DLF

Dear Stakeholders,
 
 The year 2007-2008 has been a very significant and historic one for
 your Company and it gives me great pleasure to place before you the
 first Annual Report on the Company’s performance after our listing in
 July, 2007.
 
 At the very outset, I would like to share with all of you my deep sense
 of satisfaction over the sterling results achieved by your Company,
 which has grown on a large scale across all segments of the Real Estate
 sector and has successfully emerged as the largest developer in the
 country with a truly pan-Indian presence.
 
 As you all know, the highpoint of the year under review was the very
 successful Initial Public Offering, which marked a momentous turning
 point in the corporate history of your Company.
 
 I am indeed happy to inform you that the funds raised through the mega
 public issue have been deployed in accordance with the laid down road
 map and in tune with the business plans spelt out while launching the
 IPO.
 
 This has contributed significantly to superior performance and
 unprecedented growth during the year.
 
 Your Company has recorded consolidated revenues of Rs 14,684 crore for
 the year ended March 31, 2008, an increase of 262% from Rs 4,053 crore
 in FY07. EBIDTA stood at Rs 9,961 crore, an increase of 243% as
 compared to Rs 2906 crore in the corresponding period last year. Net
 profit was at Rs 7,813 crore, up by 304% from Rs 1933 crore. The EPS
 for FY08 stood at Rs 46.98 as compared to Rs 12.75 for FY07, a
 significant growth of 268%.
 
 At the same time, I believe that there is a need to temper our elation
 over the significant achievements of the year gone by with a realistic
 approach to the challenges that lie ahead, especially in the context of
 the disquieting trends in both the global and domestic scenarios.
 
 India is not alone in grappling with higher global oil and food prices
 and stock market fluctuations, but the dangers of complacency have been
 starkly underlined with inflation hitting a 13-year high and
 indications that the spectacular economic growth of the past few years
 could be difficult to sustain. The Real Estate sector cannot remain
 immune to such ground realities.
 
 Moreover, India, as a nation on the move, still has a lot to do to
 realize its enormous potential. Governance, basic education,
 infrastructure and agricultural productivity need to be dramatically
 improved, while the trade and the financial sectors need to be
 liberalized further.
 
 In particular, India’s most pressing problem of inequality needs to be
 addressed effectively. Politically and economically, it is vital for
 India’s future to broaden education and spread the benefits of India’s
 economic growth to all sections of the population.
 
 Against this background, I take this opportunity to assure all
 stakeholders that your Company is fully aware of the need for caution
 to be exercised in the emerging ground realities of the global and
 Indian economy and the paramount importance of wise planning for the
 immediate future as well as for longer term plans.
 
 Your Company has traditionally built up capabilities to address
 multiple issues such as:
 
 (i) A large pool of well-diversified and strategically located Real
 Estate assets;
 
 (ii) A pan-India presence, with special emphasis on emerging
 geographies;
 
 (iii) Presence in all segments of the sector, benefiting from obvious
 synergies;
 
 (iv) State-of-the art technology and unique designs;
 
 (v) A value code that enshrines transparency and complete statutory
 compliance;
 
 (vi) Highly qualified and technically competent human capital;
 
 (vii) Strong Balance Sheet.
 
 This strong base of human, technological and financial strengths form
 the bedrock of your Company’s endeavour to scale new heights in the
 years ahead.
 
 During the year under review, there has been a significant improvement
 in the performance of each Business Vertical - Homes, Offices, Retail,
 Hospitality and Infrastructure.
 
 We are today spread across the country - from North to South and East
 to West. There are major projects in the States of Himachal Pradesh,
 Punjab, Haryana, UT of Chandigarh, Uttar Pradesh, Delhi, West Bengal,
 Sikkim, Orissa, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Goa,
 Maharashtra, Gujarat, Madhya Pradesh and Rajasthan.
 
 Your Company is attempting a scale up of this size purely on the
 strength of the extra-ordinary systems that it has evolved for working
 as well as reporting.
 
 A new paradigm is being established in the Real Estate sector since it
 necessarily has to deal with multiple Governments and multiple laws
 across each City/State. Wherever we come across difficulties, your
 Company has always taken a step forward, before others, towards
 identifying and initiating suggestions for reforms that will facilitate
 the entire sector.
 
 We actively seek the help of various trade bodies to impress upon
 decision makers the need for such reforms and to provide the technical
 details thereof.
 
 These reforms are urgently required if our nation has to meet the
 demand of its 1.1 billion people for a safe and secure home, a
 comfortable working place and social amenities like retail facilities,
 leisure facilities as well as hospitality and entertainment facilities.
 
 Your Company has foreseen the demand by the demographic expanse of
 India’s population and has developed fully integrated plans for
 comfortable and premium luxury housing; from individual offices to
 large floor plate based anchor clients; from neighbourhood shopping
 centres to destination and luxury malls; from convention centres to
 luxury hotels, business hotels, serviced apartments and clubs; from IT
 SEZs to multi-product SEZs.
 
 The Real Estate sector will undoubtedly emerge as one of the largest
 players in the national economy. All our shareholders know that the
 Real Estate sector impacts the core sectors of the economy and
 fundamental needs of the people. With a large consumer base as in
 India, the Real Estate sector will continue to register a steady, and
 sometimes spectacular, growth in its contribution to the national GDP.
 
 The success of the Real Estate sector will be measured by the delivery
 of a better, more hygienic and safer quality of life to the citizens of
 this country and ensuring the inclusion of people across multiple
 income levels in the benefits of growth.
 
 Your Company has already embarked on an ambitious mission towards
 fulfilling its Corporate Social Responsibility goals, for which we are
 well on our way to gear up a new system based on our activities of the
 past as well as new initiatives for the future.
 
 The Financial Year 2008-09 will be a challenging year for your Company.
 The global liquidity and credit crises and inflationary pressures
 within the domestic economy would impact the business scenario.
 
 To surmount such adversities, the Company will have to perform at
 higher levels of efficiency by garnering more cost effective resources
 and working harder to sustain and enhance growth rates and increase
 business.
 
 In conclusion, I see the coming year as one of consolidation and new
 initiatives in selected projects at prime locations across India which
 shall create for your company a strong platform for the opportunities
 ahead.
 
                                                   With best wishes
                                                      Sincerely,
 
 New Delhi                                         (Dr.K.P. Singh)
 31st July, 2008                                      Chairman