43
10,469.53 5,335.72
SCHEDULE 17
LICENCE AND WPC CHARGES
Licence Fees 4,150.85 2,777.79
WPC and Spectrum Charges 2,700.18 1,709.22
6,851.03 4,487.01
SCHEDULE 18
ROAMING AND ACCESS CHARGES
Roaming Charges 1,017.89 974.09
Access Charges 10,316.52 6,346.87
11,334.41 7,320.96

28 I D E A C E L L U L A R L I M I T E D
Schedules forming part of the Accounts
(Rupees in Million)
For the year For the year
ended ended
March 31, 2008 March 31, 2007

SCHEDULE 19
SUBSCRIBER ACQUISITION AND SERVICING EXPENDITURE
Cost of Sim and Other Cards 532.97 268.59
Commission and Discount to dealers & recharge expenses 4,561.69 4,392.65
Customer Verification Expenses 192.86 178.72
Collection and Telecalling Expenses 1,121.32 749.91
Customer Retention and Customer loyalty Expenses 60.79 53.40
6,469.63 5,643.27
SCHEDULE 20
ADMINISTRATION AND OTHER EXPENSES
Repairs and Maintenance – Building 17.18 16.59
– Others 961.78 56.24
Other Insurance 21.02 21.47
Non Network Rent 341.57 146.78
Rates and Taxes 87.11 94.66
Electricity 110.44 82.55
Printing and Stationery 62.88 57.28
Communication Expenses 124.20 90.42
Travelling and Conveyance 407.60 277.13
Provision for bad and doubtful debts/advances 244.94 368.17
Bank Charges 97.31 106.71
Directors Sitting Fees 0.91 0.60
Legal and Professional Charges 171.18 101.28
Audit Fees (Refer Note B 13 to Schedule 22) 22.00 14.31
Loss on Sale of Fixed Assets/Asset disposed off 8.89 –
Miscellaneous expenses 216.02 126.12
2,895.03 1,560.31
SCHEDULE 21
FINANCE AND TREASURY CHARGES (NET)
Interest
– On Fixed Period Loan 4,348.77 3,048.92
– Others 32.48 171.60
Financing Charges 211.02 72.58
4,592.27 3,293.10
Less:
Interest Received (Gross of Tax) 849.52 170.76
Profit on Sale of Current Investments 431.79 81.25
Gain/(Loss) on Foreign Exchange Fluctuation 534.54 (9.97)
2,776.42 3,051.06

A N N U A L R E P O R T 2 0 0 7 - 0 8 29
 Schedules forming part of the Accounts
Schedule 22
A. Significant Accounting Policies
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared under the historical
cost convention on accrual basis. The mandatory applicable
accounting standards in India and the provisions of the Companies
Act, 1956 have been followed in preparation of these financial
statements.
2. Fixed Assets:
Fixed assets are stated at cost of acquisition and installation less
accumulated depreciation. Cost is inclusive of freight, duties,
levies and any directly attributable cost of bringing the assets to
their working condition for intended use.
Site restoration cost obligations are capitalised based on
a constructive obligation as a result of past events, when it is
probable that an outflow of resources will be required to settle
the obligation and a reliable estimate of the amount can be
made. Such costs are depreciated over the remaining useful life
of the asset.
3. Expenditure during pre-operative period of licence:
Expenses incurred on Project and other charges during construction
period are included under pre-operative expenditure (grouped
under Capital Work in Progress) and are allocated to the cost of
Fixed Assets on the commencement of commercial operations.
4. Depreciation and amortisation:
Depreciation on fixed assets is provided on straight-line method
(except stated otherwise) on the basis of estimated useful
economic lives as given below:
Tangible Assets Years
Buildings 9 to 30
Network Equipments 10 to 13
Optical Fibre 15
Other Plant and Machineries 5 actuarial valuation done by projected accrued benefit method at
Office Equipments 3 to 9
Computers 3 9. Revenue Recognition and Receivables:
Furniture and Fixtures 3 to 10
Motor Vehicles upto 5
Leasehold improvements Period of lease
Intangible Assets are amortised on straight-line method as
under:
i) Cost of Rights and Licences including the fees paid on
fixed basis prior to revenue share regime is amortised on
commencement of operations over the period of licence.
ii) Software, which is not an integral part of Hardware, is
treated as Intangible asset and is amortised over their useful
economic lives as estimated by the management between
3 to 5 years.
iii) Bandwidth/Fibre taken on Indefeasible Right of Use (IRU) is
amortised over the agreement period.
5. Inventories:
Inventories are valued at cost or net realisable value, whichever is
lower. Cost is determined on weighted average basis.
30 I D E A C E L L U L A R L I M I T E D
6. Foreign currency transactions:
Transactions in foreign currency are recorded at the exchange
rates prevailing at the dates of the transactions. Gains/losses
arising out of fluctuation in exchange rates on settlement are
recognised in the profit and loss account.
Foreign currency monetary assets and liabilities are restated at
the exchange rate prevailing at the Period end and the overall net
gain/loss is adjusted to the profit and loss account.
In case of Forward Exchange Contracts, the difference between
the forward rate and the exchange rate at the date of transaction
is recognised in the profit and loss account over the life of the
contract.
7. Taxation:
a) Current Tax: Provision for current income tax is made on
the taxable income using the applicable tax rates and tax
laws.
b) Deferred Tax: Deferred tax arising on account of timing
differences and which are capable of reversal in one or more
subsequent periods is recognised using the tax rates and
tax laws that have been enacted or substantively enacted.
Deferred tax assets are not recognised unless there is virtual
certainty with respect to the reversal of the same in future
years.
8. Retirement Benefits:
Contributions to Provident and pension funds are funded with
the appropriate authorities and charged to the profit and loss
account.
Contributions to superannuation are funded with the Life Insurance
Corporation of India and charged to the profit and loss account.
Liability for gratuity as at the year end is provided on the basis of
actuarial valuation and funded with Life Insurance Corporation of
India.
Provision in accounts for leave benefits to employees is based on
the period end.
Revenue on account of mobile telephony services and sale of
handsets and related accessories is recognised net of rebates,
discount, service tax, etc. on rendering of services and supply
of goods respectively. Recharge fees on recharge vouchers is
recognised as revenue as and when the recharge voucher is
activated by the subscriber.
Unbilled receivables, represent revenues recognised from the
bill cycle date to the end of each month. These are billed in
subsequent periods as per the terms of the billing plans.
Debts (net of security deposits outstanding there against) due
from subscribers, which remain unpaid for more than 90 days
from the date of bill and/or other debts which are otherwise
considered doubtful, are provided for.
Provision for doubtful debts on account of Interconnect Usage
Charges (IUC), Roaming Charges and passive infrastructure sharing
from other telecom operators is made for dues outstanding more
than 180 days from the date of billing other than cases when an
amount is payable to that operator or in specific case when
management is of the view that the amount is recoverable.
10. Investments: 18. Issue Expenditure:
Current Investments are stated at lower of cost or fair value in Expenses incurred in connection with issue of equity shares are
respect of each separate investment. adjusted against share premium.
Long-term investments are stated at cost less provision for 19. Employee Stock Option:
diminution in value other than temporary, if any.
In respect of stock option granted pursuant to the Company’s
11. Borrowing Cost: Employee Stock Option Scheme, the intrinsic value of the option
Interest and other costs incurred in connection with the borrowing is treated as discount and accounted as employee compensation
of the funds are charged to revenue on accrual basis except those cost over the vesting period.
borrowing costs which are directly attributable to the acquisition
or construction of those fixed assets, which necessarily take a B. Notes to Accounts
substantial period of time to get ready for their intended use. 1. Equity Share Capital
Such costs are capitalised with the fixed assets.
a) Increase in Authorised Share Capital: At the Annual
12. Licence Fees – Revenue Share: General Meeting held on December 12, 2007, members of
With effect from August 1, 1999 the variable Licence fee the company passed a resolution to increase Authorised
computed at prescribed rates of revenue share is being charged Equity Share Capital from Rs. 37,750.00 million to
to the profit and loss account in the period in which the related Rs. 42,750.00 million and Authorised Redeemable
revenue arises. Revenue for this purpose comprises adjusted Cumulative Non Convertible Preference Share capital from
gross revenue as per the licence agreement of the licence area to Rs. 5,000.00 million to Rs. 15,000.00 million
which the licence pertains.
b) Issue of shares under Green Shoe Option (GSO)
13. Contingent Liability:
Disclosures for contingent liabilities are considered to the extent On April 5, 2007, the Company issued 42,500,000 Equity
of notices/demands received by the Company. Shares of Rs. 10 each amounting to Rs. 3,187.50 million under
Green Shoe Option. Share Premium account stands increased
14. Leases: by Rs. 2,762.51 million on issue of the above shares.
a) Operating: Lease of assets under which significant risks and
2. The status of utilisation of IPO proceeds and Green Shoe amount
rewards of ownership are effectively retained by the lessor
are classified as operating leases. Lease payments under an up to March 31, 2008 is as under:
operating lease are recognised as expense in the profit and (Rupees in Million)
loss account, on a straight-line basis over the lease term.
Activity To be Actual
b) Finance: Leased assets acquired on which significant financed Utilisation
risk and reward of ownership effectively transferred to through up to
the Company are capitalised at lower of fair value or the the issue March 31,
amounts paid under such lease arrangements. Such assets proceeds 2008
are amortised over the period of lease.
Building strengthening and
15. Earnings Per Share: expanding network and related
The earnings considered in ascertaining the Company’s EPS services in the New Circles 9,708.00 8,121.98
comprises the net profit after tax, after reducing dividend on Capital expenditure for NLD
Cumulative Preference Shares for the Period (irrespective of operations 808.00 –
whether declared, paid or not), as per Accounting Standard
20 on “Earning Per Share”, issued by the Institute of Chartered Roll out for services in Mumbai
Accountants of India. The number of shares used in computing Circle 6,470.00 828.12
basic EPS is the weighted average number of shares outstanding Redemption of Preference
during the period. The diluted EPS is calculated on the same Shares # 7,563.26 7,563.26
basis as basic EPS, after adjusting for the effects of potential Issue Expenses # 620.04 620.04
dilutive equity shares unless the effect of the potential dilutive
equity shares is anti-dilutive. General Corporate purpose ** 3,018.20 3,018.20
Total 28,187.50 20,151.60
16. Impairment of Assets:
Assets are reviewed for impairment whenever events or changes # On completion of these activities, the balance unutilised
in circumstances indicate that the carrying amount may not be amounts have been added to General Corporate purpose
recoverable. An impairment loss is recognised for the amount object following clearance from the monitoring agency.
by which the asset’s carrying amount exceeds its recoverable ** Including repayment of short–term loans.
amount. The recoverable amount is higher of the asset’s fair
value less costs to sell vis-à-vis value in use. For the purpose of As of March 31, 2008, the unutilised balance of IPO proceeds is
impairment, assets are grouped at the lowest levels for which lying in fixed deposits with Banks and Mutual Funds.
there are separately identifiable cash flows. 3. Investments in new subsidiary companies
17. Provisions: During the year ended March 31, 2008 three new 100% subsidiary
companies, Idea Cellular Services Limited (ICSL), Idea Cellular
Provisions are recognised when the Company has a present
Infrastructure Services Limited (ICISL) and Idea Cellular Tower
obligation as a result of past events; it is more likely than not that
Infrastructure Limited (ICTIL), a subsidiary of ICISL, have been
an outflow of resources will be required to settle the obligation; formed with a paid–up capital of Rs. 0.50 million each.
and the amount has been reliably estimated.

A N N U A L R E P O R T 2 0 0 7 - 0 8 31
 ICSL provides manpower services in the areas of subscriber
acquisition and servicing required by the mobility circles of the
Company. ICISL and ICTIL are formed to roll–out and provide Passive
Infrastructure services in specified licence areas of the Company.
4. Joint Venture agreement with Indus Towers Limited (Indus):
A joint venture agreement consisting of the Company and its 100%
subsidiary ICISL along with Bharti Airtel Limited and Vodafone
Essar Limited and their subsidiaries has been entered into effective
December 8, 2007. The 16% equity shareholding in Indus Tower
Limited is held by ICISL. Indus Towers Limited is a company formed
to develop and provide passive infrastructure services.
5. New Licences
On January 10, 2008, the Company deposited Rs. 6845.90 million
following receipt of Letter of Intent (LoI) for the telecom service
areas of Assam, Jammu & Kashmir, Karnataka, Kolkatta, North East,
Orissa, Punjab, Tamil Nadu and West Bengal (including Chennai
service area) for which the Company had applied for Licences.
On February 28, 2008 DoT granted the UASL licences making the
Company a pan India Licence holder.
6. The Company was allotted 4.4 Mhz spectrum in the Mumbai and
Tamil Nadu (including Chennai) telecom service areas on January
11, 2008 and April 22, 2008 respectively.
7. Term Loans
a) Foreign Currency and Rupee Loans
Foreign Currency Loans amounting to Rs. 5,658.20 million
(Previous year Rs. Nil) and Rupee Loans amounting to Rs.
48,579.90 million (Previous year Rs. 35,200.00 million) are
secured by way of first charge/assignment ranking pari-
passu interse the lenders, as under:
i. First charge by mortgage on all the movable and
immovable properties of the Company,
ii. A first priority charge over all intangible assets of the
Company,
iii. Assignment of the rights, titles and interest, on
deposits, investments, bank accounts, book debts,
insurance covers, other general assets, letters of credit
and guarantee or performance bond, provided in
favour of the Company.
b) Vehicle Loan
Vehicle Loan amounting to Rs. 306.23 million (Previous year
Rs. 197.19 million) is secured by hypothecation of Vehicles
against which the loans have been taken.
8. Interest from Department of Telecommunications
The Company had recognised an income of Rs. 802.27 million
during the year ended March 31, 2003 being refund of excess
interest charged by DoT on the licence fee payable by the Company
pursuant to the judgement dated April 9, 2002 of Telecom
Disputes Settlement and Appellate Tribunal (TDSAT). During
the previous years, DoT arbitrarily acknowledged an amount of
Rs. 758.76 million against Company’s claim of Rs. 802.27 million
The Company has represented this matter with DoT. The Company
has not provided for the difference of Rs. 43.51 million, as in the
opinion of the management, the amount is recoverable from DoT.
The Company is also entitled to interest on the amount of the
refund so accrued in terms of the Supreme Court Judgement; the
recognition of revenue on account of the same has been postponed
pending acceptance in this respect by DoT. As of March 31, 2008,
this case is pending before the Hon’ble Supreme Court.
9. Contingent Liabilities
a) On March 2, 2006, the Honourable Supreme Court passed
an order adjudicating that providing of telecommunication
32 I D E A C E L L U L A R L I M I T E D
services cannot be termed as ‘Goods’ under the Sale of
Goods Act. In view of the above judgment, demands raised
for Sales Tax on Activation of new connections, Rentals and
Airtime by Sales Tax Authorities stand extinguished. As of
March 31, 2008, Sales Tax demands of Rs. 60.22 million
(Previous year Rs.931.40 million) are required to be yet
formally vacated by the authorities.
b) Export obligation under EPCG (Export Promotion Credit
Gurantee) Scheme is Rs. 301.06 million (Previous year
Rs. 301.06 million). Failure to meet this export obligation
within the stipulated time frame as per Foreign Trade Policy
2004-2009 would result in the payment of the aggregated
differential duty saved amounting Rs. 37.72 million (Previous
year Rs. 37.72 million) along with interest thereon. The
Company is confident of meeting the obligations based on
its current international in-roaming revenue trends.
c) During the financial year 2006-07, the WPC Wing of the
DoT had raised demands towards monthly compounded
interest on WPC charges for the period upto the financial
year 2002-03 in respect of the telecom service areas of the
erstwhile IMCL and BTA Cellcom Ltd.
Telecom operators had paid WPC Royalty and licence fees
towards GSM frequency, access and back-bone frequency
charges on circle area basis as provided in the licence terms
from inception till financial year 2002-03 while the DoT
demands were on city basis. The above matter was disputed
by the operators and contested in TDSAT. DoT proposed a
change in the basis of levy of spectrum charges based on
revenue share vide their letter dated April 18, 2002 on the
condition of its acceptance in entirety and withdrawal of all
legal proceedings by the operators. Vide their letter dated
March 26, 2002, DoT had also given time to the operators
to deposit the earlier principal demands by April 15, 2002.
The operators accepted the offer of change to revenue share
basis on August 23, 2002. The interest demand now raised
by WPC wing of DoT for the period before April 15, 2002 is
contrary to the DoT proposal in 2002.
The Company is therefore in the process of taking suitable
remedial action on these demands including a notice to the
erstwhile promoter of Idea Mobile Communication Limited
for Rs. 348.79 million (refer Note 11 below).
d) Other Matters not provided for
(Rupees in Million)
Particulars As on As on
March 31, March 31,
2008 2007
Income Tax Matters not
18.75 98.38
acknowledged as debts
Sales Tax & Service
Tax Matters not 1,254.06 313.83
acknowledged as debts
Other claims not
1,117.18 505.36
acknowledged as debts
e) Estimated amount of contracts (net of advance) remaining
to be executed on capital account and not provided for.
(Rupees in Million)
Particulars As on As on
March 31, March 31,
2008 2007
Estimated amount of
17,555.13 10,177.57
contracts (net of advance)
10. Details of guarantees given 14. CIF Value of Imports:
(Rupees in Million) (Rupees in Million)
Particulars As on As on Particulars For the For the
March 31, March 31, year ended year ended
2008 2007 March 31, March 31,
Bank guarantees given to 2008 2007
DoT including performance Capital Goods (including
guarantees of Rs. 2,370.00 million Spares) 16,030.04 9,265.67
(Previous year Rs. 1,140 million) 7,995.67 3,807.39 15. Expenditure in Foreign Currency (on remittance basis):
Bank guarantees given to BSNL 261.07 241.64 (Rupees in Million)
Bank guarantees given to Others 1,611.52 278.01
Particulars For the For the
Corporate Guarantee given to
Year ended Year ended
others on behalf of Subsidiary
March 31, March 31,
Company 2,820.00 70.00
2008 2007
11. In accordance with an assignment agreement entered between Interest 25.06 56.15
the original promoters of the amalgamated subsidiary Idea Mobile Travel 8.48 5.44
Communications Limited (IMCL) i.e. Escorts Ltd. and First Pacific
Professional and Consultancy
Company Ltd., IMCL had issued interest free unsecured Bond
of Rs. 1,757.36 million to Escorts Limited vide a Loan agreement Fees 53.58 25.59
dated January 15, 2004. This bond was in lieu of the loans from International Roaming Services 136.99 61.48
the original promoters and included accrued interest of Rs. 857.36 Others 88.35 84.26
million on June 10, 2004. This Bond is repayable on January 15, 16. Earning in Foreign Currency (on receipt basis):
2014 and carries a put option for Escorts Limited for a period of (Rupees in Million)
thirty days commencing on January 15, 2010 to redeem the entire
amount or part thereof at a price which would have been payable Particulars For the For the
by the Company had the Company opted for an early redemption year ended year ended
in accordance with the terms of the said agreement. The Company March 31, March 31,
is entitled to pre payment and set off against certain contingent 2008 2007
liabilities that may crystallise after June 10, 2004. International Roaming Services* 789.08 725.90
On the request of Escorts Ltd, the Company on July 21, 2006 Others 1.18 2.14
has consented to release the redemption proceeds of the above * On accrual basis Rs. 863.27 million for current year and Rs.
loan to UTI Bank on the same terms and conditions, as mentioned 891.61 million for previous year.
in the above Loan agreement.
17. Managerial Remuneration under section 198 of the Companies
12. Transfer of Licences Act, 1956 paid or payable during the financial year is as under:
The Company’s application to Department of Telecommunication (Rupees in Million)
(DOT) for transfer of telecom licenses held in the name of the
Particulars For the For the
erstwhile subsidiaries (which stands merged with the Company)
i.e. Idea Mobile Communications Limited, Idea Telecommunications year ended year ended
Limited and BTA Cellcom Limited in the name of the Company is March 31, March 31,
pending. The Company meets the licencing condition laid down for 2008 2007
transfer of licenses in case of amalgamation and expects to receive A] Salary including perquisites 23.59 11.26
this procedural approval in the ensuing period. B] Contribution to provident
and other fund 2.65 1.02
13. Auditor’s Remuneration (exclusive of service tax) :
C] Performance Incentive 14.40 3.17
(Rupees in Million)
Total 40.64 15.45
Particulars For the For the
year ended year ended The above remuneration excludes gratuity & leave encashment
March 31, March 31, amounts as the same is been provided based on actuarial valuation.
2008 2007 18. Quantitative details of goods traded
Statutory Audit Fees 20.00 8.50
Particulars For the year For the year
Audit Fee to erstwhile subsidiary – 4.66
ended ended
auditors
March 31, 2008 March 31, 2007
Tax Audit Fees 2.00 1.15 Handsets/Data Cards Nos. Value Nos. Value
Certification and other matters (Rs. Million) (Rs. Million)
(incl. in legal and professional Opening Stock 108 0.45 234 0.22
charges) 1.50 5.58 Addition on
Out of Pocket Expenses (incl. in amalgamation of
misc. expenses) 0.40 1.35 Subsidiaries – – 87 0.99
Total Remuneration 23.90 21.24 Purchases
Previous year figures excludes Rs. 12 million paid to Statutory (Net of Returns) 13 0.06 5 0.08
Auditors included under issue expenses forming part of Share Handsets Capitalised/
Premium Account. written off – – 218 0.82
Sale 13 0.06 – –
Closing Stock 108 0.45 108 0.45

A N N U A L R E P O R T 2 0 0 7 - 0 8 33
 19. (a) During the year, the Company has purchased and sold following units:
Particulars During the year ended March 31, 2008 During the year ended March 31, 2007
Qty. in Rs. in Qty. in Rs. in Qty. in Rs. in Qty. in Rs. in
‘000 Million ‘000 Million ‘000 Million ‘000 Million
Units Purchase Units Sale Units Purchase Units Sale
Purchased Value Sold Value Purchased Value Sold Value
ABN AMRO Cash Fund – IP – Growth 203,736 2,050 203,736 2,051 – – – –
ABN AMRO Money Plus IP Fund – Growth 129,650 1,500 129,650 1,510 – – – –
Birla Cash Plus – I P – Growth 194,831 4,030 180,701 3,724 – – – –
Birla Cash Plus – Institutional Premium Plan – Growth 2,416,417 30,384 2,338,918 29,441 838,536 9,855 838,536 9,878
Birla Floating Rate Fund – LTP – Growth 158,499 2,050 158,499 2,064 – – – –
Birla SunLife Cash Manager – I P – Growth 433,326 5,613 433,326 5,623 200,954 2,478 200,954 2,481
Birla Sunlife Interval Income Fund – Monthly Plan – Series I 122,503 1,250 73,929 755 – – – –
Birla SunLife Liquid Plus – IP – Growth 440,485 6,605 374,793 5,644 – – – –
Birla Sunlife Monthly Interval Fund – Series 2 122,373 1,250 – – – – – –
Birla Sunlife Quarterly Interval Fund – Series 8 50,000 500 – – – – – –
Canliquid Institutional Plan – Growth – – – – 15,529 200 15,529 200
DBS Chola Liquid Fund – Institutional Plus – Growth – – – – 34,861 510 34,861 511
DBS Chola Liquid Fund – Super IP – Growth 144,256 1,540 144,256 1,542 – – – –
DSP ML Cash Plus Fund – IP – Growth 14,811 150 14,811 151 – – – –
DSP ML Liquid Plus Fund – IP – Growth 13,590 150 13,590 150 – – – –
DSP ML Liquidity Fund – IP – Growth 13,103 150 13,103 150 70,110 735 70,110 736
DSP Ml Liquidity Fund – Regular – Growth – – – – 4,031 70 4,031 70
DWS Insta Cash Plus Fund – IP – Growth 310,745 3,783 310,745 3,787 111,194 1,270 111,194 1,271
DWS Money Plus Fund – IP – Growth 123,236 1,335 123,236 1,349 – – – –
Fidelity Cash Fund – IP – Growth 940 10 940 10 – – – –
Fidelity Cash Fund – Super IP – Growth 18,167 200 18,167 200 – – – –
Fidelity Liquid Plus Fund – Super IP – Growth 19,348 200 19,348 200 – – – –
HDFC Cash Mgmt Fund – Call Plan – Growth 11,042 150 11,042 150 – – – –
HDFC Cash Mgmt Fund – Savings Plan – Growth 9,110 150 9,110 150 – – – –
HDFC Cash Mgmt Fund – Savings Plus – Growth – – – – 3,208 50 3,208 50
HDFC Liquid Fund – Premium Plan – Growth 65,745 1,050 65,745 1,051 – – – –
HSBC Cash Fund – I P – Growth 11,577 150 11,577 150 – – – –
HSBC Cash Fund – Institutional Plus – Growth 414,559 5,064 414,559 5,069 89,022 1,020 89,022 1,021
HSBC Liquid Plus Fund – IP Plus – Growth 109,735 1,180 109,735 1,187 – – – –
ICICI Prudential Flexible Income Plan – Growth 334,388 4,917 317,623 4,718 – – – –
ING Vysya Liquid Fund – IP – Growth 135,933 1,660 135,933 1,662 77,991 900 77,991 901
ING Vysya Liquid Fund – Super IP – Growth 415,780 4,840 415,780 4,847 29,005 320 29,005 320
ING Vysya Liquid Plus Fund – IP – Growth 110,565 1,150 110,565 1,154 – – – –
JM High Liquidity – I P – Growth 34,577 450 34,577 451 26,510 320 26,510 320
JM High Liquidity – Super I P – Growth 289,658 3,577 289,658 3,582 44,326 505 44,326 505
JM Money Manager Fund – Super Plus Plan – Growth 290,147 3,181 290,147 3,213 – – – –
Kotak Flexi Debt Fund – Growth 65,862 809 65,862 818 – – – –
Kotak Liquid – Inst Premium Plan – Growth 135,828 2,128 135,828 2,130 207,746 3,065 207,746 3,068
Kotak Liquid – IP – Growth – – – – 3,503 50 3,503 50
LIC MF FMP Series 30 150,000 1,500 150,000 1,533 – – – –
LIC MF Liquid Fund – Growth 279,375 3,930 279,375 3,936 147,334 1,955 147,334 1,960
Lotus India Liquid Fund – Institutional Plus – Growth 14,076 150 14,076 150 – – – –
Lotus India Liquid Fund – IP – Growth 95,846 1,050 95,846 1,051 – – – –
Lotus India Liquid Fund – IP Plus – Growth 39,963 430 39,963 430 – – – –
Lotus India Liquid Fund – Super IP – Growth 131,110 1,440 131,110 1,441 – – – –
PRINCIPAL Cash Mgmt Fund LO– I P – Growth 8,758 110 8,758 110 12,160 145 12,160 145
PRINCIPAL Cash Mgmt Fund LO – Inst Prem. Plan – Growth 314,170 3,800 314,170 3,803 147,434 1,700 147,434 1,702
PRINCIPAL Floating Rate Fund – FMP – IP – Growth 62,486 770 62,486 773 – – – –
Prudential ICICI Interval Fund II Quarterly Interval Plan – B 100,000 1,000 100,000 1,021 – – – –
Prudential ICICI Liquid – I P – Growth 21,110 400 21,110 401 5,658 65 5,658 65
Prudential ICICI Liquid – Inst Plus – Growth 43,606 850 43,606 852 13,012 195 13,012 195

