Mar 31, 2023
1. COMMITMENTS
i) Estimated amount of contracts remaining to be executed on capital account and not provided for: at 31 March 2023, the Company had commitments of '' 9,631.53 lakhs (31 March 2022: '' 974.61 lakhs) relating to completion of various projects.
ii) The Company is committed to provide business and financial support to certain subsidiary companies, which are in losses and is dependent on parent company for meeting out their cash requirements. Further, the Company has given letter of support in favour of certain joint ventures/ associate companies for their bank borrowings.
iii) The Company has commitment regarding payments under development agreements with certain partnership firms amounting to '' 139,215.97 lakhs (31 March 2022: '' 138,776.69 lakhs), where the Company or its subsidiaries are partner and certain third-party entities with whom development agreements are in place.
2. CONTINGENT LIABILITIES AND LITIGATIONS
Contingent liabilities
('' in lakhs) |
|||
31 March 2023 |
31 March 2022 |
||
a) |
Claims against the Company not acknowledged as debts: |
||
Income tax demands/ effects (refer note 1 and 2 below) |
447,315.65 |
433,438.34 |
|
Service tax/ GST demands (refer note 3 below) |
15,930.94 |
15,154.04 |
|
Sales tax/ VAT demands (refer note 3 below) |
2,895.14 |
3,394.19 |
|
Property tax demands (refer note 3 below) |
729.37 |
729.37 |
|
Custom duty demands (refer note 3 below) |
791.53 |
791.53 |
|
Legal cases [refer note 4, 5, 6, 7 and 9(i)(c)(ii) below] |
103,586.59 |
81,726.34 |
|
b) |
Guarantees issued by the Company on behalf of: |
||
Subsidiary companies |
- |
22,867.95 |
|
Others (Joint Ventures, KMP Entities and Others) |
- |
75,910.29 |
1) a) The Income Tax Authorities had made disallowances of SEZ profits u/s 80IAB of the Income-tax Act, 1961 during tax assessment of the Company raising demands amounting to '' 109.00 lakhs for the assessment year 2015-16; '' 1,056.00 lakhs for the assessment year 2014-15; '' 6,834.00 lakhs for the assessment year 2013-14; '' 7,308.99 lakhs for the assessment year 2011-12; '' 7,284.99 lakhs for the assessment year 2010-11; '' 35,523.71 lakhs for the assessment year 2009-10 and '' 48,723.00 lakhs for the assessment year 2008-09, respectively.
The Company had filed appeals before the appropriate appellate authorities against these demands for the said assessment years and have got full relief of '' 106,840.45 lakhs i.e. '' 105,675.62 lakhs from the Hon''ble Income Tax Appellate Tribunal against which, the department appeal(s) are pending before the Hon''ble Delhi High Court and '' 1,164.83 lakhs from CIT (Appeals), against which, the department appeal(s) are pending before the Hon''ble Income Tax Appellate Tribunal.
Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.
b) The Income tax Authorities have disallowed one-time losses claimed by the company in assessment year 2017-18 and 2019-20 on account of mandatory adoption of erstwhile Ind AS 18 "Revenueâ read with Guidance Note for Real Estate Transactions for Ind AS compliant entities and Ind AS 115 "Revenue from contract with customersâ, respectively. The one-time losses were adjusted in the retained earnings of the respective financial years in accordance with the relevant accounting standards. However, the assessing officer has allowed alternate claim as per erstwhile Ind AS 7 "Construction Contractsâ, read with "Guidance Note on Recognition of revenue by Real Estate Transactionsâ issued by ICAI, followed by the Company till the year ended 31 March 2016, for assessment year 2017-18 and assessment year 2019-20 to avoid double taxation of already assessed income, but have not allowed alternative claims filed for assessment year 2018-19, assessment year 2020-21 and assessment year 2021-22, consequential to disallowance of one-time losses in assessment year 2017-18 and 2019-20. During the year, a demand of '' 42,774.31 lakhs for assessment year 2021-22 has been created as setting off of business loss amounting to '' 117,967.00 lakhs of assessment year 2017-18 has not been allowed by assessing officer. The Company has preferred appeals against the orders of the assessing officer which are pending with CIT (A)/ NFAC.
Further, the management has evaluated the impact of the matter and believes that there will be no tax impact arising out of this, considering alternative claims are allowed by the assessing officer/ appellate authorities based on the fundamental law of taxation that the same income cannot be taxed twice. However, there may be an impact of '' 20,000.00 lakhs approximately on the carrying value of deferred tax asset due to non-adjustment of certain capital losses.
Based on legal opinion obtained from tax experts, management is confident that it has a strong likelihood of succeeding in the matter and therefore, no adjustments are required in the standalone financial statements of the Company.
2) Other than matters mentioned at point no. 1 above, the Income Tax Authorities have raised demands on account of various disallowances pertaining to different assessment years. The Company is contesting these demands, which are pending at various appellate levels.
Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded as mentioned in point 1) and 2) above will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.
3) There are various disputes pending with the authorities of excise, customs, service tax, GST, sales tax, VAT, property tax etc. The Company is contesting these demands raised by authorities and are pending at various appellate authorities.
Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
4) There are various litigations going on against the Company primarily by Competition Commission of India (also refer note 50(9)(i)(a) below) and in Consumer Redressal Forum, which have been contested by the Company.
Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
5) Interest and claims by customers/ suppliers may be payable as and when the outcome of the related matters are finally determined and hence not been included above.
Management based on legal advice and historical trends, believes that no material liability will devolve on the Company in respect of these matters.
6) During the earlier years, DLF Utilities Limited ("DUL'') [Real estate undertaking of DUL, now merged with DLF Limited (refer note 57)] had received a notice from the Dakshin Haryana Bijli Vitran Nigam ("DHBVNâ) wherein it had claimed cross subsidy surcharge of '' 3,328.00 lakhs on electricity being supplied by DUL to other companies for the period from 1 April 2011 to 30 September 2012 and had questioned the legality of such electricity supply. DUL filed an appeal to Haryana Electricity Regulatory Commission ("HERCâ), wherein HERC vide order dated 11 August 2011 held that the supply of electricity by DUL was legal, however, DUL was liable to pay cross subsidy surcharge. Aggrieved by the said order, DUL filed an appeal before Appellate Tribunal of Electricity ("APTELâ) against the levy of cross subsidy surcharge. APTEL held that the supply of electricity for commercial establishments from the main receiving panel was not in accordance with law and must be discontinued.
Further, APTEL also held that the DUL was liable to pay the cross-subsidy surcharge and accordingly, a demand of '' 3,328.00 lakhs was received by DUL from DHBVN against the same. Aggrieved by the order of APTEL, DUL filed an appeal before the Hon''ble Supreme Court of India which had stayed the execution of the said order and asked DUL to deposit an amount of '' 284.36 lakhs to DHBVN which was duly deposited.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
7) During the year, on 23 December 2022, New Okhla Industrial Development Authority (NOIDA) demanded '' 23,421.31 lakhs against the Company on account of payment of enhanced compensation to farmers regarding land acquired by it. As per NOIDA, land which was acquired by it, falls under the plot taken by the Company through auction. While passing judgment dated 5 May 2022, the Hon''ble Supreme Court directed that, "Since the acquisition of land in question was made by NOIDA which was purchased by DLF through a public auction, therefore the liability to pay compensation would be of NOIDA". Subsequently, NOIDA filed a review petition with the Hon''ble Supreme Court, which was dismissed vide Order dated 10 August 2022. Even after this, NOIDA issued a Demand Notice on 23 December 2022 demanding a sum of '' 23,421.31 lakhs. The Company challenged the said demand through filing writ petition before Hon''ble High Court at Allahabad. The Hon''ble High Court vide order dated 24 January 2023 directed that no coercive measures shall be taken by NOIDA pursuant to the demand notice dated 23 December 2022.
Based on the advice of the independent legal counsel, management has assessed that there is a strong likelihood of succeeding before Hon''ble High Court of Allahabad. Pending the final outcome on the above matter, no adjustment has been made in these standalone financial statements. Also refer note 50(8)(iii) below.
As per the terms of the SPSHA, the Company has undertaken to indemnify, defend and hold harmless the Investor against all losses incurred or suffered by DCCDL arising out of following matters up to or prior to 25 December 2017 (i.e., Closing Date):
i) Income tax demands related to various matters and assessment years up to the closing date of '' 114,735.01 lakhs (31 March 2022: '' 108,382.65 lakhs);
ii) Indirect tax demands including service tax and entry tax related to various matters and financial years up to the closing date of '' 24,680.24 lakhs (31 March 2022: '' 25,383.26 lakhs);
iii) Liability arising out of matter discussed in note 50(6) and 50(7) above.
iv) The land parcel admeasuring 19.5 acres was acquired by the Company from Government of Haryana (''GoH'') in August 2006 for development of Cyber City Project, which was earlier acquired by GoH from Gram Panchayat, Nathupur in February 2004 through proceedings of compulsory acquisition. DCCDL had constructed certain portions of its two IT/ IT SEZ buildings of the Cyber City Project as well as entered into third party rights vide lease/ sale of office space in the said buildings. Subsequently, the Hon''ble High Court of Punjab and Haryana, pursuant to a public interest litigation, vide order dated 1 October 2010, quashed the land acquisition proceedings and conveyance deed by GoH and directed the GoH to refund the amount, which was earlier paid by the Company and also directed the Company to remove any construction on the said land. Against the said order, the Company filed a Special Leave Petition in November 2010 before the Hon''ble Supreme Court of India, who vide order dated 3 January 2012, stayed the order of the High Court and the matter is pending for disposal before the Hon''ble Supreme Court of India.
During the previous year, 7 residents of Village Nathupur filed applications for impleadment, which were dismissed vide Order dated 15 March 2022. Further, in previous year impleadment application filed by 5 residents of Village Nathupur which are pending and to be listed in due course.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Also refer note 50(9)(i)(b) below.
v) The Company along with one of its subsidiary companies had acquired a land parcel admeasuring approximately 30 acres and 7 acres respectively from EIH Limited (''EIH'') for development of IT/ ITES project at Silokhera, Gurugram, which EIH acquired from GoH. The Company constructed 2 IT/ ITES SEZ Buildings on the said land, which was sold to one of the subsidiary companies of the DCCDL. The Company is constructing another block of buildings on DCCDLs behalf. The net block and capital work-in-progress against Silokhera project appearing in DCCDLs books as at 31 March 2023 amounts to '' 148,818.33 lakhs (31 March 2022: '' 152,101.71 lakhs) and '' 89,111.66 lakhs (31 March 2022: '' 89,111.05 lakhs), respectively.
Subsequently, the Hon''ble High Court of Punjab and Haryana, pursuant to a public interest litigation and vide its order dated 3 February 2011 directed the GoH to carry out the acquisition proceedings again from the notification stage under the Land Acquisition Act, 1894 and directed the Company and its subsidiaries to remove all constructions made on the said land. The Company filed a Special Leave Petition before the Hon''ble Supreme Court of India and the Hon''ble Supreme Court of India vide order dated 20 September 2011 stayed the order of the Hon''ble High Court and the matter is currently pending before the Hon''ble Supreme Court of India and the next date of hearing is yet to be notified by the registry.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decision on the above matter, no adjustment has been made in these standalone financial statements. Also refer note 50(9)(i)(b) below.
9) Matters pending in litigation with Courts/ Appellate Authorities
i) a) The Competition Commission of India (CCI) on a complaint filed by the Belaire/ Magnolias/ Park Place owners association had passed orders dated 12 August 2011 and 29 August 2011 wherein the CCI had imposed a penalty of '' 63,000.00 lakhs on DLF Limited ("DLFâ or "the Companyâ) or, restraining DLF from formulating and imposing allegedly unfair conditions with buyers in Gurugram and further ordered to suitably modify the alleged unfair conditions on its buyers.
The said orders of CCI were challenged by DLF on several grounds by filing appeals before the Competition Appellate Tribunal (COMPAT).
COMPAT vide its order dated 19 May 2014 upheld the penalty imposed by CCI.
The Company had filed an appeal in the Hon''ble Supreme Court of India against the order dated 19 May 2014 passed by the COMPAT. The Hon''ble Supreme Court of India vide order dated 27 August 2014 admitted the Appeal and directed the Company to deposit penalty of '' 63,000.00 lakhs in the Court. In compliance of the order, the Company had deposited '' 63,000.00 lakhs with the Hon''ble Supreme Court of India and is continued to be shown as recoverable.
The matter is to be listed in due course.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements. Also refer point 50(4) above.
b) During the year ended 31 March 2011, the Company, one of its subsidiary companies and a joint venture company received judgments from the Hon''ble High Court of Punjab and Haryana cancelling the sale deeds of land/ removal of construction relating to two IT SEZ/ IT Park Projects in Gurugram admeasuring 49.05 acres. The Company and the subsidiary company filed Special Leave Petitions (SLPs) challenging the orders in the Hon''ble Supreme Court of India.
