Dear Shareholders,
 
 Warm greetings from Prajay!
 
 Time flies. The biggest challenge is keeping pace with it. We have gone
 from one pillar of strength to another. Today we stand on a firmly
 built foundation based on transparency and good governance practice
 Expansion, development, growth and profits have reached phenomenal
 levels.
 
 
 Our well chartered growth story is induced by the boom prevalent in the
 construction industry supported by a sustainable GDP growth and a sharp
 rise in the per capita disposable income. Investments in Indias
 construction sector accounts for almost 11 per cent of the GDP and it
 is expected to grow at a CAGR of 8 per cent till 2008 to Rs. 8300
 billion. This growth momentum will primarily be driven by the three
 pillars of the construction segment - real estate, infrastructure and
 industrial construction. Among these, the real estate sector accounts
 for nearly 60 percent of the total investments in the construction
 sector and it will grow at around 5 percent in the next couple of
 years. The future growth triggers for the sector will be the increase
 in the demand-supply gap of residential housing, the changing income
 distribution and easy availability of finances.
 
 I invite you to share the promising tomorrow that is taking shape
 today. Over 2006-07, we performed not just in numbers and percentages
 but succeeded in creating a wide base of satisfied customers whose
 smiles reflect our deliverance and commitment to quality. Firm footings
 in the hospitality segment have ensconced us on the higher end of the
 growth curve.  Leveraging brand value comes naturally to us, and
 offering greater returns to stakeholders means we continue to enjoy
 investors faith in our potential and performance.  Low cost
 acquisitions, foreign collaborations, managerial expertise and
 innovative marketing techniques have brought us closer to our dream of
 being the leading real estate Company. A credit rating of A+ and above
 in addition to awards like CITD speaks volumes of our global goodwill.
 Our joint venture with the Malaysian Sunway Group, an infrastructure
 conglomerate, will pave our way for future ventures. To make our
 presence felt elsewhere, we have also ventured into the Vishakapatnam
 real estate market.
 
 As the trend of spiralling growth continues, we acknowledge that there
 are miles more to go, further milestones to achieve. With 31 planned
 and ongoing projects, which will culminate into construction of around
 38 million square feet with the residential segment comprising of about
 84 percent of the total area under development reflect our rapid
 expansion.  Because life itself is a journey - and a continuous one 
 we strive to evolve and search for means to serve our customers better,
 instead of resting on past laurels.  That is our credo.
 
 Our promise is that we will continue our growth story.  The story of
 making it more than real.