34 I D E A C E L L U L A R L I M I T E D
 Particulars During the year ended March 31, 2008 During the year ended March 31, 2007
Qty. in Rs. in Qty. in Rs. in Qty. in Rs. in Qty. in Rs. in
‘000 Million ‘000 Million ‘000 Million ‘000 Million
Units Purchase Units Sale Units Purchase Units Sale
Purchased Value Sold Value Purchased Value Sold Value
Prudential ICICI Liquid – Super IP – Growth 815,170 9,416 815,170 9,441 350,653 3,825 350,653 3,841
Prudential ICICI Monthly Interval Fund – Series 1 47,126 500 – – – – – –
Reliance Liquid Fund – TP – IP – Growth 53,070 1,030 53,070 1,031 – – – –
Reliance Liquid Plus Fund – IP – Growth 146,585 1,562 123,681 1,326 – – – –
Reliance Liquidity Fund – Growth 198,705 2,361 198,705 2,363 – – – –
SBI Magnum Inst. Income – Savings Plan – Growth – – – – 11,192 130 11,192 130
SBI Magnum Insta Cash – Cash Plan 39,967 700 39,967 701 195,026 3,255 195,026 3,265
SBI Magnum Insta Cash Fund – Liquid Floater Plan – Growth 49,511 660 49,511 660 – – – –
SBI Premier Liquid Fund – Super IP – Growth 43,591 550 43,591 551 – – – –
Standard Chartered Liquidity Manager Fund – Growth 13,889 150 13,889 150 107,531 1,150 107,531 1,151
Standard Chartered Liquidity Manager Fund Plus – Growth 472,939 5,280 472,939 5,283 115,737 1,215 115,737 1,216
Tata Fixed Income Portfolio Fund – A3 49,607 500 49,607 504 – – – –
Tata Liquid Fund – HIP – Growth 207,452 2,670 207,452 2,672 12,047 145 12,047 145
Tata Liquid Fund – RIP – Growth 5,462 100 5,462 100 – – – –
Tata Liquid Fund – SHIP – Growth 225,051 3,210 225,051 3,216 135,515 1,830 135,515 1,833
TATA Liquidity Management Fund – Growth 59,224 650 59,224 651 128,712 1,345 128,712 1,348
Templeton India TMA – IP – Growth 157,603 1,940 157,603 1,942 5,141 60 5,141 60
Templeton India TMA – Super IP – Growth 276,475 3,180 276,475 3,186 13,548 150 13,548 150
UTI Liquid Fund – Cash Plan – IP – Growth 122,293 1,580 122,293 1,585 118,697 1,429 118,697 1,433
UTI Money Market – Growth 52,293 1,130 52,293 1,132 14,365 290 14,365 291
Grand Total 11,661,031 145,806 11,195,969 140,678 3,290,288 40,232 3,290,288 40,313

(b) As at March 31, 2008 the closing balance in units are as follows:

Particulars As at March 31, 2008 As at March 31, 2007

Qty. in ‘000 Rs. in Million Qty. in ‘000 Rs. in Million
Closing Units Closing Value Closing Units Closing Value
Birla Cash Plus – I P – Growth 14,129 310 – –
Birla Cash Plus – Institutional Premium Plan – Growth 77,499 1,000 – –
Birla SunLife Liquid Plus – IP – Growth 65,692 1,000 – –
ICICI Prudential Flexible Income Plan – Growth 16,765 250 – –
Reliance Liquid Plus Fund – IP – Growth 22,905 250  –  –
Birla Sunlife Interval Income Fund – Monthly Plan – Series I 48,574 500 – –
Birla Sunlife Quarterly Interval Fund – Series 8 50,000 500 – –
Birla Sunlife Monthly Interval Fund – Series 2 122,373 1,250 – –
Prudential ICICI Monthly Interval Fund – Series 1 47,126 500 – –
Total 465,063 5,560 – –

20. As per the requirement of Section 22 of The Micro, Small (Rupees in Million)
and Medium Enterprises Development Act, 2006 following
information are disclosed : c) The amount of the payment made to
(Rupees in Million) the supplier beyond the appointed day
during the accounting year Nil
a) (i) The principal amount remaining
unpaid to any supplier at d) The amounts of interest accrued and
the end of accounting year included in remaining unpaid at the end of financial
sundry creditors. 3.08 year Nil
(ii) The interest due on above. Nil e) The amount of interest due and payable
The total of (i) & (ii) 3.08 for the period of delay in making
b) The amount of interest paid by the buyer payment (which have been paid
in terms of Section 16 of the Act. Nil but beyond the due date during the
year) but without adding the interest
specified under this Act. Nil

A N N U A L R E P O R T 2 0 0 7 - 0 8 35
 21. In accordance with the provisions of Securities and Exchange 23. The pre-operative expenses incurred, capitalised and balance
Board of India (Employees Stock Option Scheme and Employee amounts forming part of CWIP is as under:
Stock Purchase Scheme) Guidelines, 1999 (“SEBI Guidelines”) (Rupees in Million)
the Company has instituted ESOS–2006 as formulated by ESOS Particulars For the For the
committee for its employees and as approved by the Board of year ended year ended
Directors vide circular resolution dated December 31, 2007. March 31, March 31,
19,931,000 options have been granted to the eligible employees 2008 2007
as on December 31, 2007. Each option when exercised would be Salaries and Allowances 162.90 92.73
converted into one equity share of Rs. 10/- each, fully paid up, of Contribution to Provident and
the Company. The options vest 25% each on a specified date in 4 other funds 1.60 0.23
subsequent years from the date of grant. The maximum period of Security Service Charges 100.63 30.01
exercise is 5 years from the date of vesting. Power and Fuel 17.47 4.83
Repairs and Maintenance – Plant
The compensation costs of stock options granted to employees & Machinery 2.93 2.38
have been accounted by the Company using the intrinsic value Insurance 6.07 1.97
method. Rent 208.01 28.60
Summary of Stock Option Travelling & Conveyance 15.52 8.50
Miscellaneous Expenses 75.26 0.83
Particulars No. of Operational Vehicle Running
Stock Expenses 21.88 10.66
Options Interest 147.47 –
Options Outstanding as on April 1, 2007 Nil Total 759.74 180.74
Options Granted during the year 19,931,000 Add: Balance brought forward
Option forfeited/lapsed during the year 264,000 from previous year 22.78 14.80
Options exercised during the year Nil Add: Addition on amalgamation
Options Outstanding as on March 31, 2008 19,667,000 of Subsidiaries – 0.35
Personnel cost includes Rs. 37.59 million (Previous year Rs. Nil) Less: Capitalised during the period 207.49 173.11
being the amortisation of intrinsic value for the period ending Balance carried forward 575.03 22.78
March 31, 2008. 24. Details of foreign currency exposures:
Had the compensation cost for the Company’s stock based a) Hedged by a derivative instrument:
compensation plan been determined in the manner consistent (Rupees in Million)
with the fair value approach (calculated using Black & Scholes Particulars As on As on
Option Prising Model), the Company’s net income would be March 31, March 31,
lower by Rs. 100.93 million (Previous year: Rs. Nil) and earnings 2008 2007
per share as reported would be lower as indicated below: Foreign Currency Loan*
(Rupees in Million) Foreign Currency Loan in USD 30.00 –
Net profit after tax but before exceptional items 10,443.62 Foreign Currency Loan in JPY 12,630.73 –
Add: Total stock–based employee The Equivalent INR of Foreign
compensation expense determined under Currency Loans 5,658.20 –
intrinsic value base method 37.59 *Fully hedged for interest and principal repayments
Less: Total stock–based employee
compensation expense determined under fair b) Not hedged by a derivative instrument or otherwise:
value base method 138.52 (Rupees in Million)
Adjusted net profit 10,342.69 Particulars As on As on
Basic earnings per share (in Rs.) March 31, March 31,
– As reported 3.96 2008 2007
– Adjusted 3.93 Sundry Creditors:
Diluted earnings per share (in Rs.) Sundry Creditors in USD 48.78 103.42
– As reported 3.96 Sundry Creditors in EURO 0.42 2.18
– Adjusted 3.92 Sundry Creditors in GBP – 0.02
The fair value of each warrant is estimated on the The Equivalent INR of sundry
date of grant based on the following assumptions: creditors in Foreign Currency 1,976.23 4,636.13
Dividend yield (%) Nil Sundry Debtors:
6 years 6 Sundry Debtors in USD 4.56 5.20
Expected life
months Sundry Debtors in EURO 0.03 –
Risk free interest rate (%) 7.78% The Equivalent INR of sundry
Volatility (%) 40.00 debtors in Foreign Currency 184.16 226.72
Bank Deposits:
22. Accelerated Depreciation amounting Rs. 132.89 million (Previous Bank Deposits in USD 6.79 –
year Rs. Nil) on specified network assets not having vendor support The Equivalent INR of Bank
has been charged during the year ended March 31, 2008. Deposits in Foreign Currency 271.48 –

36 I D E A C E L L U L A R L I M I T E D
25. Provision for Gratuity:
The following table sets out status of the gratuity plan as required under Accounting Standard – 15 on “Employee Benefits”.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation.
(Rupees in Million)
Sr. Particulars Policy Policy Policy Policy
No. MP. No. MP. No. MP. No. MP. No.
509245 634757 109254 304606
1. Assumptions : As on March 31, 2008        
  Discount Rate 8.00% 8.00% 8.00% 8.00%
  Salary Escalation 5.00% 5.00% 7.00% 5.00%
2. Table showing changes in present value of obligations
  Present value of obligations as at beginning of year 7.21 45.42 5.38 23.96
  Interest cost 0.54 3.41 0.43 1.80
  Current Service Cost 1.08 6.37 2.68 6.80
  Benefits Paid 0.55 5.39 1.18 1.53
  Actuarial (Gain)/Loss on obligations (3.60) (10.13) 3.01 (0.76)
  Present value of obligations as at end of year 4.68 39.67 10.31 30.26
3. Table showing changes in the fair value of plan assets
  Fair value of plan assets at beginning of year 3.46 21.99 3.68 32.67
  Expected return on plan assets 0.42 2.26 0.49 2.90
  Contributions 1.35 8.90 4.88 5.99
  Benefits paid 0.55 5.39 1.18 1.53
  Actuarial Gain/(Loss) on Plan assets NIL NIL NIL NIL
  Fair value of plan assets at the end of year 4.68 27.77 7.86 40.02
4. Table showing fair value of plan assets
  Fair value of plan assets at beginning of year 3.46 21.99 3.68 32.67
  Actual return on plan assets 0.42 2.26 0.49 2.90
  Contributions 1.35 8.90 4.88 5.99
  Benefits Paid 0.55 5.39 1.18 1.53
  Fair value of plan assets at the end of year 4.68 27.77 7.86 40.02
  Funded status NIL (11.90) (2.46) 9.76
  Excess of Actual over estimated return on plan assets NIL NIL NIL NIL
  (Actual rate of return = Estimated rate of return as ARD falls on March 31)
5. Actuarial Gain/Loss recognised
  Actuarial gain/(Loss) for the year – Obligation 3.60 10.13 (3.01) 0.76
  Actuarial (gain)/Loss for the year – plan assets NIL NIL NIL NIL
  Total (gain)/Loss for the year (3.60) (10.13) 3.01 (0.76)
  Actuarial (gain)/Loss recognised in the year (3.60) (10.13) 3.01 (0.76)
6. The amounts to be recognised in the balance sheet and statements of
profit and loss
  Present value of obligations as at the end of year 4.68 39.67 10.31 30.26
  Fair value of plan assets as at the end of the year 4.68 27.77 7.86 40.02
  Funded status NIL (11.90) (2.46) 9.76
  Net Asset/(liability) recognised in balance sheet NIL (20.92) (2.46) NIL
7. Expenses Recognised in statement of Profit and Loss
  Current Service cost 1.08 6.37 2.68 6.80
  Interest Cost 0.54 3.41 0.43 1.80
  Expected return on plan assets 0.42 2.26 0.49 2.90
  Net Actuarial (gain)/Loss recognised in the year (3.60) (10.13) 3.01 (0.76)
  Expenses recognised in statement of Profit and Loss (2.40) (2.62) 5.63 4.94

A N N U A L R E P O R T 2 0 0 7 - 0 8 37
 26 Segment Reporting
1. Primary Segments: 2. Secondary Segment:
The Company operates in two business segments: The Company caters only to the needs of Indian market
a) Mobility Services representing a singular economic environment with similar
b) National Long Distance (NLD) risks and rewards and hence there are no reportable
geographical segments.

Primary Business Information (Business Segments) for the year ended March 31, 2008.
(Rupees in Million)
Particulars Business Segments
Mobility NLD Elimination Total
Revenue
External Revenue 67,199.90 – – 67,199.90
Inter-segment Revenue – 3,536.67 (3,536.67) –
Total Revenue 67,199.90 3,536.67 3,536.67 67,199.90
Segment result 13,220.23 724.80 – 13,945.03
Interest and financing charges (Net) – – – 2,776.42
Profit before Tax – – – 11,168.61
Provision for tax (Net) – – – 724.99
Profit after tax – – – 10,443.62
Other information
Segment assets 117,539.17 1,402.16 (1,120.93) 117,820.40
Unallocated corporate assets – – – 9,704.14
Total assets 117,539.17 1,402.16 (1,120.93) 127,524.54
Segment liabilities 91,996.79 520.60 (1,120.93) 91,396.46
Unallocated corporate liabilities – – – 667.82
Total liabilities 91,996.79 520.60 (1,120.93) 92,064.28
Capital expenditure 54,023.05 0.02 – 54,023.07
Depreciation and amortisation 8,766.37 1.25 – 8,767.62

Primary Business Information (Business Segments) for the year ended March 31, 2007.
(Rupees in Million)
Particulars Business Segments
Mobility NLD Elimination Total
Revenue
External Revenue 43,873.29 – – 43,873.29
Inter-segment Revenue – 778.96 (778.96) –
Total Revenue 43,873.29 778.96 (778.96) 43,873.29
Segment result 7,984.80 156.78 – 8,141.58
Interest and financing charges (Net) – – – 3,051.06
Profit before Tax – – – 5,090.52
Provision for tax (Net) – – – 69.91
Profit after tax – – – 5,020.61
Other information
Segment assets 68,338.36 234.39 (209.09) 68,363.66
Unallocated corporate assets – – – 17,463.23
Total assets 68,338.36 234.39 (209.09) 85,826.89
Segment liabilities 64,156.29 77.61 (209.09) 64,024.81
Unallocated corporate liabilities – – 10.55
Total liabilities 64,156.29 77.61 (209.09) 64,035.36
Capital expenditure 27,951.20 25.00 – 27,976.20
Depreciation and amortisation 6,717.61 0.44 – 6,718.05

38 I D E A C E L L U L A R L I M I T E D
27. Related Party Transactions
As per Accounting Standard–18 on “Related Party Disclosure” issued by the Institute of Chartered Accountants of India, related parties of the
Company are disclosed below:
A. List of related Parties:
Promoters
Hindalco Industries Limited
Grasim Industries Limited
Aditya Birla Nuvo Limited (formerly known as Indian Rayon and Industries Limited)
Birla TMT Holdings Pvt. Limited
Subsidiaries
Swinder Singh Satara & Co. Limited
Aditya Birla Telecom Limited
Idea Cellular Services Limited
Idea Cellular Infrastructure Services Limited
Idea Cellular Towers Infrastructure Limited
Key Management Personnel
Mr. Sanjeev Aga, MD
Mr. AJS Jhala, CFO
B. Transactions with Related Parties
(Rupees in Million)
Particulars Nature of Relationship
Promoters Subsidiaries
Key
Hindalco Grasim Aditya
Management
Industries Industries Birla Nuvo ABTL ICSL ICISL SSS & Co. Personnel
Limited Limited Limited
ICDs Placed –     – – –  – – –
(100.00)
Interest on ICDs Placed – – – – – – – –
(2.76)
Repayment of ICDs – – – 40.00 – – – –
Placed (60.00)
Remuneration – – – – – – – 61.48
(31.43)
Purchase of Shares – –  – – – – – –
(100.00)
Purchase of Fixed Assets – 0.13  – – – – – –
(5.39)
Investments – – – – 0.50 0.50 – –
Purchase of Service – – – – 51.02 – – –
Sale of Service – – – – – – – –
Employee Expenses 0.08 – – – – – – –
Unsecured Loans given – – – 253.03 37.34 0.79 – –
(4.87) – –
Expense incurred by – –  – – – – – –
Company on behalf of (0.01)
Expenses incurred on 3.93 2.00 0.18 – – – – –
Company’s behalf by – – (1.71)
Rent Paid – – – – – – 2.70 –
(2.70)
(Figures in bracket are for the period ended March 31, 2007)

A N N U A L R E P O R T 2 0 0 7 - 0 8 39
 C. Outstanding as on March 31, 2008
(Rupees in Million)
Particulars Nature of Relationship
Promoters Subsidiaries
Key
Hindalco Grasim Aditya
Management
Industries Industries Birla Nuvo ABTL ICSL ICISL SSS & Co. Personnel
Limited Limited Limited
ICDs Placed –  –  –  – –  –   – – 
(40.00)
Unsecured Loan taken –   – –  –  –  – 2.47 – 
(0.80)
Unsecured Loan given –  –  –  260.60 10.77 0.79 –  8.00
(7.63) – – (8.00)
Remuneration Payable –  –  –  – –  –  –  24.20
(7.51)
Accounts Payable 0.08 – – – 22.91 –  –   –
(0.13)
Corporate Guarantee  – –  –  2,820.00 –  –  –  – 
(70.00)
(Figures in bracket are as of March 31, 2007)

D. Disclosures of amounts at the year end and the As at March 31, 2008 the amounts towards the supply of fixed
maximum amount of loans and advances outstanding assets during the year stands fully paid and there are no minimum
during the year. lease payments outstanding as at the year end.
(Rupees in Million)
30. Basic and Diluted Earnings Per Share
Name of Subsidiary Outstanding Maximum
as on outstanding For the year For the year
March 31, during the ended ended
2008 year March 31, March 31,
Aditya Birla Telecom 2008 2007
Limited 260.60 260.60 Nominal value of Equity
Idea Cellular Service Ltd. Shares (Rs.) 10/- 10/-
(ICSL) 10.77 26.87 Profit after Tax (Rs. million) 10,443.62 5,020.61
Idea Cellular Infrastructure Less Preference Share
Service Ltd. (ICISL) 0.79 0.79 Dividend (Rs. million) – –
Profit attributable to equity
28. The Company has entered into non–cancellable operating shareholders (Rs. million) 10443.62 5,020.61
leases for periods ranging from 36 months to 261 months. For
the current year, total minimum lease payments amounting to Rs. Weighted average number
264.63 million are included in the rental expenditure head. of equity shares outstanding
during the period 2,634,896,058 2,291,992,960
The future lease payments in respect of the above are as Basic Earnings Per Share (Rs.) 3.96 2.19
follows.
Dilutive effect on weighted
(Rupees in Million)
average number of equity
Particulars Not later Later than Later shares outstanding during
than one year but than the year 4,83,044 42,500,000
one year not later than five years Weighted average number of
five years diluted equity shares 2,635,379,102 2,334,492,960
Minimum Lease 313.24 1,120.97 902.12 Diluted Earnings Per Share (Rs.) 3.96 2.15
payments (162.39) (592.48) (Nil)
(Figures in bracket are as of March 31, 2007)
29. During the year the Company has entered in to a composite IT
outsourcing agreement wherein fixed assets and services related
to IT has been supplied by the vendor. Such fixed assets received
have been accounted for as a finance lease. Correspondingly,
such assets and liabilities are recorded at the fair value of the
lease assets at the time of receipt and depreciated on the stated
useful life applicable to similar assets of the Company.

40 I D E A C E L L U L A R L I M I T E D
31. Deferred Tax 32. The movement in the Site Restoration Cost is set out as follows:
(Rupees in Million)
As of March 31, 2008, the Company has deferred tax liability of
Rs. 1,663.20 million and deferred tax asset of Rs.1,001.36 million Particulars For the For the
as under: year ended year ended
(Rupees in Million) March 31, March 31,
2008 2007
Particulars As at As at
March 31, March 31, Opening Balance 253.26 6.70
2008 2007 Addition on amalgamation of
– 115.91
Deferred Tax Liability: Subsidiaries
Depreciation of Fixed Assets 1,588.36 742.05 Additional Provision 220.32 137.35
Amortisation of Entry & Licence Payment/ Reversal/ Expenses – 6.70
74.84 78.69 Closing Balance 473.58 253.26
Fee (Net)
Total Deferred Tax Liability 1,663.20 820.74
33. Previous year’s figures have been regrouped/rearranged wherever
Deferred Tax Asset: necessary to conform to the current period grouping.
Provision for Doubtful Debts 837.22 756.52
Expenses allowable on pay-
ment basis 64.30 53.67
Others 99.84 –
Total Deferred Tax Asset 1,001.36 810.19
Net Deferred Tax Liability 661.84 10.55

For and on behalf of the Board

G.P. Gupta Arun Thiagarajan Sanjeev Aga

Director Director Managing Director

AJS Jhala Pankaj Kapdeo

Chief Financial Officer Company Secretary

Date: April 24, 2008

Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 41
 Cash Flow Statement for the year ended March 31, 2008
(Rs. in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007
A) Cash Flow from Operating Activities
Net Profit after tax 10,443.62 5,020.61
Adjustments For
Depreciation 7,568.52 5,636.66
Amortisation of Intangible assets 1,199.10 1,081.39
Interest charge and Forex 4,592.27 3,051.06
Profit on sale of current investment (431.79) (81.25)
Provision for Bad & Doubtful Debts/Advances 244.94 368.17
Employee Stock Option Cost 37.59 –
Provision for Gratuity, Leave Encashment 53.53 153.54
Provision for Fringe Benefit Tax 73.69 59.36
Provision for Deferred Tax 651.30 10.55
Liability no longer required written back (139.73) (174.94)
Interest received (849.52) (170.76)
(Profit)/Loss on sale of fixed assets/assets discarded 8.89 (1.92)
13,008.79 9,931.86
Operating profit before working capital changes 23,452.41 14,952.47

Changes in Current Assets and Current Liabilities

(Increase)/Decrease in Sundry Debtors (706.10) (590.08)
(Increase)/Decrease in Inventories (97.05) (69.97)
(Increase)/Decrease in Other Current Assets 163.33 27.79
(Increase)/Decrease in Loans and Advances (3,585.68) (2,043.67)
Increase /(Decrease) in Current Liabilities 6,223.50 3,871.52
1,998.00 1,195.59
Cash generated from operations 25,450.41 16,148.06
Tax paid (including FBT & TDS ) (428.20) (96.97)
Net cash from operating activities 25,022.21 16,051.09

B) Cash Flow from Investing Activities

Purchase of Fixed assets & Intangible assets (including
CWIP) (55,506.36) (22,815.17)
Proceeds from sale of Fixed assets 150.80 19.12
Payment for purchase of Shares (1.00) (100.00)
Sale/(purchase) of Other Investments (5,128.21) 81.25
Interest and Dividend Received 922.93 63.91
Net cash from/(used in) investing activities (59,561.84) (22,750.89)

42 I D E A C E L L U L A R L I M I T E D
Cash Flow Statement for the year ended March 31, 2008
(Rs. in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007
C) Cash Flow from Financing Activities
Proceeds from issue of Share Capital 3,187.52 25,000.00
Share Issue Expenses – (620.04)
Repayment of Preference Share Capital – (4,830.00)
Premium on redemption of Preference Shares – (2,733.26)
Proceeds from Long Term Borrowings 14,968.89 35,397.20
Repayment of Long Term Borrowings (1,480.44) (15,690.05)
Proceeds from Short Term Loan 22,120.90 17,874.66
Repayment of Short Term Loan (18,625.00) (27,958.54)
Proceeds from Foreign Currency Loan 5,658.20 –
Interest Paid (4,517.17) (3,039.25)
Net cash from/(used in) financing activities 21,312.90 23,400.72
Net increase/(decrease) in cash and cash equivalent (13,226.73) 16,700.92
Cash and cash equivalent at the beginning 18,197.28 1,290.91
Add: Cash and Cash Equivalents acquired on account of – 205.45
amalgamation
Cash and cash equivalent at the end 4,970.55 18,197.28

Notes to Cash flow Statement for the year ended March 31, 2008
1. Cash and cash equivalent includes
Cash and Cheques on Hand 296.92 229.22
Balances with Scheduled Banks
– on Current Accounts 1,179.81 998.40
– on Deposit Accounts 3,493.82 16,969.66
4,970.55 18,197.28

2. The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard – 3 on Cash Flow Statement
issued by Institute of Chartered Accountants of India
3. Previous year’s figures have been rearranged/regrouped wherever necessary.

