Indiabulls Real Estate

Letter to Shareholders
 
 Reflecting on FY2007-08 gives me a great deal of satisfaction. It has
 been a landmark year in performance and scalability. We saw a 3002%
 jump in profit after tax, from 13.11 crores in 2006-07 to 406.70 crores
 this fiscal year. IBREL has set precedent for the real estate industry
 with rapidity in planning, execution and returns. Barely 18 months
 after a demerger from the parent company, IBREL has charted a steep
 growth curve. This is reflected in the jump in revenue generation from
 45.50 crores in 2006-07 to 764.65 crores in 2007-08 amounting to 1581%
 increase. I am pleased to inform you that the Board has recommended a
 dividend of Rs.13.50 per equity share.  We started out to create
 shareholder wealth and thats exactly what we have done.
 
 Cutting Across Spaces, Delivering Value In the entire gamut of
 residential, office and retail space development, we have made some
 strategic buys and added quality through development of these land
 banks.
 
 In the residential space, an upcoming Rs. 1,800 crores project,
 Castlewood Luxury Apartments in South Delhi has an in-built value as it
 occupies premium location in the metro, and your Company will build on
 it even further. In Chennai, we have planned a residential project at
 Old Mahabalipuram Road which has been more contemporarily and aptly
 labeled as the IT Highway. The IT industry magnet has also drawn us
 towards acquiring about 1,200 acres for residential projects in NCR and
 Mumbai Metropolitan region (MMR) as well, where lifestyle apartments
 are well in demand.
 
 For IBREL, the business of choice is developing and leasing office and
 retail space in the heart of Mumbai, the Jupiter Mills and the
 Elphinstone Mills. We are adding premium value to it by positioning it
 for contemporary business needs. We are witnessing significant
 accretion of value in the mall development business. So, the Company is
 developing 14 million sq.  feet in 16 cities across India for leasing
 purposes and has invested in Piramyd Retail Limited which has been
 renamed Indiabulls Retail Services Ltd. and its stores re-branded as
 Indiabulls Megastore and Indiabulls Mart.
 
 The IT industry has been the main catalyst in attracting IBREL towards
 IT SEZ development at some very strategic locations. At Panvel in MMR,
 we have acquired land and received government approval for coming up
 with two IT SEZs of 25 acres each.
 
 We are at advanced stage of planning for development of Multi-product
 SEZs at Nashik, Maharashtra on the Delhi-Mumbai industrial corridor as
 well as at 6,000 acres in Raigad district, also located in Maharashtra.
 With such well thought out plans, we hope to set in the right financial
 dynamics in the right direction.
 
 For your Company at this juncture, the transition from Real Estate to
 Infrastructure development is a matter of transposing skills, growth
 and value on a much larger scale. The Indian economy shaping up at the
 rate of 8% - 9% GDP has brought significant business opportunities at
 our doorstep. Being an integral part of the resultant ecosystem, IBREL
 has successfully bid in the Redevelopment Plan of Dharavi, Asias
 largest slum. To achieve further steep growth contours in stakeholder
 value and resolve Indias power crisis, we have forayed into the power
 generation sector, tapping coal based thermal and hydro too. Bringing
 in FDI through Farallon Capital and LNM India Internet Ventures, the
 Companys power business is one of the best capitalized private sector
 energy companies with a networth of Rs. 2,184 crores.  Bidding for
 12,000 MW and developing projects of 5,447 MW within next four years is
 a cash- rich option for IBREL shareholders. The Bhaiyathan thermal
 power plant acquired in competitive bidding comes along with captive
 coal mines of 349 million tonnes of reserves. 35% of the power produced
 from Bhaiyathan project will be available for merchant sale at market
 rates while the remaining has to be sold to CSEB at levelised tariff.
 In addition to the above, your company has recently signed an MOU with
 Jharkhand Government for setting up an Independent Power Project (IPP)
 of 1320 MW.
 
 On Firm Ground;
 
 Occupying the position of the third largest real estate developer
 pan-India in a span of three years, IBREL has climbed a steep growth
 curve and will continue to march ahead. Being the first real estate
 company to have brought in FDI in the sector in 2005, we have proved
 our mettle to the foreign investors.
 
 I take this opportunity to thank all our stakeholders our shareholders,
 customers and employees for supporting us as we seek newer frontiers to
 create futuristic value for all.
                                                     Sameer Gehlaut
                                               Founder and Chairman