During the year gone by the Indian economy has shown remarkable
 resilience and has responded well to the governments calibrated policy
 measures over the previous two years to stimulate growth. However, as
 is the case with most emerging economies, the persistent fiscal and
 monetary tightening measures to control inflationary pressures have
 begun to impact investment and demand in the interest-sensitive
 sectors. Towards the latter part of the year, these factors tempered
 the economys growth momentum at a time when the global economic
 scenario is still to exhibit positive signs of stabilising.
 
 The real estate sector re-emerged from fears of a double dip recession
 and saw a well entrenched and broad based recovery across product
 segments and micro markets. The residential segment witnessed healthy
 volumes and pricing while the momentum in the office leasing market
 grew stronger. Towards the end of the year, higher interest rates
 resulting from ten successive hikes by the Reserve Bank, sustained
 inflation and curtailed liquidity moderated the industry growth,
 although end-user demand remained buoyant.
 
 Your Company was adept in foreseeing the oncoming challenges in the
 environment and was successfully able to implement a series of
 strategic actions to mitigate risks and at the same time ensure the
 success of its product launches. Im happy to share with you that your
 Company re-entered the plotted development segment in Gurgaon – its
 first launch in over a decade and also made its foray in the promising
 new suburb of Mullanpur, Greater Chandigarh in North India. We
 capitalised well on the office leasing demand, strategically
 rationalised our land bank and substantially accomplished our non-core
 asset divestment targets. We also remain steadfastly focused on the
 need to moderate our debt levels in the medium term.
 
 As a testimony to your Companys unswerving commitment towards customer
 service and convenience, your Company initiated the construction of the
 Rapid Metro Rail and fast-tracked the Cybercity to Golf Course road
 development projects in Gurgaon. The completion of both these key
 initiatives will alleviate current infrastructure bottlenecks and
 provide better convenience, connectivity and accessibility to your
 Companys existing and potential customers in Gurgaon.
 
 I believe that the year ahead will continue to be characterised by a
 myriad of challenges ensconced in the Governments intentions to
 balance rapid economic growth and inflation concerns. The industry,
 needless to say, cannot be completely immune to the repercussions of
 such developments.
 
 Your Company is confident of weathering the ongoing challenges
 successfully and stands firm in its commitment of ensuring that it
 continues to efficiently implement all strategic imperatives and de
 rigueur action plans to further strengthen its performance. It will,
 simultaneously chart a steady and secure growth trajectory with
 judicious prioritisation of resources in order to sustain and enhance
 its leadership position in the industry.
 
 We dedicate the year gone by to the memory of the Late Chaudhary
 Raghvendra Singh, whose birth centenary was celebrated last year, with
 a promise to continue to uphold his high standards of ethics, good
 governance and responsibility to society. Our unflinching focus to
 Corporate Social Responsibility saw the DLF Foundation initiate two
 flagship programmes, DLF Life and Raghvendra Scholars. While the
 former is aimed at originating the skill sets of one million people by
 opening 250 skill training centres across the country, the latters
 objective is to identify and support talented students in their quest
 for higher education and appropriately harness their potential.
 
 I re-affirm to you, the core of your Companys philosophy which
 continues to remain ingrained in the underlying values of providing
 exemplary customer service, enhancing stakeholder value and integrating
 business aspirations with societal commitments. These I firmly believe
 have been and continue to be the cornerstones that will help formulate
 your Companys task-oriented ethos and lead it to become a true role
 model for the Indian real estate industry.
 
 Your Company remains steadfast in its resolve to play a small but
 pivotal role in becoming a harbinger of growth; in building an India
 where development and growth should be inclusive not divisive and where
 every Indian has a home to call his own.
 
 I look forward to your continued support in the year ahead and wish you
 the very best.
 
 With best wishes, Sincerely,
 
 (Dr. K.P. Singh)
 
 Chairman
 
 June 23, 2011