The Hon''ble Supreme Court of India had admitted the matters and stayed the operation of the impugned judgments till further orders in both the cases. Also refer point 50(8)(iv) and 50(8)(v) above.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
c) i) The Securities and Exchange Board of India (''SEBI'') vide order dated 10 October 2014 restrained
the Company and its Officers/ certain directors from accessing the securities market and prohibited them from buying, selling, or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for a period of three years. This Order was passed pursuant to a Show Cause Notice (SCN) dated 25 June 2013 which inter alia alleged that the Offer Documents issued by the Company at the time of its initial public offer in the year 2007 suffered from material non-disclosures and misstatements.
The Company and the said Directors filed appeals before the SEBI Appellate Tribunal ("SAT"). SAT, by majority order dated 13 March 2015, allowed the appeals on the ground that there was nothing that suggested that the investors were prejudiced due to non-disclosure of information by DLF in its offer document, or that such non-disclosure resulted in any benefit to DLF or its Directors in violation of the Erstwhile DIP Guidelines.
SEBI filed an appeal with the Hon''ble Supreme Court of India, which stand admitted vide order dated 24 April 2015 without granting any interim stay in favour of SEBI.
In February 2015, SEBI, in similar matters, imposed penalties upon Company, some of its directors/ officers and its three subsidiaries and their directors. The Company approached the SAT which held that the SEBI order cannot be sustained. In October 2015, SEBI filed applications before the Hon''ble Supreme Court seeking, restraint on the Company, its promoters and/ or directors from proceeding with the sale of 159,699,999 Cumulative Compulsorily Convertible Preference Shares of DLF Cyber City Developers Limited held by the promoter group companies to third party institutional investors. The said applications came up for hearing before the Hon''ble Supreme Court on 04 November 2015 and the Hon''ble Supreme Court did not pass any orders restraining the Transaction and simply directed that the said applications be listed along with the appeal. The matter is pending and to be listed in due course.
ii) SEBI issued a SCN dated 28 August 2013 under Sections 15HA and 15HB of the SEBI Act and under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules,1995 (''Adjudication Rules'') making allegations similar to the SCN dated 25 June 2013. The Company filed its Reply to the same opposing the allegations made against it. Similar SCNs were also issued to three subsidiaries, their directors and certain other entities.
By way of order dated 26 February 2015, the Adjudicating Officer, SEBI imposed monetary penalties upon Company, some of its Officers/ Directors, its three subsidiaries and their Directors under Section 15HA and under Section 15HB of the SEBI Act.
The Company and other parties aggrieved by the aforesaid order filed appeals before the Hon''ble SAT against the aforesaid order dated 26 February 2015. When these appeals were listed before Hon''ble SAT on 15 April 2015, SEBI''s counsel under instructions stated that during the pendency of the said appeals, the Order dated 26 February 2015 would not be enforced. The Hon''ble SAT vide its order passed on 25 April 2018 held that in view of Hon''ble SAT''s majority decision dated 13 March 2015, the SEBI Order dated 26 February 2015 cannot be sustained.
Accordingly, the Hon''ble SAT disposed off the appeals with a direction that these appeals, shall stand automatically revived once the Hon''ble Supreme Court of India disposes of the civil appeals filed by SEBI against the Hon''ble SAT''s judgment dated 13 March 2015.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
d) During the previous year, one of the joint venture company, Joyous Housing Limited (JHL) had defaulted in meeting its debt obligation to a housing finance company (HFC or lender). The lender amongst various actions to recover its dues, initiated e-auction of the project, served notices to initiate legal proceedings for alleged contravention related to the loan agreement against JHL, its directors and shareholders. Further, the lender has also initiated the process to take control of the board of JHL and offered the pledged shares to all the three shareholders. In this regard, the Company has submitted a formal expression of interest to purchase 100% shares of JHL for a consideration above the reserve price at which the lender has offered the shares to ensure repayment of the dues to the lender and other financial creditors of JHL.
However, one of the shareholders has filed a petition opposing the actions taken by the other shareholders at the instructions of the lender before National Company Law Tribunal, NCLT, Mumbai. Subsequently, NCLT has passed a status quo order with regard to such actions. Further, the Company has also initiated arbitration proceedings.
Based on the legal advice, management believes that there is a strong likelihood of successful outcome in its favour. Still, due to ongoing dispute and uncertainties involved w.r.t. outcome of litigation/ arbitration and consequential impact on recoverability of the Company''s investment/ loan, the provision was recognised against such investment/ loan in earlier years which was disclosed under "Exceptional Itemsâ, refer note 33. The management considers such provision to be adequate and the net carrying value amounting to '' 18,036.37 lakhs is considered good for recovery, as the project has adequate inherent value, once it is litigation free.
9 ii) a) The petitions were filed before the Hon''ble Punjab and Haryana High Court challenging the action of the Haryana Government to acquire the land belonging to Gram Panchayat of village Wazirabad, District Gurugram for public purpose and thereafter selling the same to the Company, seeking directions from the court for quashing of the acquisition proceedings under Sections 4 and 6 dated 8 August 2003 and 20 January 2004.
The petitioners therein also sought quashing of the award dated 19 January 2006 and the Regular letter of allotment (RLA) dated 9 February 2010 issued in favour of the Company for 350.715 acres of land. The Company has paid '' 99,969.26 lakhs to Government towards purchase of this land out of total consideration of '' 182,437.49 lakhs.
The Hon''ble Punjab and Haryana High Court, vide its final order dated 3 September 2014, while upholding the acquisition of land has however disapproved the allotment in favour of the Company. The Hon''ble High Court passed an order to keep the RLA dated 9 February 2010 issued in favour of the Company in abeyance and further directed the Haryana State Industrial and Infrastructure Development Corporation (''HSIIDC'') to initiate fresh allotment process for higher returns in respect of the land in question with an option to State to revive the RLA in case no better bid is quoted by the public at large.
The Company has filed a Special Leave Petition before the Hon''ble Supreme Court of India challenging the judgment dated 3 September 2014 passed by the Hon''ble Punjab and Haryana High Court. The Hon''ble Supreme Court of India issued notice to the respondents and directed status quo to be maintained by the parties.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
b) The Company has filed a Special Leave Petition (SLP) against the order dated 2 December 2016 passed by the Hon''ble Punjab and Haryana High Court in Writ Petition No.12210 of 2013 challenging the findings and directions passed by the Hon''ble High Court requiring DLF to allocate additional land measuring 10.6 Acres for DLF Park Place complex. DLF has taken the ground that after having rejected the contentions of the association on the claim of extra land based on FAR and PPA norms, the Hon''ble High Court could not have passed the order for allocation of additional land based on the representations made in the Brochure. The Company has further raised the ground that Hon''ble High Court has given a complete go by to the terms and conditions of the binding agreement where it was specifically provided the area of Park Place as 12.67 acres, granted leave in the Special Leave Petition.
Against the same order, DLF Park Place Residents Welfare Association has also filed an SLP before the Hon''ble Supreme Court of India on the grounds that the Hon''ble High Court has misinterpreted the statutory provisions of the applicable law to hold that GH Park Place is not a separate and independent Company Housing Complex but is part of DLF Phase-V, constructed over 476.42 Acres, having 15 Company Housing Complexes. In accordance with the FAR ratio of 1:1.75, the association was entitled to additional land of 46.20 Acres on the total constructed area which has not been considered by the Hon''ble High Court.
The Court after hearing, granted leave in the SLPs. The appeals will be listed for arguments before the Hon''ble Supreme Court of India in due course.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon''ble Supreme Court of India.
Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
c) During the previous year, Company has initiated the arbitration proceedings against Haryana Urban Development Authority (HUDA) in respect to outstanding amount of '' 6,002.90 lakhs recoverable under a joint development agreement entered with HUDA for construction of certain roads and underpass in Gurugram, Haryana on 50:50 cost sharing basis.
Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that claims by the Company are as per terms of agreement entered with HUDA and based on merits of the case, there is a strong likelihood of a favorable outcome for the Company in aforesaid case.
The Company''s business activities which are primarily real estate development and related activities falls within a single reportable segment as the management of the Company views the entire business activities as real estate development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108 - Operating Segments with respect to single reportable segment. Further, the operations of the Company are domiciled in India and therefore there are no reportable geographical segment.
54. The investments made in related parties are long-term and strategic in nature. Further, all loans, guarantees and securities given are for meeting business and working capital requirements.
55. The Company had entered into an operation and management agreement with DLF Golf Resorts Limited ("DGRL"), a wholly-owned subsidiary of the Company. As per the agreement, DGRL transfers 97% revenue generated and expenses incurred during the year to the Company and the remaining 3% is retained by DGRL
for operation and management services provided to the Company. Accordingly, revenues of '' 10,830.29 lakhs (31 March 2022: '' 8,501.49 lakhs) and expenses of '' 8,617.42 lakhs (31 March 2022: '' 6,309.02 lakhs) [including '' 7,676.89 lakhs (31 March 2022: '' 5,494.27 lakhs) transferred from DGRL] pertaining to golf course operations, further depreciation of '' 1,185.02 lakhs (31 March 2022: '' 1,185.02 lakhs) in respect of assets taken on lease for golf operations has been recognized in these standalone financial statements.
57. SCHEME OF ARRANGEMENT (THE "SCHEME")
During the previous year, the Hon''ble National Company Law Tribunal ("NCLTâ), Chandigarh Bench vide its Order dated 2 February 2022, had approved the Scheme of Arrangement involving merger/ demerger of wholly-owned subsidiary companies, namely DLF Phase-IV Commercial Developers Limited, DLF Real Estate Builders Limited, DLF Residential Builders Limited ("Transferor Companiesâ) and demerger and Transfer/ Vesting of real estate undertaking of DLF Utilities Limited ("Demerged Companyâ) with DLF Limited ("Transferee Companyâ) pursuant to Section 230-232 and other relevant provisions of the Companies Act, 2013 read with the Rules made thereunder with the appointed date as 1 April 2021. The Company has applied principles of Appendix C to Ind AS 103 - ''Business Combinations'' on ''Business Combinations of entities under Common Control'' w.e.f. 1 April 2020 and accordingly the impact of scheme was accounted in previous year and accordingly there is no impact of the Scheme of arrangement in current year.
These Transferor Companies and the Demerged Company are wholly owned subsidiaries of the Company which were engaged in the business which inter-alia includes real estate activities and carrying on business activities in terms of their respective Memorandum of Association.
58. The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on the preliminary assessment the entity believes the impact of the change will not be significant.
59. The Company has given corporate guarantees to banks for availment of loans and believes that there is no service rendered and thus there is no GST obligations. During the year, audit have been conducted and observed that there could be GST obligation on the said guarantees. Based on advice of tax experts, the management obtained an arm''s length assessment report from an external expert only for the sole purpose of discharging payment of GST, if any and accordingly, has deposited GST on the said CGs given w.e.f. 1 July 2017, along with interest of '' 292.20 lakhs during the year on voluntary basis to avoid any litigation and accordingly the payment of interest shall not be construed as an irregularity in the deposit of GST on the part of the Company.
60. The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.
Mar 31, 2022
(i) Contractual obligations
Refer note 49(i) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(ii) Property plant and equipment pledged as security
Refer note 19 and 23 for information on property, plant and equipment pledged as security for borrowings by the Company.
(iii) Assets given under operation and management agreement
Out of total assets, assets amounting to ? 10,879.94 lakhs (31 March 2021: ? 12,958.92 lakhs) are given to DLF Golf Resorts Limited, a subsidiary company, under operation and management agreement [refer note 2.2®, 55 and 56].
(iv) Capitalised borrowing cost
No borrowing cost are capitalised during the current year and previous year.
(v) Transition to Ind AS
On transition to Ind AS (i.e. 1 April 2015), the Company has elected to continue with the carrying value of all property, plant and equipment measured as per previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.
# There are no projects in progress under capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan.
$ The Company undertakes several long-term duration projects at a time which range between 3 to 6 years. In some cases the projects may get temporarily suspended or their progress may be on slower side. On such occasions, where there is no active development on the projects, direct cost attributable to the project continues to be reflected in CWIP as at 31 March 2022 and 31 March 2021, respectively. Due to the above, the Company is not able to furnish the tentative project time or plan even though the Company is confident of resuming the project in future.
(ii) Contractual obligations
Refer note 49(i) for disclosure of contractual commitments for the acquisition of investment properties.
(iii) Capitalised borrowing cost
No borrowing costs are capitalised during the current year and previous year.
(iv) Investment property pledged as security
Refer note 19 and 23 for information on investment properties pledged as security by the Company.
(v)(b) Fair value hierarchy and valuation technique
1) The Company''s investment properties consist of two class of assets i.e., commercial properties and retail mall, which has been determined based on the nature, characteristics and risks of each property. As at 31 March 2022 and 31 March 2021, the fair values of the properties are ? 447,313.29 lakhs and ? 424,448.29 lakhs, respectively. The fair value of investment property has been determined by external, independent registered property valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued in conjunction with valuer assessment services undertaken by approved valuer, except (as stated in note 2) below.