As per our report of even date attached For and on behalf of the Board

For Deloitte Haskins & Sells

Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019

Date: April 24, 2008 AJS Jhala Pankaj Kapdeo

Place: Mumbai Chief Financial Officer Company Secretary

A N N U A L R E P O R T 2 0 0 7 - 0 8 43
 Balance Sheet Abstract and Company’s General Business Profile
I. REGISTRATION DETAILS
Registration No. 3 0 9 7 6 State Code 0 4 Date 1 4 0 3 1 9 9 5
Date Month Year
Balance Sheet Date 3 1 0 3 2 0 0 8

II. CAPITAL RAISED DURING THE YEAR (Rupees in Thousand)

Public Issue Rights Issue
4 2 5 0 0 0 N I L
Bonus Issue Private Placement
N I L N I L

III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUND (Rupees in Thousand)

Total Liabilities Total Assets
1 1 5 3 3 4 6 4 0 1 1 5 3 3 4 6 4 0
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
2 6 3 5 3 6 1 0 2 3 1 3 4 0 0 0
Secured Loans Unsecured Loans
5 4 5 4 4 3 3 0 1 0 6 0 3 2 6 0
APPLICATION OF FUNDS
Net Fixed Assets Investments
1 0 6 0 8 5 2 1 0 5 6 9 9 3 1 0
Net Current Assets/(Liability) Miscellaneous Expenditure
1 0 5 1 4 8 2 0 N I L
Accumulated Losses
1 4 0 6 4 9 4 0

IV. PERFORMANCE OF COMPANY (Rupees in Thousand)

Turnover Total Expenditure
6 7 3 7 4 4 5 0 5 6 2 0 5 8 4 0
+ – Profit/(Loss) Before Tax + – Profit/(Loss) After Tax
+ 1 1 1 6 8 6 1 0 + 1 0 4 4 3 6 2 0
(Please tick appropriate box + for profit - for loss)
Earnings Per Share in Rs. Dividend Rate (%)
+ 3 . 9 6 0 0
V. GENERIC NAMES OF THE THREE PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (As per monetary terms)
Item Code No. (ITC Code) N A
Product Description T E L E C O M S E R V I C E S

For and on behalf of the Board

G.P. Gupta Arun Thiagarajan Sanjeev Aga

Director Director Managing Director

AJS Jhala Pankaj Kapdeo

Chief Financial Officer Company Secretary

Date: April 24, 2008

Place: Mumbai

44 I D E A C E L L U L A R L I M I T E D
Auditors’ Report on the Consolidated Financial Statements
To the Board of Directors of
Idea Cellular Limited
1. We have audited the attached Consolidated Balance Sheet of Limited have reported that financial statement of Indus
Idea Cellular Limited (‘the Company’), and its subsidiaries (the Towers Limited are certified by the Management which are
Company and its subsidiaries constitute ‘the Group’) as at March subject to consequential adjustment, if any arising out of
31, 2008 and also the Consolidated Profit and Loss account their audit.
and the Consolidated Cash Flow Statement for the year ended
4. We report that the consolidated financial statements have been
on that date annexed thereto (all together referred to as “the
prepared by the Company’s Management in accordance with the
consolidated financial statements”). These financial statements
requirements of Accounting Standard 21 ‘Consolidated Financial
are the responsibility of the Company’s management and have
Statements’ issued by the Institute of Chartered Accountants of
been prepared by the Management on the basis of separate
India.
financial statements and other financial information regarding
components. Our responsibility is to express an opinion on these 5. Attention is invited to Note 12 of Schedule 22 B of the
consolidated financial statements based on our audit. Consolidated Financial Statements. As detailed in the said note,
pending the transfer of Telecom licences of the erstwhile Idea
2. We conducted our audit in accordance with the auditing
Mobile Telecommunications Limited, BTA Cellcom Limited and
standards generally accepted in India. Those Standards require
Idea Telecommunications Limited in the name of the Company,
that we plan and perform the audit to obtain reasonable
the Company has given effect to the scheme of Amalgamation
assurance about whether the financial statements are prepared,
in the financial statements with effect from April 1, 2006.
in all material respects, in accordance with an identified financial
Implication if any, in the event of non transfer of the licences are
reporting framework and are free of material misstatement. An
not ascertainable at this stage.
audit includes, examining on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also 6. Based on our audit and on consideration of reports of other
includes assessing the accounting principles used and significant auditor on separate financial statements and on the other
estimates made by the Management, as well as evaluating the financial information of the components, and to the best of
overall financial statement presentation. We believe that our audit our information and explanations given to us, subject to what
provides a reasonable basis for our opinion. has been stated in paragraph 3b and 5 above, we are of the
opinion that the attached consolidated financial statements give
3. a) We did not audit the financial statements of Aditya Birla
a true and fair view in conformity with the accounting principles
Telecom Limited and Idea Cellular Infrastructure Services
generally accepted in India:
Limited (consolidated with its subsidiary and joint venture)
whose financial statements reflect total assets (net) of a) in the case of the Consolidated Balance Sheet, of the state
Rs.373.04 million as at March 31, 2008, total revenue of affairs of the Group as at March 31, 2008;
of Rs.0.20 million and net cash outflow from operating
b) in case of the Consolidated Profit and Loss Account, of the
activities amounting to Rs.68.52 million for the year
profits of the Group for the year ended on that date; and
ended on that date as considered in the consolidated
financial statements. These financial statements and other c) in the case of the Consolidated Cash Flow Statement, of the
financial information have been audited by other qualified cash flows of the Group for the year ended on that date.
auditor whose reports have been furnished to us by the
Management of the Group, and our opinion, is based solely For Deloitte Haskins & Sells
on the reports of the other auditor. Chartered Accountants

b) As mentioned in note 4 b of Schedule 22 B, the consolidated Hemant M. Joshi

financial statement of Idea Cellular Infrastructure Services Partner
Limited includes total assets of Rs.1.89 million, total revenue Membership No.: 38019
of Rs. Nil and net cash flow of Rs.0.29 million of Indus Towers
Limited, joint venture of Idea Cellular Infrastructure Services Date: April 24, 2008
Limited. The auditor of Idea Cellular Infrastructure Services Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 45
 Consolidated Balance Sheet as at March 31, 2008

(Rupees in Million)
Schedules As at As at
March 31, 2008 March 31, 2007
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 26,353.61 25,928.60
Outstanding Employee Stock Options 37.59 –
Reserves and Surplus 2 23,134.00 20,371.49
49,525.20 46,300.09
Loan Funds
Secured 3 54,548.75 35,397.68
Unsecured 4 10,605.28 7,107.36
65,154.03 42,505.04
Deferred Tax Liability (Net) (Refer Note B 23 to Schedule 22) 661.02 10.55
TOTAL 115,340.25 88,815.68
APPLICATION OF FUNDS
Fixed Assets
Gross Block (At Cost) 5A 110,141.03 70,473.30
Less: Depreciation 31,242.16 26,306.03
Net Block 78,898.87 44,167.27
Intangible Assets (Net) 5B 17,892.38 11,863.58
Capital Work-in-Progress 10,371.52 5,069.03
107,162.77 61,099.88
Goodwill on Consolidation 61.20 61.20
Investments 6 5,560.00 12.32
Current Assets, Loans and Advances
Current Assets
Inventories 7 276.15 179.10
Sundry Debtors 8 1,985.93 1,524.77
Cash and Bank Balances 9 4,974.51 18,199.40
Other Current Assets 10 520.76 757.50
Loans and Advances 11 7,742.16 3,999.56
15,499.51 24,660.33
Less: Current Liabilities and Provisions 12 27,022.42 21,520.34
Net Current Assets (11,522.91) 3,139.99
Profit and Loss Account 14,079.19 24,502.29
TOTAL 115,340.25 88,815.68
Significant Accounting Policies and Notes to the Accounts 22
The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019
Date: April 24, 2008 AJS Jhala Pankaj Kapdeo
Place: Mumbai Chief Financial Officer Company Secretary

46 I D E A C E L L U L A R L I M I T E D
Consolidated Profit and Loss Account for the year ended March 31, 2008

(Rupees in Million)
Schedules For the year ended For the year ended
March 31, 2008 March 31, 2007
INCOME
Service Revenue 67,199.83 43,500.16
Sale of Trading Goods 0.07 163.84
Other Income 13 174.56 209.29
TOTAL 67,374.46 43,873.29
OPERATING EXPENDITURE
Cost of Trading Goods Sold 14 0.06 51.73
Personnel Expenditure 15 3,463.57 2,608.71
Network Operating Expenditure 16 10,470.11 5,335.72
Licence and WPC Charges 17 6,851.03 4,487.01
Roaming and Access Charges 18 11,334.41 7,320.96
Subscriber Acquisition and Servicing Expenditure 19 6,424.23 5,643.27
Advertisement and Business Promotion Expenditure 3,224.86 2,006.20
Administration and other Expenses 20 2,913.58 1,557.84
44,681.85 29,011.44
PROFIT BEFORE FINANCE CHARGES, DEPRECIATION, AMORTISATION and Tax 22,692.61 14,861.85
Finance and Treasury Charges (Net) 21 2,776.20 3,051.18
Depreciation 5A 7,569.01 5,636.77
Amortisation of Intangible Assets 5B 1,199.10 1,081.39
PROFIT BEFORE TAX 11,148.30 5,092.51
Provision for taxation - Current 425.93 0.42
- Deferred 650.47 10.55
- Fringe Benefit tax 74.13 59.36
- MAT Credit (425.33) –
PROFIT AFTER TAX 10,423.10 5,022.18
Balance of Loss brought forward from previous year (24,502.29) (17,087.74)
Accumulated Losses acquired on amalgamation – (12,314.06)
Leave Encashment Provision for earlier years – (122.67)
BALANCE OF LOSS CARRIED FORWARD TO BALANCE SHEET (14,079.19) (24,502.29)

EARNINGS PER SHARE (in Rupees) (Refer Note B 22 to Schedule 22)

Basic 3.96 2.19
Diluted 3.96 2.15
Significant Accounting Policies and Notes to the Accounts 22

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019
Date: April 24, 2008 AJS Jhala Pankaj Kapdeo
Place: Mumbai Chief Financial Officer Company Secretary

A N N U A L R E P O R T 2 0 0 7 - 0 8 47
 Schedules forming part of the Consolidated Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 1
SHARE CAPITAL
AUTHORISED
(Refer Note B 1(a) to Schedule 22)
4,275,000,000 (Previous year 3,775,000,000) Equity Shares of Rs.10 each 42,750.00 37,750.00
1500 (Previous year 500) Redeemable Cumulative Non Convertible Preference Shares of 15,000.00 5,000.00
Rs.10 Mn each
57,750.00 42,750.00
ISSUED, SUBSCRIBED and PAID-UP
Equity Share Capital (Refer Note B 1(b) to Schedule 22)
2,635,360,539 (Previous year 2,592,860,539) Equity Shares of Rs. 10 each fully paid up 26,353.61 25,928.60
26,353.61 25,928.60
SCHEDULE 2
RESERVES AND SURPLUS
Amalgamation Reserve
Opening Balance 643.57 998.41
Less: Adjustment on Amalgamation of Subsidaries – (354.84)
643.57 643.57
Capital Reserve 1,414.56 1,414.56
Share Premium Account
Premium on issue of Equity Shares 18,313.36 21,666.66
Add: Premium on issue of shares under GSO (Refer Note B 1(b) to Schedule 22) 2,762.51 –
Less: Share Issue Expenses – (620.04)
Less: Premium on redemption of Preference Shares – (2,733.26)
21,075.87 18,313.36
23,134.00 20,371.49
SCHEDULE 3
SECURED LOANS
Term Loan
Foreign Currency Loan
– From Banks 5,658.20 –
Rupee Loan
– From Banks 41,480.20 29,170.50
– From Financial Institutions 7,099.70 6,029.50
(Loan Repayable within one year Rs. 1,425.20 Mn, Previous year Rs. 880.00 Mn)
Vehicle Loan 310.65 197.19
(Loan Repayable within one year Rs. 104.83 Mn, Previous year Rs. 47.98 Mn)
Working Capital Loan
– From Banks – 0.49
54,548.75 35,397.68
SCHEDULE 4
UNSECURED LOANS
Term Loan
– From Others (Refer Note B 11 to Schedule 22) 1,757.36 1,757.36
Short Term Loan
– From Banks 8,845.90 5,350.00
– From Others 2.02 –
10,605.28 7,107.36

48 I D E A C E L L U L A R L I M I T E D
 Schedules forming part of the Consolidated Accounts
Schedule 5A – FIXED ASSETS
(Rupees in Million)
Gross Block Depreciation Net Block
Particulars As at Additions Sale/ As at As at Additions Sale/ As at As at As at
April 1, 2007 during the Year Adjustment March 31, 2008 April 1, 2007 during the Year Adjustment March 31, 2008 March 31, March 31, 2007
during the Year during the Year 2008
Land 68.20 9.56 – 77.76 – – – – 77.76 68.20
Leasehold Land 190.29 19.98 – 210.27 58.52 9.41 – 67.93 142.34 131.77
Building 660.50 11.62 44.97 627.15 205.09 31.01 44.94 191.16 435.99 455.41
Plant & Machinery 68,110.95 41,866.36 2,682.36 107,294.95 25,183.30 7,275.34 2,559.82 29,898.82 77,396.13 42,927.65
Furniture & Fixture 524.57 236.89 10.28 751.18 332.86 69.08 4.69 397.25 353.93 191.71
Office Equipment 563.00 103.44 13.02 653.42 430.10 77.81 12.20 495.71 157.71 132.90
Vehicles 355.79 207.63 37.12 526.30 96.16 109.23 14.10 191.29 335.01 259.63
Sub-Total 70,473.30 42,455.48 2,787.75 110,141.03 26,306.03 7,571.88 2,635.75 31,242.16 78,898.87 44,167.27
Less : Pre-operative
Charge Capitalised – – – – – 2.87 – – – –
Total 70,473.30 42,455.48 2,787.75 110,141.03 26,306.03 7,569.01 2,635.75 31,242.16 78,898.87 44,167.27
Previous Year 47,939.60 * 22,653.38 119.68 70,473.30 20,764.72 ** 5,643.79 102.48 26,306.03 44,167.27
* Includes additions on account of amalgamation Rs. 11.53 million.
** Includes additions on account of amalgamation Rs. 0.65 million & Rs. 6.37 million on account of Pre-operative charge capitalised.
Notes:
1. Exchange Difference of Rs. Nil (Previous year Gain Rs. 51.75 million) being gain on foreign exchange fluctuation relating to acquisition of fixed assets has been adjusted to relevant fixed assets.
2. As per the AS-11 on “The Effects of Changes in Foreign Exchange Rates”, during the current year exchange difference amounting to Rs. 515.63 million being gain on foreign exchange fluctuation relating to
acquisition of fixed assets has been charged to Profit and Loss Account.
3. Plant & Machinery includes assets held for disposal – Gross Block Rs. 1,988.03 mllion and Net Block Rs. 45.00 million.
4. Plant & Machinery includes Gross Block of assets capitalised under finance lease Rs. 975.01 million (Previous year Rs.Nil) and corresponding Accumulated Depreciation being Rs. 134.43 million
(Previous year Rs.Nil).
Schedule 5B – INTANGIBLE ASSETS
(Rupees in Million)
Gross Block Amortisation Net Block
Particulars As at Additions Sale/ As at As at Additions Sale/ As at As at As at
April 1, 2007 during the Adjustment March 31, April 1, 2007 during the Adjustment March 31, March 31, March 31,
Year during the 2008 Year during the 2008 2008 2007
Year Year
Entry/License Fees 20,806.72 6,845.90 – 27,652.62 9,255.12 994.53 – 10,249.65 17,402.97 11,551.60
Computer - Software 764.82 383.66 26.05 1,122.43 536.86 198.16 18.37 716.65 405.78 227.96
Bandwidth 88.03 6.03 – 94.06 4.01 6.40 – 10.41 83.65 84.02
Total 21,659.57 7,235.59 26.05 28,869.11 9,795.98 1,199.10 18.37 10,976.71 17,892.40 11,863.58
Previous Year 18,383.38 # 3,276.19 – 21,659.57 8,515.79 ## 1,280.19 – 9,795.98 11,863.59
# Includes additions on account of amalgamation Rs. 886.00 million.
## Includes additions on account of amalgamation Rs. 176.37 million & Rs. 22.43 million on account of Pre-operative charge capitalised
Notes:
1. Computer - Software include Gross Block of assets capitalised under finance lease Rs. 38.28 million (Previous year Rs.Nil) and corresponding Accumulated Depreciation being Rs.4.88 million
(Previous year Rs.Nil)
2. The remaining amortisation period of license fees as at March 31, 2008 ranges between 7 to 20 years based on the respective Telecom Service License period.

A N N U A L R E P O R T 2 0 0 7 - 0 8 49
 Schedules forming part of the Consolidated Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 6
INVESTMENTS
Unquoted
Units of Mutual Funds (Current) (Refer Note B 15 to Schedule 22) 5,560.00 12.32
(Includes unutilised Initial Public Offer proceeds of Rs. 4,885.90 Mn, Previous Year Nil)
5,560.00 12.32

SCHEDULE 7
INVENTORIES
(At lower of cost or estimated realisable value)
Trading Goods 0.45 0.45
Sim Cards and Others 275.70 178.65
276.15 179.10
SCHEDULE 8
SUNDRY DEBTORS
Debts outstanding for over six months
Unsecured – Considered Good 95.31 26.39
– Considered Doubtful 2,356.33 2,081.18
2,451.64 2,107.57
Other Debts
Unsecured – Considered Good 1,890.62 1,498.38
– Considered Doubtful 106.80 144.54
1,997.42 1,642.92
Less: Provision for doubtful debts 2,463.13 2,225.72
Total 1,985.93 1,524.77
Sundry Debtors include certain parties from whom Security Deposits of Rs. 225.77 Mn.
(Previous Year Rs. 161.12 Mn) have been taken and are lying with the Company

SCHEDULE 9
CASH AND BANK BALANCES
Cash and Cheques on Hand 297.01 229.29
Balances with Scheduled Banks
- in Current Accounts 1,181.98 999.25
- in Deposit Accounts 3,495.52 16,970.86
(Includes unutilised Initial Public Offer proceeds of Rs. 3,150 Mn., Previous Year Rs. 15,504.50
Mn) and Rs. 71.90 Mn (Previous Year Rs. 108.70 Mn) as margin money
4,974.51 18,199.40
SCHEDULE 10
OTHER CURRENT ASSETS
Receivable Others – 0.09
Unbilled Revenue 476.82 640.15
Interest Receivable on Deposits 43.94 117.26
520.76 757.50

50 I D E A C E L L U L A R L I M I T E D
Schedules forming part of the Consolidated Accounts
(Rupees in Million)
As at As at
March 31, 2008 March 31, 2007

SCHEDULE 11
LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Advances recoverable in cash or kind or for value to be received
– Considered good 6,295.25 3,284.13
– Considered Doubtful 90.75 90.84
Less: Provision For Doubtful Advances 90.75 90.84
6,295.25 3,284.13
Deposits and Balances with Govt. Authorities 242.50 109.83
Deposit with others 620.56 383.80
Advance Income Tax 158.52 215.81
MAT Credit Entitlement 425.33 –
Advance Fringe Benefit Tax (Previous Year Net of Provision of Rs. 87.46 Mn.) – 5.99
7,742.16 3,999.56
SCHEDULE 12
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry Creditors (Refer Note B 13 to Schedule 22) 17,598.80 16,108.53
Book Bank Overdraft 2,272.97 665.03
Advances from Customers 4,054.32 2,565.34
Deposits from Customers 557.44 570.08
Other Liabilities 1,626.87 1,055.36
Interest accrued but not due 92.71 17.61
26,203.11 20,981.95
Provisions
Gratuity (Refer Note B 17 to Schedule 22) 23.38 29.41
Leave Encashment 316.09 255.72
Site Restoration Cost (Refer Note B 24 to Schedule 22) 473.58 253.26
Provision for Fringe Benefit Tax (Net of Advance Tax of Rs. 174.72 Mn) 6.26 –
819.31 538.39
Total 27,022.42 21,520.34

A N N U A L R E P O R T 2 0 0 7 - 0 8 51
 Schedules forming part of the Consolidated Accounts
(Rupees in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007

SCHEDULE 13
OTHER INCOME
Liabilities/Provisions no longer required written back 139.73 174.94
Gain on Sale of Fixed Assets/Asset disposed off – 1.92
Miscellaneous Receipts 34.83 32.43
174.56 209.29
SCHEDULE 14
COST OF TRADING GOODS SOLD
Opening Stock 0.45 0.22
Add: Opening Stock acquired on amalgamation – 12.19
Add: Purchases (net of transfer to consumables) 0.06 40.60
Less: Consumption – 0.83
Closing Stock 0.45 0.45
0.06 51.73
SCHEDULE 15
PERSONNEL EXPENDITURE
Salaries and Allowances etc. 3,060.62 2,253.66
Contribution to Provident and Other Funds 150.40 127.15
Staff Welfare 158.66 133.72
Recruitment and Training 93.89 94.18
3,463.57 2,608.71
SCHEDULE 16
NETWORK OPERATING EXPENDITURE
Security Service Charges 777.67 559.57
Power and Fuel 2,244.04 1,094.57
Repairs and Maintenance - Plant and Machinery 1,330.33 1,170.32
Switching & Cellsites Rent 829.70 495.58
Lease Line and Connectivity Charges 2,269.05 1,382.78
Network Insurance 26.50 17.47
Other Network Operating expenses 2,992.82 615.43
10,470.11 5,335.72
SCHEDULE 17
LICENCE AND WPC CHARGES
Licence Fees 4,150.85 2,777.79
WPC and Spectrum Charges 2,700.18 1,709.22
6,851.03 4,487.01
SCHEDULE 18
ROAMING & ACCESS CHARGES
Roaming Charges 1,017.89 974.09
Access Charges 10,316.52 6,346.87
11,334.41 7,320.96

52 I D E A C E L L U L A R L I M I T E D
Schedules forming part of the Consolidated Accounts
(Rupees in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007

SCHEDULE 19
SUBSCRIBER ACQUISITION & SERVICING EXPENDITURE
Cost of Sim and Other Cards 532.97 268.59
Commission and Discount to dealers & recharge expenses 4,516.29 4,392.65
Customer Verification Expenses 192.86 178.72
Collection & Telecalling Expenses 1,121.32 749.91
Customer Retention & Customer loyalty Expenses 60.79 53.40
6,424.23 5,643.27
SCHEDULE 20
ADMINISTRATION & OTHER EXPENSES
Repairs and Maintenance – Building 17.22 16.59
– Others 961.80 56.24
Other Insurance 21.02 21.47
Non Network Rent 339.68 144.08
Rates and Taxes 93.60 94.73
Electricity 110.50 82.55
Printing and Stationery 62.98 57.28
Communication Expenses 124.34 90.42
Travelling and Conveyance 414.25 277.17
Provision for bad and doubtful debts/advances 244.94 368.17
Bank Charges 97.35 107.03
Directors Sitting Fees 0.91 0.60
Legal and Professional Charges 176.98 101.36
Audit Fees 22.33 14.33
Loss on Sale of Fixed Assets/Asset disposed off 8.89 –
Miscellaneous expenses 216.79 125.82
2,913.58 1,557.84
SCHEDULE 21
FINANCE AND TREASURY CHARGES (NET)
Interest
– On Fixed Period Loan 4,348.77 3,048.92
– Others 32.58 172.06
Financing Charges 211.02 72.58
4,592.37 3,293.56
Less:
Interest Received (Gross of Tax) 849.62 171.03
Profit on Sale of Current Investments 432.01 81.32
Gain/(Loss) on foreign exchange fluctuation 534.54 (9.97)
2,776.20 3,051.18

A N N U A L R E P O R T 2 0 0 7 - 0 8 53
 Schedules forming part of the Consolidated Accounts
Schedule 22 3. Fixed Assets:
A. Significant Accounting Policies Fixed assets are stated at cost of acquisition and installation less
accumulated depreciation. Cost is inclusive of freight, duties,
1. Basis of Preparation of Financial Statements : levies and any directly attributable cost of bringing the assets to
The Consolidated Financial Statements of Idea Cellular Limited their working condition for intended use.
(“the Company”), its subsidiary companies and Joint Ventures Site restoration cost obligations are capitalised based on
(together referred to as the “Group”) have been prepared in a constructive obligation as a result of past events, when it is
accordance with Accounting Standard 21 on “Consolidated probable that an outflow of resources will be required to settle
Financial Statements” and Accounting Standard 27 on “Financial the obligation and a reliable estimate of the amount can be
Reporting of Interests in Joint Ventures” issued by the Institute made. Such costs are depreciated over the remaining useful life
of Chartered Accountants of India (“ICAI”). The Consolidated of the asset.
Financial Statements are prepared under historical cost convention
on accrual basis. The mandatory applicable accounting standards 4. Expenditure during pre-operative period of licence:
have been followed in preparation of these financial statements. Expenses incurred on project and other charges during
2. Principles of Consolidation: construction period are included under pre-operative
expenditure (grouped under capital work in progress) and are
The basis of preparation of the Consolidated Financial Statements allocated to the cost of fixed assets on the commencement of
is as follows: commercial operations.
The Financial Statements (The Balance Sheet and the Profit and 5. Depreciation and amortisation:
Loss Account) of the Company, its subsidiaries and joint venture
have been combined on a line-by-line basis by adding together Depreciation on fixed assets is provided on straight line method
the book values of like items of assets, liabilities, income and (except stated otherwise) on the basis of estimated useful economic
expenses, after eliminating intra-group balances, transactions lives as given below:
and the resulting unrealised profit or losses.
Tangible Assets Years
The Financial Statements of the subsidiaries used in the Buildings 9 to 30
consolidation are drawn upto March 31, 2008, the same reporting
Network Equipments 10 to 13
date as that of the Company.
Optical Fibre 15
The differential with respect to the cost of investments in the
subsidiaries over the Company’s portion of equity is recognised Other Plant and Machineries 5
as Goodwill or Capital Reserve, as the case may be. Office Equipment 3 to 9
The Consolidated Financial Statements are prepared using Computers 3
uniform accounting policies for like transactions and other events Furniture and Fixtures 3 to 10
in similar circumstances except where stated otherwise. Motor Vehicles Upto 5
The list of subsidiaries, which are included in this Consolidated Leasehold improvements Period of lease
Financial Statements along with Company’s holding therein, is as
Intangible Assets:
under:
i) Cost of Rights and Licences including the fees paid on
Voting Power % as at fixed basis prior to revenue share regime is amortised on
No. Name of the Company March 31, March 31, commencement of operations over the period of licence.
2008 2007
1. Swinder Singh Satara and ii) Software, which is not an integral part of hardware, is
Co. Limited 100.00 100.00 treated as intangible asset and is amortised over their useful
2. Aditya Birla Telecom Limited 100.00 100.00 economic lives as estimated by the management between
3. Idea Cellular Services 3 to 5 years.
Limited 100.00 – iii) Bandwidth/Fibre taken on Indefeasible Right of Use (IRU) is
4. Idea Cellular Infrastructure amortised over the agreement period.
Services Limited 100.00 –
5. Idea Cellular Towers 6. Licence Fees – Revenue Share:
Infrastructure Limited 100.00 – With effect from August 1, 1999 the variable Licence fee
All the above subsidiaries are incorporated in India. computed at prescribed rates of revenue share is being charged
The Joint Venture, which is included in this Consolidated to the profit and loss account in the Period in which the related
Financial Statements along with Company’s holding therein, is revenue arises. Revenue for this purpose comprises adjusted
as under: gross revenue as per the licence agreement of the license area to
Voting Power % as at which the license pertains.
No. Name of the Company March 31, March 31,
2008 2007 7. Inventories:
1. Indus Towers Limited 16.00* – Inventories are valued at cost or net realisable value, whichever is
* entire shareholding is held by Idea Cellular Infrastructure lower. Cost is determined on weighted average basis.
Services Limited

