HISTORY

DLF Limited or DLF (Delhi Land and Finance) is the India's biggest real estate developer
based in New Delhi, India. The DLF Group was founded by Raghuvendra Singh in 1946. DLF
developed residential colonies in Delhi such as Shivaji Park (which was actually its first one),
Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash Colony and Hauz
Khas. In 1957, with the passage of Delhi Development Act, the local government assumed
control of real estate development in Delhi and banned private real estate developers.

As a result DLF began acquiring land at relatively low cost outside the area controlled by the
Delhi Development Authority, in the district of Gurgaon, in the adjacent state of Haryana. In the
mid-1970s, the company started developing DLF City project at Gurgaon. Its upcoming plans
include hotels, infrastructure and special economic zones-related development projects.

The company is currently headed by Indian billionaire Kushal Pal Singh. Kushal Pal Singh,
according to the Forbes listing of richest billionaires in 2009, now stands as the 98th richest man
in the world and the world's richest property developer. The company's US$ 2 billion IPO in
July, 2007 created India's biggest IPO in history. In July 2007, DLF announced its first quarter
results ending 30 June 2007. The company reported a turnover of Rs. 3,120.98 Crore and Profit
After Tax at Rs. 1,515.48 Crore.

In the early 40s-50s Raghuvendra Singh was bankrolled by the Dabra & the Sahanpur families to
procure real estate around Delhi. That money was multiplied over the decades through
investments like Punjabi Bagh, Rajouri Garden, Krishna Nagar, South Extension, Greater
Kailash 1 & 2, Kailash Colony, Hauz Khas and Panchsheel. In the 1970s and 1980s DLF
purchased 3,000 acres (1,214 ha) of land from farmers in Gurgaon for $2000 per acre.

But at that time, the Haryana government did not allow private companies to develop the land.
Years later, when Rajiv became Prime Minister, he ensured that the Haryana Government
change the local law and allow private companies to develop the land. The haryana government
relented and Gurgaon underwent a private real estate boom which is continuing to this day.

In 1985, DLF started developing the 3000 acres it had acquired from farmers.

In 1999, DLF developed its first A-grade office spaces for rent in Gurgaon.

The boom includes world-class office buildings, apartments, golf courses, shopping malls, 5-star
hotels and a private expressway linking Gurgaon to Delhi Airport.

By Rahul Singh Kataria

Until the mid-1990s, most of DLF's (Delhi Land and Finance) operations were in Gurgaon and
Delhi metropolitan area. However, with increased assets, DLF has been trying to ramp up its
operations all over India. A major investment made by DLF was a INR 700 Crore (INR 7 billion)
buyout of NTC Mill Land in Mumbai. Some of DLF's other development initiatives include a
US$ 2.1 Billion investment in Tamil Nadu, a multi-billion dollar business park in Bangalore, a
US$ 1.7 billion investment in Madhya Pradesh's real estate and infrastructure sector, and a INR
10 billion investment plan for developing special economic zones in Orissa.

Annuity Business

The annuity business consists of the rental businesses of offices and retail.

With over six decades of excellence, DLF is a name synonymous with global standards, new
generation workspaces and lifestyles. It has the distinction of developing commercial projects
and IT parks that are at par with the best in the world. DLF has become a preferred name with
many IT & ITES majors and leading Indian and International corporate giants, including GE,
IBM, Microsoft, Canon, Citibank, Vertex, Hewitt, Fidelity Investments, WNS, Bank of America,
Cognizant, Infosys, CSC, Symantec and Sapient, among others.

DLF pioneered the retail revolution in the country and brought about a paradigm shift in the
industry by redefining shopping, recreation and leisure experiences with the launch of City
Centre in Gurgaon in 2000. The Retail Malls business is a major thrust area for DLF. Currently,
DLF is actively creating new shopping and entertainment spaces all over the country.

The company has land resource of 92 msf for office and retail development, with 17 msf of
projects under construction.

DLF has acquired AMAN Resorts to expand its presence in the hotel business internationally. It
also has a JV with Hilton hotels for the development and management of hotels pan-India. DLF
plans to develop world-class hospitality properties under the luxury, business, leisure &
recreational segments of the hospitality industry. It has a development potential of 12 msf for its
hotel business.

For better implementation and execution of its projects, DLF has created a set of execution
enablers – such as Laing O'Rourke for construction.

