Dear shareholders,
 
It gives me much pleasure to share with you the performance of your company during the last year and give you a peek of the company’s outlook for the future.

The year 2010-2011 has been a remarkable year for the gaming industry in general, and the company in particular. Macau, one of the closest to India saw gaming revenue growth of 58%, contributing USD 18 billion in 2010. In 2011, it grew further by 35% to USD 26 billion, and in this year, the April quarter witnessed a 45% YoY revenue growth.

We firmly believe that it is the thrill of gaming, the chance of winning and beating the odds that drives human emotion that rides on a wave of adrenaline, a rush that is difficult to top.
 
We also believe that gaming is strongly correlated to the economic growth of the country. As India continues to surge ahead, it is also creating more millionaires and billionaires than ever before. This new affluent class has both the power and the will to spend on gaming. This is on an upward curve. In addition, the fact that gaming destinations also double as popular holiday spots, they create a holistic combination of tourism and gaming experience.
 
As far as Goa and Daman are concerned, we are confident that India is on the brink of exponential growth in gaming and tourism.
 
Goa, Damam and Sikkim are the only three regions in India wherein gaming is allowed by the government. Your company has been reliably building on its existing gaming infrastructure and capacities in Goa. Of the total gaming licenses issues in Goa, your company, through its subsidiaries, owns and operates three of the six offshore gaming licenses, giving itself a dominant leadership position.
 
Currently, with two operational offshore casinos in Goa, Delta offers a total of 670 gaming positions in Goa. In year 2012, the company will commence operations of ‘Kings’ Casino on the MV Horseshoe vessel. This vessel has been acquired for an all in cost of Rs. 600 million. When operational, it will have between 1000 -1500 gaming positions with 100 - 150 tables and around 250 slot machines. This will give us a total capacity of between 1500 - 2000 gaming positions, making it amongst the largest by any operator in Goa.
 
Your company sees another exciting opportunity in store for it in Daman, it being the latest addition to gaming locations in India. In Daman gaming is allowed to be established within hospitality, which means that hotels can have in-house casinos and gaming lounges. The company will have 800 - 1000 gaming positions in Casino ‘Jackpot’ which is spread over approximately 60,000 sq. ft. of gaming space at Thunderbird Resorts.
 
Hospitality and gaming go hand in hand, and over the past year Delta has advanced in its hospitality businesses significantly in order to make the most of this synergy. The company has acquired substantial stake in Marvel Resorts Pvt. Ltd. to build a five star hotel in Goa. When completed, Marvel Resorts will have approximately 300 luxury rooms with around 20,000 sq.ft. of gaming space.
 
We also have international aspirations and are actively considering Sri Lanka as the next destination. The Sri Lankan government is dynamically developing the tourism industry and its sector.  Due to this focused effort by the government, Sri Lanka has witnessed a significant increase in the number of tourist arrivals post civil war. The government has set an ambitious target of attracting 2.5 million tourists by 2016. Sri Lanka has also bid for the 2018 Common Wealth Games, which, if successful, will provide a tremendous boost to the tourism industry.
 
In order to boost tourism, the Sri Lankan parliament legalized gaming in November 2010 there by positioning itself as a competitive alternative to other gaming markets in the region. With Indians making up the largest proportions of tourists at 28%, Sri Lanka offers an excellent opportunity for Delta to build growth in international markets thus creating a regional indentation.
 
We are in an advanced stage of signing an MOU for land in Sri Lanka which will be spread over 4 acres with around 500 hotel rooms compromising of gaming and entertainment area and all other world class amenities.  It is expected to be operational by 2014-2015.
 
Besides gaming and hospitality, Delta through its subsidiary, is also a large real estate player in Kenya. The company recently consummated a deal with the World Bank for the sale of its property, ‘DELTA CENTRE’ in Nairobi for USD 22.8 million.
 
Delta is on an aggressive expansion path and is expected to invest over USD 300 million in the next few years to sustain its dominant position. We are merging as India’s biggest gaming company with international ambitions. We are at a point of inflection. The next five years are very exciting and promising.
 
I would like to take this opportunity to thank everyone in the Delta family who has put in an incredible amount of effort to make this excellent performance possible. The future holds much promise. At Delta, we are confident that we will maintain our momentum and keep building growth.

Yours sincerely,

Jaydev Mody
Chairman