The Company obtains independent valuation for its investment property at least annually and fair value measurements are categorized as level 3 (refer note 36) measurement in the fair value hierarchy. The valuation has been taken considering values arrived using the following methodologies:
(a) Discounted cash flow method, net present value is determined based on projected cash flows discounted at an appropriate rate; or
(b) Sales comparable method, which compares the price or price per unit area of similar properties being sold in the marketplace; or
(c) Average of the above.
Further, inputs used in the above valuation models are as under:
(i) Property details comprising of total leasable area, area actually leased, vacant area, parking slots etc.;
(ii) Revenue assumptions comprising of market rent, market parking rent, rent growth rate, parking income growth rate, market lease tenure, market escalations, common area maintenance income prevailing in the market etc.;
(iii) Cost assumptions comprising of brokerage cost, transaction cost on sale, cost escalations etc.;
(iv) Discounting assumptions comprising of terminal cap rate and discount rate; and
(v) Estimated cash flows from lease rentals, parking income, operation and maintenance income etc. for the future years.
2) In addition to 1) above, the Company ("Developerâ) has a land parcels which is notified Special Economic Zone ("SEZâ) and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Limited ("DAL'' or "the Codeveloperâ) and transferred completed bare shell buildings to DAL. Remaining portion of such land is under development. As per the co-developer agreement, the underneath the buildings has been given on long-term lease to DAL. The management has assessed that the fair value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on the sale of land in a SEZ as described under SEZ Rules 2006, the management considered carrying value aggregating to f 11,554.66 lakhs (31 March 2021: f 11,554.66 lakhs) to be a reasonable estimate of its fair value.
1 All the investment in equity shares of subsidiaries, associates and joint ventures are stated at cost as per Ind AS 27 ''Separate Financial Statements''.
2 All equity shares of ? 10/- each and fully paid up, unless otherwise stated.
3 These investments are on account of or includes the investment booked on account of stock options issued to employees of those subsidiaries and joint venture.
4 The Company has subscribed to 0.01% unsecured Compulsorily Convertible Debentures (CCDs) of ? 10/-each. At the option of holder, these CCDs are convertible into fixed number of equity shares in one or more tranches within a period of 10 years from the date of allotment. The resulting shares upon conversion shall rank pari-passu in all respect with the existing equity shares.
5 All are redeemable instruments, are having a face value of ? 100/- each, unless otherwise stated and are measured at amortised cost. These preference shares are redeemable at the option of the holder i.e. the Company, on or before expiry of 2023 from the date of allotment. These instruments carry cumulative dividend @ 6% to 12% per annum.
6. During the previous year, the terms of 88,544,000 Nos. of 0.01% redeemable preference shares (RPS) of the face value of ? 100/- each subscribed by the Company has been changed and converted to Optionally Convertible Redeemable Preference Shares (OCRPS).
7 During the financial year 2018-2019, bonus shares were issued by DLF Cyber City Developers Limited (DCCDL) (Class-B equity shares) as per below terms and conditions:
- Class-B equity shares shall not carry any voting rights;
- Holder of Class-B equity shares shall not receive any proceeds of any winding-up or liquidation of the Company;
- Holder of Class-B equity shares shall have the right to receive dividend only to the extent specifically approved/ recommended by the Board in the relevant financial year; and
- These Class-B equity shares shall not stand pari-passu with the already existing equity shares issued by DCCDL. However these Class-B equity shares shall stand pari-passu to the Class-B equity shares to be issued, in future by DCCDL, if any, on account of conversion of existing 0.001% Class-B Compulsorily Convertible Preference Shares of ? 10/- each ("Class-B CCPSâ) in terms of Class-B CCPS issued and allotted on 26 December 2017 by DCCDL.
8 During the year, the Hon''ble National Company Law Tribunal (NCLT), Chandigarh Bench vide its Order dated 2 February 2022, has approved the Scheme of Arrangement involving merger of wholly-owned subsidiary companies namely DLF Phase-IV Commercial Developers Limited, DLF Real Estate Builders Limited, DLF Residential Builders Limited (Transferor Companies) and demerger and Transfer/ Vesting of real estate undertaking of DLF Utilities Limited (Demerged Company) with DLF Limited (Transferee Company) with the appointed date as 1 April 2021. Refer note 58.
Pursuant to the above, the Company has received 4,966 shares of DLF Commercial Developers Limited, 372,913 shares of DLF Home Developers Limited and 10,000 shares of Ariadne Builders & Developers Private Limited, respectively. Accordingly, the investment in these subsidiary companies and figures for the corresponding year have been restated.
9 During the year, with effect from 23 July 2021 a partnership firm namely ''DLF Office Developers'' is converted into a Private Limited Company i.e. ''DLF Office Developers Private Limited'' and accordingly investment in partnership firm has been re-classified to investment in subsidiaries.
10 During the previous year, the Company had invested in Non-Convertible Debentures (NCDs) of face value ? 100,000/- each fully paid. The NCDs carry fixed interest of 7.50% per annum and are redeemable on or before 2 February 2024 at the option of investee company.
11 The Company has subscribed to optionally convertible redeemable preference shares (OCRPS) having a fixed non-cumulative dividend @ 5% p.a. At the option of the issuer, these OCRPS are convertible into 10 equity shares having face value of ? 10/- each for every preference share of ? 100/- at any time on or before 10 years from the date of allotment or can be redeemed at par at the end of 10 years. The resulting shares upon conversion shall rank pari-passu in all respect with the existing equity shares.
12 During the previous year, DLF Property Developers Limited got merged with DLF Luxury Homes Limited with effect from 5 March 2021. Accordingly, in accordance with the scheme of arrangement, the Company had received 37,318,000 shares in DLF Luxury Homes Limited. Further, the carrying value of investment in DLF Property Developers Limited has been added to the carrying value of Company''s investment in DLF Luxury Homes Limited.
13 These are equity portion of compound financial instruments.
(i) Deferred tax asset is recognized on unabsorbed depreciation and carry forward losses to the extent it is probable that future taxable profits will be available against which the deductible temporary differences, unabsorbed depreciation and carried forward tax losses can be utilised. The Company has tax losses of ? 974,554.96 lakhs [(31 March 2021: ? 1,118,839.92 lakhs) comprising business loss of ? 784,198.98 lakhs (31 March 2021: ? 925,677.94 lakhs), capital losses of ? 147,535.98 lakhs (31 March 2021: ? 150,341.98 lakhs)] that are available for offsetting against future taxable profit for eight years and unabsorbed depreciation of ? 42,820.00 lakhs (31 March 2021: ? 42,820.00 lakhs) available for offseting against future taxable profits. Majority of these losses will expire between March 2022 to March 2029. Based upon margin from sale of existing projects, profit from launch of new projects in near future and planned reduction in interest cost and overheads in future, Company believes there is reasonable certainty that deferred tax asset will be recovered.
(ii) The Company has not recognised deferred tax asset in respect of losses (including capital losses) of ? 235,391.50 lakhs (31 March 2021: ? 238,443.58 lakhs) as there is no reasonable certainty supported by convincing evidences of their recoverability in the near future. If the Company was also to recognise all unrecognised deferred tax assets, the profit would increase by ? 57,402.08 lakhs (31 March 2021: ? 58,135.21 lakhs) [also refer note 50(1)(b)].
b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of ? 2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
For dividend related disclosure, refer note 39.
e) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting dateShares issued under Employee Stock Option Plan (ESOP) during the financial year 2017-18 to 2021-22
The Company has issued total 472,022 equity shares of ? 2/- each (during FY 2016-2017 to 2020-2021: 759,030 equity shares) during the period of five years immediately preceding 31 March 2022 on exercise of options granted under the Employee Stock Option Plan (ESOP).
NATURE AND PURPOSE OF RESERVES Capital reserve
Capital reserve was created under the previous GAAP (Indian GAAP) out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.
Capital reserve on account of merger
The excess of net assets taken over the respective investments carried in Transferor Companies/ Demerged Company is treated as capital reserve on account of meger, refer note 58. Capital reserve on account of merger is not available for the distribution to the shareholders.
Capital redemption reserve
The same has been created in accordance with provision of the Companies Act, 2013 with respect to buy back of equity shares from the market in earlier years.
Securities premium includes premium on issue of shares. It will be utilised in accordance with the provisions of the Companies Act, 2013.
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
This reserve was created on forfeiture of shares by the Company. The reserve is not available for distribution to the shareholders.
Debenture redemption reserve (DRR)
The Company had issued redeemable non-convertible debentures. In terms of the provisions of Section 76 read with Rule 18(7)(b)(iii)(B) of the Companies (Share Capital and Debentures) Rules, 2014, Debenture Redemption Reserve is not required for privately placed debentures by listed companies. Accordingly, for debentures issued post applicability of amended rules, no Debenture Redemption Reserve is being created. However, for debentures issued prior to the amendment, the Company, in the previous year created Debenture Redemption Reserve for an amount equal to 25% of the value of debentures due for redemption.
FVOCI equity investments
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity.
Retained Earnings
Represents surplus/ (deficit) in statement of Profit and Loss during the year, including retained earnings of Transferor Companies/ Demerged Company on account of merger (refer note 58).
(a) Non-convertible debentures of ? 49,877.62 lakhs (31 March 2021: ? 49,816.01 lakhs) are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by a subsidiary company and corporate guarantee of the subsidiary company. The debentures carry a coupon rate of 7.00% and the outstanding amount (excluding current maturities) is due for redemption on 25 March 2024.
Rupee term loan:
(a) Term loans of ? 33,842.92 lakhs (31 March 2021: ? 35,235.56 lakhs) is secured by way of
(i) equitable mortgage of immovable properties situated at New Delhi, owned by the Company and
(ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (excluding current maturities) are repayable in 77 monthly installments starting from April 2023.
(b) Term loan of ? 13,823.80 lakhs (31 March 2021: ? 15,580.06 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram owned by the Company (refer note 58),
(ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company and
(iii) corporate guarantee provided by the subsidiary company for the said immovable properties,which has been subsequently released. The outstanding amount (excluding current maturities) is repayable in 40 monthly installments starting from April 2023.
(c) Term loan of ? 24,031.76 lakhs (31 March 2021: ? 25,730.49 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Kolkata owned by the Company and (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (excluding current maturities) is repayable in 56 monthly installments starting from April 2023.
(d) Term loan of ? Nil (31 March 2021: ? 19,194.88 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram owned by certain sudsidiary companies and (ii) charge on escrow/ current account opened with the lender. The said loan has been pre-paid during the year.
(e) Term loan of ? Nil (31 March 2021: ? 33,021.67 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram owned by the Company (refer note 58), (ii) charge on escrow account pertaining to the properties situated at New Delhi owned by the Company/ subsidiary company and (iii) corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The said loan has been pre-paid during the year.
(f) Term loan of ? 5,911.86 lakhs (31 March 2021: ? 24,809.76 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram and Mullanpur owned by a subsidiary/ fellow subsidiary company, (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company and (iii) corporate guarantee provided by the subsidiary/ fellow subsidiary company owning the aforesaid immovable properties. The outstanding amount (excluding current maturities) is repayable in 3 quarterly installments starting from July 2024.
(g) Term loan of ? 49,407.07 lakhs (31 March 2021: ? Nil) are secured by way of pari-passu (i) equitable mortgage of immovable properties situated at New Delhi and Gurugram and owned by the Company/ subsidiary companies, (ii) charge on escrow account pertaining to the properties situated at New Delhi owned by the Company/ subsidiary companies and (iii) Corporate guarantee provided by the subsidiary companies. The outstanding amount (excluding current maturities) is repayable in 125 monthly installments starting from April 2023.
(h) Term loan of ? 13,176.33 lakhs (31 March 2021: ? Nil) are secured by way of pari-passu (i) equitable mortgage of immovable properties situated at New Delhi and Gurugram owned by the Company/ subsidiary companies, (ii) charge on escrow account pertaining to the properties situated at New Delhi owned by the Company/ subsidiary companies and (iii) corporate guarantee provided by the subsidiary companies. The outstanding amount (excluding current maturities) is repayable in 28 monthly installments starting from May 2023.
Rupee term loan from others:
(a) Term loan of ? 6,133.45 lakhs (31 March 2021: ? 6,370.14 lakhs ) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by the Company (refer note 58),
(ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company and
(iii) corporate guarantee provided by the subsidiary company for the said immovable properties, which is in the process of release. The outstanding amount (excluding current maturities) is repayable in 102 monthly installments starting from April 2023.
The Company''s total borrowings from banks and others have an effective weighted-average contractual rate of 7.01% (31 March 2021: 7.95%) per annum calculated using the interest rate effective as on 31 March 2022.
Borrowings (other than loans from related parties) contain certain debt covenants relating to security cover, net debt to tangible net worth ratio, debt-equity ratio, minimum tangible net worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of term loan.