DLF has a strong management team running independent businesses, though complementing
each other in cases of opportunities of mixed land use. DLF's mission is to build a world-class
real estate development company with the highest standards of professionalism, ethics and

customer service and to thereby contribute to and benefit from the growth of the Indian
economy.

By Rahul Singh Kataria

DLF pioneered the retail revolution in the country and brought about a paradigm shift in the
industry by redefining shopping, recreation and leisure experiences with the launch of City
Centre in Gurgaon in 2000. Changing lifestyles, an accent on quality entertainment, transition in
consumer preferences from conventional modes to a wholesome entertainment experience, and
enhanced income levels and propensity to spend have further triggered the growth in the retail
market in the country. These factors have contributed to establishing India as the fifth-largest
retail destination in the world. DLF Retail's foray into the exciting arena of mall development
synchronized well with the Group's activities in the entertainment infrastructure development
business – cine multiplexes that go by the brand name, DT Cinemas.
DLF Labour Hutment
While all the big developers focus only on providing world-class facilities to their buyers DLF
carried its social responsibility initiatives to the construction work sites in Gurgaon once it
started construction of the DLF Township. At DLF it was felt that even though there had been
tremendous improvement in construction technology and quality it was distressing to note that
the people who actually make all the glitzy buildings were a neglected lot and often required to
do so in inhuman conditions. The sight of construction workers and their children living in
jhuggies without even the basic facilities at most of the construction sites is not uncommon. At
DLF it was their constant endeavor to improve the living conditions of their construction workers
by providing them all the basic necessities at the site itself by efficient and effective space
management. DLF seized the initiative in this respect and became a pioneer in providing all
necessary facilities to its construction workers on site when it tied up with Laing O Rourke for
construction projects. It was decided that before commencement of the construction a suitable
location be identified on site for construction of hutments to house the workforce for the entire
duration of the project. Instead of constructing makeshift or temporary accommodation DLF
sanctioned hefty budgets to build a mix of cemented hutments and dormitories for the workers.
The entire labour hutment area was paved to ensure easy access even during the monsoons and
the work of sanitation and housekeeping was outsourced to a third party namely M/s Lion
Services. All the residential accommodation at the DLF labour hutment site is provided with
electricity, water, fans, beds and linen and separate areas have been provided for toilets and
washing. In order to take care of the children of the workers mobile crèches have been made
available on site through a strategic tie up with an NGO named Mobile Creches. A subsidized
canteen manned by a third party has also been made available on site to ensure hygienic and
good quality food on site. Medical help is available on site along with a 24-hour ambulance to
take care of emergencies. In order to improve the skills of the workers as well as train potential
workers on site a non-profit residential "Apprentice Training Centre" for imparting skills in
carpentry and masonry was started.

EnvironmentPrograms
Haryana Urban Development Authority (HUDA) has consistently over the last seven years
awarded DLF with "Excellence in Horticulture Preservation". A total of 47 awards have been
received under various categories.

DLF has installed one of its kind gas-based power generation system at the Infinity Tower. Co-

By Rahul Singh Kataria

generation is also a part of this installation as we are utilizing the waste heat for air-conditioning
and are in effect saving about 25 per cent of power.

This year (July-August, 2007) DLF initiated an plantation drive in 21 villages of Haryana by
involving the Government school children and the local Panchayats with support from the Forest
Department.

DLF is in the process of switching its street lighting system to 36 watts CFL with electronic
choke thereby saving 15-20 watts per street light.

YEAR EVENTS
1963 Incorporation of American Universal Electric (India) Ltd

1979 DLF United Limited amalgamates with American Universal

Electric (India) Limited to form DLF Universal Electric Limited

1981 DLF Universal Electric Limited changes name to DLF Universal

Limited

1981 DLF Universal Limited obtains its first license from the
State Government of Haryana and commences development of the
'DLF City' in Gurgaon, Haryana

1985 We initiated plotted developments, self first plot in

Gurgaon, Haryana. Consolidate the development of DLF City for
township development.

1991 Construction of our first office complex, 'DLF Centre', at

New Delhi

1993 Completion of our first condominium project, 'Silver Oaks',

at DLF City, Gurgaon, Haryana

1996 Construction of 'DLF Corporate Park', our first office

complex at DLF City, Gurgaon, Haryana.

