Directors Report of Dolphin Medical Services Ltd.

Mar 31, 2024

Your Directors hereby present the 32^nd Annual Report and Accounts of the Company for the year ended
31^st March, 2024.

Financial performance

The performance during the period ended 31^st March 2024 has been as under:

Particulars	2023-2024	2022-2023
Total Income	67,85,760	61,12,260
Other Income	3,68,000	3,68,000
Total Expenditure	81,17,813	76,56,469
Profit /(Loss) Before Tax	(9,64,053)	(11,76,209)
Tax Expenses	76,365	69,708
Profit/(Loss) after Tax	(10,40,418)	(12,45,917)

Performance

During the year under review, the Company has recorded loss of Rs. (10,40,418.98)/- and reported loss
of Rs. (12,45,917)/- in the previous financial year ending 31.03.2023.

Change in the nature of business

There was no change in nature of the business of the Company during the financial year ended on March
31,2024.

Secretarial Standards

Your Company has devised proper systems to ensure compliance with the provisions of all the applicable
Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are
adequate and operating effectively. During the year under review, your Company has complied with the
Secretarial Standards issued by the Institute of Company Secretaries of India.

Share Capital

The authorised share capital of the Company is Rs 25,00,00,000/- (Rupees Twenty Five Crores only)
divided into 2,50,00,000 (Two Crores Fifty Lakhs only) equity shares of Rs 10/- each.

Transfer to reserves

The company has not transferred any amount to reserves for the year.

Dividend

Your Board of Directors has not declared any dividend during the year.

Buy Back of shares

The Company has not bought back any of its securities during the financial year ended March 31,2024.
Indian Accounting Standards (Ind AS)

The Company has adopted Indian Accounting Standards (Ind AS). The standalone financial statements of
the Company forming part of the Annual Report have been prepared and presented in accordance with all
the material aspects of the Indian Accounting Standards (‘Ind AS’) as notified under section 133 of the
Companies Act 2013 read with the Companies (Indian Accounting Standards) Rules 2015 and relevant
amendment rules issued thereafter and guidelines issued by the Securities Exchange Board of India
(“SEBI”).

Deposits

The Company has not accepted any deposits from public in terms of Section 73 of the Companies Act,
2013 and as such, no amount on account of principal or interest on public deposits was outstanding as on
the date of the balance sheet.

Significant and material orders passed by the regulators

There are no significant or material orders passed by the Regulators/Courts which would impact the going
concern status of your Company and its future operations.

Material changes and commitments

There were no material changes and commitments, affecting the financial position of the Company
between the end of the financial year March 31, 2024, to which the financial statements relates and the
date of signing of this report.

Board of Directors

During the year under review, there was no change in the Board of Directors of the Company.

Key Managerial Personnel

During the year under review, there was no change in the KMP’s of the Company
Declaration by the Independent Directors

The Company has received declarations from all the Independent Directors of the Company confirming
that they continue to meet the criteria of independence, as prescribed under Section 149 of the
Companies Act, 2013, rules made there under and Regulations 16 & 25 of the Listing Regulations. The
Independent Directors have also confirmed that they have complied with the Company’s code of conduct.

Nomination and Remuneration Policy

Pursuant to the provisions of Section 178(3) of the Companies Act, 2013, and Regulation 19 of the Listing
Regulations, the Nomination and Remuneration Committee has formulated a policy relating to the
nomination and remuneration for the Directors and the Key Managerial Personnel (KMP). The current
policy is to have an appropriate mix of executive, non-executive and independent directors to maintain the
independence of the Board and separate its functions of governance and management. The policy of the
Company on directors’ appointment and remuneration, including criteria for determining qualifications,
positive attributes, independence of a director and other matters are adopted as per the provisions of the

Companies Act, 2013. The detailed policy is available on the Company’s website at
www.dolphinmedicalservices.com

Board Evaluation

The parameters and the process for evaluation of the performance of the Board and its Committees have
been explained in the Corporate Governance Report.

Familiarisation Programme

In terms of Clause 25(7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, details of the familiarization programme of the Independent Directors are available on the website
of the Company at www.dolphinmedicalservices.com

Meetings of the Board of Directors

The Board of Directors of the Company duly met Six (6) times) during the financial year. The intervening
gap between any two meetings was within the prescribed period. The details of the Board meetings are
given in the Corporate Governance Report.

Committees of the Board

We have in place all the Committees of the Board which are required to be constituted under the
Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A
detailed note on the Board and its Committees is provided under the Corporate Governance Report
section in this Board’s Report.

Subsidiary, Associate and Joint Venture Companies

There are no Subsidiaries, Associates and Joint Ventures as at the end of the financial year March 31,
2024.

Statutory Auditors

At the 31^st AGM of the Company, the members approved appointment of M/s. SMV & Co. Chartered
Accountants, Hyderabad having Firm registration number 015630S as Statutory Auditor of the Company
for a period of 5 years from the conclusion of that AGM.

The Auditors’ Report for FY 2023-24 does not contain any qualification, reservation or adverse remark.
The Report is enclosed with the financial statements in this Annual Report.

Internal Auditors

In pursuance of Section 138 of the Companies Act, 2013 read with rules made there under, the Board
has appointed Smt. M. Lakshmi Sudha, CFO of the Company as Internal Auditors of the Company to
carry out internal auditing of books of accounts periodically.

Cost Audit

Pursuant to Section 148(1) of the Companies Act, 2013, Cost Audit is not applicable to the Company for
the financial year ended March 31,2024.

Details of remuneration during the year 2023-24 as per Rule 5(1) of the Companies (Appointment &
Remuneration of Managerial Personnel) Rules 2015 are as follows:

A statement showing the details of remuneration is provided in Annexure III to this report.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules 2014, the Board had appointed Mr. Bharatiraju
Vegiraju (COP Number: 14926) Practicing Company Secretary as Secretarial Auditors to conduct
Secretarial audit of the Company for the FY 2023-24.

The Secretarial Audit Report issued by Mr. Bharatiraju Vegiraju, Practicing Company Secretary in form
MR-3 is enclosed as Annexure - IV to this Annual Report.

Corporate Social Responsibility (CSR)

During the year under review, the provisions of the section 135 of the Companies Act, 2013 are not
applicable to the Company.

Management Discussion and Analysis Report

In terms of the provisions of Regulation 34 of the Listing Regulations, the Management Discussion and
Analysis Report highlighting the industry structure and developments, opportunities and threats, outlook,
risks and concerns etc. is annexed as Annexure-V of this Annual Report.