The Company has not defaulted on any loans payable.
(a) Term loan of ? 31,384.70 lakhs (31 March 2021: ? 31,389.86 lakhs) is secured by way of (i) equitable mortgage of properties situated at Gurugram owned by the Company (refer note 58) and (ii) corporate guarantee provided by the subsidiary company for the said immovable properties, which is in the process of release.
(b) Term loan of ? 91,415.59 lakhs (31 March 2021: ? 116,314.92 lakhs) is secured by way of (i) equitable mortgage of properties situated at Gurugram, Indore, Panchkula and New Delhi owned by the Company and subsidary companies (refer note 58), (ii) corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties. Further, corporate guarantee provided by one of the subsidiary company for the said immovable properties, which is in the process of release and (iii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company and subsidary companies.
(c) Term loan of ? 600.00 lakhs (31 March 2021: ? 7,500.00 lakhs) is secured by way of (i) equitable mortgage of properties situated at Gurugram owned by the Company (refer note 58) and (ii) corporate guarantee provided by the subsidiary company for the said immovable properties is in the process of release.
(d) Term loan of ? 14,000.00 lakhs (31 March 2021: ? 29,200.00 lakhs) is secured by way of pari-passu on equitable mortgage of immovable property situated at New Delhi owned by a subsidiary company.
(e) Term loan of ? Nil (31 March 2021: ? 12,158.75 lakhs) is secured by way of (i) equitable mortgage of properties situated at New Delhi owned by a subsidiary company, (ii) corporate guarantee provided by certain subsidiary companies owning the aforesaid immovable properties and (iii) charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company. The said loan has been pre-paid during the year.
(f) Term loan of ? 25,000.00 lakhs (31 March 2021: ? 25,000.00 lakhs) is secured by way of equitable mortgage of properties situated at Gurugram owned by the Company (refer note 58) and (ii) corporate guarantee provided by the subsidiary company for the said immovable properties, which is in the process of release.
Loans from related parties:
Unsecured loan of ? 3,352.77 lakhs (31 March 2021: ? 14,150.23 lakhs) repayable as demanded by the lender.
Borrowings (other than loans from related parties) contain certain debt covenants relating to security cover, net debt to tangible net worth ratio, debt-equity ratio, minimum tangible net worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of term loan.
The Company has not defaulted on any loans payable.
Information about the Company''s performance obligations for material contracts are summarised below:
The performance obligation of the Company in case of sale of residential plots and apartments and commercial office space is satisfied once the project is completed and control is transferred to the customers.
The customer makes the payment for contracted price as per the installment stipulated in the respective Buyer''s Agreement.
Revenue from co-development projects
Co-development projects where the Company is acting as contractor, revenue is recognised in accordance with the terms of the co-developer agreements. Under such contracts, assets created do not have an alternative use and Company has an enforceable right to payment. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project.
The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately.
The transaction price of the remaining performance obligations (unsatisfied or partially unsatisfied) as at 31 March 2022 is ? 562,194.85 lakhs (31 March 2021: ? 683,325.03 lakhs). The same is expected to be recognised within 1 to 3 years.
a) During the year, one of the investee company had defaulted in meeting its debt obligation mainly due to project execution delays arising out of disruption caused by Covid-19 pandemic. Subsequent to the year end, the lender has issued notice for e-auction of the project. Also, very recently, the lender has served notices to initiate legal proceedings for alleged contravention related to loan agreement against the investee company, its directors and shareholders. The Company is in the process of evaluating and has replied/ replying to the notices, however, based on initial understanding with the legal counsels, the management believes that there will not be any further financial implications due to this.
The management as an abundant caution had considered an impairment provision of ? 23,518.87 lakhs on a best estimate basis and is confident that no further provision is required at this stage.
With regard to above, management used the available information, expert advice, consequential delays expected and expectation of possible resolution of the matter to arrive at the impact on the carrying value of its investments.
b) During the previous year, in view of Covid-19 situation, the Company had experienced adverse trends in recovering interest on delayed payments from customers. The Company had reassessed such receivables from the customers and recognized a provision during the year ending 31 March 2021: ? 4,535.87 lakhs against those receivables.
Investments in equity shares of subsidiaries, associates and joint ventures are measured at cost as per Ind AS 27, "Separate
Financial Statementsâ and are not required to be disclosed here.
* including non-convertible redeemable debentures issued by the Company. Since there is no comparable instrument having the similar terms and conditions with related security being pledged, the carrying value of the debentures represents the best estimate of fair value.
The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, derivative assets and cash and cash equivalents that derive directly from its operations.
i) Risk management objectives and policies
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a Finance Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance Committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:
A) Credit risk
Credit risk is the risk that a counter party fails to discharge its obligation to the Company under a financial instrument or customer contract leading to a financial loss. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables including contract assets and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and other credit risk related to other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate credit risk
C: High credit risk
Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written-off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written-off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.
Expected credit loss for trade receivables under simplified approach
The Company''s trade receivables in respect of projects does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made ? Nil (31 March 2021: ? 2,340.60 lakhs) provision towards interest receivable from customers. In respect of other trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company''s trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further, historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Maturities of financial liabilities
The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.
a) Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of the change in foreign currency exchange rates. The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company''s functional currency.
The Company manages its foreign currency risk by hedging transactions. The Company has taken forward contract to hedge its cash flows related to foreign currency transactions covering the entire duration of the foreign currency loan. During the year and previous year, the Company hedged 100% of its foreign currency borrowings.
The Company''s exposure to foreign currency changes for unhedged transactions are not material, therefore not disclosed.
b) Interest rate riski) Liabilities
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.
Interest rate risk exposure
The Company''s fixed deposits, interest bearing security deposits and loans are carried at fixed rate. Therefore, the said assets are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
The company''s exposure to price risk arises from investments held and classified as FVTPL and FVOCI. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.
Sensitivity analysis
d) Legal, taxation and accounting risk
The Company is presently involved into various judicial, administrative, regulatory and litigation proceedings concerning matters arising in the ordinary course of business operations including but not limited to personal injury claims, landlord-tenant disputes, commercials disputes, tax disputes, employment disputes and other contractual disputes. Many of these proceedings seek an indeterminate amount of damages. In situations where management believes that a loss arising from a proceeding is probable and can reasonably be estimated, the Company records the amount of the probable loss. As additional information becomes available, any potential liability related to these proceedings is assessed and the estimates are revised, if necessary.
To mitigate these risks, the Company employs in-house counsel and uses third party tax & legal experts to assist in structuring significant transactions and contracts. The Company also has systems and controls that ensure the timely delivery of financial information in order to meet contractual and regulatory requirements and has implemented disclosure controls and internal controls over financial reporting which are tested for effectiveness on an ongoing basis.
Change to any of the above laws, rules, regulations related to the Company business could have a material impact on its financial results. Compliance with any proposed changes could also result in significant cost for the Company. Failure to fully comply with various laws, rules and regulations may expose the Company to proceedings which may materially affect its performance.
The purpose of the Company''s capital management is:
- Maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital on the basis of the carrying amount of equity and net debt (adjusted for cash and cash equivalents) as presented on the face of balance sheet.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders or issue new shares.
During the year, the Company has paid final dividend for the year ended 31 March 2021 amounting to ? 49,506.23 lakhs (proposed in the previous year ? Nil) @ ? 2/- per equity share to its shareholders. The Company has received dividend of ? 33,355.94 lakhs from one of its joint venture company during the year. With effect from 1 April 2020, the Dividend Distribution Tax (''DDT'') payable by the Company under Section 115O of Income-tax Act, 1961 was abolished and a withholding tax was introduced on the payment of dividend. As a result, dividend is now taxable in the hands of the recipient.
During the previous year, the Company had paid final dividend for the year ended 31 March 2020 amounting to ? 19,802.49 lakhs (proposed in the previous year ? 19,802.49 lakhs) @ ? 0.80 per equity share to its shareholders. The Company has received dividend of ? 19,620.82 lakhs from one of its joint venture company during the previous year. With effect from 1 April 2020, the Dividend Distribution Tax (''DDT'') payable by the Company under Section 115O of Income-tax Act, 1961 was abolished and a withholding tax was introduced on the payment of dividend. As a result, dividend is now taxable in the hands of the recipient.
41. OTHER STATUTORY INFORMATION FOR THE YEAR ENDED 31 MARCH 2022 AND 31 MARCH 2021:
(i) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company does not have any transaction with companies struck off under Section 248 of the Companies Act, 2013.
(iii) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).
(viii) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(ix) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.
42. The Company has entered into business development agreements with certain entities for acquisition of sole irrevocable development rights in identified land which are acquired/or in the advanced stages of being acquired by these entities.
In terms of accounting policy stated in Note 2.2(h), the amount paid to these entities pursuant to the above agreements for acquiring development rights are classified under inventory as development rights.
43. EMPLOYEE BENEFIT OBLIGATIONSa) Provident fund
The Company offers its employees, benefits under defined benefit plans in the form of provident fund scheme which cover all its group employees. The provident fund trust set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfalls, if any. Both the employees and the Company pay predetermined contributions in the trust. Contribution made by the Company to the provident fund trust during the year is ? 650.51 lakhs (31 March 2021: ? 548.02 lakhs). In this regard, actuarial valuation as on 31 March 2022 and 31 March 2021 was carried out to measure the obligation using projected unit credit method arising due to interest rate guarantee by the Company towards provident fund. In terms of said valuation the Company has no liability towards interest rate guarantee as on 31 March 2022.
The Company has a defined benefit gratuity plan, which is unfunded. The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employee''s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The weighted-average duration of the defined benefit obligation is 10.70 years (31 March 2021: 11.07 years).
Risks associated with plan provisions
The Company is exposed to number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and management''s estimation of the impact of these risks are as follows:
Salary growth risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.
Interest rate risk
A decrease in interest rate in future years will increase the plan liability.
Life expectancy risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.
Withdrawals Risk
Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact the plan liability.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss:
a) During the year, two of the wholly-owned subsidiary companies have acquired 100% equity stake in 35 Indian companies at a consideration of ? 3,487.40 lakhs. Consequently, these companies have become wholly-owned subsidiaries of the Company w.e.f. 11 June 2021.
b) During the year, one of the partnership firm has disposed-off its stake in Daffodil Hotels Private Limited.
c) During the year, w.e.f. 23 July 2021, partnership firm ''DLF Office Developers'' is converted into a Private Limited Company i.e. DLF Office Developers Private Limited''.
d) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 14 September 2021 the said entities have been merged with Akina Builders & Developers Private Limited.
e) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 27 September 2021 the said entities have been merged with Atherol Builders & Developers Private Limited.
f) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 27 September 2021 the said entities have been merged with Hoshi Builders & Developers Private Limited.
g) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 27 September 2021 the said entity has been merged with Arlie Builders & Developers Private Limited.
h) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 22 September 2021 the said entities have been merged with Ananti Builders & Construction Private Limited.
i) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 7 September 2021 the said entities have been merged with Qabil Builders & Developers Private Limited.
j) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 7 September 2021 the said entity has been merged with Sagardutt Builders & Developers Private Limited.
k) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 8 September 2021 the said entities have been merged with Vamil Builders & Developers Private Limited.
l) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 9 September 2021 the said entity has been merged with Uncial Builders & Constructions Private Limited.
m) During the year, pursuant to the order passed by the Hon''ble Regional Director, Northern Region, New Delhi vide order dated 7 September 2021 the said entity has been merged with Verano Builders & Developers Private Limited.
n) During the year, pursuant to the order passed by the Hon''ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 2 February 2022 the said entities have been merged with DLF Limited and is effective from 1 April 2021. Refer note 58.
o) During the previous year, one of the subsidiary company had disposed-off its subsidiary Hemadri Real Estate Developers Private Limited, for an aggregate consideration of ? 400.00 lakhs at fair value.
p) DLF Home Developers Limited, one of the wholly-owned subsidiary company of the Company holds Compulsorily Convertible Preference Shares (CCPS) in Arizona Globalservices Private Limited (Arizona). These are convertible at the option of the investor. If these are converted (also considering the terms and conditions of the agreement), it will assure significant influence over Arizona by the wholly-owned subsidiary company. Hence, Arizona has been classified as an associate company.
45. DISCLOSURES UNDER IND AS 24 - RELATED PARTY TRANSACTIONS
a) Holding company
Rajdhani Investments & Agencies Private Limited
b) Fellow subsidiary/ partnership firms
DLF Urva Real Estate Developers & Services Private Limited (fellow subsidiary company)#
Lion Brand Poultries (partnership firm)
# As per the Hon''ble NCLT order dated 8 October 2021, this Company has been merged with the holding Company i.e. Rajdhani Investments & Agencies Private Limited.
Terms and conditions of transactions with related parties:
1. The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured, interest free and settlement occurs by cheque/ RTGS.
2. The Company has given loan to related parties which are repayable on demand. These loans are provided at interest rates of 7.50% (31 March 2021: 7.50%) p.a. to subsidiary companies and at interest as per agreement to joint ventures. The loans have been utilized by the related parties for business purposes.
