DOLPHIN OFFSHORE ENTERPRISES (INDIA) LIMITED ANALYSTS MEET MAY 15, 2009

SIGNIFICANT FACTORS / ISSUES DURING FY

POSITIVE FACTORS WITH THE SUCCESSFUL COMPLETION OF THE ONGC 6 CLAMP-ON PROJECT AND ONGC BBBLRP PROJECTS EXECUTED IN CONSORTIUMS, DOLPHIN IS QUALIFIED AS INDEPENDENT EPC CONTRACTOR WITH ONGC. THIS QUALIFICATION GIVES DOLPHIN A WIDER RANGE OF PROJECTS WHICH IT CAN BID FOR. AS INDEPENDENT EPC CONTRACTOR, DOLPHIN WINS ICP AND NQD REVAMP CONTRACTS AT A PRICE OF RS CRORES.

POSITIVE FACTORS RUPEE WEAKENED DURING THE YEAR RESULTING IN HIGHER REVENUES AND FOREIGN EXCHANGE GAINS, AS DOLPHIN IS A NET FOREIGN EXCHANGE EARNER. DOLPHIN IS ABLE TO DEPLOY ITS ASSETS AND SERVICES IN CHINA, MALAYSIA AND VIETNAM, ESPECIALLY DURING THE MONSOON PERIOD, WHEN COMPANY’S ASSETS ARE TRADITIONALLY IDLE.

POSITIVE FACTORS DOLPHIN ENJOYS THE BENEFIT OF STABLE VESSEL RATES DUE TO LONG TERM CHARTER OF SEAMEC 1 AND ABOUZAR 81. SALE OF DOLPHIN VESSELS AND TRANSFER OF ITS MARINE DIVISION TO ITS WHOLLY OWNED SUBSIDIARY, PROCYON OFFSHORE RESULTING IN PROFIT ON SALE OF ASSETS OF RS 3.00 CRORES AND DECREASE IN OVERHEAD COSTS, WHILE IMPROVING OPERATIONAL EFFICIENCY.

NEGATIVE FACTORS DELAYED AWARD OF THE ICP AND NQD CONTRACTS RESULTS IN LIMITED BILLINGS DURING THE YEAR. TUMBLING OIL PRICES LEADS TO DECREASE IN JOB OPPORTUNITIES OVERSEAS. INCREASING COMPETITION IN INDIA FROM FOREIGN COMPANIES NOW EYEING THE INDIAN MARKET, AS WELL AS FROM INDIAN COMPANIES NOW DESIROUS OF ENTERING THIS MARKET.

NEGATIVE FACTORS BAD DEBTS OF RS CRORES WRITTEN OFF DURING THE YEAR. CHANGE ORDERS ON L&T SHRC CONTRACT STILL NOT RESOLVED RESULTING IN HIGH INTEREST COSTS.

STAND ALONE FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2009

BALANCE SHEET AS AT MARCH 31, 2009

BALANCE SHEET (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE SOURCE OF FUNDS SHAREHOLDERS FUNDS LOAN FUNDS (7.71) DEFERRED TAXES (68.28)

BALANCE SHEET (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE APPLICATION OF FUNDS FIXED ASSETS, NET (25.14) INVESTMENTS NET CURRENT ASSETS

SHAREHOLDERS’ FUNDS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE SHARE CAPITAL RESERVES AND SURPLUS GENERAL RESERVE BOND REDEMPTION RESERVE SHARE PREMIUM ACCOUNT PROFIT AND LOSS ACCOUNT

SECURED LOAN FUNDS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE CASH CREDIT LOANS FROM COMPANIES & BANKS (48.00) TERM LOANS FROM BANKS (61.98)

UNSECURED LOAN FUNDS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE FOREIGN CURRENCY CONVERTIBLE BONDS FIXED DEPOSITS FROM DIRECTORS SHORT TERM LOANS AND ADVANCES (30.60) (15.94)

FCCBS 0.5% FCCBS OUTSTANDING IS USD 12 MILLION. LISTED ON SINGAPORE STOCK EXCHANGE, BUT NOT BEING TRADED. CONVERSION PRICE CURRENTLY RS 225 PER EQUITY SHARE, PRIOR TO BONUS ISSUE. POST BONUS, CONVERSION PRICE IS RS 161. MATURITY DATE IS DECEMBER 22, YTM IS 6.5%

FIXED ASSETS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE AT COST (26.01) LESS: ACCUMULATED DEPRECIATION (20.24)(27.76)(27.09) NET BLOCK (25.40) ADD: CAPITAL WORK IN PROGRESS NET FIXED ASSETS (25.14)

FIXED ASSETS DECREASE IN NET BLOCK DUE TO TRANSFER OF BLOCK OF VESSELS TO WHOLLY OWNED SUBSIDIARY, PROCYON OFFSHORE. PROFITS ON TRANSFER OF ASSETS FROM HOLDING COMPANY TO SUBSIDIARY IS EXEMPT FROM CAPITAL GAINS TAX.

INVESTMENTS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE IN MUTUAL FUNDS, net (44.00) IN SUBSIDIARIES (33.94) IN JOINT VENTURES

CURRENT ASSETS (CURRENCY: CRORES OF INDIAN RUPEES) % CHANGE SUNDRY DEBTORS CASH AND BANK BALANCES OTHER CURRENT ASSETS (3.63) LOANS AND ADVANCES

LOANS AND ADVANCES LOANS AND ADVANCES HAVE INCREASED BY 60.37% DUE TO - INCREASE IN LOAN TO SUBSIDIARY – RS CRORES. - DUE FROM SUBSIDIARY – RS 7.90 CRORES -ADVANCES TO SUPPLIERS - RS CRORES.