Corporate Governance

“Report on Corporate Governance” along with the Auditors’ Certificate on Corporate Governance as
stipulated under Regulation 34 read with Schedule V of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 enclosed as Annexure-VI.

Statement containing additional information as required under Schedule V of the Companies Act,
2013

A statement containing additional information as required under Clause IV of Section II of Part II of
Schedule V of the Companies Act, 2013 is provided in the Report on Corporate Governance, which forms
part of this Annual Report.

Risk Management

During the year, the risk assessment parameters were reviewed and modified. The audit committee
reviewed the element of risks and the steps taken to mitigate the risks. In the opinion of the Board, there
are no major elements of risk which have the potential of threatening the existence of the Company.

The audit committee provides the framework of Risk Management by describing mechanisms for the
proactive identification and prioritization of risks based on the scanning of the external environment and
continuous monitoring of internal risk factors.

Analysis of the risks identified is carried out by way of focused discussion at the meetings of the Board.
The robust governance structure has also helped in the integration of the Enterprise Risk Management
process with the Company’s strategy and planning processes where emerging risks are used as inputs in
the strategy and planning process. Identified risks are used as one of the key inputs in the strategy and
business plan.

Internal Financial Control Systems and their adequacy

The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its
business, including adherence to the Company’s policies, safeguarding of its assets, prevention and
detection of fraud, error reporting mechanisms, accuracy and completeness of the accounting records,
and timely preparation of reliable financial disclosures.

Based on the framework of internal financial controls and compliance systems established and
maintained by the Company, including the audit of internal financial controls over financial reporting by
the statutory auditors and the reviews performed by management and the relevant board committees,
including the audit committee, the Board is of the opinion that the Company’s internal financial controls
were adequate and effective during FY 2023-24. Please refer Internal control systems and adequacy” in
the Management Discussion and Analysis report.

Consolidated financial statements

The Company has prepared the financial statements for the financial year ended March 31, 2024 on
standalone basis, since there were no subsidiaries or associates of the Company as at the end of the
FY 2023-24.

Whistle blower Policy/Vigil Mechanism

Pursuant to the requirement of the Companies Act, 2013 and of Regulation 22 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the Company has a Whistle Blower Policy
and has established the necessary vigil mechanism for directors and employees to report concerns about
unethical behavior. The said Policy provides for adequate safeguard against victimization of
directors/employees who avail of such mechanism and provides access to the Chairman of Audit
Committee in exceptional cases. No person has been denied access to the Chairman of the Audit
Committee. The Whistle Blower Policy has been placed on website of the Company and web link thereto
is www.dolphinmedicalservices.com. During the year, there were no whistle blower complaints received
by the Company.

Reporting of Fraud by the Auditors

During the year under review, the Statutory Auditors and Secretarial Auditors of the Company have not
reported any instances of frauds committed in the Company by its officers or employees to the Audit
Committee under Section 143(12) of the Companies Act, 2013 details of which need to be mentioned in
this Report.

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31,2024
will be uploaded on the Company’s website at www.dolphinmedicalservices.com.

Prevention of Sexual Harassment of Women at Workplace

The Company has adopted policy on Prevention of Sexual Harassment of Women at Workplace in
accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.

The Company has always provided a safe and harassment free workplace for every individual working in
its premises through various policies and practices. The company always endeavors to create and
provide an environment that is free from discrimination and harassment including sexual harassment. The
Company has been actively involved in ensuring that the employees are aware of the provisions of the

POSH Act and rights thereunder. In the year under review, the Company has not received any such
complaint from any employee.

Particulars of Loans, Guarantees or Securities or Investments

The Company has not given loans / guarantees or made any investments during the year under review.
Related party transactions

All transactions entered with related parties for the year under review were on arm’s length basis and in
the ordinary course of business. There were no materially significant related party transactions made by
the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which
may have a potential conflict with the interest of the Company at large. All related party transactions are
placed before the Audit Committee and also before the Board for approval, where ever required. The
Company has developed a Policy on Related Party Transactions for the purpose of identification and
monitoring of such transactions. The policy on Related Party Transactions as approved by the Board is
uploaded on the Company’s website www.dolphinmedicalservices.com.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of section
188 is prepared in Form AOC-2 pursuant to clause (h) of the Companies (Accounts) Rules, 2014 and the
same is annexed herewith as Annexure-II to this Report.

Particulars in respect of conservation of energy, technology absorption, foreign exchange
earnings and outgo

The information on Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and
outgo required to be disclosed under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8 of
the Companies (Accounts) Rules, 2014 are provided in the Annexure-I forming part of this Report.

Human Resources

Employees are our most valuable assets and key to the success of your Company. We are committed to
hiring and retaining the best talent. We always strive towards collaborative, transparent and participative
organization culture, and reward individual contribution and innovation.

Directors’ responsibility statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013 with respect to the Directors''
Responsibility Statement, the Board of Directors of the Company hereby confirms;

i. in the preparation of the annual accounts, the applicable accounting standards have been followed
along with proper explanation relating to material departures;

ii. such accounting policies as mentioned in the notes to the financial statements have been selected and
applied consistently and judgments and estimates that are reasonable and prudent made so as to give a
true and fair view of the state of affairs of the Company at the end of the financial year 2023-24 and of the
statement of profit of the Company for that period;

iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities;

iv. the annual accounts for the year 2023-24 have been prepared on a going concern basis.

v. that the Directors, had laid down internal financial controls to be followed by the Company that such
internal financial controls were adequate and were operating effectively.

vi. that system to ensure compliance with the provisions of all applicable laws were in place and were
adequate and operating effectively.

Cautionary Statement

Statements in this Report, particularly those which relate to Management Discussion and Analysis as
explained in the Corporate Governance Report, describing the Company’s objectives, projections,
estimates and expectations may constitute ‘forward looking statements’ within the meaning of applicable
laws and regulations. Actual results might differ materially from those either expressed or implied in the
statement depending on the circumstances.

Acknowledgement

The Board of Directors takes this opportunity to place on record its appreciation to all the stakeholders of
the Company, viz., customers, investors, banks, regulators, suppliers and other business associates for
the support received from them during the year under review. The Directors also wish to place on record
their deep sense of gratitude and appreciation of all the employees for their commitment and contribution
towards achieving the goals of the Company.

For and on behalf of the Board
Dolphin Medical Services Limited

Place: Hyderabad Sd/- Sd/-

Date: 05.10.2024 Dr. Mohan Prasad GV Dr. Lakshmi Sudha M

Managing Director Director

DIN:01236113 DIN: 01235522

---

Mar 31, 2015

The Directors hereby present the 23rd Annual Report and Accounts of the Company for the year ended 31st March, 2015.