1999 Development of the DLF golf course

2000 The Scheme of Merger/Amalgamation of DLF Industries Limited

with M/s. DLF
Universal Ltd., which was approved by the Hon'ble High

By Rahul Singh Kataria

 Court of Delhi at New Delhi
and by the Hon'ble High Court of Punjab and Haryana at
Chandigarh came into effect on 09.10.2000.

2002 We venture into retail development in Gurgaon, Haryana

2002 We offer integrated family entertainment centers with the

commencement of operation of 'DT Cinemas' at Gurgaon, Haryana

2003-04 Development of 'DLF Cybercity', an integrated IT park

measuring approximately 90 acres at Gurgaon, Haryana.

2005 * Acquisition of 16.62 acres (approx) of mill land in

Mumbai
* Received 'Corporate Buildings Award' instituted by
'Indian Architect and Builder', a publication of Jasubhai Media
Group, Mumbai
* Received 'Superbrand' award from Hon'ble Minister for
Civil Aviation, Mr. Praful Patel.

2006 Construction joint venture signed between DLF Universal

Limited and U.K. based Laing O'Rourke Plc to form DLF Laing O'Rourke
(India) Limited

2006 DLF Universal Limited changes name to DLF Limited

2006 Alliance agreement signed between DLF and Hilton

International Co. to incorporate a joint venture company in India to
develop, own and acquire 50 to 75 hotels and services apartments.

2006 DLF enters into a joint venture with WSP Group Plc. for the
purposes of providing engineering and design services, environmental
and infrastructural facilities and also project management services.

2007 DLF enters into a joint venture with Prudential Insurance

to establish a joint venture company to undertake life insurance
business in India.

- DLF launches an issue.

-The US-based Hilton Hotels Corporation has declared that it will

develop 10 hotel projects in the country in alliance with DLF Ltd.

2008 -DLF inked a memorandum of understanding with the infrastructure

By Rahul Singh Kataria

 Company Gayatri Projects Ltd (GPL) to develop roads, highways and
Bridges across the country.

- DLF Ltd and the Tamil Nadu Industrial Development Corporation

(TIDCO) have forayed into an alliance agreement for a Rs 1,500-crore
Information technology Special Economic Zone (SEZ).

-Commences operations of India's first Luxury Mall - Emporio Clinches

the Title Sponsorship of IPL

2009 -Foundation stone laid for DLF-IL&FS Metro In Gurgaon - India's first
Public rail transport system to be built & run by a private Company
- DLF conferred Best Global Developer Award, 2009 by Euro money
- DLF sells DT Cinemas, enters into a long term strategic alliance with PVR

Financial Analysis of year 2007-08 and 2008-09

The 44th Annual Report on the business and operations of the Company together with the
audited results for the financial year ended 31st March, 2009.

Financial Results (Rs. in Crores)

Consolidated
2008-09 2007-08

Gross operating Profit 5,985.98 9,961.48

Less: Finance Charges 554.84 310.00

Less: Depreciation 238.96 90.06

Profit before Tax 5,192.18 9,561.42

Less: Provision for Tax 675.36 1,739.09

Profit before minority interest 4,516.83 7,822.34

Share of Profit/(loss) in associates (21.10) 26.41

Minority interest (27.54) (35.48)

Profit after tax and minority interest 4,468.19 7,813.27

By Rahul Singh Kataria

The year under review was extremely challenging. The markets witnessed unprecedented
turbulence in the wake of the global financial meltdown. A runaway inflation touching a high
point of 12% early in the year, tight monetary policies followed by the authorities for most of the
year to control inflation with the consequent high interest rates, precipitous 26% fall in the value
of the Rupee during the year and weak consumer demand, all led to a difficult environment in
which the company had to operate.

The worst affected industry was Real Estate. The Company being the forerunner had to face the
brunt of the economic slow-down resulting into decreased sales volumes and pressure on the
profit margins and financing costs.

The Company’s total income on consolidated basis decreased from Rs.14,684 Crores to Rs.
10,431 Crores, a decrease of 29% over the previous financial year. Similarly, the gross operating
profit on consolidated basis reduced from Rs. 9,961 Crores to Rs. 5,986 Crores, resulting in a
decrease of 40% and the net profit after tax and minority interest for the year is Rs. 4,468 Crores
as against Rs. 7,813 Crores for the previous year (2007-08), representing a decrease of about
43%. This revenue and profit figures have been arrived at after adjusting for
losses contributed by non-core businesses of Rs. 163 Crores.