3. The Company has given corporate guarantee to the bank''s in respect of loan taken by the subsidiaries/ associate companies and joint ventures from that bank''s and financial institution''s and vice-versa.
4. The Company provides business and financial support to certain subsidiaries/ associate companies, which are in losses and are dependent on the Company for meeting out their cash requirements.
⢠There are no transactions of loans and advances to subsidiaries/ associates/ firms/ others in which Directors are interested other than as disclosed above.
⢠There are no loans and advances in the nature of loans where there is no repayment schedule or repayment beyond seven years or no interest or interest under Section 186 of the Companies Act, 2013.
⢠Does not include investment in non-convertible debentures of ? 20,000 lakhs (refer note 6A).
b) i) Security provided in favour of Axis Trustee Services Limited, for the benefit of Standard Chartered Bank Limited and its assignees by way of mortgage of its immovable property situated at Gurugram in respect of the term loan facilities of ? Nil (31 March 2021: ? 160,575.76 lakhs) availed by DLF Cyber City Developers Limited, a joint venture company.
ii) Security provided in favour of Housing Development Finance Corporation Limited by way of (i) mortgage of its immovable property situated at Gurugarm, (ii) charge on receivables pertaining to the aforesaid immovable property in respect of the term loan facilities of ? 22,867.95 lakhs (31 March 2021: ? 134,519.59 lakhs) availed by DLF Home Developers Limited, a subsidiary company.
iii) Security provided in favour of Vistra ITCL (India) Limited, for the benefits of NCD holder, Axis Bank Limited and Standard Chartered Bank and their assignees by way of mortgage of its immovable property situated at Gurugram in respect of the non-convertible debentures and term loan facilities of ? 117,022.06 lakhs (31 March 2021: ? 123,907.06 lakhs) availed by DLF Cyber City Developers Limited, a joint venture company.
iv) Security provided in favour of Axis Trustee Services Limited, for the benefit of Housing Development Finance Corporation Limited and Standard Chartered Bank and its assignees by way of mortgage of its immovable property situated at Gurugram in respect of the term loan facilities of ? 167,952.28 lakhs (31 March 2021: ? Nil) availed by DLF Cyber City Developers Limited, a joint venture company.
v) The Company had executed a Share Pledge Agreement dated 26 December 2017, for providing security by way of creating pledge on 37,500 Equity Shares (equivalent to 37.50%) of ? 100/- each held by the Company in Joyous Housing Limited ("Joyousâ), a joint venture company, in favour of PNB Housing Finance Limited ("PNBHFL'') to secure the credit facility up to ? 80,000.00 lakhs ["Credit Facilityâ] availed by Joyous.
i) The Company''s leased assets primarily consists of lease for office space, building and equipment for running Golf course operations and SEZ land parcels having lease terms of 3 to 30 years.
The Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date of transition and has measured right-of-use asset at an amount equal to lease liability adjusted for previously recognised prepaid or accrued lease payments.
Further, lease arrangements where the Company is lessor, lease rentals are recognized on straight-line basis over the non-cancellable period.
ii) Set-out below are the carrying amounts of right-of-use assets recognised and the movements during the year:
iv) The Company had total cash outflows for leases during the year is ? 3,431.33 lakhs (31 March 2021: ? 3,262.00 lakhs).
v) The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing and aligning with the Company''s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. The right-of-use has been recognized on complete lease terms [see note 2.2(t)].
vi) The maturity analysis of lease liabilities are disclosed in note 37B.
vii) The effective interest rate for lease liabilities is 10% per annum (31 March 2021: 10% per annum) with maturity between 2023-2047 (31 March 2021: 2022-2047).
The Company has leased out office and mall premises under non-cancellable operating leases. These leases have terms of between 3-30 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total lease rentals recognised as income during the year is ? 16,611.24 lakhs (31 March 2021: ? 18,958.65 lakhs).
i) Estimated amount of contracts remaining to be executed on capital account and not provided for: at 31 March 2022, the Company had commitments of ? 974.61 lakhs (31 March 2021: ? 250.14 lakhs) relating to completion of various projects.
ii) The Company is committed to provide business and financial support to certain subsidiary companies, which are in losses and is dependent on parent company for meeting out their cash requirements. Further, the Company has given letter of support in favour of certain joint ventures/ associate companies for their bank borrowings.
iii) The Company has commitment regarding payments under development agreements with certain partnership firms amounting to ? 138,776.69 lakhs (31 March 2021: ? 139,314.06 lakhs), where the Company or its subsidiaries are partner and certain third-party entities with whom development agreements are in place.
1) a) The Income Tax Authorities had made disallowances of SEZ profits u/s 80IAB of the Income-tax Act,
1961 during tax assessment of the Company raising demands amounting to ? 109.00 lakhs for the assessment year 2015-16; ? 1,056.00 lakhs for the assessment year 2014-15; ? 6,834.00 lakhs for the assessment year 2013-14; ? 7,308.99 lakhs for the assessment year 2011-12; ? 7,284.99 lakhs for the assessment year 2010-11; ? 35,523.71 lakhs for the assessment year 2009-10 and ? 48,723.00 lakhs for assessment year 2008-09 respectively.
The Company had filed appeals before the appropriate appellate authorities against these demands for the said assessment years and have got full relief of ? 106,840.60 lakhs i.e ? 98,841.30 lakhs from the Hon''ble Income Tax Appellate Tribunal against which, the department appeal(s) are pending before the Hon''ble Delhi High Court and ? 7,999.30 lakhs from CIT (Appeals), against which, the department appeal(s) are pending before the Hon''ble Income Tax Appellate Tribunal.
Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded will not be sustained on completion of the appellate procee
Mar 31, 2019
2) Non-derivative financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and financial guarantee contracts.
Subsequent measurement
Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortized cost using the effective interest method.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are de-recognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
3) Financial guarantee contracts
Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognized less cumulative amortization.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
4) Derivative financial instruments and hedge accounting
The Company holds derivative financial instruments to hedge its foreign currency exposure for underlying external commercial borrowings (âECB''). Derivative financial instruments are accounted for at FVTPL except for derivatives designated as hedging instruments. To qualify for hedge accounting, the hedging relationship must meet conditions with respect to documentation, strategy and economic relationship of the hedged transaction. The Company has designated the changes in spot element of the derivative as hedging instrument to mitigate variability in cash flows associated with the foreign exchange risk of the said ECB. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
The changes in fair value of the forward element of the derivative are recognized in other comprehensive income and are accumulated in âCash Flow Hedge Reserve''. The difference between forward and spot element at the date of designation of the hedging instrument is amortized over the period of the hedge. Hence, in each reporting period, the amortization amount shall be reclassified from the separate component of equity to profit or loss as a reclassification adjustment. However, if hedge accounting is discontinued for the hedging relationship that includes the changes in forward element of the hedging instrument, the net amount (i.e. including cumulative amortization) that has been accumulated in the separate component of equity shall be immediately reclassified into profit or loss as a reclassification adjustment.
5) Reclassification of financial instruments
The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
6) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
u) Fair value measurement
The Company measures its financial instruments such as derivative instruments, etc at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets and significant liabilities, such as contingent consideration. Involvement of external valuers is decided upon annually by the management.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
- Disclosures for valuation methods, significant estimates and assumptions (note 4 & 37)
- Quantitative disclosures of fair value measurement hierarchy (note 37)
- Investment in unquoted equity shares (note 6B)
- Investment properties (note 4)
- Financial instruments (including those carried at amortized cost) (note 38)
v) Optionally convertible redeemable preference shares
Optionally convertible redeemable preference shares issued to wholly owned subsidiaries are accounted as investment carried at cost. In such instruments only the subsidiaries companies will have the option to buy back and dividend will be completely discretionary at the subsidiaries option. The Company will not have any legal or contractual right either in normal or in default scenario to require the subsidiaries to make payment of principal or interest as issuer has the right to convert the instrument into equity shares at any time during its tenure. Amount is fixed at upfront and conversion will be into fixed number of shares.
w) Convertible Instruments
Convertible instruments are separated into liability and equity components based on the terms of the contract.
On issuance of the convertible instruments, the fair value of the liability component is determined using a market rate for an equivalent non-convertible instrument. This amount is classified as a financial liability measured at amortized cost (net of transaction costs) until it is extinguished on conversion or redemption.
The remainder of the proceeds is allocated to the conversion option that is recognized and included in equity since conversion option meets Ind AS 32 criteria for fixed to fixed classification. Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the conversion option is not premeasured in subsequent years.
Transaction costs are apportioned between the liability and equity components of the convertible instruments based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.
x) Non-current assets held for sale
The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale/ distribution rather than through continuing use. Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classification.
For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance. The criteria for held for sale classification is regarded met only when the assets or disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales/ distribution of such assets (or disposal groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The group treats sale of the asset or disposal group to be highly probable when:
- The appropriate level of management is committed to a plan to sell the asset,
- An active programme to locate a buyer and complete the plan has been initiated,
- The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value,
- The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and
- Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Non-current assets held for sale/ for distribution to owners and disposal groups are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.
Property, plant and equipment and intangible assets once classified as held for sale to owners are not depreciated or amortized.
y) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted-average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
z) Changes in accounting policies and disclosures New and amended standards
The Company applied Ind AS 115 for the first time. The nature and effect of the changes as a result of adoption of these new accounting standards are described below.
Several other amendments and interpretations apply for the first time in March 2019, but do not have an impact on the standalone financial statements of the Company. The Company has not early adopted any standards or amendments that have been issued but are not yet effective.
Ind AS 115 Revenue from Contracts with Customers
Ind AS 115 supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue arising from contracts with customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
Ind AS 115 requires entities to exercise judgment, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.
The application of Ind AS 115 has impacted the Company''s accounting for recognition of revenue from real estate projects. For certain real estate contracts where the Company was following Percentage of Completion method (POCM) as per the âGuidance Note on Real Estate Transactionsâ, issued by Institute of Chartered Accountants of India, revenue has been recognized at a point in time in accordance with and pursuant to conditions specified in Ind AS 115 âRevenue from Contracts with Customersâ. However for other contracts, the Company continues to recognize revenue over the period of time. The Company has applied the modified retrospective approach to contracts that were not completed as of 1 April 2018. The Company elected to apply the standard to all contracts as at
1 April 2018.
The cumulative effect of initially applying Ind AS 115 is recognized at the date of initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under Ind AS 11 and Ind AS 18.
The Company has applied the modified retrospective approach to contracts that were not completed as of 1 April 2018 and has given impact of Ind AS 115 application by debit to retained earnings as at the said date by Rs,396,399.66 lakhs (net of tax) pertaining to recognition of revenue based on satisfaction of performance obligation.
Due to application of Ind AS 115, revenue from operations for the year ended 31 March 2019 is higher by Rs,179,742.33 lakhs and net profit after tax for the year ended 31 March 2019 is higher by Rs,80,488.11 lakhs than it would have been if erstwhile standards were applicable. Refer note 61 for details disclosures as required under Ind AS 115 Revenue from contracts with customers.
Amendment to Ind AS 20 Government grant related to nonmonetary asset
The amendment allows and entity to the option of recording non-monetary government grants at nominal amount and presenting government grants related to assets by deducting the grant from the carrying amount of asset.
There is no impact of this amendment on the Company.
Amendment to Ind AS 38 Intangible asset acquired free of charge
The amendment clarifies that in some cases, an intangible asset may be acquired free of charge, or for nominal consideration, by way of a government grant. The amendment also clarifies that revaluation model can be applied for asset which is received as government grant and measured at nominal value. These amendments do not have any impact on the Company''s standalone financial statements.
Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Considerations
The appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the de-recognition of a nonmonetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognizes the non-monetary asset or nonmonetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the date of the transactions for each payment or receipt of advance consideration. Since Company current practice is in line with the clarifications issued, there is no material effect on its standalone financial statements.
Amendments to Ind AS 40 Transfers of Investment Property
The amendments clarify when an entity can transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management''s intentions for the use of a property does not provide evidence of a change in use. Since Company''s current practice is in line with the clarifications issued, there is no material effect standalone financial statements.
Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealized Losses
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.
Entities are required to apply the amendments retrospectively. On initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognized in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity.
Since Company''s current practice is in line with the clarifications issued, there is no material effect on the standalone financial statements.
Ind AS 28 Investments in Associates and Joint Ventures -Clarification that measuring investees at fair value through profit or loss is an investment-by-investment choice
Since Company''s current practice is in line with the clarifications issued, there is no material effect on the standalone financial statements.
Amendments to Ind AS 112 Disclosure of Interests in Other Entities:
The amendments clarified that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity''s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.
Since in the current year, there has been no disposal of entity''s interest in any subsidiary, joint venture or an associate, the amendment doesn''t have any impact on the standalone financial statements.
aa) Significant management judgment in applying accounting policies and estimation uncertainty
The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.