54 I D E A C E L L U L A R L I M I T E D
8. Foreign currency transactions:
Transactions in foreign currency are recorded at the exchange
rates prevailing at the dates of the transactions. Gains/losses
arising out of fluctuation in exchange rates on settlement are
recognised in the Profit and Loss account.
Foreign currency monetary assets and liabilities are restated at
the exchange rate prevailing at the Period end and the overall net
gain/loss is adjusted to the Profit and Loss account.
In case of Forward Exchange Contracts, the difference between
the forward rate and the exchange rate at the date of transaction
is recognised in the Profit and Loss account over the life of the
contract.
9. Leases:
a) Operating: Lease of assets under which significant risks and
rewards of ownership are effectively retained by the lessor
are classified as operating leases. Lease payments under an
operating lease are recognised as expense in the profit and
loss account, on a straight-line basis over the lease term.
b) Finance: Leased assets acquired on which significant
risk and reward of ownership effectively transferred to
the Company are capitalised at lower of fair value or the
amounts paid under such lease arrangements. Such assets
are amortised over the period of lease.
10. Taxation:
a) Current Tax: Provision for current income tax is made on the
taxable income using the applicable tax rates and tax laws.
b) Deferred Tax: Deferred tax arising on account of timing
differences and which are capable of reversal in one or more
subsequent periods is recognised using the tax rates and
tax laws that have been enacted or substantively enacted.
Deferred tax assets are not recognised unless there is virtual
certainty with respect to the reversal of the same in future
years.
11. Contingent Liability:
Disclosures for contingent liabilities are considered to the extent
of notices/demands received by Idea group.
12. Retirement Benefits:
Contributions to Provident and pension funds are funded with
the appropriate authorities and charged to the profit and loss
account.
Contributions to superannuation are funded with the Life
Insurance Corporation of India and charged to the profit and loss
account.
Liability for gratuity as at the period end is provided on the basis
of actuarial valuation and funded with Life Insurance Corporation
of India.
Provision in accounts for leave benefits to employees is based on
actuarial valuation done by projected accrued benefit method at
the period end.
13. Revenue Recognition and Receivables:
Revenue on account of mobile telephony services and sale of
handsets and related accessories is recognised net of rebates,
discount, service tax, etc. on rendering of services and supply
of goods respectively. Recharge fees on recharge vouchers is
recognised as revenue as and when the recharge voucher is
activated by the subscriber.
Unbilled receivables, represent revenues recognised from the
bill cycle date to the end of each month. These are billed in
subsequent periods as per the terms of the billing plans.
Debts (net of security deposits outstanding there against) due
from subscribers, which remain unpaid for more than 90 days
from the date of bill and/or other debts which are otherwise
considered doubtful, are provided for.
Provision for doubtful debts on account of Interconnect Usage
Charges (IUC), Roaming Charges and passive infrastructure sharing
from other telecom operators is made for dues outstanding more
than 180 days from the date of billing other than cases when an
amount is payable to that operator or in specific case when
management is of the view that the amount is recoverable.
14. Investments:
Current Investments are stated at lower of cost or fair value in
respect of each separate investment.
Long-term investments are stated at cost less provision for
diminution in value other than temporary, if any.
15. Borrowing Cost:
Interest and other costs incurred in connection with the borrowing
of the funds are charged to revenue on accrual basis except those
borrowing costs which are directly attributable to the acquisition
or construction of those fixed assets, which necessarily take a
substantial period of time to get ready for their intended use.
Such costs are capitalised with the fixed assets.
16. Earnings Per Share:
The earnings considered in ascertaining the Group’s EPS comprises
the net profit after tax, after reducing dividend on Cumulative
Preference Shares for the Period (irrespective of whether declared,
paid or not), as per Accounting Standard 20 on “Earning Per Share”
issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted
average number of shares outstanding during the Period. The
diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares unless
the effect of the potential dilutive equity shares is anti-dilutive.
17. Impairment of Assets:
Assets are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is higher of the assets fair
value less costs to sell vis-à-vis value in use. For the purpose of
impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows.
18. Provisions:
Provisions are recognised when the Group has a present
obligation as a result of past events; it is more likely than not that
an outflow of resources will be required to settle the obligation;
and the amount has been reliably estimated.
19. Issue Expenditure:
Expenses incurred in connection with issue of equity shares are
adjusted against share premium.
20. Employee Stock Option:
In respect of stock option granted pursuant to the Company’s
Employee Stock Option Scheme, the intrinsic value of the option
is treated as discount and accounted as employee compensation
cost over the vesting period.
A N N U A L R E P O R T 2 0 0 7 - 0 8 55
 Schedules forming part of the Consolidated Accounts
Schedule 22 4. Indus Towers Limited (Indus)
B. Notes to Accounts a) A joint venture agreement consisting of the Company and
its 100% subsidiary ICISL along with Bharti Airtel Limited
1. Equity Share Capital and Vodafone Essar Limited and their subsidiaries has been
a) Increase in Authorised Share Capital: At the Annual entered into effective December 8, 2007. The 16% equity
General Meeting held on December 12, 2007, members of the shareholding in Indus Towers Limited is held by ICISL.
Company passed a resolution to increase Authorised Equity Indus Towers Limited is a company formed to develop and
Share Capital from Rs. 37,750.00 million to Rs. 42,750.00 million provide passive infrastructure services.
and Authorised Redeemable Cumulative Non Convertible b) The financial results of Indus for the period ending
Preference Share capital from Rs. 5,000.00 million to Rs. March 31, 2008 which has been used for consolidation are
15,000.00 million. unaudited.
b) Issue of shares under Green Shoe Option (GSO) 5. New Licences
On April 5, 2007, the Company issued 42,500,000 Equity On January 10, 2008, the Company deposited Rs. 6,845.90 million
Shares of Rs. 10 each amounting to Rs. 3,187.50 million under following receipt of Letter of Intent (LoI) for the telecom service
Green Shoe Option. Share Premium account stands increased areas of Assam, Jammu & Kashmir, Karnataka, Kolkata, North East,
by Rs. 2,762.51 million on issue of the above shares. Orissa, Punjab, Tamil Nadu, and West Bengal (including Chennai
service area) for which the Company had applied for Licences.
2. The status of utilisation of IPO proceeds and Green Shoe
On February 28, 2008 DoT granted the UASL licences making the
amount up to March 31, 2008 is as under:
Company a pan India Licence holder.
(Rupees in Million)
6. The group was allotted 4.4 Mhz spectrum in the Mumbai & Bihar
Activity To be financed Actual Utilisation (including Jharkhand) telecom areas on January 11, 2008 and in
through the up to Tamil Nadu (including Chennai) telecom area on April 22, 2008.
issue proceeds March 31, 2008
7. Term Loans
Building strengthening
and expanding network a) Foreign Currency and Rupee Loans
and related services in the Foreign Currency Loans amounting to Rs. 5,658.20 million
New Circles 9,708.00 8,121.98 (Previous Year Rs. Nil) and Rupee Loans amounting to
Capital expenditure for Rs. 48,579.90 million (Previous Year Rs. 35,200.00 million)
NLD operations 808.00 – are secured by way of first charge/assignment ranking
pari-passu interse the lenders, as under:
Roll out for services in
Mumbai Circle 6,470.00 828.12 i. First charge by mortgage on all the movable and
Redemption of Preference immovable properties of the group,
Shares # 7,563.26 7,563.26 ii. A first priority charge over all intangible assets of the
Issue Expenses # 620.04 620.04 group,
General Corporate iii. Assignment of the rights, titles and interest, on
purpose** 3,018.20 3,018.20 deposits, investments, bank accounts, book debts,
Total 28,187.50 20,151.60 insurance covers, other general assets, letters of credit
and guarantee or performance bond, provided in
# On completion of these activities, the balance unutilised favour of the group.
amounts have been added to General Corporate purpose object
following clearance from the monitoring agency. b) Vehicle Loan
Vehicle Loan amounting to Rs. 310.65 million (Previous Year
** Including repayment of short-term loans.
Rs. 197.19 million) is secured by hypothecation of Vehicles
As of March 31, 2008, the unutilised balance of IPO proceeds is against which the loans have been taken.
lying in fixed deposits with Banks and Mutual Funds. 8. Interest from Department of Telecommunications
3. Investments The Company had recognised an income of Rs. 802.27 million
during the year ended March 31, 2003 being refund of excess
During the year ended March 31, 2008 three new 100% subsidiary
interest charged by DoT on the licence fee payable by the Company
companies, Idea Cellular Services Limited (ICSL), Idea Cellular
pursuant to the judgement dated April 9, 2002 of Telecom Disputes
Infrastructure Services Limited (ICISL) and Idea Cellular Tower
Settlement and Appellate Tribunal (TDSAT). During the previous
Infrastructure Limited (ICTIL), a subsidiary of ICISL, have been formed
years, DoT arbitrarily acknowledged an amount of Rs. 758.76 million
with a paid-up capital of Rs. 0.50 million each. against Company’s claim of Rs. 802.27 million The Company has
ICSL provides manpower services in the areas of subscriber represented this matter with DoT. The Company has not provided
acquisition and servicing required by the mobility circles of the for the difference of Rs. 43.51 million, as in the opinion of the
group. ICISL and ICTIL are formed to roll-out and provide Passive management, the amount is recoverable from DoT.
Infrastructure services in specified licence areas of the group. The Company is also entitled to interest on the amount of the
refund so accrued in terms of the Supreme Court Judgement;

56 I D E A C E L L U L A R L I M I T E D
 the recognition of revenue on account of the same has been e) Estimated amount of contracts (net of advance) remaining
postponed pending acceptance in this respect by DoT. As of to be executed on capital account and not provided for.
March 31, 2008, this case is pending before the H’ble Supreme (Rupees in Million)
Court.
Particulars As on As on
9. Contingent Liabilities March 31, March 31,
a) On March 2, 2006, the Honourable Supreme Court passed 2008 2007
an order adjudicating that providing of telecommunication Estimated amount of
20,390.42 10,177.57
services cannot be termed as ‘Goods’ under the Sale of contracts (net of advance)
Goods Act. In view of the above judgment, demands raised
for Sales Tax on Activation of new connections, Rentals and 10. Details of guarantees given
Airtime by Sales Tax Authorities stand extinguished. As of (Rupees in Million)
March 31, 2008, Sales Tax demands of Rs. 60.22 million Particulars As on As on
(Previous Year Rs.931.40 million) are required to be yet
March 31, March 31,
formally vacated by the authorities.
2008 2007
b) Export obligation under EPCG (Export Promotion Credit Bank guarantees given to 7,995.67 3,807.39
Gurantee) Scheme is Rs. 301.06 million (Previous Year
DoT including performance
Rs. 301.06 million). Failure to meet this export obligation
guarantees of Rs.2,370.00 million
within the stipulated time frame as per Foreign Trade Policy
(Previous Year Rs. 1,140 million)
2004-2009 would result in the payment of the aggregated
differential duty saved amounting Rs. 37.72 million (Previous Bank guarantees given to BSNL 261.07 241.64
Year Rs. 37.72 million) along with interest thereon. The group Bank guarantees given to Others 1,706.81 278.01
is confident of meeting the obligations based on its current
international in-roaming revenue trends. 11. In accordance with an assignment agreement entered between
the original promoters of the amalgamated subsidiary Idea Mobile
c) During the financial year 2006-07, the WPC Wing of the
DoT had raised demands towards monthly compounded Communications Limited (IMCL) i.e. Escorts Ltd. and First Pacific
interest on WPC charges for the period upto the financial Company Ltd., IMCL had issued interest free unsecured Bond
year 2002-03 in respect of the telecom service areas of the of Rs. 1,757.36 million to Escorts Limited vide a Loan agreement
erstwhile Idea Mobile Communication Limited (IMCL) and dated January 15, 2004. This bond was in lieu of the loans from
BTA Cellcom Ltd. the original promoters and included accrued interest of Rs. 857.36
million on June 10, 2004. This Bond is repayable on January 15,
Telecom operators had paid WPC Royalty and license fees
2014 and carries a put option for Escorts Limited for a period of
towards GSM frequency, access and back-bone frequency
thirty days commencing on January 15, 2010 to redeem the entire
charges on circle area basis as provided in the licence terms
amount or part thereof at a price which would have been payable
from inception till financial year 2002-03 while the DoT
demands were on city basis. The above matter was disputed by the Company had the Company opted for an early redemption
by the operators and contested in TDSAT. DoT proposed a in accordance with the terms of the said agreement. The Company
change in the basis of levy of spectrum charges based on is entitled to pre payment and set off against certain contingent
revenue share vide their letter dated April 18, 2002 on the liabilities that may crystallise after June 10, 2004.
condition of its acceptance in entirety and withdrawal of all On the request of Escorts Ltd, the Company on July 21, 2006
legal proceedings by the operators. Vide their letter dated has consented to release the redemption proceeds of the above
March 26, 2002, DoT had also given time to the operators loan to UTI Bank on the same terms and conditions, as mentioned
to deposit the earlier principal demands by April 15, 2002. in the above Loan agreement.
The operators accepted the offer of change to revenue share
basis on August 23, 2002. The interest demand now raised 12. Transfer of Licences
by WPC wing of DoT for the period before April 15, 2002 is
The Company’s application to Department of Telecommunication
contrary to the DoT proposal in 2002.
(DOT) for transfer of telecom licenses held in the name of
The Company is therefore in the process of taking suitable the erstwhile subsidiaries (which stands merged with the
remedial action on these demands including a notice to the Company) i.e. Idea Mobile Communications Limited, Idea
erstwhile promoter of Idea Mobile Communication Limited Telecommunications Limited and BTA Cellcom Limited in the
for Rs. 348.79 million (refer Note 11 below). name of the Company is pending. The company meets the
d) Other Matters not provided for licensing condition laid down for transfer of licenses in case of
(Rupees in Million) amalgamation and expects to receive this procedural approval in
Particulars As on As on the ensuing period.
March 31, March 31,
2008 2007
Income Tax Matters not
18.75 98.38
acknowledged as debts
Sales Tax & Service Tax
Matters not acknowl- 1,254.06 313.83
edged as debts
Other claims not acknowl-
1,117.18 505.36
edged as debts

A N N U A L R E P O R T 2 0 0 7 - 0 8 57
 13. As per the requirement of Section 22 of The Micro, Small and Medium
Enterprises Development Act, 2006 following information are disclosed:
(Rupees in Million)
a) (i) The principal amount remaining unpaid to any supplier at the end of accounting year included in sundry creditors. 3.08
(ii) The interest due on above. Nil
The total of (i) & (ii) 3.08
b) The amount of interest paid by the buyer in terms of section 16 of the Act. Nil
c) The amount of the payment made to the supplier beyond the appointed day during the accounting year Nil
d) The amounts of interest accrued and remaining unpaid at the end of financial year Nil
e) The amount of interest due and payable for the period of delay in making payment (which have been paid but Nil
beyond the due date during the year) but without adding the interest specified under this Act.

14. Accelerated Depreciation amounting Rs. 132.89 million (Previous Year Rs. Nil) on specified network assets not having vendor support has
been charged during the year ended March 31, 2008.
15. As at March 31, 2008 the closing balance in units are as follows:

Particulars As at March 31, 2008 As at March 31, 2007

Qty in ‘000 Rs. in Million Qty in ‘000 Rs. in Million
Closing Units Closing Value Closing Units Closing Value
Birla Cash Plus – I P – Growth 14,129 310 – –
Birla Cash Plus – Institutional Premium Plan – Growth 77,499 1,000 – –
Birla Cash Plus – Institutional Premium Plan – Daily Dividend – – 1,230 12.32
Birla SunLife Liquid Plus – IP – Growth 65,692 1,000 – –
ICICI Prudential Flexible Income Plan – Growth 16,765 250 – –
Reliance Liquid Plus Fund – IP – Growth 22,905 250 –  –
Birla Sunlife Interval Income Fund – Monthly Plan – Series I 48,574 500 – –
Birla Sunlife Quarterly Interval Fund – Series 8 50,000 500 – –
Birla Sunlife Monthly Interval Fund – Series 2 122,373 1,250 – –
Prudential ICICI Monthly Interval Fund – Series 1 47,126 500 – –
Total 465,063 5,560 1230 12.32

16. Details of foreign currency exposures:

a) Hedged by a derivative instrument: b) Not hedged by a derivative instrument or otherwise:
(Rupees in Million) (Rupees in Million)
Particulars As on As on Particulars As on As on
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
Foreign Currency Loan* Sundry Creditors:
Foreign Currency Loan in Sundry Creditors in USD 48.78 103.42
USD 30.00 –
Sundry Creditors in EURO 0.42 2.18
Foreign Currency Loan
Sundry Creditors in GBP – 0.02
in JPY 12,630.73 –
The Equivalent INR of
The Equivalent INR of
sundry creditors in
Foreign Currency Loans 5,658.20 –
Foreign Currency 1,976.23 4,636.13
*Fully hedged for interest and principal repayments Sundry Debtors:
Sundry Debtors in USD 4.56 5.20
Sundry Debtors in EURO 0.03 –
The Equivalent INR of
sundry debtors in Foreign
Currency 184.16 226.72
Bank Deposits:
Bank Deposits in USD 6.79 –
The Equivalent INR of
Bank Deposits in Foreign
Currency 271.48 –

58 I D E A C E L L U L A R L I M I T E D
17. Provision for Gratuity:
The following table sets out status of the gratuity plan as required under Accounting Standard– 15 on “Employee Benefits”.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation.

Sr. Particulars Policy Policy Policy Policy

No. MP. No. MP. No. MP. No. MP. No.
509245 634757 109254 304606
1. Assumptions : As on March 31, 2008        
  Discount Rate 8.00% 8.00% 8.00% 8.00%
  Salary Escalation 5.00% 5.00% 7.00% 5.00%
2. Table showing changes in present value of obligations As on March 31, 2008
  Present value of obligations as at beginning of year 7.21 45.42 5.38 23.96
  Interest cost 0.54 3.41 0.43 1.80
  Current Service Cost 1.08 6.37 2.68 6.80
  Benefits Paid 0.55 5.39 1.18 1.53
  Actuarial (gain)/Loss on obligations (3.60) (10.13) 3.01 (0.76)
  Present value of obligations as at end of year 4.68 39.67 10.31 30.26
3. Table showing changes in the fair value of plan assets As on March 31, 2008
  Fair value of plan assets at beginning of year 3.46 21.99 3.68 32.67
  Expected return on plan assets 0.42 2.26 0.49 2.90
  Contributions 1.35 8.90 4.88 5.99
  Benefits paid 0.55 5.39 1.18 1.53
  Actuarial Gain/(Loss) on Plan assets NIL NIL NIL NIL
  Fair value of plan assets at the end of year 4.68 27.77 7.86 40.02
4. Table showing fair value of plan assets As on March 31, 2008
  Fair value of plan assets at beginning of year 3.46 21.99 3.68 32.67
  Actual return on plan assets 0.42 2.26 0.49 2.90
  Contributions 1.35 8.90 4.88 5.99
  Benefits Paid 0.55 5.39 1.18 1.53
  Fair value of plan assets at the end of year 4.68 27.77 7.86 40.02
  Funded status NIL (11.90) (2.46) 9.76
  Excess of Actual over estimated return on plan assets NIL NIL NIL NIL
  (Actual rate of return = Estimated rate of return as ARD falls on March 31)
5. Actuarial Gain/Loss recognized As on March 31, 2008
  Actuarial gain/(Loss) for the year – Obligation 3.60 10.13 (3.01) 0.76
  Actuarial (gain)/Loss for the year – plan assets NIL NIL NIL NIL
  Total (gain)/Loss for the year (3.60) (10.13) 3.01 (0.76)
  Actuarial (gain)/Loss recognised in the year (3.60) (10.13) 3.01 (0.76)
6. The amounts to be recognised in the Balance Sheet and statements of As on March 31, 2008
Profit and Loss
  Present value of obligations as at the end of year 4.68 39.67 10.31 30.26
  Fair value of plan assets as at the end of the year 4.68 27.77 7.86 40.02
  Funded status NIL (11.90) (2.46) 9.76
  Net Asset/(liability) recognised in balance sheet NIL (20.92) (2.46) NIL
7. Expenses Recognised in statement of Profit and Loss As on March 31, 2008
  Current Service cost 1.08 6.37 2.68 6.80
  Interest Cost 0.54 3.41 0.43 1.80
  Expected return on plan assets 0.42 2.26 0.49 2.90
  Net Actuarial (gain)/Loss recognised in the year (3.60) (10.13) 3.01 (0.76)
  Expenses recognised in statement of Profit and Loss (2.40) (2.62) 5.63 4.94

A N N U A L R E P O R T 2 0 0 7 - 0 8 59
 18. Segment Reporting
1. Primary Segments:
The group operates in two business segments:
a) Mobility Services (Mobility)
b) National Long Distance (NLD)
2. Secondary Segment:
The group caters only to the needs of Indian market representing a singular economic environment with similar risks and rewards and
hence there are no reportable geographical segments
Primary Business Information (Business Segments) for the year ended March 31, 2008.
(Rupees in Million)
Particulars Business Segments
Mobility NLD Elimination Total
Revenue
External Revenue 67,199.90 – – 67,199.90
Inter–segment Revenue – 3,536.67 (3,536.67) –
Total Revenue 67,199.90 3,536.67 (3,536.67) 67,199.90
Segment result 13,199.70 724.80 – 13,924.50
Interest & financing charges (Net) – – – 2,776.20
Profit before Tax – – – 11,148.30
Provision for tax (Net) – – – 725.20
Profit after tax – – – 10,423.10
Other information
Segment assets 118,664.46 1,402.16 (1,120.93) 118,945.69
Unallocated corporate assets – – – 9,337.79
Total assets 118,664.46 1,402.16 (1,120.93) 128,283.48
Segment liabilities 92,770.52 520.60 (1,120.93) 92,170.19
Unallocated corporate liabilities – – – 667.28
Total liabilities 92,770.52 520.60 (1,120.93) 92,837.47
Capital expenditure 54,993.54 0.02 – 54,993.56
Depreciation & amortisation 8,766.86 1.25 – 8,768.11

Primary Business Information (Business Segments) for the year ended March 31, 2007.
(Rupees in Million)
Particulars Business Segments
Mobility NLD Elimination Total
Revenue
External Revenue 43,873.29 – – 43,873.29
Inter-segment Revenue – 778.96 (778.96) –
Total Revenue 43,873.29 778.96 (778.96) 43,873.29
Segment result 7,986.91 156.78 – 8,143.69
Interest & financing charges (Net) – – – 3,051.18
Profit before Tax – – – 5,092.51
Provision for tax (Net) – – – 70.33
Profit after tax – – – 5,022.18
Other information
Segment assets 68,513.67 234.39 (209.09) 68,538.97
Unallocated corporate assets – – – 17,294.76
Total assets 68,513.67 234.39 (209.09) 85,833.73
Segment liabilities 64,156.86 77.61 (209.09) 64,025.38
Unallocated corporate liabilities – – – 10.55
Total liabilities 64,156.86 77.61 (209.09) 64,035.93
Capital expenditure 27,955.10 25.00 – 27,980.10
Depreciation & amortisation 6,717.72 0.44 – 6,718.16

60 I D E A C E L L U L A R L I M I T E D
19. Related Party Transactions
As per Accounting Standard-18 on “Related Party Disclosure” issued by the Institute of Chartered Accountants of India, related parties of the
group are disclosed below:
A. List of related Parties:
Promoters
Hindalco Industries Limited
Grasim Industries Limited
Aditya Birla Nuvo Limited (formerly known as Indian Rayon and Industries Limited)
Birla TMT Holdings Pvt. Limited
Key Management Personnel
Mr. Sanjeev Aga, MD
Mr. AJS Jhala, CFO
B. Transactions with Related Parties during the year ended March 31, 2008
(Rupees in Million)
Particulars Nature of Relationship
Promoters
Key
Hindalco Grasim Aditya Management
Industries Industries Birla Nuvo Personnel
Limited Limited Limited
ICDs Placed  –  –  –  –
Interest on ICDs Placed  –  –  –  –
Repayment of ICDs Placed  –  –  –  –
Remuneration  –  – –  61.48
(31.43)
Purchase of Shares – –  –  –
(100.00)
Purchase of Fixed Assets  – 0.13 –  –
– (5.39)
Investments  –  –  –  –
Purchase of Service  –  –  –  –
Employee Expenses/Deposits 0.08 – –  –
Unsecured Loans given  –  – –  –
Expense incurred by group on behalf of  –  – –  –
(0.01)
Expenses incurred on group’s behalf by  3.93 2.00  0.18   –
– – (1.71)
(Figures in bracket are for the year ended March 31, 2007.)
Outstanding as on March 31, 2008
(Rupees in Million)
Particulars Nature of Relationship
Promoters
Key
Hindalco Grasim Aditya Management
Industries Industries Birla Nuvo Personnel
Limited Limited Limited
Remuneration Payable  –  –  – 24.20
(7.51)
Accounts Payable 0.08 – –  –
– (0.13)
Unsecured Loans – – – 8.00
(8.00)
(Figures in bracket are as of March 31, 2007)

A N N U A L R E P O R T 2 0 0 7 - 0 8 61
 20. The group has entered into non-cancellable operating leases for 23. Deferred Tax
periods ranging from 36 months to 261 months. For the current
As of March 31, 2008, the group has deferred tax liability of
year, total minimum lease payments amounting to Rs. 264.63
Rs. 1,663.38 million and deferred tax asset of Rs.1,002.36 million
million is included in the rental expenditure head.
as under:
The future lease payments in respect of the above are as (Rupees in Million)
follows.
Particulars As at March As at March
(Rupees in Million)
31, 2008 31, 2007
Particulars Not later Later than Later than
Deferred Tax Liability:
than one year but five years
one year not later than Depreciation of Fixed Assets 1,588.54 742.05
five years Amortisation of Entry & Licence
Minimum Lease 313.24 1,120.97 902.12 Fee (Net) 74.84 78.69
payments (162.39) (592.48) (Nil) Total Deferred Tax Liability 1,663.38 820.74
Deferred Tax Asset:
(Figures in bracket are as of March 31, 2007)
Provision for Doubtful Debts 837.22 756.52
21. During the year the Company has entered in to a composite IT Expenses allowable on
outsourcing agreement wherein fixed assets and services related payment basis 64.60 53.67
to IT has been supplied by the vendor. Such fixed assets received
Others 100.54 –
have been accounted for as a finance lease. Correspondingly,
such assets and liabilities are recorded at the fair value of the Total Deferred Tax Asset 1,002.36 810.19
lease assets at the time of receipt and depreciated on the stated Net Deferred Tax Liability 661.02 10.55
useful life applicable to similar assets of the company.
24. The movement in the Site Restoration Cost is set out as follows:
As at March 31, 2008, the amounts towards the supply of fixed
(Rs. in Million)
assets during the year stands fully paid and there are no minimum
lease payments outstanding as at the year end. Particulars For the For the
year ended year ended
22. Basic & Diluted Earnings Per Share March 31, March 31,
2008 2007
Particulars For the Year For the Year
Opening Balance 253.26 6.70
ended ended
March 31, March 31, Addition on amalgamation of
2008 2007 Subsidiaries – 115.91
Nominal value of Equity Additional Provision 220.32 137.35
Shares (Rs.) 10/- 10/- Payment/ Reversal/ Expenses – 6.70
Profit after Tax (Rs. Million) 10,423.10 5,022.18 Closing Balance 473.58 253.26
Less Preference Share
25. Previous year’s figures have been regrouped / rearranged wherever
Dividend (Rs. Million) – –
necessary to conform to the current period grouping.
Profit attributable to equity
shareholders (Rs. Million) 10,423.10 5,022.18
Weighted average number
of equity shares outstanding
during the period 2,634,896,058 2,291,992,960
Basic Earnings Per Share (Rs.) 3.96 2.19
Dilutive effect on weighted
average number of equity shares
outstanding during the year 483,044 42,500,000
Weighted average number of
diluted equity shares 2,635,379,102 2,334,492,960
Diluted Earnings Per Share (Rs.) 3.96 2.15

For and on behalf of the Board

G.P. Gupta Arun Thiagarajan Sanjeev Aga

Director Director Managing Director

AJS Jhala Pankaj Kapdeo

Chief Financial Officer Company Secretary

Date: April 24, 2008

Place: Mumbai

62 I D E A C E L L U L A R L I M I T E D
Consolidated Cash Flow Statement for the year ended March 31, 2008
(Rupees in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007
A) Cash Flow from Operating Activities
Net Profit after Tax 10,423.10 5,022.18
Adjustments For
Depreciation 7,569.01 5,636.77
Amortisation of Intangible assets 1,199.10 1,081.39
Interest charge and Forex 4,592.37 3,051.18
Profit on sale of current investment (432.01) (81.32)
Provision for Bad & Doubtful Debts/Advances 244.94 368.17
Employee Stock Option Cost 37.59 -–
Provision for Gratuity and Leave Encashment 54.34 160.23
Provision for Current Tax 425.93 0.42
MAT Credit entitlement (425.33) -–
Provision for Deferred Tax 650.47 10.55
Provision for Fringe Benefit Tax 74.13 59.36
Liability no longer required written back (139.73) (174.94)
Interest Income (849.62) (171.03)
(Profit)/Loss on sale of fixed assets/assets discarded 8.89 (1.92)
13,010.08 9,938.86
Operating profit before working capital changes 23,433.18 14,961.04

Changes in Current Assets and Current Liabilities

(Increase)/Decrease in Sundry Debtors (706.10) (590.08)
(Increase)/Decrease in Inventories (97.05) (69.97)
(Increase)/Decrease in Other Current Assets 163.42 27.70
(Increase)/Decrease in Loans and Advances (3,380.55) (2,030.59)
Increase/(Decrease) in Current Liabilities 6,241.72 3,861.03
2,221.44 1,198.09
Cash generated from operations 25,654.62 16,159.13
Tax paid (including FBT & TDS ) (430.52) (101.82)
Net cash from operating activities 25,224.10 16,057.31

B) Cash Flow from Investing Activities

Purchase of Fixed assets & Intangible assets (including
CWIP) (55,726.29) (22,819.05)
Proceeds from sale of Fixed assets 150.79 19.12
Sale/(purchase) of Other Investments (Net) (5,115.67) (101.83)
Interest and Dividend Received 922.94 145.49
Net cash from/(used in) investing activities (59,768.23) (22,756.27)

A N N U A L R E P O R T 2 0 0 7 - 0 8 63
 Consolidated Cash Flow Statement for the year ended March 31, 2008

(Rupees in Million)
For the year ended For the year ended
March 31, 2008 March 31, 2007
C) Cash Flow from Financing Activities
Proceeds from issue of Share Capital 3,187.52 25,000.00
Share Issue Expenses – (620.04)
Repayment of Preference Share Capital – (4,830.00)
Premium on redemption of Preference Share Capital – (2,733.26)
Proceeds from Foreign Currency Loan 5,658.20 –
Proceeds from Long Term Borrowings 14,973.81 35,397.20
Repayment of Long Term Borrowings (1,480.94) (15,690.05)
Proceeds from Short Term Loan 22,120.90 17,874.66
Repayment of Short Term Loan (18,622.98) (27,958.54)
Interest Paid (4,517.27) (3,039.37)
Net cash from/(used in) financing activities 21,319.24 23,400.60
Net increase/(decrease) in cash and cash equivalent (13,224.89) 16,701.64
Cash and cash equivalent at the beginning 18,199.40 1,492.53
Add: Cash and Cash Equivalents acquired on account of
amalgamation – 5.22
Add: Cash and cash equivalents taken over on acquisition – 0.01
Cash and cash equivalent at the end 4,974.51 18,199.40

Notes to Cash flow Statement for the year ended March 31, 2008
1. Cash and cash equivalent includes
Cash and Cheques on Hand 297.01 229.29
Balances with Scheduled Banks
– on Current Accounts 1,181.98 999.25
– on Deposit Accounts 3,495.52 16,970.86
4,974.51 18,199.40

2. The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard 3 on Cash Flow Statement
issued by Institute of Chartered Accountants of India.
3. Previous year’s figures have been rearranged/regrouped wherever necessary.