1. FINANCIAL RESULTS: (Rs. In Lakhs)

Particulars 2014-15 2013 - 14

Operating Income 37.68 95.86

Other Income 0.06 _

Profit / (Loss) before Int. Depreciation & Tax (4.47) (10,12)

Depreciation 51.69 71.39

Cash Profit / (Loss) (6.41) (14.70)

Discussion on Financial Performance:

During the year under consideration the Company got a loss of Rs.4.47 Lakhs before interest and depreciation as against loss of Rs.10.12 Lakhs during the previous year.

Management Discussion and Analysis

As mentioned in one of our earlier AGM Reports, the quagmire of litigation the company was constrained to involve in respect of its leasehold due to the lower court order against the Company and also of late due to the mischief of the 1st less or and the 2nd less or has also substantially contributed to the woes of the company. In view of the looming uncertainty due to the said litigation, the company is not able to make optimum use of the premises, as there is the fear of losing the further investment as may be made for modifications and renovations to the premises from time to time if the verdict of the Courts is going to be adverse. This is in addition to the already invested huge amounts on the premises over a period of many years on various occasions. The Company is now passing throw a difficult phase as far as competing with the players in the field. As has been discussed earlier, the old model and out dated equipment is one of the main reasons for the lack of the generation of expected revenues of the company. In addition to this the severe financial stress being faced by company is also affecting the ability to keep the modernization need fulfilled. While this is the state of affairs in the operational front, Canara Bank has assigned its rights on the loan favoring Edelweiss Asset Reconstruction Company Ltd (EARC). On 18.03.2015 the EARC has granted a Negotiated Settlement (NS) of dues at a total consideration of Rs.250.00 lakhs payable in installments specified therein. In terms of the NS the company has paid an amount of Rs.25.00 lakhs as Upfront payment. The company has also informed EARC that since the revenues of the company are not as expected, the Board will be able to pay the settled amount to EARC only by way of selling the landed property belonging to the Company near Hyderabad. Accordingly efforts are being made to sell the land of Ac.13.625 cents belonging to the company in the open market and utilize the sale proceeds to clear off the settled amount to EARC. As the market conditions in the Telangana State are not favourable for the real estate after the division of the combined state of Andhra Pradesh, the company is finding it difficult to get the buyers for the expected sale price. However a call will be soon taken by the Board so that the amount due to EARC may be settled at the earliest.

Once the EARC amount is settled, the company will be debt free and will be attractive for new investors to infuse the required capital for making the company profitable once again and also for taking up new and different profitable projects. The Board is aiming to reach this stage at the earliest.

Financial Performance

The Following is the Financial Performance of your Company:

(Rs.in Lakhs)

2014-15 2013-14 Inc/(Dec) %



Income: Operations 37.68 95.86 (60.51)

Other Income 0.06 - 0.06



Total : 37.74 95.86 (60.63)

Expenditure:

Material Consumed 9.77 29.80 (67.21)

Staff Cost 3.73 25.97 (85.63)

Other Expenses 31.70 54.78 (42.13)

Depreciation 51.69 71.39 (27.59)

Total : 96.89 181.94 (46.74)

Profit/(Loss) (59.15) (86.08) (31.28)

Material changes and commitments if any affecting the financial position of the Company occurred between the end of the financial year to which this Financial Statements relate and the date of the report

There have been no material changes and commitments, affecting the financial position of the Company which occurred during between the end of the financial year to which the financial statements relate and the date of this report.

Details of significant and material orders passed by the regulators/ courts/ tribunals impacting the going concern status and the Company's operations in future

There are no significant material orders passed by the Regulators/ Courts which would impact the going concern status of the Company and its future operations except the one mentioned in detail in the Management Discussion.

Share Capital:

Authorized Share Capital: During the year under review, there was no change in authorized share capital of the Company. Authorized share capital of the company as on March 31, 2015 was Rs.25,00,00,000/-, comprising of 2,50,00,000 equity shares of Rs.10.00 each.

Paid-up Share Capital: During the year under review, there was no change in paid up share capital of the Company. Paid up share capital of the company as on March 31, 2015 was Rs.15,09,99,520/-, comprising of 1,50,99,952 equity shares of Rs.10.00 each.

Buy Back of Securities: The Company has not bought back any of its securities during the year under review.

Sweat Equity: The Company has not issued any Sweat Equity Shares during the year under review.

Bonus Shares: The Company has not issued any bonus shares during the year under review.

Employees Stock Option: The Company has not provided any Stock Option Scheme to the employees.

Dividend

Your Directors have not recommended any dividend on Equity Shares for the year under review.

Transfers to Reserves

Your Board of Directors does not appropriate any amount to be transferred to General Reserves during the year under review.

Fixed Deposits

During the year under review, your Company has not accepted any fixed deposits within the meaning of Section 73 of the Companies Act, 2013 read with rules made there under.

Subsidiaries, Joint Ventures and Associate Companies

In accordance with Section 129(3) of the Companies Act, 2013, a statement containing salient features of the financial statements of the subsidiary companies in Form AOC-1 is enclosed as Annexure - I of the Board's Report.

Particulars of Contracts & Arrangements with Related Parties

During the year, the Company has not entered into any contracts or arrangements with Related Parties.

Related party Transactions

During the year, the Company has not entered into any transactions with Related Parties.

Particulars of Loans, Guarantees or Investments

During the financial year 2014-15 the Company neither has, directly or indirectly, given any loan to its Directors nor extended any guarantee or provided any security in connection with any loan taken by them. Further, the Company has neither given any inter-corporate loan / advance nor made any investments in other companies.

Number of Board Meetings held

The Board of Directors duly met 7 times during the financial year from 1st April, 2014 to 31st March, 2015. The dates on which the meetings were held are as follows:

(1) 22.05.2014, (2) 12.08.2014, (3) 03.09.2014, (4) 30.09.2014, (5) 14.11.2014, (6) 14.02.2015 and (7)27.03.2015

Directors and Key Managerial Personnel

In terms of Section 152 of the Companies Act, 2013, Dr. M. Lakshmi Sudha, CFO & Director would retire by rotation at the forthcoming AGM and is eligible for re-appointment. Dr. M. Lakshmi Sudha, CFO & Director has offered herself for re-appointment.

Mr. Narendra Seena Karkera (DIN:01916929), Mr. Vinay Vishnu Raj Nayak (DIN:01979345) were appointed as an independent Directors by the Members at the last Annual General Meeting (AGM) held on September 30, 2014..