Significant management judgments
Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.
Classification of leases - The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
Impairment of financial assets - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding financial assets.
Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However the actual future outcome may be different from this judgment.
Revenue from contracts with customers-
The Company has applied judgments that significantly affect the determination of the amount and timing of revenue from contracts with customers:
Significant estimates
Net realizable value of inventory - The determination of net realizable value of inventory involves estimates based on prevailing market conditions, current prices and expected date of commencement and completion of the project, the estimated future selling price, cost to complete projects and selling cost. The Company also involves specialist to perform valuations of inventories, wherever required.
Useful lives of depreciable/amortizable assets - Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.
Valuation of investment property - Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the balance sheet date. The Group engaged independent valuation specialists to determine the fair value of its investment property as at reporting date. The determination of the fair value of investment properties requires the use of estimates such as future cash flows from the assets (such as lettings, future revenue streams, capital values of fixtures and fittings, any environmental matters and the overall repair and condition of the property) and discount rates applicable to those assets. In addition, development risks (such as construction and letting risk) are also taken into consideration when determining the fair value of the properties under construction. These estimates are based on local market conditions existing at the balance sheet date.
Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.
Valuation of investment in subsidiaries, joint ventures and associates - Investments in joint ventures and associates are carried at cost. At each balance sheet date, the management assesses the indicators of impairment of such investments. This requires assessment of several external and internal factor including capitalization rate, key assumption used in discounted cash flow models (such as revenue growth, unit price and discount rates) or sales comparison method which may affect the carrying value of investments in subsidiaries, joint ventures and associates.
(iii) Property, plant and equipment pledged as security
Refer note 18 and 23 for information on property, plant and equipment pledged as security for borrowings by the Company.
(iv) Reassessment of useful lives of assets
During the previous year, the Company has based on technical evaluation reassessed the remaining useful life of golf and club assets classified under building, plant and machinery. Due to this reassessment, useful lives have been reduced to 20 years.
(v) Assets given under operation and management agreement
Out of total assets, assets amounting to Rs,16,532.02 lakhs (31 March 2018: Rs,18,792.78 lakhs) are given to DLF Golf Resorts Limited, a subsidiary company, under operation and management agreement [refer note 2.1(h)].
(vi) Assets not held in the name of Company
(a) Freehold land includes net block of Rs,83.74 lakhs (31 March 2018: Rs,83.74 lakhs) in respect of 9 hole Golf course and wherein the legal title of the land is in the name of one of the subsidiary company. On the said land parcel, buildings having net block of Rs,5,030.76 lakhs (31 March 2018: Rs,5,055.00 lakhs) is constructed.
(b) Freehold land includes net block of Rs,148.75 lakhs (31 March 2018: Rs,148.75 lakhs) wherein the legal title of land is not in the name of the Company and the Company is in process of registration.
(vii) Capitalized borrowing cost
No borrowing costs was capitalized during the current year and previous year.
(viii) Deemed cost of property, plant and equipment (represents deemed cost on the date of transition to Ind AS i.e on 1 April 2015
* This includes land taken on lease for the period more than 99 years.
** Capital work-in-progress comprises expenditure for building and related equipments under course of construction and installation.
@ During the previous year, gross block of freehold land of Rs,99.64 lakhs; building and related equipments of Rs,2,080.82 lakhs with accumulated depreciation thereon of Rs,128.63 lakhs and furniture and fixtures of Rs,125.48 lakhs with accumulated depreciation thereon of Rs,31.59 lakhs was transferred from property, plant and equipments to investment properties.
(i) Contractual obligations
Refer note 49(i) for disclosure of contractual commitments for the acquisition of investment properties.
(ii) Capitalized borrowing cost
The borrowing costs capitalized during the year '' Nil (31 March 2018: Rs,380.30 lakhs).
(iii) Investment property pledged as security
Refer note 18 and 23 for information on investment properties pledged as security by the Company.
* It includes advertisement and publicity, sales promotion, fee & taxes, ground rent, repair and maintenance, legal & professional, commission and brokerage.
(b) Fair value hierarchy and valuation technique
1) The Company''s investment properties consist of two class of assets i.e. commercial properties and retail mall, which has been determined based on the nature, characteristics and risks of each property.
As at 31 March 2019 and 31 March 2018, the fair values of the properties are Rs,460,279.69 lakhs and Rs,761,725.40 lakhs, respectively. The fair value of investment property has been determined by external, independent property valuers, having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. A valuation model in accordance with that recommended by the international valuation standards committee had been applied. The Company obtains independent valuations for its investment properties annually and fair value measurement has been categorised as Level 3. The fair value has been arrived using discounted cash flow projections based on reliable estimates of future cash flows considering growth in rental of 3%-5% (31 March 2018: 3%-5%), long-term vacancy rate of 7.50%-9.50% (31 March 2018: 7.50%-9-50%) and discount rate of 11.50% (31 March 2018: 11.50%).
2) In addition to (a) above, the Company (âDeveloperâ) has a land parcels which is notified Special Economic Zone (âSEZâ) and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Private Limited (âDAPLâ or âthe Co-developerâ), one of the subsidiary company and transferred completed bare shell buildings to DAPL. Remaining portion of such land is under development. As per the co-developer agreement, the underneath the buildings has been given on long-term lease to DAPL. The management has assessed that the value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on the sale of land in a SEZ as described under SEZ Rules 2006, the management considered carrying value aggregating Rs,13,214.25 lakhs (31 March 2018: Rs,13,214.25 lakhs) to be a reasonable estimate of its fair value.
(v) Assets not held in the name of Company
Freehold land includes net block of Rs,1,254.44 lakhs (31 March 2018: Rs,1,254.44 lakhs) in respect of Magnolias club, Park Place and Amex tower projects. Wherein the legal title of the land is in the name of one of the subsidiary company and not in the name of Company. On the said land parcels buildings having net block of Rs,12,332.00 lakhs (31 March 2018: Rs,13,089.11 lakhs) is constructed.
(vi) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with monthly rental payments. Refer note 48 for details on further minimum lease rentals.
(vii) Deemed cost of investment property (represents deemed cost on the date of transition to Ind AS i.e. on April 1, 2015).
(viii) Figures in disposals/ adjustments column include adjustments on account of credit note issued by contractor for capital goods having gross block of Rs,35.00 lakhs (31 March 2018: '' Nil).
(ix) Assets classified held for sale (refer note 58).
(x) The title deeds of immovable properties included in investment property amounting to Rs,45,653.00 lakhs are pledged with the banks against borrowings taken by subsidiary company and are not physically available with the Company.
The title deed of such immovable properties are pledged and available with HDFC Limited. The Company has also constructed building on such land having net block of Rs,145,517.00 lakhs.
1 All the investment in equity shares of subsidiaries, associates and joint ventures are stated at cost as per Ind AS 27 âSeparate Financial Statements''.
2 All equity shares of Rs,10/- each unless otherwise stated
3 These investments are on account of or includes the investment booked for subsidiaries on account of stock options issued to employees of those subsidiaries.
4 During the year, SEZ Divisoin of DLF Home Developers Limited got demerged into DLF Info City Chennai Limited vide order dated 4 January 2019 passed by Hon''ble NCLT Principal Bench, New Delhi. Accordingly, the Company has received 8,152,227 number of shares in DLF Info City Chennai Limited accordingly proportionate cost of investment, on the basis of net worth, has been allocated to DLF Info City Chennai Limited from DLF Home Developers Limited.
5 All are redeemable instruments and having face value of Rs,100/- each unless otherwise stated and are measured at amortized cost. These preference shares are redeemed at the option of the holder i.e. the Company on or before expiry of 2029 from the date of allotment. These instrument carries cumulative dividend @ 0.01% to 12%. Also refer note 2(v). OCRPS are redeemable by 2029.
6 These are equity portion of compound financial instruments.
7 During the year, bonus shares have been issued by DLF Cyber City Developers Limited (DCCDL) (Class B equity shares) as per below terms and conditions:
- Class-B equity shares shall not carry any voting rights;
- Holder of Class-B equity shares shall not receive any proceeds of any winding-up of liquidation of the Company;
- Holder of Class-B equity shares shall have the right to receive dividend only to the extent specifically approved/ recommended by the Board in the relevant financial year; and
- These Class-B equity shares shall not stand pari-passu with the already existing equity shares issued by DCCDL, however these Class-B equity shares shall stand pari-passu to the Class-B equity shares to be issued in future by DCCDL, if any, on account of conversion of existing 0.001% Class-B Compulsorily Convertible Preference shares of Rs,10/- each (âClass-B CCPSâ) in terms of Class-B CCPS issued and alloted on 26 December 2017 by DCCDL.
(i) The asset of Rs,13,009.77 lakhs (31 March 2018: Rs,14,823.07 lakhs) recognized by the Company as âMAT credit entitlement'' represents that portion of MAT liability, which can be recovered and set-off in subsequent years based on provisions of Section 115JAA of the Income-tax Act,1961. The management based on the present trend of profitability and also the future profitability projections, is of the view that there would be sufficient taxable income in foreseeable future, which will enable the Company to utilize MAT credit assets.
(ii) Deferred tax asset is recognized on unabsorbed depreciation and carry forward losses to the extent it is probable that future taxable profits will be available against which the deductible temporary differences, unabsorbed depreciation and carried forward tax losses can be utilised. The Company has tax losses of Rs,729,552.13 lakhs (comprising business loss of Rs,555,181.91 lakhs; house property loss of '' Nil and capital losses of Rs,174,370.23 lakhs) (31 March 2018: Rs,208,710.23 lakhs) that are available for off-setting for eight years against further taxable profits. Majority of this losses will expire in March 2024 and March 2025. Based upon margin from sale of existing projects, profit from launch of new projects in near future and planned reduction in interest cost & overheads in future, Company believes there is reasonable certainty that deferred tax asset will be recovered.
(iii) The Company has not recognized deferred tax asset in respect of capital losses of Rs,174,369.36 lakhs (31 March 2018: Rs,208,710.23 lakhs) as there is no reasonable certainty supported by convincing evidences of their recoverability in the near future. If the Company was also to recognise all unrecognized deferred tax assets, the profit would increase by Rs,40,621.09 lakhs (31 March 2018: Rs,47,945.32 lakhs).
(iv) This refers to the deferred tax asset recognized on reversal of margin of Rs,212,786.50 lakhs from retained earnings as of 1 April 2018 on account of adoption of Ind AS 115 (refer note 60). The deferred tax asset will be recovered as and when such margin will be recycled to statement of profit and loss. The Company believes there is reasonable certainty of recovery of such deferred tax asset as margins will be recognized in subsequent periods as and when revenue will be recorded based on transfer of control.
(v) During the year, the Company has adopted Ind AS 115 âRevenue from contracts with customer''s for the purpose of revenue recognition which has impacted the revenue recognition principles in respect of certain contracts where revenue was recognition besed on percentage of completion method (âPoCM'') till 31 March 2018 (Refer Note 61). However, for the purpose of tax computation under normal provisions, company has continued to follow percentage of completion methed (âPoCM'') basis of revenue recognition.
b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs,2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
For dividend related disclosure, refer note 40.
e) Aggregate number of shares issued for consideration other than cash and shares bought-back during the period of five years immediately preceding the reporting date
i) Shares issued under Employee Stock Option Plan (ESOP) during the financial year 2014-15 to 2018-19
The Company has issued total 3,023,805 equity shares of Rs,2/- each (during FY 2013-14 to 2017-18: 4,329,534 equity shares) during the period of five years immediately preceding 31 March 2019 on exercise of options granted under the Employee Stock Option Plan (ESOP).
ii) Shares issued through conversion of Compulsorily Convertible Debentures during the financial year 2018-19
During the current year, the Company has issued 249,746,836 equity shares through conversion of compulsorily convertible debentures.
f) Shares reserved for issue under options
For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, refer note 51.
* For details on Employee Stock Option Scheme, 2006.
Capital reserve
Capital reserve was created under the previous GAAP (Indian GAAP) out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.
Capital redemption reserve
The same has been created in accordance with provision of the Act with respect to buy back of equity shares from the market in earlier years.
Securities premium
Securities premium includes premium on issue of shares and issue of shares through conversion of compulsorily convertible debentures. It will be utilized in accordance with the provisions of the Companies Act, 2013.
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of the Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilized only in accordance with the specific requirements of the Companies Act, 2013.
Share options outstanding account
The reserve is used to recognize the fair value of the options issued to employees under Company''s Employee Stock Option Plan (refer note 43 for further details).
Forfeiture of shares
This reserve was created on forfeiture of shares by the Company. The reserve is not available for distribution to the shareholders.
Equity component of compulsorily convertible debentures
The Company had issued compulsorily convertible debentures (CCDs) having coupon rate of 0.01%. This being compound financial instrument and accordingly represents equity component of CCDs on split of compound financial instrument. This will be converted to equity shares within 18 months of allotment (also refer note 60).