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi G.P. Gupta Arun Thiagarajan Sanjeev Aga

Partner Director Director Managing Director
Membership No.: 38019
Date: April 24, 2008 AJS Jhala Pankaj Kapdeo
Place: Mumbai Chief Financial Officer Company Secretary

64 I D E A C E L L U L A R L I M I T E D
Statement pursuant to Section 212 of the Companies Act, 1956, related to
Subsidiary Companies
Particulars Aditya Birla Idea Cellular Idea Cellular Idea Cellular Swinder
Telecom Services Infrastructure Towers Singh Satara
Limited Limited Services Infrastructure & Company
Limited Limited Limited
1. Financial year of the Subsidiary ended on March 31, 2008 March 31, 2008 March 31, 2008 March 31, 2008 March 31, 2008
2. Shares of the Subsidiary held by the Company
on the above date :
(a) Number & face value 10,000,000 50,000 50,000 50,000 50,000
Equity Shares Equity Shares of Equity Shares of Equity Shares of Equity Shares of
of Rs.10 each Rs.10 each Rs.10 each Rs.10 each Rs.10 each

(b) Extent of holding 100% 100% 100% *100% 100%

3. Net aggregate amount of profits/(losses ) of the
subsidiary so far as they concern members of
Idea Cellular Limited:
(a) For the financial year of the subsidiary
(i) Dealt within the accounts of the NIL NIL NIL NIL NIL
Company for the year ended March
31, 2008 (Rs. Mn)
(ii) Not dealt with the accounts of the (13.02) (1.97) (0.10) (0.64) 1.67
Company for the year ended March
31, 2008 (Rs. Mn)
(b) For the previous financial year of the
subsidiary since it became a subsidiary
(i) Dealt within the accounts of the NIL # ## ### NIL
Company for the previous financial
year ended March 31, 2007 (Rs. Mn)
(ii) Not dealt with the accounts of the (24.26) 1.90
Company for the previous financial
year ended March 31, 2007 (Rs. Mn)

* Indirect wholly owned subsidiary of Idea Cellular Limited. Shares held through Idea Cellular Infrastructure Services Limited.
# Incorporated on October 3, 2007
## Incorporated on October 3, 2007
### Incorporated on December 3, 2007

For and on behalf of the Board

G.P. Gupta Arun Thiagarajan Sanjeev Aga

Director Director Managing Director

AJS Jhala Pankaj Kapdeo

Chief Financial Officer Company Secretary

Date: April 24, 2008

Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 65
 Directors’ Report of Aditya Birla Telecom Limited
Dear Shareholders,
Your Directors have pleasure in presenting the Third Annual Report
together with the Audited Accounts of your Company for the year
ended March 31, 2008.
Performance Review
Your Company has been allotted Spectrum in the 1800 Mhz GSM
Band from WPC Wing of the Ministry of Communications and IT on
January 11, 2008. The Company is in the process of rolling-out services
in the Bihar Service area.
During the year ended March 31, 2008, your Company earned a total
income of Rs. 2,16,535/- by investing funds not required for immediate
use. After accounting for all the expenses it has incurred a net loss of
Rs. 1,30,18,002/- during the year.
Dividend
Since the Company has not earned any profit for the year ended March
31, 2008, the Directors do not recommend any dividend for the said
year.
Deposits
Your Company has not accepted any public deposit during the year
ended March 31, 2008.
Particulars of Employees’ Remuneration
The Company has no employees on its payroll. Accordingly the
provisions of Section 217(2A) of the Companies Act, 1956 and
Companies (Particulars of Employees) Rules, 1975, are not applicable.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
• In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper
explanation relating to material departures;
• The Directors have selected such accounting policies and
applied them consistently and made judgements and estimates
that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the Financial
Year and of the profit or loss of the Company for that period;
• The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of this Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
irregularities;
66 A D I T Y A B I R L A T E L E C O M L I M I T E D
• The Directors have prepared the Annual Accounts on a going
concern basis.
Directors
Mr. Adesh Gupta, Director of your Company, retires by rotation at the
ensuing Annual General Meeting and being eligible, offers himself for
re-appointment.
Auditors
The Statutory Auditors of the Company, M/s. Khimji Kunverji & Co.,
Chartered Accountants, Mumbai retire at the ensuing Annual General
Meeting of the Company and being eligible hereby offer themselves
for re-appointment. Your Directors recommend their re-appointment
and authorise the Board to fix their remuneration.
Auditors’ Report
The observations made in the Auditors’ Report are self-explanatory and
therefore, do not call for any further comments under Section 217(3)
of the Companies Act, 1956.
Conservation of Energy & Technology Absorption & Foreign
Exchange Earnings and Outgo
The particulars required by the Companies (Disclosure of Particulars
in Report of Board of Directors) pursuant to Section 217(1)(e) with
regard to Conservation of Energy and Technology Absorption are not
applicable since there was no manufacturing activity during the period
under review.
There is no earning or outgoing in foreign exchange during the period
under review.
Appreciation
Your Directors wish to place on record their appreciation for the support
extended by the lenders, suppliers and Government authorities and
look forward to continued support in the future.
For and on behalf of the Board
Date: April 21, 2008 AJS Jhala Sanjeev Aga
Place: Mumbai Director Director
Auditors’ Report
To the Members,
Aditya Birla Telecom Limited
We have audited the attached Balance Sheet of Aditya Birla
Telecom Limited as at March 31, 2008 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors’ Report) Order, 2003
(hereinafter referred to as the Order), issued by the Company Law Board
in terms of Section 227 (4A) of the Companies Act, 1956 (hereinafter
referred to as the Act), we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report that:
(i) We have obtained all the information and explanations, which
to the best of our knowledge and belief were necessary for the
purposes of our audit.
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination
of those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of Act.
(v) On the basis of written representations received from the
directors as on March 31, 2008 and taken on record by the Board
of Directors, we report that none of the directors is disqualified
as on March 31, 2008 from being appointed as a director in terms
of Clause (g) of sub–section (1) of Section 274 of the Act.
(vi) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts give the
information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
Accounting Principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of the affairs of
the Company as at March 31, 2008;
b) in case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Khimji Kunverji & Co.
Chartered Accountants
Shivji K. Vikamsey
Partner
Membership No.: 2242
Date: April 21, 2008
Place: Mumbai
Annexure to the Auditors’ Report
Annexure referred to in para 3 of our Auditor’s Report of Aditya Birla
Telecom Limited of Even Date
(i) (a) The Company has maintained proper records showing
full particulars, including quantitative details and
situation of fixed asset have been physically verified by
the management at reasonable interval. As informed,
no material discrepancies were noticed on such
verification.
(b) The Company has not disposed off a substantial part of
its fixed assets during the year.
(ii) The Company does not hold any stock in trade, hence Clause
4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Order are not applicable to
the Company.
(iii) (a) The Company has not granted any loans, secured or
unsecured to companies, firms, and other parties listed
in the register maintained under Section 301 of the
Companies Act, 1956. Hence Clause (iii)(b),(c) and (d)
are not applicable to the Company.
(b) The Company has not taken any loans, secured or
unsecured from companies, firms, and other parties
listed in the register maintained under Section 301 of the
Companies Act, 1956. Hence Clause (iii) (f) and (g) are
not applicable to the Company.
(iv) In our opinion, and according to the information and
explanations given to us, there is an adequate internal control
system commensurate with the size of the Company and the
nature of its business, for the purchase of fixed assets. During
the year the Company has neither purchased any inventory nor
sold any goods or services, hence, the question of an adequate
internal control system commensurate with the size of the
Company and the nature of its business for the areas does not
arise.
(v) Based on the Audit procedures applied by us, and according
to information and explanations provided by the management,
there are no contracts or arrangements referred to in Section 301
of the Act need to be entered into the register maintained under
the Section. In view of this Clause (v) (b) is not applicable.
(vi) The Company has not accepted any deposit from the public
in terms of the provisions of Sections 58A, 58AA or any other
relevant provisions of the Act. No order has been passed by
the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Company is not required to maintain any cost records
prescribed by the Central Government under clause (d) of
sub-section (1) of Section 209 of the Act.
(ix) (a) The Company is regular in depositing undisputed
Income tax and there are no arrears thereof as at March
31, 2008 for a period of more than six months from the
date they become payable. During the financial year
under review, there were no employees on the rolls of
the Company. Personnel from IDEA group of companies
have been deployed for rolling out the Cellular-Mobile
Network in Bihar Circle and expenses thereon have been
accounted for on the basis of reimbursement claimed
ANNUAL REPORT 2007-08 67
 by Idea Group of companies. Accordingly Provident
Fund is paid by respective Idea Group companies. We
are informed that Investor Education and Protection
Fund, Employees’ State Insurance, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess, and other
statutory dues are not applicable to the Company. There
were no arrears as at March 31, 2008 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to
us there are no disputed Income Tax, dues which had
not been deposited.
(x) Since the Company is registered for less than five years, the
provisions of Clause 4(x) of the Order, not applicable to the
Company.
(xi) The Company has not taken any loans from financial institutions
or banks. Therefore, the provisions of Clause 4(xi) of the Order,
not applicable to the Company.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the
Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of Clause 4(xiii)
of the Order, are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debenture and other investment. Accordingly, the
provisions of Clause 4(xiv) of the Order, are not applicable to
the Company.
(xv) According to information and explanations given to us the
Company has not given any guarantee for loans taken by others
68 A D I T Y A B I R L A T E L E C O M L I M I T E D
from banks or financial institutions. Accordingly, the provision
of Clause 4(xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us,
the Company has not raised any term loans during the year.
Accordingly, the provision of Clause 4(xvi) of the Order is not
applicable to the Company.
(xvii) According to the information and explanations given to us and
on the overall examination of the balance sheet of the Company,
we report that no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue
during the year.
(xxi) Based upon the audit procedures performed and information
and explanations given by the management, we report that
no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khimji Kunverji & Co.
Chartered Accountants
Shivji K. Vikamsey
Partner
Membership No.: 2242
Date: April 21, 2008
Place: Mumbai
Balance Sheet as at March 31, 2008

(Amount in Rupees)
Schedules As at As at
March 31, 2008 March 31, 2007
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 1 100,000,000 100,000,000
100,000,000 100,000,000
Loan Funds
Secured 2 4,417,031 –
Unsecured 3 260,452,512 40,000,000
264,869,543 40,000,000
TOTAL 364,869,543 140,000,000
APPLICATION OF FUNDS
Fixed Assets
Gross Block (At Cost) 4 11,597,361 –
Less: Depreciation 3,132,683 –
Net Block 8,464,678 –
Intangible Assets 5 100,000,000 100,000,000
Capital Work-in-Progress 594,724,904 3,875,988
703,189,582 103,875,988
Investments 6 – 12,321,266
Current Assets, Loans and Advances
Current Assets
Cash and Bank Balances 7 420,897 12,287
Loans and Advances 8 71,666,235 5,653,941
72,087,132 5,666,228
Less: Current Liabilities and Provisions
Current Liabilities 9 449,064,545 7,502,854
449,064,545 7,502,854
Net Current Assets (376,977,413) (1,836,626)
Profit and Loss Account 38,657,374 25,639,372
TOTAL 364,869,543 140,000,000
Significant Accounting Policies and Notes to the Accounts 15
The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants
AJS Jhala Sanjeev Aga
Shivji K. Vikamsey Director Director
Partner

Date: April 21, 2008 Anurag Upadhyaya

Place: Mumbai Company Secretary & Manager

ANNUAL REPORT 2007-08 69

 Profit and Loss Account for the year ended March 31, 2008

(Amount in Rupees)
Schedules For the For the
year ended year ended
March 31, 2008 March 31, 2007
INCOME
Other Income 10 216,535 332,964
TOTAL 216,535 332,964
OPERATING EXPENDITURE
Personnel Expenditure 11 3,671,676 254,634
Network Operating Expenditure 12 580,274 –
Advertisement and Business Promotion Expenditure 574,716 –
Administration and other Expenses 13 7,985,017 156,887
12,811,683 411,521
PROFIT BEFORE INTEREST, DEPRECIATION AND TAX (12,595,148) (78,557)
Interest and Financing Charges 14 65,152 22,917,135
Depreciation 4 271,805 –
PROFIT/(LOSS) BEFORE TAX (12,932,106) (22,995,692)
Provision for taxation - Current – 1,267,000
- Fringe Benefit tax 85,896 –
PROFIT/(LOSS) AFTER TAX (13,018,002) (24,262,692)
Balance brought forward from previous year (25,639,372) (1,376,680)
BALANCE CARRIED FORWARD TO BALANCE SHEET (38,657,374) (25,639,372)
EARNINGS PER SHARE (Refer Note B-9 to schedule-15)
Basic and Diluted (1.30) (2.43)
Significant Accounting Policies and Notes to the Accounts 15
The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants
AJS Jhala Sanjeev Aga
Shivji K. Vikamsey Director Director
Partner

Date: April 21, 2008 Anurag Upadhyaya

Place: Mumbai Company Secretary & Manager

70 A D I T Y A B I R L A T E L E C O M L I M I T E D
Schedules forming part of the Accounts
(Amount in Rupees) (Amount in Rupees)
As at As at As at As at
March 31, March 31, March 31, March 31,
2008 2007 2008 2007

SCHEDULE 1 SCHEDULE 2
SHARE CAPITAL SECURED LOANS
Authorised Rupee Loan
75,000,000 Equity Shares of Rs. 10/- each 750,000,000 300,900,000 - From Banks 4,417,031 –
1,000 Redeemable Preference Shares 100,000 100,000 (Loan repayable with in one year
of Rs.100/- each Rs.1,745,805/-, previous year Nil)
750,100,000 301,000,000 4,417,031 –
Issued, Subscribed and Paid-Up
Equity Share Capital SCHEDULE 3
10,000,000 Equity shares of Rs.10/- UNSECURED LOANS
each fully paid-up 100,000,000 100,000,000 Term Loan
(The entire paid up Equity Capital is From Idea Cellular Limited 260,452,512 40,000,000
held by the holding Company , Idea 260,452,512 40,000,000
Cellular Limited and its nominee. Till
February 27, 2007 the entire paid
up equity capital was held by the
erstwhile holding Company Aditya
Birla Nuvo Limited)
100,000,000 100,000,000

SCHEDULE 4 - FIXED ASSETS (Amounts in Rupees )

Particulars Gross Block Depreciation Net Block
As at Additions Sale/ As at As at For the Sale/ As at As at As at
April 1, 2007 during the Adjustment March 31, April 1, 2007 Year Adjustment March 31, March 31, March 31,
Year during the 2008 during the 2008 2008 2007
Year Year
Land – – – – – – – – – –
Leasehold Land – – – – – – – – – –
Building – 1,107,064 – 1,107,064 – 72,795 – 72,795 1,034,269 –
Plant & Machinery – – – – – – – – – –
Furniture & Fixture – 293,801 – 293,801 – 269,370 – 269,370 24,431 –
Office Equipment – 4,417,581 – 4,417,581 – 1,478,432 – 1,478,432 2,939,149 –
Vehicles – 5,778,914 – 5,778,914 – 1,312,084 – 1,312,084 4,466,829 –
Total – 11,597,360 – 11,597,360 – 3,132,682 – 3,132,682 8,464,678 –
Previous Year – – – – – – – – –

SCHEDULE 5 - INTANGIBLE ASSETS (Amounts in Rupees)

Particulars Gross Block Amortisation Net Block
As at Additions Sale/ As at As at For the Sale/ As at As at As at
March 31, during the Adjustment March 31, April 1, 2007 Year Adjustment March 31, March 31, March 31,
2007 Year during the 2008 during the 2008 2008 2007
Year Year
Entry/Licence Fees 100,000,000 – – 100,000,000 – – – – 100,000,000 100,000,000
Computer
- Software – – – – – – – – – –
Total 100,000,000 – – 100,000,000 – – – – 100,000,000 100,000,000
Previous Year – 100,000,000 – 100,000,000 – – – – 100,000,000 –

ANNUAL REPORT 2007-08 71

 Schedules forming part of the Accounts
(Amounts in Rupees) (Amounts in Rupees)
As at As at For the For the
March 31, March 31, year ended year ended
2008 2007 March 31, March 31,
2008 2007
SCHEDULE 6
INVESTMENTS SCHEDULE 10
Curent Investment - Unquoted OTHER INCOME
– Dividend on current investment 216,535 332,964
Birla Cash Plus Institutional Premium 12,321,266
plan daily dividend 216,535 332,964
– 12,321,266 SCHEDULE 11
PERSONNEL EXPENDITURE
SCHEDULE 7 Salaries and Allowances etc. 3,438,320 211,319
CASH AND BANK BALANCES Contribution to Provident and Other 136,020 –
2,610 Funds
Cash and Cheques in Hand –
Staff Welfare 16,071 –
Balances with Scheduled Banks
12,287 Recruitment and Training 81,265 43,315
- in Current Accounts 12,287
406,000 3,671,676 254,634
- in Deposit Accounts –
420,897 SCHEDULE 12
12,287
NETWORK OPERATING
EXPENDITURE
SCHEDULE 8
Security Service Charges 116,556 –
LOANS AND ADVANCES
Repairs and Maintenance - Plant and 52,622 –
(Unsecured, considered good unless Machinery
otherwise stated)
Switching & Cellsites Rent 317,374 –
Advances recoverable in cash or kind
Lease Line and Connectivity Charges 93,722 –
or for value to be received
580,274 –
- Considered good 57,257,330 12,600
SCHEDULE 13
- Considered Doubtful – –
ADMINISTRATION & OTHER
Less: Provision for doubtful advances – –
EXPENSES
57,257,330 12,600
Repairs and Maintenance - Building 41,258 –
Deposits and Balances with Govt. 1,402,191 –
- Others 9,563 –
Authorities
Other Insurance 1,472 –
Deposits with others 8,014,770 655,000
Non Network Rent 528,408 –
Advance Income Tax (Net of Income 4,991,945 4,986,341
Tax Provisions) Rates and Taxes 6,077,177 –
71,666,235 5,653,941 Electricity 63,788 –
Printing and Stationery 60,333 –
SCHEDULE 9 Communication Expenses 140,339 –
CURRENT LIABILITIES AND Travelling and Conveyance 716,040 44,872
PROVISIONS Bank Charges 8,937 810
Current Liabilities Legal and Professional Charges 98,726 –
Sundry Creditors 431,703,324 84,180 Audit Fees 20,000 75,000
Book Bank Overdraft 17,260,867 – Miscellaneous expenses 218,976 36,205
Other Liabilities 100,354 4,865,786 7,985,017 156,887
Interest accrued but not due – 2,552,888 SCHEDULE 14
449,064,545 7,502,854 INTEREST AND FINANCING CHARGES
Interest
- On Fixed Term Loan 71,152 50,509,945
Interest Received (Gross) (6,000) (27,837,789)
Profit on Sale of Current Investments – 244,979
65,152 22,917,135

72 A D I T Y A B I R L A T E L E C O M L I M I T E D
Schedules forming part of the Accounts

SCHEDULE 15
A. SIGNIFICANT ACCOUNTING POLICIES borrowing cost which are directly attributable to the acquisition
1. Accounting Convention or construction of those fixed assets, which necessarily take a
substantial period of time to get ready for their intended use.
The Financial Statements have been prepared under the historical
Such costs are capitalised with the fixed assets.
cost convention on accrual basis. The mandatory applicable
accounting standards in India and the provisions of the Companies 9. Provisions
Act, 1956 have been followed in preparation of these financial Provisions are recognised when the Company has a present
statements. obligation as a result of past events, it is more likely that an
2. Investments outflow of resources will be required to settle the obligation,
and amount has been reliably estimated.
Current Investments are stated at lower of cost or fair value in
respect of each separate investment. 10. Taxation
Long-term investments are stated at cost less provision for a) Current Tax: Provision for current income tax is made on
diminution in value other than temporary, if any. the taxable income using the applicable tax rates and tax
laws.
3. Expenditure during pre-operative period of license
b) Deferred Tax: Deferred tax arising on account of timing
Expenses incurred on Project and other charges during construction
differences and which are capable of reversal in one or more
period are included under pre-operative expenditure (grouped
subsequent periods is recognised using the tax rates and
under Capital Work in Progress) and are allocated to the cost of
tax laws that have been enacted or substantively enacted.
Fixed Assets on the commencement of commercial operations.
Deferred tax assets are not recognised unless there is virtual
4. Fixed Assets certainty with respect to the reversal of the same in future
Fixed assets are stated at cost of acquisition and installation less years.
accumulated depreciation. Cost is inclusive of freight, duties, 11. Contingent Liability
levies and any directly attributable cost of bringing the assets to
Disclosure for contingent liabilities is considered to the extent of
their working condition for intended use.
notices/demands received by the Company.
5. Depreciation and Amortisation
12. Impairment of Assets
Depreciation is provided on straight line method (except stated
Assets are reviewed for impairment whenever events or changes
otherwise) for tangible assets on the basis of estimated useful life
in circumstances indicate that the carrying amount may not be
as given below:
recoverable. An impairment loss is recognised for the amount by
a) Tangible Assets Years which the carrying amount of the asset exceeds its recoverable
amount. The recoverable amount is higher of the asset’s fair value
Leasehold Improvement Primary Period of lease
less costs to sell or value in use. For the purpose of impairment,
Network Equipment 10 to 13 assets are grouped at the lowest levels for which there are
separate identifiable cash flows.
Computers 3
Furniture and Fixture 5 to 10 B. Notes to Accounts
1. Contingent Liabilities not provided for
Office Equipments 5
(Amount in Rupees)
Motor Vehicles Up to 5
As on As on
b) Intangible Assets March March
Cost of Rights and entry fee paid for telecom licenses is amortised 31,2008 31,2007
on straight line basis on commencement of operations over the Bank Guarantees given 95,279,375 70,000,000
remaining period of licence. to Sales Tax/Bank/
6. Revenue Recognition Financial Institution
Dividend income on investment is accounted for when the right 2. Estimated amount of contract remaining to be executed
to receive the payment is established. on Capital Account and not provided for (net of advance)
7. Leases Rs.728,886,355, (Previous year Rs. Nil).
Operating: Lease of assets under which significant risks and 3. CIF value of Imports:
rewards of ownership are effectively retained by the lessor are (Amount in Rupees)
classified as operating lease. Lease payments under an operating Particulars As on As on
lease are recognised as expense in Profit and Loss Account, on a March 31, March 31,
straight-line basis over lease term. 2008 2007
8. Borrowing Cost Capital Goods (Including
141,047,982 –
Interest and other costs incurred in connection with the borrowing Spares)
of the funds are charged to revenue on accrual basis except those

ANNUAL REPORT 2007-08 73

 4. Loans & Advances include:
(Amount in Rupees)
Amount Receivable from companies under Balance Maximum Balance Maximum
the same management within the meaning of as on amount due at as on amount due at
sub-section (1B) of Section 370 of the March 31, 2008 any time during March 31, 2007 any time
Companies Act, 1956 the year during the year
ended on ended on
March 31, 2008 March 31,2007
Birla Global Finance Company – – – 60,000,000
5. Employee Expenses: 8. Disclosure in respect of Related Parties pursuant to
During the financial year under review, there were no Accounting Standard - 18:
employees on the rolls of the Company. Personnel from List of Related Parties as on March 31, 2008
IDEA Cellular Limited have been deployed for rolling out Promoters of holding company
the Network. Expenses (including retirement benefits)
towards such personnel have been accounted for on the Hindalco Industries Limited
basis of reimbursement claimed by Idea Cellular Limited. Grasim Industries Limited
6. Deferred Tax assets on account of timing difference towards Aditya Birla Nuvo Limited (ABNL)
brought forward business loss are not recognised, as there Birla TMT Holdings Pvt. limited
is no reasonable certainty that sufficient future taxable I. Holding Company
income will be available to realize the deferred tax assets. Idea Cellular Limited (ICL)
7. Capital Work in Progress includes equipment and machinery II. Fellow Subsidiaries
in stock, advances for construction and erection work,
- Swinder Singh Satara & Co. Limited
expansion project and the following pre-operative
expenses pending allocation (Net): - Idea Cellular Infrastructure Services Limited (ICISL)
- Idea Cellular Towers Infrastructure Limited
(Amount in Rupees)
- Idea Cellular Services Limited
Particulars For the For the
year ended year ended III. Key Management Person
on March on March Mr. Anurag Upadhyaya (w.e.f. February 28, 2008)
31, 2008 31, 2007
Personnel Expenses 30,253,800 2,537,404
Travelling Expenses 4,876,621 254,275
Rent, Office & General
Expenses 27,909,354 1,084,309
Network operating
expenses 789,923 –
Depreciation 2,162,158 –
Total 65,991,856 3,875,988

IV. During the year following transactions were carried out with the related parties in the ordinary course of business.
Related Party Transaction Holding Co. Fellow Holding Co. Fellow
(ICL) Subsidiaries (ABNL) (Upto Subsidiaries
(ICISL) 28/02/2007) of ABNL
Interest Income
Laxminarayan Investment Limited –
(116,986)
Alpha Garments Limited –
(243,288)
Madura Garments Exports Limited –
(133,698)
Birla Global Finance Co.Limited –
(3,615,443)
Interest Expenses
Aditya Birla Nuvo Limited –
( 30,271,870)
Transwork Information Services Limited –
(1,665,812)
Idea Cellular Limited –
(2,761,918)

74 A D I T Y A B I R L A T E L E C O M L I M I T E D
 Related Party Transaction Holding Co. Fellow Holding Co. Fellow
(ICL) Subsidiaries (ABNL) (Upto Subsidiaries
(ICISL) 28/02/2007) of ABNL
Investment
Sale of Shares of IDEA Cellular Limited –
(6,863,313,870)
Inter Corporate Deposits given
Birla Global Finance Co. Limited –
( 60,000,000)
Inter Corporate Deposits Obtained
Aditya Birla Nuvo Limited –
(6,791,100,000)
Transworks Information Services Limited –
(378,350,000)
Idea Cellular Limited 300,452,512
(100,000,000)
ICD Repaid
Aditya Birla Nuvo Limited –
(6,791,100,000)
Transwork Information Services Limited –
(378,350,000)
Idea Cellular Limited 40,000,000
(60,000,000)
Loans and Advances
Loans and advances given 50,708,777
–
Inter Corporate Deposits given Received back
Birla Global Finance Co. Limited –
(60,000,000)
Laxminarayan Investment Limited –
(10,000,000)
Madura Garments Exports Limited –
(10,000,000)
Alpha Garments Export Limited –
(10,000,000)
Outstanding Balance as on March 31, 2008
Unsecured Loan 260,452,512
–
Advances – 50,708,777
(40,000,000) –
Sundry Creditors 150,926
(4,865,786)
Interest Payable –
(2,552,888)

Notes: 1. Figures in brackets represent corresponding amount of previous year.

2. No amount in respect of the related parties has been written back/off is provided for during the year.
3. Related party relationship have been identified by the management and relied upon by auditors.