CURRENT LIABILITIES (CURRENCY : CRORES OF INDIAN RUPEES) TO TO % CHANGE SUNDRY CREDITORS (30.68) ACCEPTANCES / BILLS PAYABLE CONTRACT INCOME BILLED IN ADVANCE ,450 ACCRUED EXPENSES OTHER CURRENT LIABILITIES

RATIOS % CHANGE CURRENT RATIO (6.81) LONG TERM DEBT RATIO (45.68) TOTAL DEBT EQUITY RATIO (38.43) RETURN ON INVESTMENT36.25%22.05%64.40

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

PROFIT & LOSS ACCOUNT (CURRENCY : CRORES OF INDIAN RUPEES) TO TO % CHANGE CONTRACT REVENUES OPERATING EXPENSES(223.36)(174.65)27.89 GROSS OPERATING PROFIT GEN & ADMIN EXPENSES(61.44)(23.10) MISCELLANEOUS INCOME EBIDTA

PROFIT & LOSS ACCOUNT (CURRENCY : CRORES OF INDIAN RUPEES) TO TO % CHANGE INTEREST(12.56)(12.07)4.06 DEPRECIATION(5.47)(6.94)(21.18) NET PROFIT BEFORE TAX PROVISON FOR TAXATION(15.39)(8.58)79.37 NET PROFIT AFTER TAX

EARNINGS PER SHARE (CURRENCY : INDIAN RUPEE) TO TO % CHANGE BASIC EARNINGS DILUTED EARNINGS

REVENUES MAIN CLIENTS OF THE COMPANY DURING THE YEAR WERE – LEIGHTON - PRP PROJECT – STILL ONGOING / IN PHASES ONGC - ICP REVAMP – STILL ONGOING ONGC – NQD REVAMP – STILL ONGOING PUNJ LLOYD – HEERA PROJECT – IN PHASES

REVENUES NPCC – DIVING SERVICES – JOB COMPLETED OFFSHORE SUBSEA WORKS – STILL ONGOING ONGC BBBLRP – JOB COMPLETED.

OPERATING EXPENSES (CURRENCY: CRORES OF INDIAN RUPEES) TO TO % CHANGE SUB CONTRACTOR CHARGES VESSEL CHARTER & RELATED COSTS EQUIPMENT RELATED COSTS MATERIALS, STORES & SPARES OTHER EXPENSES TOTAL

VESSEL CHARTER AND RELATED COSTS  LESS THAN PROPORTIONATE INCREASE IN CHARTER COSTS AS SEAMEC 1 AND ABOUZAR 81 ARE UNDER LONG TERM CONTRACT.  COST OF FUEL DURING THE YEAR HAS DECREASED.

EQUIPMENT RELATED EXPENSES EQUIPMENT RELATED EXPENSES HAS INCREASED BY 33.33% DURING THE YEAR DUE TO THE FACT THAT THE COMPANY’S SATURATION DIVING SYSTEMS SDS 01 AND SDS 02 WERE DEPLOYED THROUGH OUT THE YEAR, INCLUDING THE MONSOON PERIOD.

G & A EXPENSES (CURRENCY: CRORES OF INDIAN RUPEES) TO TO % CHANGE EMPLOYEE COSTS LEGAL & PROFESS. FEES (35.88) OFFICE RELATED EXPENSES (9.15) BAD DEBTS, NET FOREIGN EXCHANGE LOSS--3.70(100.00) OTHER EXPENSES TOTAL

EMPLOYEE COSTS EMPLOYEE COSTS HAVE INCREASED BY RS 6.65 CRORES DUE TO INCREASE IN DIRECTORS REMUNERATION AND DUE TO INCREASE IN THE NUMBER OF PERMANENT EMPLOYEES DURING THE YEAR IN LIEU OF CONSULTANTS / CONTRACTORS. ACCORDINGLY LEGAL & PROFESSIONAL FEES HAVE DECREASED BY 35.88%

BAD DEBTS BAD DEBTS OF RS CRORES MAINLY COMPRISE WRITE OFF OF DUES FROM IOEC OF RS CRORES AND OTHER RECEIVABLES AWAITING APPROVAL OF CHANGE ORDERS. THESE AMOUNTS, IF ANY, WILL BE WRITTEN BACK AS AND WHEN RECEIVED

MISCELLANEOUS INCOME (CURRENCY: CRORES OF INDIAN RUPEES) TO TO % CHANGE PROFIT ON SALE OF ASSETS (76.33) GAINS IN FOREIGN EXCHANGE OTHER INCOME TOTAL

PROFIT MARGINS (AS A PERCENTAGE OF REVENUES) TO TO % CHANGE GROSS OPERATING PROFIT NET OPERATING PROFIT EBIDTA NET PROFIT BEFORE TAX NET PROFIT AFTER TAX

PROFIT MARGINS GROSS OPERATING PROFIT MARGINS HAVE INCREASED DUE TO ABILITY TO MARKET ASSETS AND SERVICES AT HIGHER PRICES AND LONGER DURATIONS. NET PROFIT MARGINS HAVE INCREASED DUE BETTER CASHFLOWS RESULTING IN LOWER WORKING CAPITAL REQUIREMENTS.

DOLPHIN OFFSHORE ENTERPRISES (INDIA) LIMITED THANK YOU