DLF has taken aggressive steps to meet the challenges of the difficult times through major
initiatives in sustaining growth, cost-optimization, process improvement and efficient
management of working capital. The commitment to meet these challenges resulted in an
optimistic start to FY 2009-10.

Review of Operations

Over the past few years, the real estate sector has transformed from an ascent and unorganized
sector to a professionally organized industry, which has been contributing significantly to the
nations’ GDP. Being the leader in the industry in terms of revenues, earnings and market
capitalization, your Company has been able to capitalise the opportunities in an efficient manner.

However, the challenging credit market conditions throughout the calendar year 2008, triggered
off a slowdown in the second half of FY09, resulting in a slowdown in sales and fresh bookings.
While your Company saw relatively subdued volumes of sales and leases through the last 2-3
quarters of FY09, things have now started looking up with a lot of steps being taken by the
Government as well as the players in the industry.

During the year under report, your Company delivered 7 m.s.f. of developed area to its
customers – 2 m.s.f. of homes and 5 m.s.f. of office space. As on 31st March, 2009, your
Company had a development potential of 425 m.s.f., with 37 m.s.f. of projects under
construction.

By Rahul Singh Kataria

Focused on timely execution of delivery of pre- sold/leased projects, your Company slowed
down few projects till conditions stabilize to improve demand for fresh leasing. Accordingly, 27
m.s.f. of office and retail developments have been deferred. Your Company has also exited from
long gestation projects like Bidadi and Dankuni townships, along with development plan for
hotels being shifted out for next 15-18 months.

Your Company has also been granted in principle approval by the Central Government for de-
notification of 5 of its SEZs.

Your Company introduced price re-sets and extended other benefits to its customers in Feb-
March, 2009. This was done in an endeavor to pass on the benefits of reduced construction costs
and offer best possible prices to our customers, as well as build on the Company’s brand equity
as a customer-friendly Company. Your Company foresees the results of these measures in terms
of increased customer support and recognition as the preferred and ‘fair’ developer by the
customers in the coming time.

During the year, DLF Pramerica Life Insurance Company Limited, your Company’s JV with
Prudential International Inc. for life insurance services in India, began its operations. DLF
Pramerica Asset Managers Pvt. Ltd, a JV between your Company and Prudential Financial Inc.,
also received in-principle approval during the year for commencing its business operations in
India.

Your Company met all its stakeholder commitments in time during the year, including its
commitments to banks and financial institutions.

In order to weather the tough economic environment over the last year, your Company affected a
strategy which allowed it to be liquid, whilst it tested the right market conditions where it could
attract significantly larger number of end customers. Value proposition being a key element of
this strategy, your Company launched various different projects across India in the residential
space and demonstrated leadership position within the industry to bring back demand.

1,389 apartments were booked in a single day in the newly launched project in the heart of Delhi
during April, 2009. Even in Bangalore, around 700 apartments were booked in Q1 FY2010.

Though there were marginal cancellations in some of the existing pre-leased space across the
country, your Company’s relationship with all the long term strategic tenants continues to be
strong and engaged. Your Company believes that as business conditions in the global markets
improve over the next 6 months, the leasing activity will gain fresh traction.

On the whole, while fiscal 2009 was hit by the tight credit conditions, subdued volumes and few
one- time adjustments, your Company sees the coming quarters gaining back the lost momentum
and showing better performance. The first quarter of FY10 has already started showing positive
signs with 2.5 m.s.f. sold in homes segment in April, 2009. Seeing these positive trends, your
Company will continue to launch new residential and commercial projects in various locations
across the country, after adequate research of market demand, at the best prices.