ANNUAL REPORT 2007-08 75

 9. Earnings per Share (EPS) is calculated as under: 10. During the year the holding company i.e. Idea Cellular Limited
(Amount in Rupees) has set up a fellow subsidiary Idea Cellular Infrastructure
Services Limited (ICISL) for rolling out passive infrastructure
Particulars For the year For the year
in specified states.
ended ended
March 31, March 31, 11. Information pertaining to para 3 and 4C of part II of Schedule
2008 2007 VI of the Companies Act, 1956 is not given since the same is
not applicable to the Company during the year.
Nominal Value of Equity
Share 10/- 10/- 12. No amounts are payable to Micro, Small and Medium
Profit After Tax (13,018,002) (24,262,692) Enterprises (SMEs) within the meaning of the Micro, Small
and Medium Enterprises Development Act, 2006.
Profit Attributable to
Equity Shareholders (13,018,002) (24,262,692 13. Previous year’s figures have been regrouped, rearranged
wherever necessary.
Weighted average Number
of Equity Share outstanding
during the year (Nos.) 10,000,000 10,000,000
Basic Earnings Per Share (1.30) (2.43)

As per our report attached of even date For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants
AJS Jhala Sanjeev Aga
Shivji K. Vikamsey Director Director
Partner

Date: April 21, 2008 Anurag Upadhyaya

Place: Mumbai Company Secretary & Manager

76 A D I T Y A B I R L A T E L E C O M L I M I T E D
Cash Flow Statement for the year ended March 31, 2008
(Amount in Rupees)
Year ended March Year ended March
31, 2008 31, 2007
A) Cash Flow from Operating Activities:
Net profit/(loss) before tax (13,018,002) (24,262,692)
Less Adjustments for:
Profit on sale of investments (244,979)
Income from Investment - Dividends (216,535) (332,964)
Add Adjustments for:
Depreciation and amortisation 3,132,683 –
Interest and finance charges 65,152 22,672,156
Operating profit before working capital changes (9,820,167) (2,168,479)
Adjustments for changes in working capital :
(Increase)/decrease in other receivables (57,244,730) (12,600)
(Increase)/decrease in deposits (8,761,961) 59,353,992
(Increase)/decrease in taxation (5,604) (5,146,371)
Increase/(decrease) in trade and other payables 10,093,473 7,490,579
Cash generated from/(used in) operations (65,738,988) 59,517,121
Net cash from/(used in) operating activities (65,738,988) 59,517,121
B) Cash Flow from Investing Activities:
Purchase of fixed assets/ CWIP (170,978,059) (3,875,988)
Entry Fee – (100,000,000)
Sales/ Redemption/ (Purchase) of investments 12,104,731 25,842,806
Dividend Received 216,535 332,964
Profit on sale of investment – 244,979
Net cash from/(used in) investing activities (158,656,793) (77,455,239)
C) Cash Flow from Financing activities:
Proceeds from fresh issue of Share Capital – –
Receipt from long term borrowings 264,869,543 100,000,000
Repayments of long term borrowings (40,000,000) (60,000,000)
Interest and other financial charges paid (65,152) (22,672,156)
Net Cash from/(used in) Financing activities 224,804,391 17,327,844
Net increase in cash and cash equivalents (A+B+C) 408,610 (610,274)
Cash and cash equivalents at the beginning of the year 12,287 622,561
Cash and cash equivalents at the end of the year 420,897 12,287

Cash and cash equivalents comprise

Cheques in hand – –
Cash in hand 2,610 –
Balances with scheduled banks - Current account 12,287 12,287
Balances with scheduled banks - Deposit accounts 406,000 –
420,897 12,287
Note: Figures in brackets indicate cash outflow

As per our report attached of even date For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants
AJS Jhala Sanjeev Aga
Shivji K. Vikamsey Director Director
Partner
Date: April 21, 2008 Anurag Upadhyaya
Place: Mumbai Company Secretary & Manager

ANNUAL REPORT 2007-08 77

 Balance Sheet Abstract and Company’s General Business Profile

I. REGISTRATION DETAILS
Registration No. 1 1 – 1 5 8 9 0 State Code 1 1 Date 2 0 1 2 2 0 0 5
Date Month Year
Balance Sheet date 3 1 0 3 2 0 0 8

II. CAPITAL RAISED DURING THE YEAR (Amount in Rs. Thousand)

Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs. Thousand)
Total Liabilities Total Assets
3 6 4 8 7 0 3 6 4 8 7 0
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
1 0 0 0 0 0 N I L
Secured Loans Unsecured Loans
4 4 1 7 2 6 0 4 5 3
APPLICATION OF FUNDS
Net Fixed Assets Investments
7 0 3 1 9 0 N I L
Net Current Assets/(Liability) Miscellaneous Expenditure
– 3 7 6 9 7 7 N I L
Accumulated Losses
3 8 6 5 7

IV. PERFORMANCE OF COMPANY (Amount in Rs. Thousand)

Turnover Total Expenditure
2 1 7 1 3 1 4 9
(*includes other income) (*Includes prior period adjustments)
+ – Profit/(Loss) Before Tax + – Profit/(Loss) After Tax
– 1 2 9 3 2 – 1 3 0 1 8
(Please tick appropriate box + for profit - for loss)
Earnings Per Share in Rs. Dividend Rate (%)
– 1 . 3 0 – –
V. GENERIC NAMES OF three PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (As per Monetary Terms)

Item Code No. (ITC Code) N O T A P P L I C A B L E

Product Description T E L E C O M S E R V I C E S

For and on behalf of the Board

AJS Jhala Sanjeev Aga

Director Director

Anurag Upadhyaya
Company Secretary & Manager

Date : April 21, 2008

Place : Mumbai

78 A D I T Y A B I R L A T E L E C O M L I M I T E D
Directors’ Report of Idea Cellular Services Limited
Dear Shareholders,
Your Directors have pleasure in presenting the First Annual Report
together with the Audited Accounts of your Company for the period
commencing from October 3, 2007 to March 31, 2008.
Incorporation
Your Company was incorporated on October 3, 2007 and it received
the Certificate of Commencement of Business on October 24, 2007.
Performance Review
Your Company was incorporated on October 3, 2007 with the objective
to provide manpower services in the areas of subscriber acquisition
and servicing required by the mobility circles of Idea Cellular Limited,
the holding company.
During the period ended March 31, 2008, your Company earned a total
income of Rs. 4,54,12,864/- and incurred a net loss of Rs. 19,71,783/-.
It has fully amortised preliminary expenses of Rs. 45,500/-.
Issue of Capital
Idea Cellular Limited and its nominees were subscribers to the
Memorandum and contributed the entire paid up capital of
Rs. 5,00,000. Consequent to the allotment, your Company became a
wholly owned subsidiary of Idea Cellular Limited.
Dividend
Since the Company has not earned any profit for the period ended
March 31, 2008, the Directors do not recommend any dividend for
the said period.
Deposits
Your Company has not accepted any public deposit during the period
under review.
Particulars of Employees’ Remuneration
The Company does not have any employee to whom the provisions
of Section 217 (2A) of the Companies Act, 1956 read with Companies
(Particular of Employees) Rules, 1975 are applicable for the financial
year 2007-08.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
• In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper
explanation relating to material departures;
• The Directors have selected such accounting policies and
applied them consistently and made judgements and estimates
that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the Financial
Year and of the profit or loss of the Company for that period;
• The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of this Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
irregularities;
• The Directors have prepared the Annual Accounts on a going
concern basis.
Directors
Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala were appointed
as first Directors of the Company and holds office upto the date of First
Annual General Meeting.
The Company has received due notices from member proposing the
appointment of Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala
as Directors of the Company.
Auditors
M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai were
appointed as first auditors of the Company and their term of office
expires at the ensuing Annual General Meeting and being eligible
hereby offer themselves for appointment. A certificate under Section
224(1B) of the Companies Act, 1956 has been obtained from them.
Information as per Section 217(1)(e) of the Companies Act, 1956
The Company is not engaged in any manufacturing activity and
therefore there are no particulars to be disclosed under the Companies
(Disclosure of Particulars in the Report of the Board of Directors) Rules,
1988 pursuant to Section 217(1)(e) with regard to Conservation of
Energy and Technological Absorption.
There is no earning or outgoing in foreign exchange during the period
under review.
Acknowledgement
Your Directors place on record their appreciation of efforts of
employees in contributing to the performance of the Company. They
would also like to place on record their sincere appreciation for the
continued co-operation and support provided by the Bankers, Central
and State Government departments and Local Authorities.
For and on behalf of the Board
Date: April 21, 2008 AJS Jhala Sanjeev Aga
Place: Mumbai Director Director
A N N U A L R E P O R T 2 0 0 7 - 0 8 79
 Auditors’ Report
To the Members of
Idea Cellular Services Limited
1. We have audited the attached Balance Sheet of Idea Cellular
Services Limited as at March 31, 2008 and the related Profit and
Loss Account for the period October 3, 2007 to March 31, 2008
and Cash Flow Statement for the period ended on that date both
annexed thereto (together referred to as ‘financial statements’).
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003,
(‘the said Order’) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act,
1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph
3 above, we report that:
(a) we have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purposes of our audit ;
(b) in our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our
examination of those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash
Flow Statement dealt with by this report are in agreement
with the books of account;
(d) in our opinion, the Balance Sheet, the Profit and Loss
Account and the Cash Flow Statement dealt with by this
report comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies
Act, 1956;
(e) On the basis of written representations received from the
directors, as on March 31, 2008, and taken on record by the
Board of Directors, we report that none of the directors is
disqualified as on March 31, 2008, from being appointed
as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956; and
(f) In our opinion and to the best of our information and
according to the explanations given to us, the said financial
statements read together with the notes thereon, give
the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2008;
80 IDEA C E L LU L A R S erv ices L I M I T E D
(ii) in the case of the Profit and Loss Account, of the loss of
the Company for the period from October 3, 2007 to
March 31, 2008; and
(iii) in the case of the Cash Flow Statement, of the Cash Flows
of the Company for the period ended on that date.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date : April 21, 2008
Place : Mumbai
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date to the
members of Idea Cellular Services Limited on the accounts for
the period ended March 31, 2008)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b) As informed and represented to us, fixed assets have
been physically verified by the management during the
year and no material discrepancies were noticed on such
verification.
c) According to the information and explanations given to
us, the Company has not disposed off any fixed assets
during the year and accordingly the paragraph 4 (i) (c) of
the said order relating to going concern being affected
are not applicable.
(ii) In our opinion, the Company is not dealing in any inventories.
Accordingly the provisions of paragraphs 4 (ii) (a) to 4 (ii) (c)
of the said order relating to physical verification, frequency of
verification, procedures of physical verification and maintenance
of inventory records are not applicable to the Company.
(iii) According to the information and explanations given to us,
the Company has not granted/taken any loans, secured or
unsecured, to/from companies, firms or other parties covered
in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, the provisions of the paragraphs 4 (iii)
(b) to 4 (iii) (d) and 4 (iii) (f) and 4 (iii) (g) of the said order are
not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of
its business with regard to purchase of fixed assets. During the
current year, the Company had no transactions of purchase of
inventory and sale of goods.
(v) In our opinion and according to the information and explanations
given to us, there were no contracts, particulars of which needed
to be entered in the register maintained under Section 301 of
the Companies Act, 1956 and hence provisions of paragraph
 4 (v) (b) of the said Order relating to reasonableness of price
having regard to prevailing market price is not applicable to the
Company.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from
the public within the meaning of Section 58A and 58AA of the
Companies Act, 1956 and the rules framed thereunder.
(vii) The provisions of paragraph 4 (vii) of the said order relating
to internal audit system are not applicable to the Company,
since the Company is not a listed Company, neither does
its paid up capital and reserves exceed Rs. 50 Lakhs as at
the commencement of the financial period concerned. The
condition relating to average annual turnover in excess of five
crore rupees for the period of three consecutive financial years
is not applicable, as current financial period is the first financial
year of the Company.
(viii) The Central Government has not prescribed maintenance of
cost records under Section 209(1)(d) of the Companies Act,
1956 for any of the activities of the Company and accordingly,
the provisions of paragraph 4 (viii) of the said order are not
applicable.
(ix) In respect of Statutory Dues
(a) According to the information and explanations given to us,
the Company has been regular in depositing undisputed
statutory dues, including Provident Fund, Employees’ State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and any other statutory
dues applicable to it with the appropriate authorities
during the period. The Company was not required to
deposit any amounts with the Investor Education and
Protection Fund.
(b) According to the information and explanations given to us,
no undisputed amounts payable in respect of Provident
Fund, Employees’ State Insurance, Income-Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess
outstanding as at March 31, 2008, for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to
us, there are no dues of Sales Tax, Income Tax, Customs
Duty, Wealth Tax, Service Tax, Excise duty and Cess which
have not been deposited on account of any dispute.
(x) The Company has been registered for a period less than five
years. Accordingly, the provisions of paragraph 4 (x) of the said
order are not applicable.
(xi) The Company has not borrowed any funds from financial
institutions or banks or debenture holders and accordingly, the
provisions of paragraph 4 (xi) of the said order relating to default
to such parties are not applicable.
(xii) According to the information and explanations given to us,
the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities and accordingly, the provisions of paragraph 4 (xii)
of the said order relating to maintenance of documents and
records are not applicable.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit fund/
society. Therefore, the provisions of paragraph 4(xiii) of the said
Order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly,
the provisions of paragraph 4 (xiv) of the said order are not
applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others
from banks or financial institutions. Therefore, the provisions
of paragraph 4 (xv) of the said order are not applicable to the
Company.
(xvi) The Company has not taken any term loan during the period.
Therefore the provisions of paragraph 4 (xvi) of the said order
relating to usage of such funds are not applicable to the Company.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company,
funds raised on short term basis have not been used for long
term purposes.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during
the period. Accordingly, the provisions of paragraph 4 (xix)
of the said order relating to creation of securities or charges in
respect of debentures are not applicable to the Company.
(xx) The Company has not raised any money by way of public issues
during the period covered by the audit report.
(xxi) During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing
practices in India, and according to the information and
explanations given to us, we have neither come across any
incidence of any material fraud on or by the Company, noticed
or reported during the period, nor have we been informed of
any such case by the management.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date : April 21, 2008
Place : Mumbai
A N N U A L R E P O R T 2 0 0 7 - 0 8 81
 Balance Sheet as at March 31, 2008
(Amount in Rupees)
Schedules As at
March 31, 2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500,000
Reserves and Surplus –
500,000
Loan Funds
Unsecured 2 10,769,478
10,769,478
TOTAL 11,269,478
APPLICATION OF FUNDS
Fixed Assets
Gross Block 3 1,981,181
Less: Accumulated Depreciation 92,205
Net Block 1,888,976

Deferred Tax Assets (Net) 830,000

830,000
Current Assets, Loans and Advances
Current Assets
Sundry Debtors 4 22,910,524
Cash and Bank Balances 5 140,666
Loans and Advances 6 1,548,533
24,599,723
Less: Current Liabilities and Provisions 7 18,021,004
Net Current Assets 6,578,719
Profit and Loss Account 1,971,783
TOTAL 11,269,478
Significant Accounting Policies and Notes to the Accounts 10
The Schedules referred to above form an integral part of Accounts
As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

Date : April 21, 2008

Place : Mumbai

82 IDEA C E L LU L A R S erv ices L I M I T E D

Profit and Loss Account for the period from October 3, 2007 to March 31, 2008
(Amount in Rupees)
Schedules For the period
October 3, 2007 to
March 31, 2008
INCOME
Service Revenue 45,404,789
Other Income (Notice Pay Recovery) 8,075
TOTAL 45,412,864

OPERATING EXPENDITURE
Personnel Expenditure 8 41,565,593
Administration & other Expenses 9 6,205,537
47,771,130

PROFIT/(LOSS) BEFORE DEPRECIATION AND TAXES (2,358,266)

Depreciation 3 92,205

PROFIT/(LOSS) BEFORE TAX (2,450,471)

Provision for taxation - Current –
- Deferred (830,000)
- Fringe Benefit tax 351,312
PROFIT/(LOSS) AFTER TAX (1,971,783)

BALANCE CARRIED FORWARD TO BALANCE SHEET (1,971,783)

Earnings Per Share (Refer Note B8 to Schedule 10) (39.44)
Significant Accounting Policies and Notes to the Accounts 10
The Schedules referred to above form an integral part of Accounts
As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

Date : April 21, 2008

Place : Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 83
 Schedules forming part of the Accounts
(Amount in Rupees) (Amount in Rupees)
As at As at
March 31, 2008 March 31, 2008

SCHEDULE 1 SCHEDULE 2
SHARE CAPITAL UNSECURED LOANS
Short Term Loan
Authorised From Holding Company 10,769,478
50,000 Equity Shares of Rs.10 each 500,000 10,769,478
500,000
Issued, Subscribed and Paid-Up

Equity Share Capital

50,000 Equity Shares of Rs. 10 each fully paid up 500,000
(The entire share capital is held by Holding
Company - Idea Cellular Limited) 500,000

Schedule 3 : Fixed Assets (Amount in Rupees)

Gross Block Depreciation Net Block
Particulars Additions Deductions As at For the Deductions As at As at
during the during the March 31, period during the March 31, March 31,
period period 2008 period 2008 2008
Land – – – – – – –
Leasehold Land – – – – – – –
Building – – – – – – –
Plant & Machinery – – – – – – –
Furniture & Fixture – – – – – – –
Office Equipment 1,981,181 – 1,981,181 92,205 – 92,205 1,888,976
Vehicles – – – – – – –
TOTAL 1,981,181 – 1,981,181 92,205 – 92,205 1,888,976

(Amount in Rupees) (Amount in Rupees)

As at As at
March 31, 2008 March 31, 2008

SCHEDULE 4 SCHEDULE 6
LOANS AND ADVANCES
SUNDRY DEBTORS
(Unsecured, considered good unless otherwise stated)
Debts outstanding for less than six months Advances recoverable in cash or kind or for value
Unsecured - Considered good 22,910,524 to be received 9,900
22,910,524 Advance Income Tax 1,538,633
1,548,533
SCHEDULE 7
SCHEDULE 5 CURRENT LIABILITIES AND PROVISIONS
CASH AND BANK BALANCES Current Liabilities
Cash and Cheques on Hand 16,362 Sundry Creditors (Refer Note B2 to Schedule 10) 12,809,851
Balances with Scheduled Banks Other Liabilities 4,105,831
16,915,682
- on Current Accounts 124,304
Provisions
140,666 Leave Encashment 814,010
Provision for Fringe Benefit Tax (Net of Advance
of Rs.60,000) 291,312
1,105,322
18,021,004

84 IDEA C E L LU L A R S erv ices L I M I T E D

Schedules forming part of the Accounts
(Amount in Rupees) Intangible Assets
For the Period Software, which is not an integral part of Hardware, is treated as
October 3, 2007 to Intangible asset and is amortised on straight-line basis over their
March 31, 2008 useful economic lives, estimated by the management between 3
to 5 years.
4. Taxation:
SCHEDULE 8
a) Current Tax: Provision for current income tax is made on the
PERSONNEL EXPENDITURE
taxable income using the applicable tax rates and tax laws.
Salaries and Allowances etc. 34,401,884 b) Deferred Tax: Deferred tax arising on account of timing
Contribution to Provident and Other Funds 2,846,644 differences and which are capable of reversal in one or more
subsequent periods is recognised using the tax rates and tax
Staff Welfare 69,658
laws that have been enacted or substantively enacted. Deferred
Recruitment and Training 4,247,407 tax assets are not recognised unless there is virtual certainty with
41,565,593 respect to the reversal of the same in future years.
5. Retirement Benefits:
Contributions to Provident and pension funds are funded with the
SCHEDULE 9
appropriate authorities and charged to the Profit and Loss Account.
ADMINISTRATION & OTHER EXPENSES Liability for gratuity as at the year end is provided on the basis of
Rates and Taxes 82,400 actuarial valuation and charged to the Profit and Loss Account.
Printing and Stationery 14,318 Provision in accounts for leave benefits to employees is based on
actuarial valuation done by Projected accrued benefit method at
Communication Expenses 1,500
the Period end.
Travelling and Conveyance 5,886,849 6. Revenue Recognition:
Bank Charges 23,250 Revenue on account of Manpower Services rendered is recognised
Legal and Professional Charges 131,593 as services are rendered based on agreements/arrangements.
Audit Fees 50,000 7. Investments:
Current Investments are stated at lower of cost or fair value in
Miscellaneous Expenses 15,627
respect of each separate investment.
6,205,537 Long-term investments are stated at cost less provision for
diminution in value other than temporary, if any.
8. Borrowing Cost:
Schedule 10 Interest and other costs incurred in connection with the borrowing
A. Significant Accounting Policies of the funds are charged to revenue on accrual basis except those
borrowing costs which are directly attributable to the acquisition
1. Basis of Preparation of Financial Statements:
or construction of those fixed assets, which necessarily take a
The Financial Statements have been prepared under the substantial period of time to get ready for their intended use.
historical cost convention on accrual basis. The mandatory Such costs are capitalized with the fixed assets.
applicable Accounting Standards in India and the provisions of
9. Contingent Liability:
the Companies Act, 1956 have been followed in preparation of
these Financial Statements. Disclosures for contingent liabilities are considered to the extent
of notices/demands received by the Company.
2. Fixed Assets:
10. Impairment of Assets:
Fixed Assets are stated at cost of acquisition and installation less
accumulated depreciation. Cost is inclusive of freight, duties, Assets that are subject to impairment are reviewed for impairment
levies and any directly attributable cost of bringing the assets to whenever events or changes in circumstances indicate that the
their working condition for intended use. carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the assets carrying amount
3. Depreciation and Amortization:
exceeds its recoverable amount. The recoverable amount is
Depreciation on Fixed assets is provided on straight-line method higher of the assets fair value less costs to sell and value in use.
on the basis of estimated useful economic lives as given below: For the purpose of impairment, assets are grouped at the lowest
Tangible Assets Years levels for which there are separately identified cash flows.
11. Provisions:
Buildings 10 to 30
Provisions are recognised when the Company has a present
Office Equipments 3 to 9 obligation as a result of past events; it is more likely that an
Computers 3 outflow of resources will be required to settle the obligation;
and the amount has been reliably estimated.
Furniture & Fixtures 3 to 10

A N N U A L R E P O R T 2 0 0 7 - 0 8 85
 Schedules forming part of the Accounts
B. Notes to accounts Outstanding Balance as on March 31, 2008
1. Auditors’ Remuneration (exclusive of service tax): (Amount in Rupees)
(Amount in Rupees) Nature of Relationship
Particulars For the period Holding Company
Particulars
October 3, 2007 to (Idea Cellular Limited)
March 31, 2008 Transactions
Statutory Audit Fees 50,000 Sundry Debtors 22,910,524
2. a) There is no outstanding amount due to Small Scale Industries Unsecured Short Term
10,769,478
(SSI) at the period end. Loan Taken
b) There is no outstanding amount due to Micro, Small &
Medium Enterprises defined under The Micro, Small, 7. Deferred Tax
Medium Enterprises Development Act, 2006. (Amount in Rupees)
3. Provision for Gratuity Particulars As at
March 31, 2008
Since none of the employees of the Company has completed
six months of service, there is no accrual of gratuity liability as Deferred Tax Liability:
March 31, 2008. Depreciation of Fixed Assets 171,000
4. Provision for Leave Encashment Total Deferred Tax Liability 171,000
The Company had provided for the leave encashment as per Deferred Tax Asset:
the actuarial valuation till March 31, 2008 as required then by Brought Forward Loss 95,000
Accounting Standard-15 on “Accounting for Retirement Benefits Preliminary Expenses 12,000
in the Financial Statements of Employers”.
Provision for Leave Encashment 276,000
5. Segment Reporting
Provision for Bonus 618,000
The Company operates in only one business segment. In the Total Deferred Tax Asset 1,001,000
circumstances, segment information required by Accounting
Net Deferred Tax Asset 830,000
Standard–17 issued by the Institute of Chartered Accountants of
India, has not been furnished. Deferred Tax assets on account of timing difference are recognised,
6. Related Party Transactions as there is a reasonable certainty that sufficient future taxable income
will be available to realise the deferred tax assets.
a) As per Accounting Standard–18 on “Related Party Disclosure”
issued by the Institute of Chartered Accountants of India, 8. Earnings Per Share is calculated as under:
related parties of the Company are disclosed below: (Amount in Rupees)
List of related Parties: Particulars For the period
Holding Company October 3, 2007
Idea Cellular Limited (100% Holding Company of Idea to March 31, 2008
Cellular Services Limited) Net Profit/(Loss) as disclosed in Profit
Fellow Subsidiaries and Loss Account (1,971,783)
Aditya Birla Telecom Limited
Number of Equity Shares (Nos.) 50,000
Swinder Singh Satara & Co. Limited
Idea Cellular Infrastructure Services Limited Nominal value of Shares 10/-
Idea Cellular Towers Infrastructure Limited Basic and Diluted Earnings per Share (39.44)
Key Management Personnel
Mr. Sanjeev Aga, Director 9. Estimated amount of Contract remaining to be executed on
Mr. AJS Jhala, Director Capital Account and not provided for (net of advance) Rs. Nil.

b) Disclosure in respect of Related Parties: 10. There is no other additional information pursuant to para 3, 4C,
4D, of part II of Schedule VI of the Companies Act, 1956.
During the period ended March 31, 2008 following
transactions were carried out with the related parties in the 11. Previous Year Figures are not applicable as the Company started
ordinary course of business. its operation from October 3, 2007.
(Amount in Rupees)
Nature of Relationship
Holding Company
Particulars For and on behalf of the Board
(Idea Cellular Limited)
Transactions
Issue of Shares 500,000 AJS Jhala Sanjeev Aga
Sale of Services (Inclusive of Director Director
51,016,821
Service Tax of Rs. 5,612,032/-) Date: April 21, 2008
Unsecured Short Term Loan Place: Mumbai
26,865,075
Taken

86 IDEA C E L LU L A R S erv ices L I M I T E D

Cash Flow Statement for the period October 3, 2007 to March 31, 2008
(Amount in Rupees)
For the period October 3, 2007
to March 31,2008
A) Cash Flow from Operating Activities
Net Profit/(Loss) after tax (1,971,783)
Adjustments for:
Depreciation 92,205
Provision for Fringe Benefit Tax 351,312
Deferred Tax Provision (830,000)
Operating Profit/(Loss) before Working capital Changes (2,358,266)
Adjustments for:
(Increase)/Decrease in Sundry Debtors (22,910,524)
(Increase)/Decrease in Loans and Advances (9,900)
Increase/(Decrease) in Current Liabilities 15,748,511 (7,171,913)
Cash generated from/(used in) operations (9,530,179)
Tax(paid)/Refund (Including FBT & TDS) (1,598,633)
Net cash from/(used in) operating activities (11,128,812)

B) Cash Flow from Investing Activities –

C) Cash Flow from Financing Activities

Proceeds from Issue of Share Capital 500,000
Proceeds from Unsecured Short Term Loan 10,769,478
Net Cash From/(Used in) Financing Activity 11,269,478

Net increase/(decrease) in cash and cash equivalent 140,666

Cash and cash equivalent at the beginning –

Cash and cash equivalent at the end 140,666

Notes:
1. Cash and cash equivalent inclues :
Cash and Cheques on Hand 16,362
Balances with Scheduled Banks
- on Current Accounts 124,304
140,666
2. The above Cash Flow statement has been prepared under the indirect method as set out in Accounting Standard–3 on
Cash Flow statement issued by the Institute of Chartered Accountants of India.