Dr. K Ramana Kumar (DIN 00754148) has been appointed as an Additional Director in the category of Independent director pursuant to section 149 of the Act w.e.f. 30.09.2014 in accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company, who shall hold office till the ensuing Annual General Meeting of the Company.

Mr. Hemanth Kumar Manikyam resigned from the office of the Director on 24/05/2014.

Dr. M. Lakshmi Sudha has been appointed as the Chief Financial Officer of the Company pursuant to section 203 of the Act w.e.f. 14.02.2015 in accordance with the provisions of the Companies Act, 2013 Based on the confirmations received from Directors, none of the Directors are disqualified from appointment under Section 164 of the Companies Act 2013.

Declaration by Independent Directors

The Independent Directors of the Company have submitted their declarations as required under Section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as per sub-section (6) of Section 149 of the Act.

Familiarization programme for Independent Directors

The Company proactively keeps its Directors informed of the activities of the Company, its management and operations and provides an overall industry perspective as well as issues being faced by the industry.

Independent Directors' Meeting

The Independent Directors met on 14.02.2015 without the attendance of Non-Independent Directors and members of the Management. The Independent Directors reviewed the performance of Non- Independent Directors and the Board as a whole; the performance of the Chairman of the Company, taking into account the views of Executive Director and Non-Executive Directors and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

Board Evaluation:

The Board adopted a formal mechanism for evaluating its performance as well as that of its Committees and individual Directors, including the Chairman of the Board. The exercise was carried out through a structured evaluation process covering various aspects of the Board functioning such as composition of the Board & committees, experience & competencies, performance of specific duties & obligations, contribution at the meetings and otherwise, independent judgment, governance issues etc.

Directors Responsibility Statement as required under Section 134(5) of the Companies Act, 2013:

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013 the Board of Directors states that:

(a) In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) They have selected such accounting policies and applied them consistently and made judgments 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 and loss for that period;

(c) They have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(d) They have prepared the annual accounts on a going concern basis;

(e) They have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively and

(f) They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Nomination and Remuneration policy

In compliance to the provisions of Section 178 of the Companies Act, 2013 and Clause 49 of the Listing Agreement entered into with the Stock Exchanges, the Nomination and Remuneration Committee has recommended to the Board a Nomination and Remuneration policy with respect to appointment / nomination and remuneration payable for the Directors, Key Managerial Personnel and senior level employees of the Company. The said policy has been adopted by the Board and the same will form part of the Annual Report as Annexure - II to the Board's Report.

Auditors Statutory Auditors

At the Annual General Meeting held on September 30, 2014, M/s. Pinnamaneni & Co, Chartered Accountants (Firm Reg. No: 002661S), were appointed as Statutory Auditors of the Company to hold office for a period of three years i.e., till the conclusion of the Annual General Meeting to be held in the calendar year 2017. In terms of the first proviso to Section 139 of the Companies Act, 2013 the appointment of the auditors shall be placed for ratification at every Annual General Meeting. Accordingly, the said appointment of M/s. Pinnamaneni & Co, Chartered Accountants, as statutory auditors of the Company is placed for ratification by the Shareholders. In this regard, the Company has received a certificate from the auditors to the effect that if their appointment is ratified, it would be in accordance with the provisions of Section 141 of the Act. The Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

Qualification by Statutory Auditor

There were no qualifications, reservations or adverse remarks made by the Auditors in their report.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s. B S S & Associates, Practicing Company Secretaries for conducting Secretarial Audit of the Company for the financial year 2014-2015. The Secretarial Audit Report is annexed herewith as

Annexure - III.

There were no qualifications, reservations or adverse remarks made by the Auditors in their report.

The Secretarial Auditor's Report contains qualifications, reservation or adverse remarks except noncompliance of Section 203 of the Companies Act, 2013 in respect of appointment of Company Secretary as Key Managerial Person. The Board has made utmost effort for appointment of the Company Secretary as KMP but has not been able to appoint a Company secretary due to lack of suitability of the candidate to the profile of the Company in terms of Job profile and remuneration. Company is in the process of filing various e-forms/reports/documents with Registrar of Companies and stock exchange.

Internal Auditors

In pursuance of Section 138 of the Companies Act, 2013 read with rules made there under, the Board has appointed Dr. M Lakshmi Sudha, CFO of the Company as Internal Auditors of the Company to carry out internal auditing of books of accounts periodically.

Internal Control Systems

The Company has a well-established system of internal control in operations which complies with the relevant provisions of 'Internal Control' under the Company's Auditor's Report Order 2003 and as prescribed under revised Clause 49 of the Listing Agreement with Stock Exchanges. Internal Audit department put in place and adequate controls are continuously reviewed and risks of inaccurate financial reporting and fraud, if any, are dealt with immediately and eliminated. The status of implementation of recommended solutions are regularly reviewed and presented to the Audit Committee of the Board.

Vigil Mechanism / Whistle Blower Policy

Pursuant to Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Clause 49 of the Listing Agreement, the Board has adopted Whistle Blower Policy. This policy aims for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior.

A mechanism has been established for employees to report concerns about unethical behavior, actual or suspected fraud or violation of Code of Conduct and Ethics. The policy also provided adequate safeguards against the victimization of employees who avail of the mechanism and allows direct access to the Chairman of the Audit Committee in exceptional cases.

Your Company hereby affirms that during the year no Director / employee have been denied access to the Chairman of the Audit Committee and that no complaints were received.

Management Discussion and Analysis

The Management Discussion and Analysis given below discusses the key issues concerning the business and carried on by the Company.

Management of Risks

There is considerable pressure to keep up the realization from the services in view of highly competitive market.

Audit Committee

The Composition of the Audit Committee is provided in the Corporate Governance Report forming part of this report. All the recommendations made by the Audit Committee were accepted by the Board.

Risk Management

The Risk Management Committee duly constituted by the Board had formulated a Risk Management Policy for dealing with different kinds of risks attributable to the operations of the Company. Risk Management Policy of the Company outlines different kinds of risks and risk mitigating measures to be adopted by the Board. The Company has adequate internal control systems and procedures to combat the risk. The Risk Management procedure will be reviewed periodically by the Audit Committee and the Board.

Corporate Social Responsibility (CSR) Initiatives:

Section 135 of the Companies Act, 2013 provides the threshold limit for applicability of the CSR to a Company ie. (a) network of the Company to be ' 500 crore or more; or (b) turnover of the company to be ' 1,000 crore or more; or (c) net profit of the company to be ' 5 crore or more. As the Company does not fall under any of the threshold limits given above, the provisions of section 135 are not applicable to the Company.

