To the Members,
 
 The Directors present the 27th Annual Report along with Audited
 Accounts of the Company for the year ended 31 st March, 2011.
 
 FINANCIAL RESULTS 
 
                                                  (Rs.incrore)
 
                                            2010-11       2009-10
 
 Total Income                               1063.53       1200.81
 
 Profit before Depreciation                  161.28        140.20
 
 Less: Depreciation                           11.09         12.10
 
 Profit before Tax                           150.19        128.10
 
 Less: Provision for Tax -Current             50.71         42.29
 
 -Deferred                                    (1.33)         1.68
 
 -Earlier years                               (0.02)        (0.01)
 
 Profit after Tax                            100.84         84.14
 
 Balance brought forward from previous year   21.42         20.62
 
 Profit available for appropriation          122.26        104.76 
 
 Appropriations
 
 -Transfer to General Reserve                 10.00         80.00
 
 -Proposed Dividend                            1.15          2.86
 
 - Provision for Tax on Dividend               0.18          0.48
 
 -Balance carried forward to Balance sheet   110.93         21.42
 
                                             122.26        104.76
 
 DIVIDEND
 
 Your Directors are pleased to recommend dividend of Re. 0.50/- (i.e.
 10%) per equity share of Rs. 5/- each of the Company for the year
 2010-11.
 
 OPERATIONS
 
 Total income of the Company during the year was Rs. 1063.53 crores as
 against Rs. 1200.81 crores in the previous year. The profit before tax
 during the year increased by 17.24 % to Rs. 150.19 crores from Rs.
 128.10 crores. The profit after tax was Rs. 100.84 crores as against
 Rs. 84.14 crores in the previous year increasing by 19.85 %.
 
 The Company has been operating rig fleet of five Jack up Rigs, fifteen
 Directional Drilling equipments and four Mud logging units.
 
 JOINT VENTURE COMPANIES
 
 Your Company has two Joint Venture Companies, namely, Discovery
 Drilling Pte Limited (DDPL), Singapore and Virtue Drilling Pte Limited
 (VDPL), Singapore.
 
 The working of both the Joint Venture Companies are reported to be as
 envisaged and both rigs are operating under their first contracts
 respectively.
 
 DIRECTORS
 
 Shri Vijay Kaushik retire by rotation at the ensuing Annual General
 Meeting and being eligible, offer himself for reappointment.
 
 The Board of Directors of the Company, having lost confidence in Shri
 Naresh Kumar, terminated his services as Managing Director of the
 Company w.e.f. 24th September, 2010. Shri Naresh Kumar subsequently
 resigned as Director of the Company, w.e.f. 30th March, 2011.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors state:
 
 (i) that in the preparation of the Annual Accounts for the year ended
 31 st March, 2011, the applicable accounting standards have been
 followed;
 
 (ii) that the accounting policies selected and applied are consistent
 and the judgments and estimates made 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 financial year and of the profit of the Company for that
 period;
 
 (iii) that proper and sufficient care has been taken for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) that the Annual Accounts for the year ended 31 st March, 2011 have
 been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE
 
 Pursuant to Clause 49 of the Listing Agreement with the Stock
 Exchanges, a Compliance Report on Corporate Governance along with
 Auditors certificate on its compliance has been annexed as part of this
 Report.
 
 AUDITORS
 
 M/s S. S. Kothari Mehta & Co., Chartered Accountants, New Delhi, the
 retiring Auditors, have expressed their unwillingness to be
 re-appointed as Statutory Auditors at the ensuing Annual General
 Meeting of the Company.
 
 M/s. G. Sanyal & Co., Chartered Accountants have furnished a letter
 conforming their eligibility and consent to act as Auditors of the
 Company, if appointed, at the ensuing Annual General Meeting ofthe
 Company.
 
 The observations ofthe Auditors are explained wherever necessary in the
 appropriate Notes on Accounts.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO
 
 The information in accordance with the provisions of Section 217(1 )(e)
 of the Companies Act, 1956, read with the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules, 1988 is annexed
 hereto.
 
 PARTICULARS OF EMPLOYEES
 
 Particulars of employees, as required under Section 217(2A) ofthe
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975, as amended, forms part of this report.
 
 However, in pursuance of Section 219(1 )(b)(iv) of the Companies Act,
 1956, this report is being sent to shareholders of the Company
 excluding the aforesaid information. Any member interested in obtaining
 such particulars may write to the Company Secretary at the Registered
 Office of the Company.
 
 FIXED DEPOSITS
 
 The Company has not accepted any Deposits within the meaning of Section
 58A ofthe Companies Act, 1956 and the Rules made thereunder.
 
 ACKNOWLEDGEMENT
 
 The Board expresses its grateful appreciation ofthe assistance and
 co-operation received from Central and State Governments, Clients viz.
 ONGCL, Oil India, OILEX, GSPC, Geo Enpro, Canoro, Banks & Financial
 Institutions and Shareholders.
 
 Your Directors wish to place on record their deep sense of appreciation
 for the devoted contribution made by the employees & associates at all
 levels.
 
                                          For & on behalf of the Board
 
 Place : Gurgaon                                            D.P.JINDAL
 
 Dated: 3rd August,2011                                       Chairman