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

Date: April 21, 2008

Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 87
 Balance Sheet Abstract and Company’s General Business Profile
I. REGISTRATION DETAILS
Registration No. 0 5 1 8 8 1 State Code 0 4 Date 0 3 1 0 2 0 0 7
Date Month Year
Balance Sheet date 3 1 0 3 2 0 0 8
II. CAPITAL RAISED DURING THE YEAR (Rupees in Thousand)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L 5 0 0
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Rupees in Thousand)
Total Liabilities Total Assets
1 1 2 6 9 1 1 2 6 9
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L 1 0 7 6 9
APPLICATION OF FUNDS
Net Fixed Assets Investments
1 8 8 9 N I L
Net Current Assets/(Liability) Miscellaneous Expenditure
6 5 7 9 N I L
Accumulated Losses
1 9 7 2
IV. PERFORMANCE OF COMPANY (Rupees in Thousand)
Turnover Total Expenditure
4 5 4 1 3 4 7 8 6 3
Profit/(Loss) Before Tax Profit/(Loss) After Tax
- 2 4 5 0
- 1 9 7 2
(Please tick appropriate box + for profit, – for loss)

Earnings Per Share in Rs. Dividend Rate (%)

- 3 9 . 4 4 0 0
V. GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (As per monetary terms)
Item Code No. (ITC Code) N O T A P P L I C A B L E
Product
M A N P O W E R S E R V I C E S
Description

For and on behalf of the Board

AJS Jhala Sanjeev Aga

Director Director

Date : April 21, 2008

Place : Mumbai

88 IDEA C E L LU L A R S erv ices L I M I T E D

Directors’ Report of Idea Cellular Infrastructure Services Limted
Dear Shareholders,
Your Directors have pleasure in presenting the First Annual Report
together with the Audited Accounts of your Company for the period
commencing from October 3, 2007 to March 31, 2008.
Incorporation
Your Company was incorporated on October 3, 2007 and it received
the Certificate of Commencement of Business on October 24, 2007.
Performance Review
Your Company was incorporated on October 3, 2007 with the
objective to roll out the passive infrastructure requirements in various
telecom service areas.
Further, on April 3, 2008, your Company received IP-I registration
from the Department of Telecommunications to provide passive
infrastructure services as part of its business objectives. Companies
registered as IP-I can provide assets such as Dark Fibre, Right of Way,
Duct space and Tower.
During the period ended March 31, 2008, your Company earned a
total income of Rs. 2,850/- and incurred a net loss of Rs. 1,03,199/-.
It has fully amortised preliminary expenses of Rs. 45,500/-. Further the
Consolidated total income is Rs. 2,850/- and incurred a net loss of
Rs. 71,79,466/-
Issue of Capital
Idea Cellular Limited and its nominees were subscribers to the
Memorandum and contributed the entire paid up capital of Rs.
5,00,000. Consequent to the allotment, your Company became a
wholly owned subsidiary of Idea Cellular Limited.
Dividend
The Board of Directors have not declared any dividend during the
year.
Deposits
Your Company has not accepted any public deposit during the period
under review.
Subsidiary
During the period under review, your Company formed a wholly owned
subsidiary namely, Idea Cellular Towers Infrastructure Limited (ICTIL)
on December 3, 2007 to house the passive infrastructure for certain
service areas of Idea Cellular Limited, the holding Company. The entire
paid up equity capital of ICTIL comprising of 50,000 equity shares of
Rs. 10/- each is held by your Company along with its nominees.
Joint Ventures
During the period under review, your Company alongwith Vodafone
Essar Limited, Bharti Airtel Limited, Bharti Infratel Limited and Idea
Cellular Limited formed a joint venture Company namely Indus Infratel
Limited to conduct the business of building, operating and maintaining
new and existing passive infrastructure in various telecom service areas
and provide passive infrastructure services to telecommunications
service providers.
Particulars of Employees’ Remuneration
The Company has no employees on its payroll. Accordingly the
provisions of Section 217(2A) of the Companies Act, 1956 and
Companies (Particulars of Employees) Rules, 1975, are not applicable.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
• In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper
explanation relating to material departures;
• The Directors have selected such accounting policies and
applied them consistently and made judgements and estimates
that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the Financial
Year and of the profit or loss of the Company for that period;
• The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of this Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
irregularities;
• The Directors have prepared the Annual Accounts on a going
concern basis.
Directors
Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala were appointed
as first Directors of the Company and holds office upto the date of First
Annual General Meeting.
The Company has received due notices from member proposing the
appointment of Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala
as Directors of the Company.
Auditors
M/s. Khimji Kunverji & Co., Chartered Accountants, Mumbai were
appointed as first auditors of the Company and their term of office
expires at the ensuing Annual General Meeting and being eligible
hereby offer themselves for appointment. A certificate under Section
224(1B) of the Companies Act, 1956 has been obtained from them.
Information as per Section 217(1)(e) of the Companies Act, 1956
The particulars required by the Companies (disclosure of particulars
in report of Board of Directors) pursuant to Section 217(1)(e) with
regard to Conservation of Energy and Technological Absorption are
not applicable since there was no manufacturing activity during the
period under review.
There is no earning or outgoing in foreign exchange during the period
under review.
Acknowledgement
Your Directors wish to place on record their appreciation for the
guidance and support extended by government authorities.
For and on behalf of the Board
Date: April 21, 2008 AJS Jhala Sanjeev Aga
Place: Mumbai Director Director
A N N U A L R E P O R T 2 0 0 7 - 0 8 89
 Auditors’ Report
To The Members of
Idea Cellular Infrastructure Services Limited
We have audited the attached Balance Sheet of Idea Cellular
Infrastructure Services Limited as at March 31, 2008 and also the
Profit and Loss Account and the Cash Flow statement for the Period
ended on that date annexed thereto. These financial statements are the
responsibility of the Company’s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors’ Report) Order, 2003
(hereinafter referred to as the Order), issued by the Company Law Board
in terms of Section 227 (4A) of the Companies Act, 1956 (hereinafter
referred to as the Act), we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which
to the best of our knowledge and belief were necessary for the
purposes of our audit.
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination
of those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the
books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of Act.
(v) On the basis of written representations received from the
directors as on March 31, 2008 and taken on record by the Board
of Directors, we report that none of the directors is disqualified
as on March 31, 2008 from being appointed as a director in terms
of Clause (g) of sub–section (1) of Section 274 of the Act.
(vi) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts give the
information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
Accounting Principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of the affairs of
the Company as at March 31, 2008;
b) in case of the Profit and Loss Account, of the Loss of the
Company for the period ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For and on behalf of
Khimji Kunverji & Co.
Chartered Accountants
Shivji K. Vikamsey
Partner
Membership No.: 2242
Date : April 21, 2008
Place : Mumbai
90 I D E A C E L L U L A R I N F R A S T R U C T U R E S E R V I C E S L I M I T E D
Annexure to the Auditor’s Report
Annexure Referred to in Para 3 of our Auditor’s Report
(i) The Company does not hold Fixed Assets during the year,
hence Clause 4(i)(a), 4(i)(b) and 4(i)(c) of the Order are not
applicable to the Company.
(ii) The Company does not hold any stock in trade, hence Clause
4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Order are not applicable to
the Company.
(iii) (a) The Company has not granted any loans, secured or
unsecured to companies, firms, and other parties listed
in the register maintained under Section 301 of the
Companies Act, 1956. Hence Clause (iii)(b),(c) and (d)
are not applicable to the Company.
(b) The Company has not taken any loans, secured or
unsecured from companies, firms, and other parties
listed in the register maintained under Section 301 of the
Companies Act, 1956. Hence Clause (iii) (f) and (g) are
not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of
its business, for the purchase of fixed assets. During the year the
Company has neither purchased any inventory nor sold any goods
or services, hence, the question of an adequate internal control
system commensurate with the size of the Company and the
nature of its business for the areas does not arise.
(v) Based on the Audit procedures applied by us, and according
to information and explanations provided by the management,
there are no contracts or arrangements referred to in Section 301
of the Act need to be entered into the register maintained under
the section. In view of this Clause (v) (b) is not applicable.
(vi) The Company has not accepted any deposit from the public
in terms of the provisions of Sections 58A, 58AA or any other
relevant provisions of the Act. No order has been passed by
the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any Tribunal.
(vii) The Company did not have a formal Internal Audit system during
the year.
(viii) The Company is not required to maintain any cost records
prescribed by the Central Government under Clause (d) of
sub-section (1) of Section 209 of the Act.
(ix) (a) The Company is regular in depositing undisputed
Income tax and there are no arrears thereof as at March
31, 2008 for a period of more than six months from
the date they become payable. During the financial
year under review, there were no employees on the
rolls of the Company. Personnel from IDEA group of
companies have been deployed for rolling out the
passive infrastructure requirements in various states of
India and expenses thereon have been accounted for
on the basis of reimbursement claimed by Idea Group
of companies. Accordingly Provident Fund is paid by
respective Idea Group companies. We are informed that
Investor Education and Protection Fund, Employees’
State Insurance, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess, and other statutory
dues are not applicable to the Company. There were no
 arrears as at March 31, 2008 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to
us there are no disputed Income-Tax, dues which had
not been deposited.
(x) Since the Company is registered for less than five years, the
provisions of Clause 4(x) of the Order, not applicable to the
Company.
(xi) The Company has not taken any loans from financial institutions
or banks. Therefore, the provisions of Clause 4(xi) of the Order,
not applicable to the Company.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the
Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of Clause 4(xiii)
of the Order, are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debenture and other investment. Accordingly, the
provisions of Clause 4(xiv) of the Order, are not applicable to
the Company.
(xv) According to information and explanations given to us the
Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provision of Clause 4(xv) of the Order is not applicable to the
Company.
(xvi) According to the information and explanations given to us,
the Company has not raised any term loans during the year.
Accordingly, the provision of Clause 4(xvi) of the Order is not
applicable to the Company.
(xvii) According to the information and explanations given to us and
on the overall examination of the balance sheet of the Company,
we report that no funds raised on short-term basis have been
used for long-term investment.
(xviii) The Company has not made preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue
during the year.
(xxi) Based upon the audit procedures performed and information
and explanations given by the management, we report that
no fraud on or by the Company has been noticed or reported
during the course of our audit.
For and on behalf of
Khimji Kunverji & Co.
Chartered Accountants
Shivji K. Vikamsey
Partner
Membership No.: 2242
Date : April 21, 2008
Place : Mumbai
A N N U A L R E P O R T 2 0 0 7 - 0 8 91
 Balance Sheet as at March 31, 2008
(Amount in Rupees)
Schedules As at
March 31, 2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500,000
500,000
Loan Funds
Unsecured 2 51,500,497
51,500,497

TOTAL 52,000,497
APPLICATION OF FUNDS
Investment 3 690,470
Capital Work-in-Progress 365,529,902
Current Assets, Loans and Advances
Current Assets
Sundry Debtors 4 2,850
Cash and Bank Balances 5 499,382
Loans and Advances 6 1,315,939
1,818,171
Less: Current Liabilities 7 316,141,245
Net Current Assets (314,323,074)
Profit and Loss Account 103,199
TOTAL 52,000,497
Significant Accounting Policies and Notes to the Accounts 10

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants

Shivji K. Vikamsey AJS Jhala Sanjeev Aga

Partner Director Director

Date : April 21, 2008

Place : Mumbai

92 I D E A C E L L U L A R I N F R A S T R U C T U R E S E R V I C E S L I M I T E D
Profit and Loss Account for the period ended March 31, 2008
(Amount in Rupees)
Schedules For the period
ended
March 31, 2008
INCOME
Sales of Trading Goods 2,850
TOTAL 2,850
OPERATING EXPENDITURE
Cost of Trading Goods 8 2,531
Administration and other Expenses 9 103,518
106,049
PROFIT BEFORE INTEREST, DEPRECIATION AND TAX (103,199)
PROFIT/(LOSS) BEFORE TAX (103,199)
Provision for taxation - Current –
- Deferred –
- Fringe Benefit tax –
PROFIT/(LOSS) AFTER TAX (103,199)
Balance brought forward from previous year –
BALANCE CARRIED FORWARD TO BALANCE SHEET (103,199)
Basic Earnings Per Share (2.06)
Significant Accounting Policies and Notes to the Accounts 10

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants

Shivji K. Vikamsey AJS Jhala Sanjeev Aga

Partner Director Director

Date : April 21, 2008

Place : Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 93
 Schedules forming part of the Accounts
(Amount in Rupees) (Amount in Rupees)
As at As at
March 31, March 31,
2008 2008

SCHEDULE 1 SCHEDULE 5
SHARE CAPITAL CASH AND BANK BALANCES
Authorised
Balances with Scheduled Banks
50,000 Equity Shares of Rs.10 each 500,000
- in Current Accounts 499,382
500,000
Issued, Subscribed and Paid-Up 499,382
Equity Share Capital
50,000 Equity Shares of Rs. 10 each fully paid up 500,000 SCHEDULE 6
(The entire paid-up share capital is held by LOANS AND ADVANCES
the holding company, Idea Cellular Ltd. and its (Unsecured, considered good unless otherwise
nominees) stated)
500,000
Advances recoverable in cash or kind or for value
to be received 1,267,589
SCHEDULE 2
Deposits with Subsidiaries 48,350
UNSECURED LOANS
1,315,939
From Idea Cellular Limited 791,720
From Aditya Birla Telecom Limited 50,708,777
51,500,497 SCHEDULE 7
CURRENT LIABILITIES
SCHEDULE 3 Sundry Creditors 316,141,245
INVESTMENT 316,141,245
Investments (Long Term) (Unquoted)
Trade Investment
For the period
Indus Towers Limited 190,470 ended March
(19,047 equity shares of Rs.10/- each fully paid) 31, 2008
Investment in Subsidiaries
Idea Cellular Towers Infrastructure Limited 500,000
SCHEDULE 8
(50,000 equity shares of Rs.10/- each fully paid)
COST OF TRADING GOODS SOLD
690,470
Opening Stock –
SCHEDULE 4 Add: Purchases 2,531
SUNDRY DEBTORS Less: Closing Stock –
Debts outstanding for over six months 2,531
Unsecured - Considered good –
- Considered doubtful – SCHEDULE 9
–
ADMINISTRATION AND OTHER EXPENSES
Other Debts
Bank Charges 618
Unsecured - Considered good 2,850
Legal and Professional Charges 2,400
- Considered doubtful –
2,850 Audit Fees 50,000
Less: Provision for doubtful debts – Miscellaneous expenses 50,500
Total 2,850 103,518

94 I D E A C E L L U L A R I N F R A S T R U C T U R E S E R V I C E S L I M I T E D
Schedules forming part of the Accounts

Schedule 10 B. Notes to Accounts

A. Significant Accounting Policies 1. The Company was incorporated on October 3, 2007 as

a 100% subsidiary of Idea Cellular Limited to roll out the
1. Accounting Convention
passive infrastructure in various states of India.
The Financial Statements have been prepared under the historical
During the year, the Company and its holding Company
cost convention on accrual basis. The mandatory applicable
along with Bharati Airtel Limited and Vodafone Essar Limited
accounting standards in India and the provisions of the Companies
and their subsidiaries have entered into a joint venture
Act, 1956 have been followed in preparation of these financial
agreement with Indus Towers Limited.
statements.
2. Contingent Liabilities not provided for:
2. Investments
a) Estimated amount of contract remaining to be
Current Investments are stated at lower of cost or fair value in
executed on Capital Account and not provided for
respect of each separate investment.
(net of advance) Rs.2,106,404,489.
Long-term investments are stated at cost less provision for
3. Employee Expenses:
diminution in value, other than temporary, if any.
During the period, there were no employees on the rolls
3. Expenditure During Pre-operative Period Of Licence
of the Company. Personnel from Idea Cellular Limited have
Expenses incurred on Project and other charges during construction been deployed for rolling out the Network. Expenses
period are included under pre-operative expenditure (grouped (including retirement benefits) towards such personnel
under Capital Work in Progress) and are allocated to the cost of have been accounted for on the basis of reimbursement
Fixed Assets on the commencement of commercial operations. claimed by Idea Cellular Limited.
4. Fixed Assets 4. Deferred Tax assets on account of timing difference towards
business loss are not recognised, as there is no reasonable
Fixed assets are stated at cost of acquisition and installation less certainty that sufficient future taxable income will be
accumulated depreciation. Cost is inclusive of freight, duties, available to realise the deferred tax assets.
levies and any directly attributable cost of bringing the assets to 5. Capital Work in Progress includes equipment and machinery
their working condition for intended use. in stock, advances for construction and erection work,
5. Revenue Recognition expansion project and the following pre-operative
expenses pending allocation (Net):
Revenue is recognised on rendering of services. (Amount in Rupees)
Dividend income on investment is accounted for when the right Particular For the period
to receive the payment is established. ended March
31, 2008
6. Provisions
Employee Cost 6,651,719
Provisions are recognised when the Company has a present Travelling & Conveyance 1,953,044
obligation as a result of past events, it is more likely that an Administrative and General Expenses 1,521,862
outflow of resources will be required to settle the obligation, Network Expenses 6,527,205
and amount can be reliably estimated. Total 16,653,830
7. Taxation 6. Disclosure in respect of Related Parties pursuant to
Current Tax: Provision for current tax is made on the taxable Accounting Standard – 18:
income using the applicable tax rates and tax laws. List of Related Parties as on March 31, 2008
Deferred Tax: Deferred tax arising on account of timing Promoters of holding company
differences and which are capable of reversal in one or more Hindalco Industries Limited
subsequent periods is recognised using the tax rates and tax Grasim Industries Limited
laws that have been enacted or substantively enacted. Deferred Aditya Birla Nuvo Limited
tax assets are not recognised unless there is virtual certainty with Birla TMT Holdings Pvt. Limited
respect to the reversal of the same in future years. Holding Company
8. Contingent Liability Idea Cellular Limited (ICL)

Disclosure for contingent liabilities is considered to the extent of Subsidiaries

notices/demands received by the Company. Idea Cellular Towers Infrastructure Limited (ICTIL)

A N N U A L R E P O R T 2 0 0 7 - 0 8 95


Fellow Subsidiaries of ICISL
Aditya Birla Telecom Limited (ABTL)
Cash Flow Statement for the year ended
Swinder Singh Satara & Co. Limited
March 31, 2008
(Amount in Rupees)
Idea Cellular Services Limited (ICSL)
Particulars Year ended
Joint Venture
March 31,
Indus Towers Limited (w.e.f. December 8, 2007) 2008
During the year following transactions were carried out with A. Cash flow from operating activities:
the related parties in the ordinary course of business: Net profit/(loss) before tax (103,199)
(Amount in Rupees) Add Adjustments for:
Related Holding Fellow Subsidiaries Joint Depreciation and amortisation –
Party Co. Subsidiaries (ICTIL) Venture
Interest and finance charges –
Transaction (ICL) (ABTL) (Indus
Tower) Operating profit before working capital
changes (103,199)
Loan taken 791,720 50,708,777 – –
Adjustments for changes in working capital:
Investment in – – 500,000 190,470
(Increase)/ decrease in sundry debtors (2,850)
Outstanding
Balance as (Increase)/decrease in other receivables (1,315,939)
on March Increase/(decrease) in trade and other payables 2,531
31, 2008 791,720 50,708,777 – – Cash generated from operations (1,419,457)
Net cash from/(used in) operating activities (1,419,457)
7. Earnings per Share (EPS) is calculated as under:
B. Cash flow from Investing activities:
(Amount in Rupees) Purchase of fixed assets (49,391,188)
Particulars For the period Investments (690,470)
October 3, Net cash from/(used in) investing activities (50,081,658)
2007 to C. Cash flow from financing activities:
March 31, 2008
Proceeds from fresh issue of Share Capital 500,000
Nominal Value of Equity Share 10 Receipt from long term borrowings 51,500,497
Profit/(Loss) after Tax (103,199) Interest and other financial charges paid –
Profit/(Loss) attributable to Equity Net cash from/(used in) financing activities 52,000,497
Shareholder (103,199) Net increase in cash and cash equivalents
(A+B+C) 499,382
Weighted Average No of Equity Share
outstanding during the Year (Nos.) 50,000 Cash and cash equivalents at the beginning –
of the year
Basic Earnings Per Share (2.06) Cash and cash equivalents at the end of the 499,382
year
8. Information pertaining to para 3 and 4C of part II of Schedule
Net increase in cash and cash equivalents 499,382
VI of the Companies Act, 1956 is not given as the same is
not applicable to the Company during the period. Cash and cash equivalents comprise
9. No amounts are payable to Micro, Small and Medium Balances with scheduled banks - Current account 499,382
Enterprises (SMEs) within the meaning of the Micro, Small Balances with scheduled banks-Deposit
and Medium Enterprises Development Act, 2006. accounts –
10. This being the first year of the Company, previous period 499,382
figures are not applicable. Note: Figures in brackets indicate cash outflow.

As per our report of even date attached For and on behalf of the Board
For Khimji Kunverji & Co.
Chartered Accountants

Shivji K Vikamsey AJS Jhala Sanjeev Aga

Partner Director Director

Date: April 21, 2008

Place: Mumbai

96 I D E A C E L L U L A R I N F R A S T R U C T U R E S E R V I C E S L I M I T E D
Balance Sheet Abstract and Company’s General Business Profile

I.
REGISTRATION DETAILS
Registration No. 0 5 1 8 8 0 State Code 0 4 Date 0 3 1 0 2 0 0 7
Date Month Year
Balance Sheet Date 3 1 0 3 2 0 0 8

II. CAPITAL RAISED DURING THE YEAR (Amount in Rs. Thousand)

Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUND (Amount in Rs. Thousand)
Total Liabilities Total Assets
5 2 0 0 0 5 2 0 0 0
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L 5 1 5 0 0
APPLICATION OF FUNDS
Net Fixed Assets Investments
3 6 5 5 3 0 6 9 0
Net Current Assets/(Liability) Miscellaneous Expenditure
– 3 1 4 3 2 3 N I L
Accumulated Losses
1 0 4

IV. PERFORMANCE OF COMPANY (Amount in Rs. Thousand)

Turnover Total Expenditure
3 1 0 6
+ – Profit/(Loss) Before Tax + – Profit/(Loss) After Tax
– 1 0 3 – 1 0 3
(Please tick appropriate box + for profit - for loss)
Earnings Per Share in Rs. Dividend Rate (%)
– 2 . 0 6 – –

V. GENERIC NAMES OF THE three PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (As per Monetary Terms)

Item Code No. (ITC Code) N O T A P P L I C A B L E

Product Description
I N F R A S T R U C T U R E S E R V I C E S

For and on behalf of the Board

AJS Jhala Sanjeev Aga

Director Director

Date : April 21, 2008

Place : Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 97
 Directors’ Report of Idea Cellular Towers Infrastructure Limited
Dear Shareholders,
Your Directors have pleasure in presenting the First Annual Report
together with the Audited Accounts of your Company for the period
commencing from December 3, 2007 to March 31, 2008.
Incorporation
Your Company was incorporated on December 3, 2007 and it received
the Certificate of Commencement of Business on March 12, 2008.
Performance Review
Your Company was incorporated on December 3, 2007 with the
objective to roll out and provide the passive infrastructure requirements
in various telecom service areas.
The Company is yet to commence its operations and hence there is
no income during the period ended March 31, 2008. Your Company
incurred a net loss of Rs. 63,968/- after amortising preliminary expenses
of Rs. 42,150/-.
Issue of Capital
Idea Cellular Infrastructure Services Limited and its nominees were
subscribers to the Memorandum and contributed the entire paid up
capital of Rs. 5,00,000. Consequent to the allotment, your Company
became a wholly owned subsidiary of Idea Cellular Infrastructure
Services Limited.
Dividend
The Board of Directors have not declared any dividend during the
year.
Deposits
Your Company have not accepted any public deposit during the
period under review.
Particulars of Employees’ Remuneration
The Company has no employees on its payroll. Accordingly the
provisions of Section 217(2A) of the Companies Act, 1956 and
Companies (Particulars of Employees) Rules, 1975, are not applicable.
Directors’ Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
• In the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper
explanation relating to material departures;
• The Directors have selected such accounting policies and
applied them consistently and made judgements and estimates
that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the Financial
Year and of the profit or loss of the Company for that period;
98 I D E A C E L L U L A R T O W E R S I N F R A S T R U C T U R E L I M I T E D
• The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with
the provisions of this Act for safeguarding the assets of the Company
and for preventing and detecting fraud and irregularities;
• The Directors have prepared the Annual Accounts on a going
concern basis.
Directors
Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala were appointed
as first Directors of the Company and holds office upto the date of First
Annual General Meeting.
The Company has received due notices from member proposing the
appointment of Mr. M.R. Prasanna, Mr. Sanjeev Aga and Mr. AJS Jhala
as Directors of the Company.
Auditors
M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai were
appointed as first auditors of the Company and their term of office
expires at the ensuing Annual General Meeting and being eligible
hereby offer themselves for appointment. A certificate under Section
224(1B) of the Companies Act, 1956 has been obtained from them.
Information as per Section 217(1)(e) of the Companies Act, 1956
The particulars required by the Companies (disclosure of particulars
in report of Board of Directors) pursuant to Section 217(1)(e) with
regard to Conservation of Energy and Technological Absorption are
not applicable since there was no manufacturing activity during the
period under review.
There is no earning or outgoing in foreign exchange during the period
under review.
Acknowledgement
Your Directors wish to place on record their appreciation for the
guidance and support extended by government authorities.
For and on behalf of the Board
Date: April 21, 2008 AJS Jhala Sanjeev Aga
Place: Mumbai Director Director
Auditors’ Report
To The Members of
Idea Cellular Towers Infrastructure Limited
1. We have audited the attached Balance Sheet of Idea Cellular
Towers Infrastructure Limited (‘the Company’) as at
March 31, 2008 and also the Profit and Loss Account and the Cash
Flow Statement of the Company for the period from December
3, 2007 to March 31, 2008, annexed thereto (together referred
to as ‘financial statements’). These financial statements are the
responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements based on
our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003,
(‘the said Order’) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act,
1956, on the basis of such checks of the books and records of
the Company as we considered necessary and appropriate, and
according to information and explanations given to us during the
course of the audit, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph
3 above, we report that:
a) we have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our
examination of those books;
c) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with
the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement dealt with by this report comply
with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956 so far as
they apply to the Company;
e) on the basis of the written representations received from
the directors as on March 31, 2008 and taken on record by
the Board of Directors, we report that none of the directors
is disqualified as on March 31, 2008 from being appointed
as a director in terms of Clause (g) of sub-Section (1) of
section 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and
according to the explanations given to us, the said financial
statements read together with the notes thereon give
the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2008;
(ii) in the case of the Profit and Loss Account, of the loss of
the Company for the period from December 3, 2007 to
March 31, 2008; and
(iii) in the case of the Cash Flow Statement, of the cash
flows of the Company for the period from December
3, 2007 to March 31, 2008.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date: April 21, 2008
Place : Pune
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date to the members
of Idea Cellular Towers Infrastructure Limited on the accounts for the
period ended March 31, 2008)
(i) The Company did not have any fixed assets during the period
ended March 31, 2008. Accordingly the provisions of paragraphs
4 (i) (a) to 4 (i) (c) of the said order relating to maintenance
of fixed asset records, frequency of physical verification, and
disposal of substantial part of fixed assets affecting the going
concern are not applicable to the Company.
(ii) In our opinion, the Company is not dealing in any inventories.
Accordingly the provisions of paragraphs 4 (ii) (a) to 4 (ii) (c)
of the said order relating to physical verification, frequency of
verification, procedures of physical verification and maintenance
of inventory records are not applicable to the Company.
(iii) According to the information and explanations given to us,
the Company has not granted/taken any loans, secured or
unsecured, to/from companies, firms or other parties covered
in the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, the provisions of the paragraphs
4 (iii) (b) to 4 (iii) (d) and 4 (iii) (f) and 4 (iii) (g) are not
applicable to the Company.
(iv) In our opinion, and according to the information and
explanations given to us, during the current year, the Company
had no transactions of purchase of inventory, fixed assets and
sale of goods and services. Accordingly provisions of paragraph
4(iv) of the said Order relating to adequacy of internal control
procedures is not applicable to the Company.
(v) In our opinion and according to the information and explanations
given to us, there were no contracts, particulars of which needed
to be entered in the register maintained under Section 301 of
the Companies Act, 1956 and hence provisions of paragraph
4 (v) (b) of the said Order relating to reasonableness of price
having regard to prevailing market price is not applicable to the
Company.
A N N U A L R E P O R T 2 0 0 7 - 0 8 99
 (vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from
the public within the meaning of Sections 58A and 58AA of the
Companies Act, 1956 and the rules framed thereunder.
(vii) The provisions of paragraph 4 (vii) of the said order relating
to internal audit system are not applicable to the Company,
since the Company is not a listed Company, neither does its
paid up capital and reserves exceed Rs. 50 lakhs as at the
commencement of the financial period concerned. The
condition relating to average annual turnover in excess of five
crore rupees for the period of three consecutive financial years
is not applicable, as current financial period is the first financial
year of the Company.
(viii) The Central Government has not prescribed maintenance of
cost records under Section 209(1)(d) of the Companies Act,
1956 for any of the activities of the Company and accordingly,
the provisions of paragraph 4 (viii) of the said order are not
applicable.
(ix) In respect of statutory dues:
a) According to the information and explanations given to us
and the records of the Company examined by us, during the
period there were no undisputed statutory dues including
those under Provident Fund, Investor Education Protection
Fund, Employees’ State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
any other statutory dues; hence the question of whether the
Company was regular in depositing undisputed statutory
dues does not arise.
b) According to the information and explanations given to us,
there were no undisputed amount payable in respect of
Provident Fund, Employees’ State Insurance, Income-Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess outstanding as at March 31, 2008 for a period of
more than six months from the date they became payable.
c) According to the information and explanations given to us,
there are no dues of Sales tax, Income-Tax, Customs Duty,
Wealth Tax, Service Tax, Excise Duty and Cess which have
not been deposited on account of any dispute.
(x) The Company has been registered for a period less than five
years. Accordingly, the provisions of paragraph 4 (x) of the said
order are not applicable.
(xi) The Company has not borrowed any funds from financial
institutions or banks or debenture holders and accordingly,
the provisions of paragraph 4 (xi) of the said order relating to
default to such parties are not applicable.
(xii) According to the information and explanations given to us,
the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities and accordingly, the provisions of paragraph 4 (xii)
of the said order relating to maintenance of documents and
records are not applicable.
100 I D E A C E L L U L A R T O W E R S I N F R A S T R U C T U R E L I M I T E D
(xiii) The Company is not a chit fund or a nidhi/mutual benefit fund/
society. Therefore, the provisions of paragraph 4(xiii) of the said
Order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly,
the provisions of paragraph 4 (xiv) of the said order are not
applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others
from banks or financial institutions. Therefore, the provisions of
paragraph 4 (xv) of the said order are not applicable to the
Company.
(xvi) The Company has not taken any term loan during the period.
Therefore the provisions of paragraph 4 (xvi) of the said order
relating to usage of such funds are not applicable to the
Company.
(xvii) According to the information and explanations given to us, and
on an overall examination of the balance sheet of the company,
funds raised on short-term basis have not been used for long
term purposes.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during
the period. Accordingly, the provisions of paragraph 4 (xix) of
the said order relating to creation of securities or charges in
respect of debentures are not applicable to the Company.
(xx) The Company has not raised any money by way of public issues
during the period covered by the audit report.
(xxi) During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing
practices in India, and according to the information and
explanations given to us, we have neither come across any
incidence of fraud on or by the Company, noticed or reported
during the period, nor have we been informed of any such case
by the management.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date: April 21, 2008
Place: Pune
Balance Sheet as at March 31, 2008
(Amount in Rupees)
Schedules As at
March 31, 2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500,000
Loans
Unsecured Loan from holding company 48,350
TOTAL 548,350
APPLICATION OF FUNDS
Fixed assets –
Gross block (At Cost) –
Less: depreciation –
Net block –
Current Assets, Loans and Advances
Current Assets
Cash and bank balances 2 499,382
Loans and advances –
499,382
Less: Current Liabilities and Provisions 3 15,000
Net Current Assets 484,382
Profit and Loss Account 63,968
TOTAL 548,350
Significant Accounting Policies and Notes to Accounts 5

The Schedules referred to above form an integral part of accounts.