Extract of Annual Return

In accordance with the provisions of Section 134(3(a) of the Companies Act, 2013, an extract of the Annual Return in Form MGT-9 is appended as Annexure - IV to the Board's Report.

Information on Conservation of Energy, Technology Absorption & Foreign Exchange Earnings and outgo

Pursuant to the provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule 3 of Companies (Accounts) Rules, 2014, the relevant information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo is appended hereto as Annexure - V and forms part of the Board's Report.

Company's Policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace

The Company prohibits any form of sexual harassment and any such incidence is immediately investigated and appropriate action taken in the matter against the offending employee(s) based on the nature and the seriousness of the offence. The Company has a policy on Prohibition, Prevention and Redressal of Sexual Harassment of Women at Workplace (the Policy) and matters connected therewith or incidental thereto covering all the aspects as contained under The Sexual Harassment of Women at Workplace (Prohibition, Prevention and Redressal) Act, 2013" notified by the Government of India vide Gazette Notification dated 23rd April, 2013. There was no case of sexual harassment reported during the year under review.

Remuneration ratio of the Directors / Key Managerial Personnel (KMP) / Employees:

The information required under Section 197 of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in separate annexure forming part of this Report as Annexure - VI.

There were no employee in the company throughout the financial year who were in receipt of remuneration of Rs.60 lacs or more, employees employed for part of the year and in receipt of Rs.5 lac or more per month. Hence the provisions of Rule 5(2) The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not applicable.

Corporate Governance

The Company is committed to good corporate governance in line with the Listing Agreement and Provisions, Rules and Regulations of the Companies Act, 2013. The Company is in compliance with the provisions on corporate governance specified in the Listing Agreement with BSE. The certificate dated 02.12.2015 was obtained from Mr. P.V.V.Satyanarayana, Partner, Pinnamaneni & Co., Chartered Accountants and the report on Corporate Governance form part of this Directors' Report as Annexure - VII.

Disclosures as per the Listing Agreement & SEBI Regulations Cash flow statement In due compliance of the listing agreements and in accordance with the requirements prescribed by SEBI, the cash flow statement is prepared and is appended to this Annual Report.

Stock exchanges

Company's equity shares are listed in the Bombay Stock Exchange Limited. There is an outstanding Listing Fee of Rs.2,27,453/- to Bombay Stock Exchange Ltd.

Share transfer agency

The Company has appointed M/s XL Softech Systems Ltd, #3, Sagar Society, Road No.2, Banjarahills, Hyderabad - 500034 as its share transfer agency for handling both physical and electronic transfers.

Code of conduct

The Company has adopted Code of Conduct for the Board and for the Senior level employees of the Company and they are complying with the said code. A declaration by the Managing Director to this effect is furnished as Annexure - VIII to the Board's Report.

Acknowledgments

The Directors wish to place on record their gratitude to shareholders and thank the customers, vendors, bankers, hops of other State and Central Government Departments, Security Exchange Board of India and Stock Exchanges at Mumbai, and others for their continued support to the Company's growth. The Directors also wish to place on record, their appreciation for the contribution made by the employees at all levels, for their sincerity, hard work, solidarity and dedicated support to the Company.

For and on behalf of the Board of Directors of

Dolphin Medical Services Limited



Place: Hyderabad Sd/- Sd/-

Date : 30.11.2015 G.V.Mohan Prasad M.Lakshmi Sudha

Managing Director Whole-time director

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Mar 31, 2014

Dear Members,

The Directors are pleased to present the 22nd Annual Report together with Audited Accounts for the year ended 31st March 2014.

1. FINANCIAL RESULTS:

(Rs. In Lakhs)

Particulars 2013 - 14 2012 - 13

Operating Income 95.86 114.14

Other Income - 0.22

Profit / (Loss) before Int. Depreciation & Tax (10.12) (59.72)

Depreciation 71.39 64.67

Cash Profit / (Loss) (14.70) (129.92)

During the year under review your company has got an income of Rs.95.86 lakhs and recorded a cash loss of Rs.14.70 lakhs.

2. SUBSIDIARY COMPANIES:

M/s. Bridge Corporate Services Pvt. Ltd. and M/s. Evum Life Sciences Pvt. Ltd. are the subsidiaries of the Company. During the year under review the Subsidiary Companies were not able to record any progress due to lack of financial resources. The Statement pursuant to Section 212 of the Companies Act, 1956, highlighting the summary of the financial performance of our subsidiaries is annexed to this report.

3. DIVIDEND:

As the Company is in financial losses, the Directors have not recommended any dividend for the year 2013-14.

4. PUBLIC DEPOSITS:

During the year under review the company has not accepted any ''public deposit'' as in defined in provision of Section 58A of the Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules 1975 as amended from time to time. There are no outstanding unclaimed deposits as on 31st March 2014.

5. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUT GO:

The required information as per Sec.217 (1) (e) of the Companies Act 1956 is provided hereunder:

A. CONSERVATION OF ENERGY:

The Company has taken necessary steps to conserve the energy utilization during the year under review.

B. TECHNOLOGY ABSORPTION:

1. Research and Development (R&D) : NIL

2. Technology absorption, adoption and innovation : NIL

C. FOREIGN EXCHANGE EARNINGS AND OUT GO:

Foreign Exchange Earnings : NIL

Foreign Exchange Outgo : NIL

6.INTERNAL CONTROL AND ITS ADEQUACY:

The Board is committed to ensure that the Company''s ''internal control'' system remains effective and efficient in areas such as operations and Security. For this purpose proper planning and effective conduct of the ''internal audit'' is given top-most attention.

7. DIRECTORS'' RESPONSIBILITY:

To best of their knowledge and belief and on the basis of information furnished to them the Directors make following statement, which is required to be made in terms of Section 217 (2AA) of the Companies Act, 1956:

(i) While preparing Annual Accounts, the applicable accounting standards have been followed along with proper explanations

(ii) Appropriate accounting policies have been selected and applied consistently and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2014 and of the losses of the company for the year ended on that date.

(iii) 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) The Annual Accounts of the Company have been prepared on basis of a ''going concern''.

8. CORPORATE GOVERNANCE:

As per clause 49 of the Listing Agreement with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company together with a certificate obtained from the auditors of the Company is set out in Annexure, forming part of this report.

9. PARTICULARS OF EMPLOYEES:

During the year under review, no employee of the company was in receipt of remuneration for the whole year which in the aggregate was Rs.60,00,000/- or more per annum nor was any employee in receipt of remuneration Rs.5,00,000/- or more per month for any part of the year in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended..

During the year under review, industrial relations of the company continued to be cordial and peaceful.