By Rahul Singh Kataria

The performance of the Company on stand-alone basis for the year ended on 31st March, 2009 is
as under:
(Rs. in Crores)
Stand Alone
2008-09 2007-08

Turnover 3,839.04 6,058.46

Gross operating Profit 2,734.80 3,591.25

Less: Finance Charges 809.86 447.65

Less: Depreciation 114.08 25.68

Profit before Tax 1,810.86 3,117.92

Less: Provision for Tax 261.00 543.52

Profit after Tax 1,549.86 2,574.40

Earlier Year Items

Income Tax - 0.19

Prior-period expenses (net) 2.09 -

Net Profit 1,547.77 2,574.59

Balance as per last Balance Sheet 1,734.96 269.27

Balance Available for 3,282.73 2,843.86

Appropriation

Appropriation

Transfer to Debenture 113.17 -

Redemption Reserve

Utilize for Bonus Issue - 0.07

Transfer to General Reserve 154.78 311.00

Dividend on Equity Shares

Interim - 340.97

Final 339.44# 340.97

Tax on Dividend 28.91 115.89

By Rahul Singh Kataria

 Excess provision of previous (29.81) -
year written back

Surplus carried to Balance Sheet 2,676.24 1,734.96

Future Outlook

Given the prevalent sentiments, your Company had followed a cautious approach to new
launches. However, as economic conditions stabilize, your Company plans to make selective
new launches based on targeted market research in different markets to catch the changing
demand scenario.

Your Company will continue to focus on affordable housing with test launches across newer
locations, along with launching some strategic “city-center” housing projects. We endeavor to
generate buyer interest by providing excellent location and superior product specifications.

Focusing on the sales model, your Company will also make selective launches of commercial
complexes.

For offices, we intend to expedite execution and deliveries wherever backlog exists and pump up
the construction activity based on visibility of pre- leasing. We continue to strengthen our
relationships with our existing customers.

Your Company is quite hopeful that the coming quarters will see better sales/leases and the
performance of the Company will be revived.

Dividend

In view of the difficult economic climate in which the Company operated during the year, a
reduction is being made in the proposed Dividend as compared to the Dividend of Rs.4 per
Equity Share (200%) paid in the previous year. Your Directors are pleased to recommend for
approval of the Members a Dividend of Rs.2 per Equity Share (100%) of Rs. 2 each for the FY
2008-09 amounting to Rs. 368.35 Crores (Rs. 339.44 Crores towards Dividend and Rs. 28.91
Crores as Dividend tax).

Buy-Back of Equity Shares

The Board of your Company in its meeting held on 10th July, 2008 approved buy-back of not
exceeding 2.20 Crores fully paid-up Equity Shares of Rs.2 each, at a price not exceeding Rs.600
per Equity Share, by utilizing an amount of not exceeding Rs.1,100 Crores, i.e., within the limits
of 9.80% of the aggregate of the Company’s total paid-up Equity Capital and Free Reserves as
on 31st March, 2008, from open market through NSE and BSE using their nation-wide electronic
trading facilities in compliance with the provisions of the Companies Act, 1956 read with
Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 1998.

By Rahul Singh Kataria

Accordingly, Public Announcement (PA) and Corrigendum to PA dated 30th September and
15th October, 2008 respectively, were issued by the Company.

The Buy-back Offer was open from 17th October, 2008 to 6th May, 2009. During the period the
Company bought-back 76, 38,567 Equity Shares, for a total consideration (including transaction
cost) of Rs.141.02 Crores, i.e. at an average price of Rs.184.62 per share by utilizing free
reserves and/or share premium account of the Company. The paid-up capital of the Company
after extinguishment of shares bought back under the Scheme stood at Rs.339.43 Crores.

Fixed Deposits

The Company has not accepted/renewed any public deposits during the year under review. An
unclaimed public deposit of Rs.0.27 lacs was transferred to Investors Education and Protection
Fund (IEPF) on 19th June, 2008.

Subsidiary Companies and Consoli- dated Financial Statements

The consolidated financial statements of the Company and its subsidiaries, prepared in
accordance with Accounting Standards AS-21, 23 and 27, issued by the Institute of Chartered
Accountants of India, form part of the Annual Report. The Company has made an application to
the Central Government seeking exemption under Section 212(8) of the Companies Act, 1956
from attaching the Balance Sheet, Profit & Loss account and other documents of the subsidiaries
to the Balance Sheet of the Company. The documents/ details will be made available upon
request to any member of the Company and are also available for inspection by any Member of
the Company/ its subsidiaries at the Registered Office of the Company/its subsidiaries and at the
Head Office of the Company during working hours up to the date of Annual General Meeting.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings / Outgo, etc.

The particulars required to be disclosed under Section 217(1)(e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988
are given at Annexure-A annexed hereto and form part of this Report.