Debenture redemption reserve (DRR)
The Company has issued redeemable non-convertible debentures. Accordingly, the Company as per the provisions of the Companies (Share capital and Debentures) Rules, 2014 (as amended), the Company to create DRR out of profits available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures due for redemption. Though the DRR is required to be created over the life of debentures.
FVOCI equity investments
The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfered amounts from these reserve to retained earning which the relevant equity securities are recognized.
Retained Earnings
Represents surplus in statement of Profit and Loss.
Cash flow hedge reserve
The Company has taken a cross currency swap to hedge the foreign currency risk of foreign currency loan. To the extent hedge is effective, the change in fair value of hedging instrument is recognized in cash flow reserve.
18.1. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as on
31 March 2019:
Non-convertible debentures:
(i) Non-convertible debentures of Rs,34,290.98 lakhs (31 March 2018: Rs,68,430.33 lakhs) are secured by way of pari passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and the outstanding amount (excluding current maturities) is due for redemption on 11 August 2020.
Foreign currency loan from banks:
(a) Foreign currency loan of Rs,87,456.87 lakhs (31 March 2018: Rs,124,596.67 lakhs) is secured by way of (i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company, (ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property, and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) is repayable in 6 quarterly installments starting from April 2020.
Rupee term loan from banks:
(a) Term loan of '' Nil (31 March 2018: Rs,4,898.35 lakhs) was secured by way of equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(b) Term loans of Rs,22,783.12 lakhs (31 March 2018: Rs,24,970.24 lakhs) are secured by way of equitable mortgage of immovable properties situated at New Delhi, owned by the Company. Further, there is charge on receivables pertaining to the aforesaid immovable properties owned by the Company on these loans. The outstanding amount (excluding current maturities) are repayable in 60 monthly installments starting from April 2020.
(c) Term loan of Rs,12,749.97 lakhs (31 March 2018: Rs,12,850.56 lakhs) is secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company, (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company, and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) is repayable in 76 monthly installments starting from April 2020.
(d) Term loan of Rs,18,822.33 lakhs (31 March 2018: '' Nil) is secured by way of (i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company, and (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (excluding current maturities) is repayable in 92 monthly installments starting from April 2020.
(e) Term loan of '' Nil (31 March 2018: Rs,3,327.11 lakhs) was secured by way of Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary/ group companies. Further, there is charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies.
Rupee term loan from others:
(a) Term loans of Rs,23,885.39 lakhs (31 March 2018: Rs,29,890.71 lakhs) are secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company, (ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi, (iii) Charge on receivables pertaining to all the aforesaid immovable properties owned by the Company/ subsidiary company, and (iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) are repayable in 36 monthly installments starting from April 2020.
Rate of interest:
The Company''s total borrowings from banks and others have a effective weighted-average contractual rate of 9.21% (31 March
2018: 8.92%) per annum calculated using the interest rate effective as on 31 March 2019.
Loan Covenants:
Term loans contain certain debt covenants relating to net debt to tangible net worth ratio, debt-equity ratio, minimum tangible net
worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of term loans.
The Company has not defaulted on any loans payable.
The deferred income relates to difference of present value of security deposits received and actual amount received and is released to the statement of profit and loss on straight-line basis over the tenure of lease.
23.1 Security disclosure for the outstanding short-term borrowings as on 31 March 2019:
Short-term loans from Banks:
(a) Term loan of Rs,30,992.41 lakhs (31 March 2018: Rs,31,000.00 lakhs) is secured by way of (i) Equitable mortgage of properties situated at Gurugram, owned by subsidiary company, and (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Term loan of Rs,69,650.96 lakhs (31 March 2018: Rs,35,000.00 lakhs) is secured by way of (i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies and (ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(c) Term loan of Rs,7,100.00 lakhs (31 March 2018: '' Nil) is secured by way of Equitable mortgage of properties situated at Gurugram, owned by subsidary company.
(d) Term loan of Rs,27,900.00 lakhs (31 March 2018: Rs,7,645.72 lakhs) is secured by way of equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
(e) Term loan of '' Nil (31 March 2018: Rs,19,700.00 lakhs) was secured by way of (i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company, (ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
Unsecured Loan from related parties:
(a) Unsecured loan of Rs,2,254.00 lakhs (31 March 2018: Rs,2,254.00 lakhs) is repayable as demanded by the lender.
Loan Covenants:
Term loans contain certain debt covenants relating to net debt to tangible net worth ratio, debt-equity ratio, minimum tangible net worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of term loans.
Contract assets are initially recognized for revenue earned on account of contracts where revenue is recognized over the period of time as receipt of consideration is conditional on successful completion of performance obligations as per contract. Once the performance obligation is fulfilled and milestones for invoicing are achieved, contract assets are classified to trade receivables. The opening balance of these accounts is as per note 61.
Contract liabilities include amount received from customers as per the installments stipulated in the buyer agreement to deliver properties once the properties are completed and control is transferred to customers. The opening balance of these accounts, as disclosed below, is as per note 61.
Set-out below is the amount of revenue recognized from:
* Amount represent balance at the beginning after adopting Ind AS 115 (refer note 61).
# Net of advances received.
$ Includes Rs,191,189.91 lakhs recognized out of opening contract liabilitties.
Reconciling the amount of revenue recognized in the statement of profit and loss with the contracted price
Performance obligation
Information about the Companyâs performance obligations for material contracts are summarized below:
The performance obligation of the Company in case of sale of residential plots and apartments and commercial office space is satisfied once the project is completed and control is transferred to the customers.
The customer makes the payment for contracted price as per the installment stipulated in the Apartment Buyer''s Agreement.
Revenue from Co-development projects
Co-development projects where the Company is acting as contractor, revenue from is recognized in accordance with the terms of the co-developer agreements. Under such contracts, assets created does not have an alternative use and the Company has an enforceable right to payment. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project.
The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately.
The transaction price allocated of the remaining performance obligations (unsatisfied or partially unsatisfied) as at 31 March 2019 is Rs,911,067.24 lakhs. The same is expected to be recognized within 1 to 3 years.
* This includes Rs,100.00 lakhs provided for services rendered in connection with Qualified Institutions Placement which has been adjusted with securities premium.
The Company had acquired land amounting to Rs,15,299.84 lakhs under SEZ category for developing various SEZ projects and had commenced development work in the year 2008-09 and incurred Rs,12,065.86 lakhs on development activities, which was under capital work-in-progress of investment properties; however considering the slow down in real estate sector and change in economic scenario, now the Company believes that SEZ projects in those locations is not viable and will explore alternative usage. Accordingly, development cost incurred so far does not have any economic value and therefore charged to the statement of profit and loss account as an exceptional item in the previous year.
(iii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) The use of net asset value for mutual funds on the basis of the statement received from investee party.
(b) The use of adjusted net asset value method for certain equity investment and discounted cash flow method (income approach) for remaining equity instruments.
(c) For hedge related effectiveness review and related valuation, details are presented in note 41.
(iv) The Company has used interest rate and USD/ INR swap rate as inputs to arrive at fair value of derivative assets.
(v) The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (iii) above for the valuation techniques adopted.
* Sensitivity has been considered for mentioned inputs, keeping the other variables constant. A Figures in bracket represent negative numbers.
Investments in equity shares of subsidiaries, associates and joint ventures are measured at cost as per Ind AS 27, âSeparate Financial Statementsâ and are not required to disclose here.
* The non-convertible redeemable debentures issued by the Company are listed on stock exchange and there is no comparable instruments having the similar terms and conditions with related security being pledged and hence the carrying value of the debentures represents the best estimate of fair value.
The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:
i) Financial instruments by category
For amortized cost instruments, carrying value represents the best estimate of fair value.
* Investment in equity shares of subsidiaries, associates and joint ventures are measured at cost as per Ind AS 27, âSeparate financial statementsâ.
** These financial assets are mandatorily measured at fair value.
ii) Risk Management objectives and polices
The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company under a financial instrument or customer contract leading to a financial loss. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and other credit risk related to other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
a) Credit risk management
i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate credit risk
C: High credit risk
Expected credit loss for trade receivables under simplified approach
The Company''s trade receivables in respect of projects does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made Rs,1,865.18 lakhs provision towards interest received from customers. In respect of other trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company''s trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Maturities of financial liabilities
The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.
C) Market Risk
a) Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of the change in foreign currency exchange rates. The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Company''s functional currency.
The Company manages its foreign currency risk by hedging transactions. The Company has hedged its cash flows related to foreign currency transactions covering the entire duration of the foreign currency loan. As at 31 March 2019 the Company hedged 100% of its foreign currency borrowings.
The Company''s exposure to foreign currency changes for unhedged transactions are not material, therefore not disclosed.
Dividend Distribution Tax (DDT) on dividend for the year ended 31 March 2019: Rs,2,934.19 lakhs (31 March 2018: Rs,7,284.33 lakhs paid on actual basis)
Dividend Distribution Tax (DDT) on proposed dividend for the year ended 31 March 2019: Rs,9,105.60 lakhs.
During the previous year, the Company has declared and paid interim dividend of Rs,21,408.80 lakhs @ 60% (i.e Rs,1.20 per equity share having par value of Rs,2/- each) to its shareholders. The Company has also received dividend of Rs,21,307.10 lakhs from one of its subsidiary company during the year and corporate dividend tax of Rs,4,337.62 lakhs has been paid by the said subsidiary company.
Accordingly, the Company has taken credit of this corporate dividend tax as per Section 115O of the Income-tax Act, 1961 and has paid balance amount on account of corporate dividend tax amounting to Rs,20.70 lakhs on interim dividend.
A Risk management strategy
The Company uses swaps contracts to hedge its risks associated with fluctuations in foreign currency. The risk being hedged is the risk of potential gain/ loss due to fluctuation in foreign currency rates. The use of swap contracts is covered by the Company''s overall strategy. The Company does not use swaps for speculative purposes. As per the strategy of the Company, foreign currency loans are covered by hedge, considering the risks associated with the hedging of such loans, which in-effect fixes the principal liability of such loans and mitigates or eliminate the financial and market risks in India (the place of business of the Company).
Hedge ratio is the relationship between the quantity of the hedging instrument and the quantity of the hedged item. In the case, total principal payments under the transaction is hedged under the swap contracts with the equivalent amount and at the same dates. Hence the entity hedges its exposure on the transaction and ineffective portion is taken to statement of Profit and Loss.
(ii) In the Company''s hedge relationship, source of hedge ineffectiveness are credit risk of the counterparty or of the Company and changes in timing of hedge transaction.
42. The Company has entered into business development agreements with certain of its Company entities for acquisition of sole irrevocable development rights in identified land which are acquired/ or in the final stages of being acquired by these entities.
In terms of accounting policy stated in note 2.2(g) the amount paid to these entities pursuant to the ab
Mar 31, 2018
1. CORPORATE INFORMATION
DLF Limited (âthe Companyâ) is primarily engaged in the business of colonisation and real estate development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects. The Company is also engaged in the business of leasing, maintenance services and recreational activities which are related to the overall development of real estate business. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two recognised stock exchanges in India. The registered office is situated at Shopping Mall, 3rd Floor, Arjun Marg, Phase I, DLF City, Gurugram - 122002, Haryana.
The financial statements were authorised for issue in accordance with a resolution of the Board of Directors dated 21 May 2018.
2.1 Basis of preparation
The standalone financial statements (âfinancial statementsâ) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the âInd ASâ) as notified by Ministry of Corporate Affairs (âMCAâ) under Section 133 of the Companies Act, 2013 (âActâ) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented, except for the changes in accounting policy for amendments to the standard that were effective for annual period beginning from on or after 1 April 2017:
- Amendments to Ind AS 7 Statement of Cash Flow: Disclosure Initiative for additional disclosure of changes in liabilities arising from financing activities on account of non-cash transactions;
- Amendment to Ind AS 102 Share-based Payment to cover:
i) Measurement of cash-settled share-based payments;
ii) Classification of share-based payments settled net of tax withholdings; iii) Accounting for a modification of a share based payment from cash-settled to equity-settled.
The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities, derivative financial instruments and share based payments which are measured at fair values as explained in relevant accounting policies.
In addition, the carrying values of recognised assets and liabilities designated as hedged items in cash flow hedges that would otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships. The financial statements are presented in Rupees in lakhs, except when otherwise indicated.
(i) Contractual obligations
Refer note 51(i) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(ii) Capital work-in-progress
Capital work-in progress comprises expenditure for buildings, plant and machinery under course of construction and installation.
(iii) Property plant and equipment pledged as security
Refer note 18 and 23 for information on property, plant and equipment pledged as security for borrowings by the Company.
(iv) Reassessment of useful lives of assets
During the year, the Company has based on technical evaluation reassessed the remaining useful life of golf and club assets classified under building, plant and machinery. Due to this reassessment, useful lives have been reduced and accordingly, additional depreciation of Rs.2,095.26 lakhs has been charged to the statement of profit and loss account.