10. BOARD OF DIRECTORS:

Resignation of Mr. M Hemanth Kumar from directorship:

Mr. M Hemanth Kumar, director of the company submitted his resignation on 24.05.2014 and the Board accepted the resignation of Mr. Hemanth Kumar with effect from 24.05.2014

Resignation of Dr. Lakshmi Sudha Madala as Whole Time Director

Dr. Lakshmi Sudha Madala resigned from whole time Director of the Company with effect from 03.09.2014 and continues as Director, liable to retire by rotation.

Appointment of Mr. Narendra Seena Karkera and Mr. Vinay Vishnuraj Nayak as Independent directions.

The Board recommends the re-appointment of Mr. Narendra Seena Karkera and Mr. Vinay Vishnuraj Nayak as Independent Directors of the Company in the ensuing Annual General Meeting for a period of 5 years, not liable to retire by rotation.

11. AUDITORS:

M/s. Pinnamaneni & Co, Chartered Accountants, the Company''s auditors term office will conclude with this Annual General Meeting. They have expressed willingness to accept the assignment for a further period of three years as per the new Companies Act, 2013. They have also confirmed their eligibility for such an appointment under Section 139 of the Companies Act, 2013. The Board recommends the firms re-appointment as Company''s auditors.

12. LISTING AT STOCK EXCHANGES:

The Equity Shares of the Company are listed on Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 and the Company has not paid the listing fee for the year 2014-15.

13. ACKNOWLEDGEMENTS:

Your Directors thank and appreciate all the executives, staff, Bankers, Customers and workers of the company for their dedicated services.

//By Order Of the Board// For DOLPHIN MEDICAL SERVICES LIMITED

Date: 03.09.2014 Place: Hyderabad Sd/- Sd/- DR. G. V. MOHAN PRASAD DR. M. LAKSHMI SUDHA MANAGING DIRECTOR DIRECTOR

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Mar 31, 2011

DIRECTORS REPORT TO THE SHARE HOLDERS

The Directors have great pleasure in presenting to you “19th Annual Report” of your Company along with the Audited Accounts for the year ended 31st March 2011.

1. FINANCIAL RESULTS:

The Financial Results for the year ended 31 st March 2011 are furnished below: (Rs. In Lakhs)

Particulars 2009-10 2010-11

Operating Income 334.38 406.49

Other Income 7.28 14.45

Profit before Depreciation & Tax 116.71 138.32

Depreciation 56.70 59.36

Cash Profit 62.77 69.47

During the year under review your company has recorded a 21.47% growth in its gross operating income. However the same was offset by increase in 'marketing overheads'. The growth in the business was possible with steps initiated by the Board members to enter new markets.

2. SUBSIDIARY COMPANIES:

During the year under review the Subsidiary Companies incorporated were not able to record any progress since activities undertaken are in the initial phase. However efforts are being made to utilize the subsidiaries if necessary by associating with other business partners (and also by effecting the required changes in the objects as well as the names) for the new proposals by the boards as mentioned in the later paragraphs of the 'Management's Perception'.

3. DIVIDEND:

The Directors have taken a decision not to recommend any dividend for the year 2010-11, mainly with intention of boosting up company owned funds. While taking such decision the Directors have taken into account to strengthen Financials of the company by retaining earned profits.

4. PUBLIC DEPOSITS:

During the year under review the company has not accepted any 'public deposit' as in defined in provision of Section 58A of the Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules 1975 as amended from time to time. There are no outstanding unclaimed deposits as on 31st March 2011.

5. MANAGEMENT'S PERCEPTION:

PRESENT STATE OF AFFAIRS - AN OVERVIEW

Cost Enhancement of the Project and the Delay in obtaining the required additional funds:

The company raised funds in 2006 by way of rights issue, for the purpose of expansion including updating the medical equipment by way of replacing the obsolete and old medical equipment with the new ones. Due to the time taken for the process involved, newer models of diagnostic equipment have in the mean time been introduced into the market and the level of the originally envisaged sophistication for updating has gone up and so also the cost. In addition, the company opted to establish a Clinical Research Unit along with the needed diagnostic equipment in Hyderabad as per the 'business plan' mentioned in the 'Rights Issue prospectous' of the company. For this your company had to approach the banks for the additional funds needed to meet the enhanced cost requirements. Your company has got the loan sanctioned, but due to the extraordinary delay in the bank at various stages of processing, sanction as well as the disbursement, the whole process got delayed too much. This unexpected extraordinary delay for the company to go ahead with its updating & expansion plans, saw many other new similar centres with similar sophisticated equipment cropping up in the vicinity of the unit during this period. Finally after the installation of the updated new equipment, due to the heavy competition created because of the mushrooming of the diagnostic centres during this delay period, the marketing expenditure increased out of proportion and some undue sops and price discounts had to be extended to most of the supporters and service providers and also the private/Government organizations which are in tie up with the company for utilizing the diagnostic services. Thus, in spite of substantial increase in the income of the company over the past 6 years, the profits are not reflected proportionately.

Global Recession and Delay in materialization of import of equipment, and unenvisaged additional Interest Burden:

In addition, the supply and import of some sophisticated high end equipment got extraordinarily delayed as a consequence of the then global recession in its peak and other external factors affecting the import. This resulted in the company incurring huge interest burden (not provided for in the scheduled budget) during the period between ordering the equipment by way of payment and the installation and commencement of commercial operations of various medical equipments purchased. This also resulted in different equipments getting installed at different time intervals. The net effect was that, the company suffered huge amounts of interest burden (unprovided for and unexpected) as well as the need for the regular organizational maintenance, even while the revenues suffered heavily due to the non commencement of many new equipments as per schedule. As such the company suffered severely in many ways in terms of revenue streams – which had a consequential bearing on the profitability of the company.

Need for more comprehensiveness:

Due to delay in the implementation of the project and installation of various equipments at different times, the supporters/service providers had confused knowledge about the details of equipments available and the total services provided. A lot of marketing expenditure had to be spent for awareness creation on the services provided in the centre from time to time.

The Present Problem of stand alone Diagnostic Centres:

It is understood from the market forces that a stand alone Diagnostic business model is day by day becoming more difficult to sustain. This business is mostly dependant on referrals from Nursing homes and General Practitioners. Today with large (corporate) hospitals coming with their own inhouse diagnostic facilities with high investment and internal captive clients, it has hit the stand alone diagnostic business. In addition to this, the introduction of 'Arogyasri' free health scheme to poor patients by the govt. in association with big & corporate hospitals, prompted them to have in-house diagnostic facilities of their own. Because of this, referrals to stand alone diagnostic centres from big hospitals decreased drastically and as a consequence, the competition becasue heavy and the marketing expenses involved shot up beyond the permissible levels. As a net effect the margins for most of the diagnostic procedures are substantially decreased.

