Dear Shareholders,
 
 It''s gives me pleasure to present the details of the performance of
 your Company for the Financial Year 2011-2012. The Annual Report
 consisting of the Accounts for the year ended March 31, 2012 and Notice
 convening the Annual General Meeting is enclosed herewith.
 
 The results of your Company have not been as good as I would have liked
 them to have been. The turnover was Rs.174.98 crores during FY11/12 on
 a standalone basis, as compared to Rs.276.76 crores for the FY 10/11;
 the profit was down by 31.91% to Rs. 15.26 crores and EPS was down by
 34.53% to Rs.9.10. The main reason for the subdued performance during
 this year was due to our inability to win contracts in green field and
 brown field areas of operation on account of considerable slowdown in
 the award of EPC contracts during the previous year. I am happy to
 inform you that the measures taken by the company to improve its
 competitive edge have succeeded and we secured the prestigious OGIP
 contract from ONGC. This contract is valued at OGIP Rs.270.00 crores.
 
 The Order Book position of your Company stands at Rs.353.50 crores, as
 on March 31, 2012.
 
 ONGC is likely to come up with Rs.2000 crores worth of tenders on the
 Brownfield projects in the ensuring season where your Company has built
 up considerable strength over the years. The newly built vessel, Beas
 Dolphin, is on charter with McDermott in the Middle East and we are in
 advanced stage of negotiation for charter of VIKRANT DOLPHIN. These
 developments and other measures that your Board of Directors have
 taken, give me confidence that your company has resumed its upward
 growth path.
 
 I would like to pay a special tribute to Mrs. Manjit Kirpal Singh, who
 completes her tenure as Director today. All of you are aware that she
 has been with the company from its inception. In the initial years she
 not only managed the company''s finances but also supervised the
 operations during my absence. Throughout her tenure, initially as
 Director (Finance and Administration) and later as Non-Executive
 Director, she looked after the interests of the company and helped
 build up the morale and team spirit of our employees. Your Board would
 have liked her to continue as a Director, but she has decided that it
 is time for her to make room for younger and more knowledgeable person
 to replace her on the Board.
 
 I am sure, all of you would like to give her a standing ovation for her
 contribution to Dolphin Offshore and wish her good health and happiness
 in the future.
 
 I would like to welcome and reward for your approval Vice Admiral H.S
 Malhi (Retd.) as Executive Director (Special Project).He brings to the
 board vast experience as Marine Engineering in Navy and later Chairman
 and Managing Director of prestigious warship build yard Mazagon Dock
 Limited.
 
 I would like to re-iterate our strong commitment to good corporate
 governance. We are continuously striving to improve the quality of our
 disclosures. Members would have observed that the contents of our
 Annual Reports over the past few years contain more information about
 the company and its working.
 
 Our employees constitute our biggest asset and I am sure that their
 continued employment, improved efficiency and, I hope, prosperity, will
 enable your Company to face the challenges ahead. The effort of your
 Company is not only to comply with regulatory requirements but also
 practice Corporate Governance principles based on integrity,
 transparency and overall corporate accountability.
 
 I am grateful to the Board of Directors for their support and guidance
 and also to all customers, bankers, financial institutions, Government
 and regulatory authorities, shareholders and most of all to all the
 employees for their valuable support and co-operation.
 
 I look forward to your continued support, trust and participation in
 the growth of the Company.
 
                                               With warm regards,
 
                                       Rear Admiral Kirpal Singh
 
                                              Executive Chairman