Housing Development and Infrastructure

The year 2008-2009 was exceptionally challenging and historical year in
 the world economy, and will be remembered for the crisis that affected
 the global financial systems and engulfed most countries of the world.
 The deterioration in the global outlook that started in September 2008
 and the knock on effects of the financial crisis, economic slowdown and
 commodity prices affected the Indian economy in several ways. The
 Government and Central Banks around the world responded to the crisis
 through both conventional and monetary measures.
 
 The Central Government through Fiscal Stimulus packages and policy
 changes during this period mitigated the effects of the financial
 crisis to the Indian Economy, which grew by 6.7% in 2008-2009 against
 the growth of 9% in 2007-2008. The large domestic demand bolstered by
 Government consumption, adequate cuts in policy rates, sound banking
 sector and well functioning markets helped the Indian economy from the
 worst impact of the financial crisis. The pace of recession in advance
 economies has slowed and we are seeing green shoots of stabilization
 and recovery. The Real Estate and Housing Sector saw an increase in
 credit by 52% which helped companies survive the economic downturn.
 
 The Central Government continues to work on effective changes in
 policies and providing stimulus packages to ensure revival of the
 Indian Economy.
 
 In the backdrop of the falling global financial market and difficult
 scenario for Real Estate companies, your Company under trying
 circumstances was focused on
 
 execution and demonstrated its capability by launching construction of
 one of the largest urban rehabilitation scheme in India i.e. MIAL
 Airport Slum Rehabilitation Project. I am glad to inform you that
 project is ahead of execution and has received good accolades from
 investor and financial community worldwide.
 
 Your Company played a pioneer role in reviving Mumbai Real Estate
 market by launching three residential projects in the month of March &
 April 2009 at substantial discounts. All three residential projects
 i.e. Project Premier Residency, Project Metropolis & Project Galaxy
 received tremendous responses. Our concept of affordable housing paid
 us rich dividend and led many developers within Mumbai and India to
 follow our footsteps.
 
 The Company plans to have a mix of residential and commercial launches
 during the current year. Our emphasis on low cost housing, had led us
 to projects like MMRDA Rental Housing Scheme in Virar. We are committed
 to make Mumbai Slum Free and provide affordable housing to various
 segments of society.
 
 As part of our deleveraging strategy we have recently raised Rs.1688.40
 Crores from a Qualified Institutional Placement to reduce the debt and
 fund the ongoing projects. Further we will keep exploring the various
 funds raising options for ongoing projects.
 
 Real Estate is internally led consumption industry and going ahead with
 stable Government and consistent policies and focus on urban housing,
 your Company is well placed to march ahead with its growth plans.
 
 In the end, I would like to reinforce the uniqueness of our business
 model and strategy will be to focus on execution, deleveraging the
 balance sheet and create wealth for shareholders. I would also like to
 extend our sincere thanks to all the financial institutions that have
 supported us during the tough times and look forward to the support of
 all my shareholders for many more years.
 
 Yours sincerely,
 
 Rakesh Kumar Wadhawan
 Executive Chairman