Particulars of Employees

In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975, the names and other particulars of the
employees are set out in the annexure to the Directors’ Report. However, as per the provisions
of Section 219(1) (b)(iv) of the said Act, the Directors’ Report and the Accounts are being sent to
all the Members of the Company and others entitled thereto excluding the statement of
particulars of employees. Any member interested in obtaining such particulars may write to the
Company Secretary at the Registered Offi ce of the Company.

Employee Stock Option Scheme (ESOS)

By Rahul Singh Kataria

Information in terms of Clause 12 of the SEBI (Employees’ Stock Option Scheme and
Employees’ Stock Purchase Scheme) Guidelines, 1999 is at Annexure-B.

Debentures

During the year under review, the Company has issued Non-convertible Debentures (NCDs) of
Rs.10 lacs each on private placement basis aggregating to Rs.1, 320 Crores, as per details below:

i) 14% NCDs aggregating to Rs.100 Crores to Standard Chartered Bank;

ii) 13.7% NCDs aggregating to Rs.500 Crores to Life Insurance Corporation of India;

iii) 14% NCDs aggregating to Rs.720 Crores to Life Insurance Corporation of India.

Listing at Stock Exchanges

The Equity Shares of your Company continue to be listed on BSE and the NSE. During the year
under review, the Equity Shares form part of S&P CNX Nifty & BSE - 30 indices. The Non-
convertible Debentures issued by your Company are also listed in the Wholesale Debt Market
(WDM) segment of National Stock Exchange. The listing and custody fees for the year 2009-10
have been paid to the Stock Exchanges, NSDL and CDSL, respectively.

Pursuant to Clause 5A of the Listing Agreement, the Company has initiated appropriate steps to
deal with unclaimed Equity Shares allotted in the IPO in 2007. As on 31st March, 2009, 14,750
Equity Shares are unclaimed by the rightful owners.

Forfeiture of Partly-paid Shares

The Board of Directors of the Company in its meeting held on 30th July, 2009 has forfeited
43,680 partly- paid Equity Shares (allotted on 28th June, 2007) for non-payment of balance
outstanding amount/ allotment money due and payable thereon.

Management Discussion and Analysis Report

The Management Discussion and Analysis Report as required under Clause 49 of the Listing
Agreement with the Stock Exchanges forms part of this Report.

Corporate Governance Report

The Company is committed to maintain the highest standards of Corporate Governance. The
Directors adhere to the requirements set out by the Securities and Exchange Board of India’s
Corporate Governance practices and have implemented all the stipulations prescribed. The
Company has implemented several best Corporate Governance practices as prevalent globally.

By Rahul Singh Kataria

The Report on Corporate Governance as stipulated under Clause 49 of the Listing Agreement
forms part of this Report.

Your Company was conferred Golden Peacock Award for Excellence in Corporate Governance
in September, 2008 at London.

The requisite Certificate from the Statutory Auditors of the Company, M/s. Walker, Chandiok &
Co, Chartered Accountants, confirming compliance with the conditions of Corporate Governance
as stipulated under the aforesaid Clause 49, is attached to this Report.

Directors Responsibility Statement

As required under Section 217(2AA) of the Companies Act, 1956, your Directors confirm
having:

a) followed in the preparation of the Annual Accounts, the applicable accounting standards with
proper explanation relating to material departures, if any;

b) selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs
of your Company at the end of the financial year and of the profit of your Company for that
period;

c) taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of your
Company and for preventing and detecting fraud and other irregularities; and

d) prepared the Annual Accounts on a going concern basis.

Auditors

The Auditors, M/s. Walker, Chandiok & Co, Chartered Accountants, hold office until the
conclusion of the forthcoming Annual General Meeting
and are recommended for re-appointment. Certificate from the Auditors has been received to the
effect that their re-appointment, if made, would be within the limits prescribed under Section
224(1B) of the Companies Act, 1956.

Auditors Report

There is no qualification or adverse remarks on the stand-alone financials of the Company.

Further, the observation given in Point No. 4 of the Auditors’ Report on consolidated financials
read with Note No. 19 of Schedule 24 to the consolidated financials, are self-explanatory and
your Directors have nothing more to add.

Directors

By Rahul Singh Kataria

Pursuant to Section 256 of the Companies Act, 1956 read with the Clause 102 of Articles of
Association of the Company, Dr. D.V. Kapur, Mr. M.M. Sabharwal and Mr. K. Swarup,
Directors retire by rotation at the ensuing Annual General Meeting and being eligible have
offered themselves for re-appointment.