Withdrawal of the loan sanctioned by the bank for the Hyderabad Unit and the consequent effects on the company:

When the preliminary operational efforts and activities for establishing & commencing the Hyderabad unit were in full swing in 2009, the bank has abruptly issued a letter on 07.08.2009 intimating the withdrawal of the loan for the Hyderabad Unit - citing delay in the implementation as the reason. However, it was clearly explained to the bank about the justified reasons for the delay in implementation of the Hyderabad Unit. Whereas the global financial recession which was at its peak in 2008-09 casued the withdrawal/reduction of the outsourcing of the clinical trials from the west, also resulted in delayed approval and implementation of the MOUs entered into bey the Company with foreign life sciences companies. The company by then already spent the required amounts for the preliminary and preoperative works and also a substantial amount among others for the rennovation & modification of the leased out huge premises for this purpose. Because of this, the substantial expenditure spent on the Hyderabad Unit till then become ineffective and redundant. Thus while we were on the verge of making things happen even in that difficult scenario, the bank has suddenly issued the loan withdrawal letter, resulting in loss of time and efforts and also the amount already spent on the Hyderabad unit till then. This also had a bearing on the subsequent financial resilience of the company and adversely impacted the financials and growth of the company. In addition, because of this, the company also suffered huge potential loss in terms of 'to have obtained' revenues and profitability through the unit as originally envisaged by the board and management.

Concerted Management Efforts:

The Revenues increased year-by-year (i.e, for FY 2005-06-Rs.213.43 lakhs, FY 2006-07-Rs.246.99 lakhs, FY 2007-08-Rs.260.33 lakhs, FY 2008-09-Rs.270.23 lakhs, FY 2009-10-Rs.334.38 lakhs and FY 2010- 11-Rs.406.49 lakhs). Inspite of the unit performing exceedingly well in terms of increased revenues year-by- year, it has little profit margins left for the prompt servicing of loans every month for the reasons mentioned in the above paragraphs in detail. However, as a result of the focussed efforts of the management, the performance and revenues of the Company during the completed year also did improve but with higher marketing expenses. With its concerted efforts, the management has been paying the bank loans almost regularly, though with some strain on the finances of the company.

STEPS PROPOSED BY THE BOARD FOR FUTURE BUSINESS DEVELOPMENT AND ENHANCED PROFITABILITY

To accomplish the Comprehensiveness of Diagnostic Services:

The board proposes to take every step needed to further improve the operational revenues by making the unit a Specialised Diagnostic Centre. The provision of high end specialised diagnostic sophisticated equipment will not normally be available in almost all the hospitals and hence they would approach the spicality diagnostic centres with those faciilties. This would result in increasing the operational profit margins of your company. To achieve this objective, the company proposes to complete the comprehensiveness of the diagnostic services by updating the existing clinical laboratory equipment and also introduce some of the latest and more sophisticated laboratory equipment for operating the clinical laboratory services on an enhanced scale including Biochemical, Microbiological, Immunological, Pathological, Molecular diagnostics etc. As it is a well known fact in the industry that the profits margins for specialised clinical laboratory services are sufficiently high, taking the necessary steps in this direction will enhance the profitability of the company suitably.

Completion of the comprehensiveness of the existing imaging services of the company by also adding the remaining required services like mammography, high end X-ray etc., will add to the completeness and also enhance the profitability of the services by way of making all the imaging services under one roof.

Association with others for expanding the operational base:

The company is also contemplating to expand its operational base by associating with similar centres in new areas especially in potential places in the region and also by investing/making advance deposits or make financial commitments/transactions in any suitable manner with those organisations, if necessary, in return for getting the benefits like outsourcing of operations etc., expected to be beneficial to our company. The business potential and the local contacts of the parties to be associated with, will also be considered while finalizing the associations.

Establishing 'Cash Green' Projects – Creating separate Business Units for Medical & Non Medical Projects:

To further enhance the profitability, your company is now making efforts towards diversifying its activities to more profitable activities like pyrolysis plants and other 'cash green' activities. The Board is now working out a detailed plan for this purpose. The Board is actively considering not only taking-up non medical project/s, but also separating the business units of medical and non medical projects so that the medical operations could be hived off or conducted in association with like minded companies/parties or a portion of services can be outsourced for the company or associations in any flexible manner as and when thought and decided fit to be advantageous to the company.

6. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUT GO: The required information as per Sec.217 (1) (e) of the Companies Act 1956 is provided hereunder:

A : CONSERVATION OF ENERGY:

The Company has taken necessary steps to conserve the energy utilization during the year under review.

B. TECHNOLOGY ABSORPTION:

1. Research and Development (R&D) NIL

2. Technology absorption, adoption and innovation NIL

C. FOREIGN EXCHANGE EARNINGS AND OUT GO:

Foreign Exchange Earnings NIL

Foreign Exchange Outgo NIL

7. INTERNAL CONTROL AND ITS ADEQUACY:

The Board is committed to ensure that the Company's 'internal control' system remains effective and efficient in areas such as operations and Security. For this purpose proper planning and effective conduct of the 'internal audit' is given top-most attention.

8. DIRECTORS' RESPONSIBILITY:

To best of their knowledge and belief and on the basis of information furnished to them the Directors make following statement, which is required to be made in terms of Section 217 (2AA) of the Companies Act, 1956:

(i) While preparing Annual Accounts, the applicable accounting standards have been followed along with proper explanations

(ii) Appropriate accounting policies have been selected and applied consistently and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2011 and of the profits of the company for the year ended on that date.

(iii) 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) The Annual Accounts of the Company have been prepared on basis of a 'going concern'.

9. CORPORATE GOVERNANCE:

a) A note on Management Discussion and Analysis of Report is enclosed.

b) As per clause 49 of the Listing Agreement with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company together with a certificate obtained from the auditors of the Company is set out in Annexure, forming part of this report.

10. PARTICULARS OF EMPLOYEES:

During the year under review, no employee of the company was in receipt of remuneration for the whole year which in the aggregate was Rs.60,00,000/- or more per annum nor was any employee in receipt of remuneration Rs.5,00,000/- or more per month for the any part of the year in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended.

During the year under review, industrial relations of the company continued to be cordial and peaceful.

11. DIRECTORS:

In accordance with requirements of the Companies Act, 1956 and Articles of Association of the Company, Mr. Narendra Seena Karkera retires by rotation. He however is eligible for reappointment. The board has therefore recommended his reappointment.