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019
Date: April 21, 2008
Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 101
 Profit and Loss Account for the period December 3, 2007 to March 31, 2008
(Amount in Rupees)
Schedules For the period
December 3, 2007
to March 31, 2008
INCOME –
TOTAL –
EXPENDITURE
Administration and Other Expenes 4 63,968
63,968
Profit/(Loss) before taxes (63,968)
Provision for tax –
Profit/(Loss) after tax (63,968)
Balance Carried to Balance Sheet (63,968)
Basic and Diluted Earnings per Share (1.28)
Significant Accounting Policies and Notes to Accounts 5 –

The Schedules referred to above form an integral part of accounts.

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019
Date: April 21, 2008
Place: Mumbai

102 I D E A C E L L U L A R T O W E R S I N F R A S T R U C T U R E L I M I T E D
Schedules forming part of the Accounts
(Amount in Rupees)
2. Segment Reporting
As at As company has not started its operations, there is no
March 31, reportable segment as per Accounting Standard -17 on
2008 “Segment Reporting”.
3. Related Party Disclosure:
SCHEDULE 1
As per Accounting Standard -18 on “Related Party Disclosure”
SHARE CAPITAL
issued by The Institute of Chartered Accountants of India,
AUTHORISED related parties of the group are disclosed below:
50,000 Equity shares of Rs.10 each 500,000 Holding Companies:
500,000
1) Idea Cellular Infrastructure Services Limited
ISSUED, SUBSCRIBED AND PAID-UP
2) Idea Cellular Limited
Equity Share Capital
Fellow Subsidiaries:
50,000 Equity shares of Rs. 10 each fully paid up 500,000
1) Aditya Birla Telecom Limited
(All the shares are held by the holding company-Idea
Cellular Infrastructure Services Limited) 2) Swinder Singh Satara & Co. Limited
500,000 3) Idea Cellular Services Limited
SCHEDULE 2 Transactions with Related Party
CASH AND BANK BALANCES During the year following transaction were carried out with
Cash on hand – the related parties in the ordinary course of business:
Balances with scheduled banks 1) Issue of Shares to Idea Cellular Infrastructure Services
– on Current accounts 499,382 Limited (Holding Company) Rs. 500,000
– on Fixed Deposits – 2) Payment for expenses made by Idea Cellular
499,382 Infrastructure Services Limited (Holding Company) on
SCHEDULE 3 behalf of the Company amounted to Rs. 48,350.
CURRENT LIABILITIES AND PROVISIONS 4. Basic and Diluted Earnings Per Share:
Current Liabilities (Amount in Rupees)
Sundry Creditors 15,000 Particulars For the period
15,000 December 3,
2007 to
March 31, 2008
For the period Nominal value of Equity Share 10/-
December 3, 2007 Profit/(Loss) attributable to equity (63,968)
to March 31, 2008 shareholders
Weighted average number of equity 50,000
SCHEDULE 4 shares outstanding during the year
ADMINISTRATION AND OTHER EXPENSES (Nos.)
Bank charges 618 Basic and Diluted Earnings Per Share (1.28)
Legal and Consultancy charges 1,200
5. Contingent Liability:
Other Expenses 5,000
Since there are no contingent liabilities identified for the
Preliminary expenses 42,150 year, no disclosure is required as per Accounting Standard
Audit Fees 15,000 -29 on “Contingent Assets Liabilities and Provisions”.
63,968 6. There is no other additional information pursuant to para
3, 4C, 4D of part II of Schedule VI of the Companies
SCHEDULE 5
Act, 1956.
A. SIGNIFICANT ACCOUNTING POLICIES
7. Previous year figures are not applicable as the Company
1. Accounting Conventions: started its operations from December 2007.
The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis. The accounts
are prepared on historical cost basis as a going concern. For and on behalf of the Board

B. NOTES TO ACCOUNTS
AJS Jhala Sanjeev Aga
1. Deferred Tax Director Director
Company has followed prudence concept for the recognition of Date: April 21, 2008
Deferred Tax, hence no Deferred Tax Asset is created. Place: Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 103
 Cash Flow Statement for the period December 3, 2007 to March 31, 2008
(Amount in Rupees)
March 31, 2008
A) Cash Flow from Operating Activities
Net profit/ (loss) after tax (63,968)
Adjustments for:
Depreciation
Operating Profit before Working capital Changes (63,968)
Adjustments for:
(Increase)/Decrease in Other Current Assets –
(Increase)/Decrease in Loans and Advances –
Increase/(Decrease) in Current Liabilities 15,000
15,000
Cash generated from/(used in) operations (48,968)
Tax(paid)/Refund –
Net cash from/(used in) operating activities (48,968)
B) Cash Flow from Investing Activities
Net cash from/(used in) investing activities –
C) Cash Flow from Financing Activities
Issue of Share Capital 500,000
Proceeds from Short Term Loan 48,350
Net Cash from/(used in) Financing activity 548,350
Net increase/(decrease) in cash and cash equivalent 499,382
Cash and cash equivalent at the beginning –
Cash and cash equivalent at the end 499,382
Notes:
1. Cash and cash equivalent includes balance with scheduled banks in current accounts Rs. 499,382/-.
2. The above cash flow statement has been prepared under the indirect method as set out in Accounting Standard – 3 on cash flow statement
issued by the Institute of Chartered Accountants of India.

As per our report of even date attached For and on behalf of the Board
For Deloitte Haskins & Sells
Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019
Place: Mumbai
Date: April 21, 2008

104 I D E A C E L L U L A R T O W E R S I N F R A S T R U C T U R E L I M I T E D
Balance Sheet Abstract and Company’s General Business Profile
I. Registration Details
Registration No. 1 7 1 0 0 6 State Code 5 5 Date 0 3 1 2 0 7
Date Month Year
Balance Sheet Date 3 1 0 3 2 0 0 8
II. Capital raised during the year (Rupees in ‘000)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L 5 0 0
III. Position of Mobilisation and Deployment of Funds (Rupees in ‘000)
Total Liabilities Total Assets
1 5 4 9 9
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L 4 8
APPLICATION OF FUNDS
Net Fixed Assets Investments
N I L N I L
Net Current Assets/(Liability) Miscellaneous Expenditure
4 8 4 N I L
Accumulated Losses
N I L
IV. Performance of Company (Rupees in ‘000)
Turnover Total Expenditure
N I L 6 4
Profit/(Loss) Before Tax Profit/(Loss) After Tax
–
6 4 – 6 4
(Please tick appropriate box + for profit, – for loss)

Earnings Per Share in Rs. Dividend Rate

– 0 1 . 2 8 0 0
V. Generic names of three principal products/services of the Company (As per monetary terms)
Item Code No. (ITC Code) N O T A P P L I C A B L E
Product S E R V I C E S
Description

For and on behalf of the Board

AJS Jhala Sanjeev Aga

Director Director

Date : April 21, 2008

Place : Mumbai

A N N U A L R E P O R T 2 0 0 7 - 0 8 105
 Directors’ Report of Swinder Singh Satara and Co. Limited
Dear Shareholders, Directors’ Responsibility Statement
Your Directors have pleasure in presenting the Annual Report of your In relation to financial statements for the year ended 31st March, 2008,
Company together with the Audited Financial Statements for the year the Board of Directors state that:
ended 31st March, 2008. 1. The applicable accounting standards have been followed in
Financial Results preparation of the financial statements and there are no material
Your Company is yet to commence operations in its principal line of departures from the said standards;
business. The financial results for the year ended 31st March, 2008 is 2. Reasonable and prudent accounting policies have been used
as set out below: in the preparation of the financial statements, that they have
(Amount in Rupees) been consistently applied and that reasonable and prudent
judgements and estimates have been made in respect of the
Particulars 2007-08 2006-07
items not concluded by the year end, so as to give a true and fair
Gross Income from operations 2,802,025 2,786,989 view of the state of affairs of the Company as at 31st March , 2008
Profit/(Loss) Before Depreciation & and of the profit/(Loss) for the year ended 31st March, 2008;
Taxation 2,386,154 2,366,500 3. Proper and sufficient care has been taken for maintenance of
adequate accounting records in accordance with the provisions
Depreciation 110,967 110,967 of the Companies Act, 1956, for safeguarding the assets of the
Taxation 600,861 358,360 Company and for preventing and detecting fraud and other
irregularities; and
Net Profit/(Loss) for the year 1,674,326 1,897,173 4. The financial statements have been prepared on a going concern
Profit/(Loss) C/f to Balance Sheet 10,099,370 8,425,044 basis.
Directors
Dividend
Mr. AJS Jhala, Director of the Company retires by rotation, and being
The Board of Directors has not declared any dividend during the year.
eligible offers himself for re-appointment.
Fixed Deposits
The Board recommends his re-appointment.
Your Company has not accepted any fixed deposits during the year
Auditors
under review.
The Statutory Auditors of the Company, M/s. Deloitte Haskins and Sells,
Particulars of Employees
Chartered Accountants, Mumbai retire at the ensuing Annual General
The Company does not have employees to whom provisions of Section Meeting of the Company and being eligible hereby offer themselves
217(2A) of the Companies Act, 1956 read with Companies (Particulars for re-appointment. Your Directors recommend their re-appointment
of Employees) Rules, 1975 as amended apply. and authorise the Board to fix their remuneration.
Conservation of Energy, Technology Absorption and Foreign Acknowledgements
Exchange Earnings/Outgo
Your Directors wish to place on record their appreciation for the
The Company is not engaged in any manufacturing activity and excellent support received from the State Government Authorities,
therefore there are no particulars to be disclosed under Section Bankers and Consultants in the working of the Company.
217(1)(e) of the Companies (Disclosure of Particulars in the Report of
the Board of Directors) Rules, 1988, related to conservation of energy For and on behalf of the Board
and technology absorption.
Date: April 21, 2008 Sanjeev Aga AJS Jhala
There is no Foreign Exchange Earnings and Outgo during the year. Place: Mumbai Director Director

106 S W I N D E R S I N G H S A T A R A & C O . L I M I T E D
Auditors’ Report
To the Members of
Swinder Singh Satara & Co. Limited
1. We have audited the attached Balance Sheet of Swinder Singh
Satara & Co. Limited (‘the Company’) as at March 31, 2008 and
also the Profit and Loss Account and the Cash Flow Statement of
the Company for the year ended on that date, annexed thereto
(together referred to as ‘financial statements’). These financial
statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003,
(‘the said Order’) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act,
1956, on the basis of such checks of the books and records of
the Company as we considered necessary and appropriate, and
according to information and explanations given to us during the
course of the audit, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order to
the extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph
3 above, we report that:
a) we have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b) in our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our
examination of those books;
c) the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with
the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement dealt with by this report comply
with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 so far as
they apply to the Company;
e) on the basis of the written representations received from
the directors as on March 31, 2008 and taken on record by
the Board of Directors, we report that none of the directors
is disqualified as on March 31, 2008 from being appointed
as a director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956; and
f) In our opinion and to the best of our information and
according to the explanations given to us, the said financial
statements read together with the notes thereon give
the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2008;
(ii) in the case of the Profit and Loss Account, of the profit
of the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash
flows of the Company for the year ended on that date.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Membership No.: 38019
Date: April 21, 2008
Place: Pune
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of our report of even date to the members
of Swinder Singh Satara & Co. Limited on the accounts for the year
ended March 31, 2008)
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b) As informed and represented to us, fixed assets have
been physically verified by the management during the
year and no material discrepancies were noticed on such
verification.
c) According to the information and explanations given to
us, the Company has not disposed off any fixed assets
during the year and accordingly the para 4 (i) (c) of the
said order relating to going concern being affected are not
applicable.
2. In our opinion, the Company is not dealing in any inventories.
Accordingly the provisions of paragraphs 4 (ii) (a) to 4 (ii) (c)
of the said order relating to physical verification, frequency of
verification, procedures of physical verification and maintenance
of inventory records are not applicable to the Company.
3. According to the information and explanations given to us, the
Company has not granted/taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of the paragraphs 4 (iii) (b) to 4
(iii) (d) and 4 (iii) (f) and 4 (iii) (g) of the said order are not
applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, during the current year, the Company had no
transactions of purchase of fixed Assets. Accordingly provisions
of paragraphs 4(iv) of the said Order relating to adequacy of
internal control procedures is not applicable to the Company. The
activities of the Company do not involve purchase of inventory
and sale of goods and Services.
ANNUAL REPORT 2007-08 107
 5. In our opinion and according to the information and explanations
given to us, there were no contracts, particulars of which needed
to be entered in the register maintained under Section 301 of
the Companies Act, 1956 and hence provisions of paragraph
4 (v) (b) of the said Order relating to reasonableness of price
having regard to prevailing market price is not applicable to the
Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from
the public within the meaning of section 58A and 58AA of the
Companies Act, 1956 and the rules framed thereunder.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government has not prescribed maintenance of
cost records under Section 209(1)(d) of the Companies Act,
1956 for any of the activities of the Company and accordingly,
the provisions of paragraph 4 (viii) of the said order are not
applicable.
9. In respect of statutory dues:
a) According to the information and explanations given to
us and the records of the Company examined by us, in
our opinion, the Company is regular in depositing with
appropriate authorities undisputed income tax dues. During
the year, there were no undisputed statutory dues including
those under Provident Fund, Investor Education Protection
Fund, Employees’ State Insurance, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues; hence the question of whether the Company
was regular in depositing undisputed statutory dues does
not arise.
b) According to the information and explanations given to us,
there were no undisputed amount payable in respect of
Provident Fund, Employees’ State Insurance, Income-Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess outstanding as at March 31, 2008 for a period of
more than six months from the date they became payable.
c) According to the information and explanations given to us,
there are no dues of Sales tax, Income Tax, Custom Duty,
Wealth Tax, Service tax, Excise duty and Cess which have
not been deposited on account of any dispute.
10. The Company does have any accumulated losses at the end of
the financial year and has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
11. The Company has not borrowed any funds from financial
institutions or banks or debenture holders and accordingly, the
provisions of paragraph 4 (xi) of the said order relating to default
to such parties are not applicable.
108 S W I N D E R S I N G H S A T A R A & C O . L I M I T E D
12. According to the information and explanations given to us,
the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities and accordingly, the provisions of paragraph 4 (xii) of
the said order relating to maintenance of documents and records
are not applicable.
13. The Company is not a chit fund or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of paragraph 4(xiii) of the said
Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly,
the provisions of paragraph 4 (xiv) of the said order are not
applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others
from banks or financial institutions. Therefore, the provisions
of paragraph 4 (xv) of the said order are not applicable to the
Company.
16. The Company has not taken any term loan during the year. Therefore
the provisions of paragraph 4 (xvi) of the said order relating to
usage of such funds are not applicable to the Company.
17. According to the information and explanations given to us, and
on an overall examination of the balance sheet of the company,
funds raised on short-term basis have not been used for long-
term purposes.
18. The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained
under Section 301 of the Companies Act, 1956, during the year.
19. In our opinion and according to the information and explanations
given to us, the Company has not issued any debentures during
the year. Accordingly, the provisions of paragraph 4 (xix) of the
said order relating to creation of securities or charges in respect
of debentures are not applicable to the Company.
20. The Company has not raised any money by way of public issues
during the year.
21. During the course of our examination of the books of account,
carried out in accordance with generally accepted auditing
practices in India, and according to the information and
explanations given to us, we have neither come across any
incidence of any material fraud on or by the Company, noticed
or reported during the year, nor have we been informed of any
such case by the management.
For Deloitte Haskins & Sells
Chartered Accountants
Hemant M. Joshi
Partner
Date: April 21, 2008 Membership No.: 38019
Place: Pune
Balance Sheet as at March 31, 2008

(Amount in Rupees)
Schedules As at As at
March 31, 2008 March 31, 2007
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500,000 500,000
Profit & Loss Account 10,099,370 8,425,044
TOTAL 10,599,370 8,925,044

APPLICATION OF FUNDS
Fixed assets
Gross block (At Cost) 2 7,090,635 7,090,635
Less: depreciation 665,801 554,834
Net block 6,424,834 6,535,801
Current Assets, Loans and Advances
Current Assets
Cash and bank balances 3 2,108,930 2,108,930
Loans and advances 4 2,846,177 1,060,884
4,955,107 3,169,814
Less: Current Liabilities and Provisions 5 780,571 780,571
Net Current Assets 4,174,536 2,389,243
TOTAL 10,599,370 8,925,044

Significant Accounting Policies and Notes to the Accounts 7

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board

For Deloitte Haskins & Sells

Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

ANNUAL REPORT 2007-08 109

 Profit and Loss Account for the year ended March 31, 2008

(Amount in Rupees)
Schedules For the For the
year ended year ended
March 31, 2008 March 31, 2007
INCOME
Rental Income 2,700,000 2,700,000
Interest Income 102,025 86,989
Total 2,802,025 2,786,989
OPERATING EXPENDITURE
Administration and Other Expenses 6 415,871 420,489
Depreciation 110,967 110,967
526,838 531,456
Profit/(Loss) before taxes 2,275,187 2,255,533
Provision for tax [net off Rs. Nil excess provision written back 600,861 358,360
(Previous year Rs. 176,370)]
Profit/(Loss) after tax 1,674,326 1,897,173
Balance Carried forward from previous year 8,425,044 6,527,871
Balance Carried to Balance Sheet 10,099,370 8,425,044
Earnings per Share (Basic and Diluted)
No. of equity share of Rs. 10 each outstanding 50,000 50,000
Weighted no. of equity Share of Rs. 10 each outstanding 50,000 50,000
Basic Earnings per Share 33.49 37.94
Significant Accounting Policies and Notes to the Accounts 7

The Schedules referred to above form an integral part of Accounts

As per our report of even date attached For and on behalf of the Board

For Deloitte Haskins & Sells

Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

Date: April 21, 2008

Place: Mumbai

110 S W I N D E R S I N G H S A T A R A & C O . L I M I T E D
Schedules forming part of the Accounts
(Amount in Rupees)
As at As at
March 31, March 31,
2008 2007

SCHEDULE 1
SHARE CAPITAL
Authorised
50,000 Equity shares of Rs.10 each 500,000 500,000
500,000 500,000
ISSUED, SUBSCRIBED AND PAID-UP
Equity Share Capital
50,000 Equity shares of Rs. 10 each fully paid up 500,000 500,000
(All the shares are held by the holding company-Idea Cellular Limited)
500,000 500,000

SCHEDULE 2
FIXED ASSETS (Amount in Rupees)
Gross Block Depreciation Net Block
Particulars As at Additions Sale/ As at As at For the Sale/ As at As at As at
April 1, during the Adjustment March 31, April 1, Year Adjustment March 31, March 31, March 31,
2007 year during the 2008 2007 during the 2008 2008 2007
year year
Leasehold Land 282,859 – – 282,859 – – – – 282,859 282,859
Building 6,807,776 – – 6,807,776 554,834 110,967 – 665,801 6,141,975 6,252,942
TOTAL 7,090,635 – – 7,090,635 554,834 110,967 – 665,801 6,424,834 6,535,801
Previous Year 7,090,635 – – 7,090,635 443,867 110,967 – 554,834 6,535,801 –

(Amount in Rupees) (Amount in Rupees)

As at As at As at As at
March 31, March 31, March 31, March 31,
2008 2007 2008 2007

SCHEDULE 3 SCHEDULE 5
CASH AND BANK BALANCES CURRENT LIABILITIES AND
PROVISIONS
Cash on hand 68,707 68,707
Current Liabilities
Balances with scheduled banks
Other liabilities 780,571 780,571
- on Current accounts 840,223 840,223
780,571 780,571
- on Fixed Deposits 1,200,000 1,200,000
2,108,930 2,108,930
For the For the
year ended year ended
SCHEDULE 4 March 31, March 31,
LOAN AND ADVANCES 2008 2007
(Unsecured, considered good) SCHEDULE 6
Prepaid Expenses 90,988 90,988 ADMINISTRATION AND OTHER
Advance income tax (net of EXPENSES
provision) 179,288 157,821 Bank charges – 57
Interest Receivables 103,248 11,731 Rates and taxes 320,383 319,380
Adjustable Security deposit 2,472,653 800,344 Legal and consultancy charges 67,398 67,344
2,846,177 1,060,884 Audit Fees 28,090 33,708
415,871 420,489

ANNUAL REPORT 2007-08 111

 SCHEDULE 7
A. SIGNIFICANT ACCOUNTING POLICIES
1. Accounting Conventions:
The Company follows the mercantile system of accounting
and recognizes income and expenditure on accrual basis.
The accounts are prepared on historical cost basis as a go-
ing concern.
2. Fixed Assets:
Fixed assets are stated at cost of acquisition / construction
less depreciation.
3. Depreciation and amortisation:
Depreciation on fixed assets is provided on straight-
line basis as per rates prescribed in Schedule XIV of the
Companies Act, 1956.
4. Deferred tax Assets
The provision for current income tax is made on the taxable
income using the applicable tax rates and tax laws.
112 S W I N D E R S I N G H S A T A R A & C O . L I M I T E D
Deferred tax arising on account of timing difference and
which are capable of reversal in one or more subsequent
periods, is recognized using the tax rates and tax laws that
have enacted or substantively enacted.
Deferred tax assets are not recognised unless there is
sufficient assurance with respect to the reversal of the same
in future years.
B. NOTES TO ACCOUNTS
1. There are no deferred tax assets or liabilities as at March 31,
2008.
2. Previous Year’s figures have been regrouped wherever
necessary so as to make them comparable with previous
year.
For and on behalf of the Board
Date: April 21, 2008 AJS Jhala Sanjeev Aga
Place: Mumbai Director Director
Cash Flow Statement for the year ended March 31, 2008

(Amount in Rupees)
For the year ended For the year ended
March 31, 2008 March 31, 2007
A) Cash Flow from Operating Activities
Net profit/ (loss) before tax 2,275,187 2,255,533
Adjustments for:
Depreciation 110,967 110,967
Operating Profit before Working capital Changes 2,386,154 2,366,500
Adjustments for:
(Increase) / Decrease in Other Current Assets – –
(Increase) / Decrease in Loans and Advances (1,785,293) (903,063)
Increase / (Decrease) in Current Liabilities – (800,707)
(1,785,293) (1,703,770)
Cash generated from / (used in) operations 600,861 662,730
Tax(paid)/Refund (600,861) 87,799
Net cash from / (used in) operating activities – 750,529
B) Cash Flow from Investing Activities
Net cash from / (used in) investing activities – –

C) Cash Flow from Financing Activities

Net cash from / (used in) financing activities – –

Net increase / (decrease) in cash and cash equivalent – 750,529

Cash and cash equivalent at the beginning 2,108,930 1,358,401

Cash and cash equivalent at the end 2,108,930 2,108,930

Notes:
1. Cash and cash equivalent includes balance with scheduled banks in current accounts Rs. 840,223 (Previous year Rs. 840,223)
2. The above cashflow statement has been prepared under the indirect method as set out in Accounting Standard 3 on cash flow statement
issued by the Institute of Chartered Accountants of India.
3. Previous year’s figures have been regrouped/rearranged wherever necessary.

As per our report of even date attached For and on behalf of the Board

For Deloitte Haskins & Sells

Chartered Accountants

Hemant M. Joshi AJS Jhala Sanjeev Aga

Partner Director Director
Membership No.: 38019

Date: April 21, 2008

Place: Mumbai

ANNUAL REPORT 2007-08 113

 Balance Sheet Abstract and Company’s General Business Profile
I. REGISTRATION DETAILS
Registration No. 1 6 5 1 7 State Code 5 5 Date 1 2 0 9 1 9 8 3
Date Month Year
Balance Sheet date 3 1 0 3 2 0 0 8
II. CAPITAL RAISED DURING THE YEAR (Rupees in Thousand)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Rupees in Thousand)
Total Liabilities Total Assets
1 0 5 9 9 1 0 5 9 9
SOURCES OF FUNDS
Paid-up Capital Reserves and Surplus
5 0 0 1 0 0 9 9
Secured Loans Unsecured Loans
N I L N I L
APPLICATION OF FUNDS
Net Fixed Assets Investments
6 4 2 4 N I L
Net Current Assets/(Liability) Miscellaneous Expenditure
7 8 0 N I L
Accumulated Losses
N I L
IV. PERFORMANCE OF COMPANY (Rupees in Thousand)
Turnover Total Expenditure
2 8 0 2 5 2 6
Profit/(Loss) Before Tax Profit/(Loss) After Tax items
+ 2 2 7 5
+ 1 6 7 4
(Please tick appropriate box + for profit, – for loss)

Earnings Per Share (Rs.) Dividend Rate (%)

+ 3 3 . 4 9 0 0
V. GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (As per monetary terms)
Item Code No. (ITC Code) N O T A P P L I C A B L E
Product
S E R V I C E S
Description

For and on behalf of the Board

AJS Jhala Sanjeev Aga

Director Director

Date : April 21, 2008

Place : Mumbai

114 S W I N D E R S I N G H S A T A R A & C O . L I M I T E D
CMYK

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Corporate Office: 5th Floor, Windsor, Off CST Road, Near Vidya Nagari, Kalina, Santacruz (E), Mumbai - 400 098.
Registered Office: Suman Tower, Plot No. 18, Sector - 11, Gandhinagar - 382 011, Gujarat.

CMYK