I am pleased to share with you the fact that despite a general slowdown
 in the Indian economy in 2008 driven by global financial crisis, your
 Company achieved fairly good results.The total revenue of your Company
 stood at Rs. 641 million, having grown by 34% compared to previous
 year. This is the fifth year in a row that your Company has shown
 commendable growth in revenues, clocking 69% CAGR over the last five
 years.
 
 There were however, hurdles also. Unexpected suspension of one of the
 key projects hit the margins and returns of your Company. Net profit
 declined to Rs. 53 million as compared to Rs. 96 million in the
 previous year, while EBITDA declined from Rs. 167 million in the
 previous year to Rs. 127 million in the current year.
 
 During the financial year in review, your Company scaled up its
 operation substantially, both in terms of tangible and intangible
 assets. We increased the number of our employees by 25% and the gross
 block of fixed assets by 28%. Skilled manpower is in shortage in
 oilfield services and therefore it is a challenge to increase the
 headcount. Nevertheless, we succeeded in adding some talented and
 experienced people who will surely prove to be an asset. However, to be
 in a position to grab the opportunities likely to come up in near
 future in the oilfield services sector, we shall hire more qualified
 people.  By increasing our human resource strength we wish to enhance
 our presence across the value chain of oilfield services sector.
 
 One positive factor in your Company is that it is debt free and has a
 strong cash position. We shall leverage this cash reserve to tap the
 most exciting growth opportunities in the sector.
 
 The other significant development during last fiscal was that AOSL
 Petroleum PTE Ltd, Singapore - a 100% owned subsidiary of your Company
 made strategic investment of USD 4.99 million in Ensearch Petroleum
 Limited. The investment is in the form of optionally convertible
 debentures and would be converted into equity shares based on
 achievement of certain predetermined milestones. Through this
 investment your Company has created strategic interest in 10 oil and
 gas blocks having fairly good prospects of hydrocarbons discovery. By
 virtue of this association, AOSL is expected to reap benefits of
 business opportunities in its core area of seismic data acquisition as
 well.
 
 As I look forward, I perceive challenges, but we are well on our way to
 consolidate ourselves as an established oilfield services player. In
 2010 we anticipate to continue our good performance in net sales and
 earnings. All the elements for success are in place: resources,
 creative thinking, determination to succeed through an even greater
 focus on our customers, as well as a competent management team that is
 distinguished by ambition and integrity.
 
 I take this opportunity to thank you all for your consistent support
 and patronage. I would also like to sincerely thank our customers,
 employees, suppliers, financers and other business associates for their
 support to the Company. I look forward to their continued assistance.
 We will continue to work for the enhancement of stakeholders value and
 shall remain committed to justifying the faith and trust you have
 reposed in us.
 
 Sincerely,
 
 Krishna Kant
 Executive Vice Chairman
 Asian Oilfield Services Limited