Brief resume of the Directors proposed to be re- appointed, nature of their experience in specific
functional areas, names of the companies in which they hold directorship and membership/
chairmanship of Board Committees, shareholding and relationship between Directors inter-se, as
stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, are provided in
the Notice for convening the Annual General Meeting.

Corporate Social Responsibility

The Company has made significant investments in community welfare initiatives including to
under- privileged through education, training, health, environment, capacity building and rural-
centric interventions as detailed at Annexure - C. The employees of the Company also
participated in many of such initiatives.

Promotion of Sports

DLF-Indian Premier League (IPL), in its second season held at South Africa, saw a strong re-
affirmation of the Company’s commitment towards sporting events, while it also strengthened
DLF’s national as well as international brand equity. Your Company bagged the title sponsorship
rights for IPL in 2008 for a total of five years.

DLF Golf & Country Club retained its crown as the Best Golf Course in India for a second year
in succession, presented at the Asian Golf Monthly Awards Ceremony held in Shenzhen, China

Awards and Accreditations

During the period under review, your Company has excelled in various spheres of Corporate
achievements and is recognized through public evaluation. The details of awards and
recognitions to your Company are as under:

- Dr K.P. Singh, Chairman has been invited on the Board of Governors on the Future of Real
Estate at the World Economic Forum and participated as a Discussion Leader at the Annual Meet
of the Forum held at Davos on 28th January, 2009.

- Public Relations Society of India (PSRI) presented the PSRI Golden Jubilee Award to DLF for
‘Best Private Sector Organisation’

- The Readers Digest Most Trusted Brand 2009 Award was picked up by DLF for the second
year in a row.

By Rahul Singh Kataria

 - Augtics Systems (International Real Estate Data Bank) Award of Excellence bestowed three
individual awards to DLF Aralias, The Belaire and The Magnolias.

- GIREM conferred DLF with the Company of the Year Award and DLF Emporio with the
Iconic Project 2008 Award at the Urban Planning and
Real Estate Leadership Summit, 2008.

- Realty Plus Excellence Award 2009 for the category Luxury Project of the Year was presented
to DLF Aralias.

- Realty Plus ‘Lifetime Achiever’s Excellence Award 2009’ was bestowed upon Dr. K.P. Singh,
DLF Chairman, for his outstanding contribution to the Indian Real Estate Sector.

- Conferred Golden Peacock Award for Excellence in Corporate Governance for the year 2008
at London.

Credit Rating

During the year under review, ICRA Limited, an associate of Moody’s Investor Service and a
leading credit rating agency, assigned ‘A2+’ for Company’s short term Debt programme of
Rs.3,000 Crores. Further, CRISIL, a unit of Standard & Poors, assigned ‘A+ ’ / Rating “watch
with developing implications” to the Company’s Rs. 92.90 billion Term Loans and Overdraft
Facility and P1 / Rating “watch with developing implications” to the Company’s Rs.15.99 billion
Short Term Loan, Bank Guarantee and Letter of Credit.

Wind Power Business

In order to concentrate and consolidate on its core business, your Company, on 1st July, 2009,
transferred its Wind Power business to its wholly owned subsidiary, DLF Wind Power Private
Limited, on slump sale basis pursuant to the approval granted by the Shareholders through postal
ballot.

Acknowledgements

Your Directors wish to place on record their sincere appreciation to the employees at all levels
for their hard work, dedication and commitment. The enthusiasm and unstinting efforts of the
employees have enabled the Company to remain at the forefront of the industry despite slow-
down in the Real-Estate Industry.

Your Company continues to occupy a place of respect amongst stakeholders, most of all our
valuable customers. Your Directors would like to express their sincere appreciation for
assistance and co-operation received from the vendors and stakeholders including Financial
Institutions, Banks, Central & State Government authorities, other business associates, who have
extended their valuable sustained support and encouragement during the year under review. It

By Rahul Singh Kataria

will be the Company’s endeavor to build and nurture strong links with industry based on mutual
respect and consistent co-operation aligned with customer interests.

Liquidity ratios Mar ' 09 Mar ' 08

Current ratio 5.93 4.85

Quick ratio 3.83 3.28

By Rahul Singh Kataria