Dear Shareholders,
 
 As I write this letter to you, the world has been hit by the bombshell
 announcement of downgrading the u.S. credit rating, even as it is
 already shaken with concerns of more fall-outs in the debt-ridden
 European union. The severity of this condition has suddenly led to a
 fear syndrome that a grave global economic slowdown is resurfacing and
 these thoughts haunt the world economy yet again.
 
 Stubbornly high inflation and a drop in business confidence is already
 challenging India''s economic growth. While one does not dispute the
 gravity of the current economic situation leading to these concerns, at
 PDL, we believe that India is at a critical point of its economic
 history and the right policy thrust will play a big role in shaping the
 future. The last one year has seen India clock sustained and stable
 economy growth of 8%, which has played an important role in helping the
 realty sector come out of the days of economic slowdown. Positive
 sentiments amongst buyers were visible, though the demand anticipated
 at the start of the year 2010-11 is still to come because of the
 repeated interest rate hikes by the Central Bank during the year. As we
 all know, the past 12 months threw up challenges of spiralling
 inflation, increasing commodities prices and the consistent high rate
 of inflation which impacted corporate bottom line across industries.
 
 Financial performance
 
 However, despite the negative industry situation, I am very pleased to
 share with you that PDL has progressed well on all the key business
 parameters that we had set before us.  The Company was in a
 consolidation mode and worked to deleverage the balance sheet, exited
 non-core assets in terms of the Company''s perspective, raised funds at
 SPV level and ensured fast track execution and delivery of on-going
 projects.  We have successfully sold over 2117 units comprising an area
 of 4.07 million sq. ft. during the year.
 
 The Company'' consolidated revenues stood at Rs.942.40 crores for the
 year ended 31st March 2011. EBIDTA was at Rs.324.48 crores, which
 reflects an increase of 8.9% from Rs.297.93 crores in Fy 2009-10. Net
 profit was at Rs.141.06 crores versus Rs.134.86 crores in Fy 2009-10,
 registering a growth of 4.6%. The EPS for the year stood at Rs.3.40
 while our PAT margin increased from 13.65% to 14.97% during the year.
 
 Reinforcing our priorities
 
 We have remained focused on our key priorities of faster execution,
 timely deliveries and maximising cash flows. Our unwavering emphasis on
 providing cost-effective and holistic solutions to customers continues
 to offer a compelling value proposition to them and to drive our
 business strategy.
 
 The completion schedule of various projects in the residential
 categories was accelerated in line with market requirements and this
 ensured that we continued to earn the trust and confidence of
 customers. We remained committed to our promise of timely delivery and
 handed over possession of nearly 1500 units, comprising an
 approximately 3.78 million sq. ft., during the year.
 
 As a part of our clearly chalked out roadmap, we currently have 30
 residential projects with a saleable area of 74.70 million sq.  ft.
 under execution in fast track mode in the residential segment.  The
 execution roadmap is clearly chalked out into short term (6 months),
 medium term (6-12 months) and over the next two years (1-2 years) which
 also provides visibility to the revenues.  At the same time, we
 received licences and sanctions for several other important residential
 projects, which are either ongoing or planned to be launched in the
 near future.
 
 As part of the accelerated execution plan, the Company is moving its
 ongoing 10 standalone commercial projects, encompassing a saleable area
 of nearly 1.81 million sq. ft., of which 0.59 million sq. ft. is into
 the fast track construction mode. A new office-cum- commercial project
 of 0.14 million sq. ft. at K.G. Marg, New Delhi, is slated to be
 launched in the future.
 
 As you are well aware, PDL is a pioneer in the concept of Metro Malls
 and has a BOT agreement with DMRC for developing 15 projects comprising
 one commercial office space, two metro stations and 12 malls outside
 metro stations, all on DMRC land.  Of these 15 projects, the Company
 has successfully completed nine projects with a saleable area of 0.75
 million sq. ft. Work at Parsvnath Metro Mall, Seelampur and Parsvnath
 Office Complex, Bhai Veer Singh Marg (commercial space) continues as
 per plans.
 
 The Company''s 13 hotel properties across India bear its hallmark stamp
 of quality and excellence and construction work at Hyderabad, Mohali,
 Lucknow, Shirdi, Bhiwadi and Indore is ongoing.
 
 Strengthening the balance sheet
 
 We have raised Rs.269.52 crores through QIP route in October, 2010. We
 have also successfully raised Rs.681 crores through 5 project level
 SPVs from PE Funds viz. Sun Apollo, Red Fort Capital and JP Morgan. The
 continuous inflow of foreign direct investment in projects being
 developed by PDL shows confidence of the investors in the Company. Our
 ability to attract these leading international private equity brands
 endorses our strategic moves and further reinforces our value
 proposition, strong corporate governance, and fast execution and
 delivery^^- capabilities. In line with our strategy to reduce debt, the
 Company has continued a strategic and comprehensive portfolio review of
 its real estate assets, with a view to exiting the non-strategic
 assets, and has monetized few of its projects. We believe these moves
 will improve the cash flows of the Company and bolster growth in
 future.
 
 Brands endorsement
 
 Recognising the fine architecture of our mall, the world''s 2nd largest
 retailer Carrefour zeroed down on Seelampur Metro Mall for setting up
 its first store. This choice clearly epitomises the Company''s property
 development expertise. The Metro Mall at Seelampur is the 8th Mall
 which PDL has completed, and is another step forward to build the best
 of malls and hence enable people enjoy a world-class shopping
 experience.
 
 Environment & Safety
 
 At PDL, Safety, Quality, and Environmental management systems are an
 integral part of the operations and play an important role in achieving
 high quality products through cost-effective, safe and sustainable
 means. The combination of robust systems and processes and experienced
 manpower ensures that we flawlessly adopt the best construction and
 engineering practices.  These efforts are reflected in the safety
 certificate received from DMRC for the construction of station box at
 Dhaula Kuan in October 2008 on the fastest metro corridor connecting
 New Delhi railway station to International Airport.
 
 Moving forward
 
 As we move forward, even in the scenario that is rift with challenges,
 we remain optimistic of the demand in the residential segment across
 the country. The unfulfilled demand for quality homes is enormous and
 genuine buyers continue to search for their dream homes - quarterly
 variations in demand sentiment notwithstanding. We expect to see demand
 emanating from middle-income and affordable housing.
 
 Further, notwithstanding the scenario of gloom, during the coming
 quarters, we feel that prices will move northward with upward bias of
 10 to 15%. The rationale of price increase is because of the increase
 in input costs, which have increased by as much as 10% in cement and
 23% in steel.
 
 In the commercial sector, post the global slowdown, corporate and
 retailers are expanding and the supply of commercial space in centrally
 located place is limited. We are seeing a trend of increase in rentals
 and selling prices in commercial segments as well. We have remained
 bullish even in a challenging business environment and our focus will
 continue to remain on the execution of our projects. To sum up, I am
 confident that the coming quarters will be robust and we will have
 improved margins. We are fully poised to capitalise on the unfolding
 opportunities and steadfastly face challenges that may arise.
 
 Signing off
 
 I take this opportunity to thank the shareholders, our employees,
 customers, bankers and other institutions, investors, partners,
 advisors, vendors and consultants for their co-operation, trust and
 confidence. As we strive to build on our legacy of strengths and remain
 committed to delivering on our promises to all our stakeholders, I seek
 your continued support.
 
 Thanking you, 
 
 yours sincerely,
 
 Pradeep Jain 
 
 Chairman