12. AUDITORS:

M/S Pinnamaneni & Co, Chartered Accountants, the Company's auditors term office will conclude with this Annual General Meeting. They have expressed willingness to accept the assignment for a further period on one more year. They have also confirmed their eligibility for such an appointment under Section 224(1B) of the Companies Act, 1956.The Board recommends firms re-appointment as Company's auditors.

13. LISTING AT STOCK EXCHANGES:

The Equity Shares of the Company are listed on Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

The listing fees to the Exchange have been paid up to date.

14. ACKNOWLEDGEMENTS:

Your Directors thank and appreciate all the executives, staff, Bankers, Customers and Workers of the Company for their dedicated services.

//By Order of the Board// For DOLPHIN MEDICAL SERVICES LIMITED Sd/- Sd/- Dr. G.V. MOHAN PRASAD Dr. M. LAKSHMI SUDHA MANAGING DIRECTOR WHOLE TIME DIRECTOR

Place Vijayawada, Date 14.08.2011.

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Mar 31, 2010

The Directors have pleasure in submitting to you this Eighteenth Annual Report together with the Audited Statement of Accounts for the year ended 31 March 2010.

1. FINANCIAL RESULTS:

The Financial Results for the year ended 31t March 2010 are furnished below:

(Rs. In Lakh

Particulars 2008-09 2009-10

Operating Income 270.23 334.38

Other Income 4.74 7.28

Profit before Depreciation & Tax 59.76 116.71

Depreciation 38.28 56.70

Cash Profit 52.42 62.77





During the year under review your company has recorded a 23.7% growth in its gross income, b also incurred higher expenses due to inception stage of some activities. The growth in the busine was possible with steps initiated by the Board members. The Directors are further determined take your company on to a path of substantial growth during years to come by undertaking ne projects and improve the bottom line.

2. SUBSIDIARY COMPANIES:

During the year under review the Subsidiary Companies incorporated were not able to not able record progress since activities undertaken are in the initial phase. The Directors have taken conscious decision to concentrate on the growth of parent company first and thereafter attend t other business plan/s of these companies.

3. DIVIDEND:

The Directors have taken a decision not to recommend any dividend for the year 2009-10. Whi taking such decision the Directors have taken into account to strengthen Financials of the compan by retaining earned profits.

4. PUBLIC DEPOSITS:

During the year under review the company has not accepted any ‘public deposit’ as in defined provision of Section 58A of the Companies Act, 1956 read with Companies (Acceptance of Deposit Rules 1975 as amended from time to time. There are no outstanding unclaimed deposits as on 31 March 2010.

5. MANAGEMENT PERCEPTION:

After reviewing performance of the Company during completed year and also taking into accou the difficulties faced by the company in marketing its Diagnostic services, Directors have taken decision to go in for diversification of Companies activities. The Board has decided that instead concentrating on only ‘Diagnostic Services’ the Company should engage in many allied activitie such as ‘medical and non medical supplies’ to various hospitals and other organisations, ‘medic audit’ and ‘providing of training of operating staff at various ‘diagnostic units’. One more decisio which has been taken by the Board is to expand the area of operation of the Company from Vijayawad Hyderabad to India level. For this purpose the Company may open up office at other centers such a Bangalore/Mumbai. The Board is working out a detailed plans for this purpose including taking u other non medical project and will finalise it very soon in order to implement it in second half current financial year.

6. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION & FOREIGN EXCHANGE EARN- INGS AND OUT GO:

The required information as per Sec.217(1) (e) of the Companies Act 1956 is provided hereun- der:

A: CONSERVATION OF ENERGY:

The Company has taken necessary steps to conserve the energy utilization during the year under review.

B. TECHNOLOGY ABSORPTION:

1. Research and Development (R&D) : Rs.2.83 lakhs

2. Technology absorption, adoption and innovation : NIL

C. FOREIGN EXCHANGE EARNINGS AND OUT GO:

Foreign Exchange Earnings : NIL

Foreign Exchange Outgo : NIL



7. INTERNAL CONTROL AND ITS ADEQUACY:

The Board is committed to ensure that the Company’s ‘internal control’ system remains effective and efficient in areas such as operations and Security. For this purpose proper planning and effective conduct of the ‘internal audit’ is given top-most attention.

8. DIRECTORS’ RESPOSIBILITY:

To best of their knowledge and belief and on the basis of information furnished to them the Directors make following statement, which is required to be made in terms of Section 217 (2AA) of the Companies Act, 1956:

(i) While preparing Annual Accounts, the applicable accounting standards have been followed along with proper explanations

(ii) Appropriate ‘Accounting Policies’ have been selected and applied consistently. The judgments and estimates made are reasonable and prudent so as to present a true and fair picture of state of affairs of the Company.

(iii) Proper and Adequate care has been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956.

(iv) The Annual Accounts of the Company have been prepared on basis of a ‘going concern’.

9. CORPORATE GOVERNANCE:

a) A note on Management Discussion and Analysis of Report is enclosed.

b) As per clause 49 of the Listing Agreement with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company together with a certificate obtained from the auditors of the Company is set out in Annexure, forming part of this report.

10. PARTICULARS OF EMPLOYEES:

During the year under review, except Managing Director no employee of the company was in receipt of remuneration for the whole year which in the aggregate was Rs 24,00,000/- or more per annum nor was any employee in receipt of remuneration Rs.2,00,000/- or more per month for any part of the year in accordance with the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended.

During the year under review, industrial relations of the company continued to be cordial and peaceful.

11. DIRECTORS:

In accordance with requirements of the Companies Act, 1956 and Articles of Association of the Company, Mr. M. Hemanth Kumar, retires by rotation and Board recommends his reappointment.

12. AUDITORS:

M/S Pinnamaneni & Co, Chartered Accountants, the Company’s auditors term office will conclude with this Annual General Meeting. They have expressed willingness to accept the assignment for a further period on one more year. They have also confirmed their eligibility for such an appointment under Section 224(1-B) of the Companies Act, 1956.

13. LISTING AT STOCK EXCHANGES:

The Equity Shares of the Company are listed on Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

The listing fee to the Exchange has been paid up to date.

14. ACKNOWLEDGEMENTS:

Your Directors thank and appreciate all the executives, staff, Bankers, Customers and Workers of the Company for their dedicated services.



//By Order of the Board//

For DOLPHIN MEDICAL SERVICES LIMITED

Sd/- Sd/-

Dr. G.V. MOHAN PRASAD Dr. M. LAKSHMI SUDHA

Managing Director Director

Place: Vijayawada

Date: 13.08.2010