(v) Assets given under operation and management agreement
Out of total assets, assets amounting to Rs.18,792.78 lakhs (31 March 2017: Rs.21,063.93 lakhs) are given to DLF Golf Resorts Limited, a subsidiary company, under operation and management agreement.
(vi) Assets not held in the name of Company
Freehold land includes gross block of Rs.83.74 lakhs and net block of Rs.83.74 lakhs in respect of 9 hole golf project, wherein the legal title of the land is in the name of one of the subsidiary companies and not in the name of the Company. On the said land parcels buildings having gross block of Rs.5,968.70 lakhs and net block of Rs.5,370.38 lakhs is constructed.
(vii) Capitalised borrowing cost
No borrowing cost was capitalised.
** Capital work-in-progress comprises expenditure for building and related equipments under course of construction and installation.
@ Adjustments includes, transfer of gross block of freehold land of Rs.99.64 lakhs; building and related equipments of Rs.2,080.82 lakhs and accumulated depreciation thereon of Rs.128.63 lakhs; furniture and fixtures of Rs.125.48 lakhs and accumulated depreciation thereon of Rs.31.59 lakhs, from block of property plant and equipments to investment properties.
(i) Contractual obligations
Refer note 51(i) for disclosure of contractual commitments for the acquisition of investment properties.
(ii) Capitalised borrowing cost
The borrowing costs capitalised during the year ended 31 March 2018 was Rs.380.30 lakhs (31 March 2017: Rs.521.54 lakhs).
(iii) Investment property pledged as security
Refer note 18 and 23 for information on investment properties pledged as security by the Company.
The Companyâs investment properties consist of two class of assets i.e., commercial properties and retail mall, which has been determined based on the nature, characteristics and risks of each property.
Fair value hierarchy and valuation technique
As at 31 March 2018 and 31 March 2017, the fair values of the properties are Rs.761,725.40 lakhs and Rs.730,614.78 lakhs, respectively. The fair value of investment property has been determined by external, independent property valuers, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued. A valuation model in accordance with that recommended by the international valuation standards committee had been applied. The Company obtains independent valuations for its investment properties annually and fair value measurement has been categorised as Level 3. The fair value has been arrived using discounted cash flow projections based on reliable estimates of future cash flows considering growth in rental of 3%-5%(31 March 2017: 3%-5%), long-term vacancy rate of 7.50%-9.50% (31 March 2017: 7.50%-9-50%) and discount rate of 11.50% (31 March 2017: 12%-15%).
In addition to this, the Company (âDeveloperâ) has a land parcels which is notified Special Economic Zone (âSEZâ) and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Private Limited (âDAPLâ or âthe Co-developerâ), one of the subsidiary company and transferred completed bare shell buildings to DAPL. Remaining portion of such land is under development. As per the co-developer agreement, the underneath the buildings has been given on long-term lease to DAPL. The management has assessed that the value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on the sale of land in a SEZ as described under SEZ Rules 2006, the management considered carrying value aggregating to Rs.13,214.25 lakhs (31 March 2017: Rs.13,214.25 lakhs) to be a reasonable estimate of itâs fair value.
(v) Assets not held in the name of Company
Freehold land includes gross block of Rs.1,254.44 lakhs and net block of Rs.1,254.44 lakhs in respect of Magnolias club, Park Place & Amex tower projects. Wherein the legal title of the land is in the name of one of the subsidiary companies and not in the name of Company. On the said land parcels buildings having gross block of Rs.15,269.97 lakhs and net block of Rs.13,089.11 lakhs is constructed.
(vi) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rental payable monthly. Refer Note no. 50 for details on further minimum lease rentals.
** All are redeemable instruments and having face value of Rs.100/- each unless otherwise stated and are measured at amortised cost.
## These are measured at amortised cost.
AA During the year, DLF Hotel Holdings Limited (DHHL) got merged with Lodhi Property Company Limited (LPCL) and accordingly, the Companyâs investments in DHHL has been reflected as investment in LPCL.
AAA In previous year, Real estate undertaking of DLF Universal Limited have been merged with DLF Home Developers Limited.
~ These investments are on account of or includes the investment booked for subidiaries on account of stock options issued to employees of those subsidiaries.
@ In previous year out of total shares, 26,578,070 shares are partly paid up (face value of Rs.10/- each, paid up Rs.7/- each).
AAAA During the year, Kavicon Partners Limited got merged with DLF Real Estate Builders Limited.
$ During the year, the Company has purchased further stake in one of its subsidiary companies DLF Utilities Limited for a consideration of Rs.40,287.88 lakhs. Pursuant to this, DLF Utilities Limited have become 100% subsidiary of the Company. The management has obtained valuation carried by independent valuers and basis on expert legal opinion, is of the view that the valuation is in compliance of the Income-tax Act, 1961.The above transaction is at armâs length and tax provision made there against are adequate.
#AII these investments (being strategic in nature) are measured at fair value through other comprehensive income (âFVOCIâ) since these are not held for trading purposes and thus disclosing their fair value fluctuation in profit and loss will not reflect the purpose of holding. No dividends have been received from such investments during the year.
$ Rounded off to.
* The asset of Rs.14,823.07 lakhs (31 March 2017: Rs.14,823.07 lakhs) recognized by the Company as âMAT credit entitlementâ represents that portion of MAT liability, which can be recovered and set off in subsequent years based on provisions of Section 115JAA of the Income-tax Act, 1961. The management, based on the present trend of profitability and also the future profitability projections, is of the view that there would be sufficient taxable income in foreseeable future, which will enable the Company to utilize MAT credit assets.
# Deferred tax asset is recognized on unabsorbed depreciation and carry forward of losses to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unabsorbed depreciation and carried forward tax losses can be utilised. The Company has tax losses of Rs.213,330.75 lakhs (including business loss of Rs.1,242.34 lakhs); house property loss of Rs.2,537.21 lakhs; and capital losses of Rs.2,09,551.20 lakhs that are available for offsetting for eight years against further taxable profits. Majority of these losses will expire in March 2024 and March 2025. The Company has not recognised deferred tax asset in respect of capital losses of Rs.2,09,551.20 lakhs as there is no reasonable certainty supported by convincing evidences of their recoverability in the near future. If the Company was also to recognise all unrecognised deferred tax assets, the profit would increase by Rs.47,945.32 lakhs.
# Trade receivables have been pledged as security for borrowings, refer note 18 for details. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. For terms and conditions relating to related party receivables, refer note 47.
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company and earn interest at the respective short-term deposit rates.
* It includes Rs.200.42 lakhs (31 March 2017: Rs. Nil) held in escrow account for a project registered under Real Estate (Regulation and Development) Act, 2016 (âRERAâ). The money can be utilised for payments of the specified projects.
Note:
(i) Rs.6,845.14 lakhs (31 March 2017: Rs.6,448.30 lakhs) represents restricted deposits, as these are pledged in lieu of the on going legal cases against the Company.
(ii) The bank balances include the margin money amounting to Rs.400.00 lakhs (31 March 2017: Rs.1,476.32 lakhs) against the bank borrowings.
b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
During the year ended 31 March 2018, the amount of interim dividend recognized as distributions to equity shareholders is Rs.1.20 per share (31 March 2017: Rs. Nil).
During the year ended 31 March 2018, the amount of final dividend recognized as distributions to equity shareholders is Rs. Nil (31 March 2017: Rs.2/- per share).
$$ During the year, pursuant to scheme of arrangement and approval of National Company Law Tribunal, companies marked with ** got merged with Rajdhani Investments & Agencies Private Limited and accordingly, it became holding company of the Company.
d) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date
i) Shares issued under Employee Stock Option Plan (ESOP) during the financial year 2013-14 to 2017-18
The Company has issued total 4,329,534 equity shares of Rs.2/- each (during FY 2012-13 to 2016-17: 4,598,954 equity shares) during the period of five years immediately preceding 31 March 2018 on exercise of options granted under the Employee Stock Option plan (ESOP).
e) Shares reserved for issue under options
For details of shares reserved for issue under the Employee Stock Option plan (ESOP) of the Company, refer note 53.
For details of share reserved for issue on conversion of Warrants and CCDs, refer note 42.
3. NATURE AND PURPOSE OF RESERVS
Capital reserve
Capital reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.
Capital redemption reserve
The same has been created in accordance with provisions of the Act for the buy back of equity shares from the market.
Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Act.
General reserve
The Company is required to create a general reserve out of the profits when the Company declares the dividend to shareholders.
Share options outstanding account
The reserve is used to recognise the fair value of the options issued to employees under the Companyâs Employee Stock Option Plan. (refer note 53 for further details).
Forfeiture of shares
This reserve was created on forfeiture of shares by the Company. The reserve is not available for distribution to the shareholders.
Equity component of compulsorily convertible debentures
The Company has issued compulsorily convertible debentures(CCDs) having coupon rate of 0.01%. This being compound financial instruments and accordingly represents equity component of CCDs on split of compound financial instruments. This will be converted to equity shares within 18 months of allotment.(also refer note 42).
Debenture redemption reserve (DRR)
The Company has issued redeemable non-convertible debentures. Accordingly, the Company as per the provisions of the Companies (Share capital and Debentures) Rules, 2014, as amended, created adequate DRR out of retained earnings require the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of outstanding debentures. Though the DRR is required to be created over the life of debentures, the Company has upfront created DRR out of retained earnings for an amount which is higher than the minimum required.
4.1. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as on 31 March 2018:
Non-convertible debentures:
(i) Non-convertible debentures of Rs.68,430.33 lakhs (31 March 2017: Rs.102,416.37 lakhs) are secured by way of pari passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and the outstanding amount (excluding current maturities) is due for redemption beginning from 9 August 2019 to 11 August 2020.
(ii) Non-convertible debentures of Rs. Nil (31 March 2017: Rs.6,237.14 lakhs) are secured by way of pari passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50%. The said debentures had been fully repaid subsequently in April 2018.
Foreign currency loan from banks:
(a) Foreign currency loan of Rs.124,596.67 lakhs (31 March 2017: Rs.157,556.02 lakhs) is secured by way of (i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company, (ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property; and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) is repayable in 10 quarterly installments starting from April 2019.
Rupee term loan from banks:
(a) Term loan of Rs.4,898.35 lakhs (31 March 2017: Rs.9,675.01 lakhs) is secured by way of equitable mortgage of immovable properties situated at New Delhi, owned by the Company. The outstanding amount (excluding current maturities) is repayable in 4 quarterly installments starting from June 2019.
(b) Term loan of Rs.3,327.11 lakhs (31 March 2017: Rs.14,534.70 lakhs) is secured by way of Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary/ group companies. Further, there is charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies. The outstanding amount (excluding current maturities) is repayable in 5 monthly installments starting from April 2019.
(c) Term loans of Rs.24,970.24 lakhs (31 March 2017: Rs.27,110.90 lakhs) are secured by way of equitable mortgage of immovable properties situated at New Delhi, owned by the Company. Further, there is charge on receivables pertaining to the aforesaid immovable properties owned by the Company on these loans. The outstanding amount (excluding current maturities) are repayable in 72 monthly installments starting from April 2019.
(d) Term loan of Rs.12,850.56 lakhs (31 March 2017: Rs. Nil) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company, (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company; and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) is repayable in 88 monthly installments starting from April 2019.
(e) Term loan of Rs. Nil (31 March 2017: Rs.5,953.94 lakhs) was secured by way of Equitable mortgage of immovable properties situated at Kolkata, owned by the Company. The said loan has been pre-paid during the year.
(f) Term loan of Rs. Nil (31 March 2017: Rs.43,241.84 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies, (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies and (iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties. The said loan has been pre-paid during the year.
(g) Term loan of Rs. Nil (31 March 2017: Rs.8,616.44 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company and (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties. The said loan has been pre-paid during the year.
Rupee term loan from others:
(a) Term loans of Rs.29,890.71 lakhs (31 March 2017: Rs.35,185.21 lakhs) are secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company, (ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi, (iii) Charge on receivables pertaining to all the aforesaid immovable properties owned by the Company/ subsidiary company and (iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property. The outstanding amount (excluding current maturities) are repayable in 49 monthly installments starting from April 2019.
(b) Term loan of Rs. Nil (31 March 2017: Rs.2,500.00 lakhs) was secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company, (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties. The said loans has been pre-paid during the year.
(c) Term loan of Rs. Nil (31 March 2017: Rs.16,981.48 lakhs) was secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company, (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties. The said loan has been pre-paid subsequently in May 2018.
(d) Term loan of Rs. Nil (31 March 2017: Rs.12,475.45 lakhs) was secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by company/ subsidiary companies, (ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company. The said loans has been pre-paid during the year.
(e) Term loan of Rs. Nil (31 March 2017: Rs.17,163.29 lakhs) was secured by way of (i) equitable mortgage of immovable properties situated at Kolkata, owned by the Company, (ii) Charge on receivables of the aforesaid immovable property owned by the Company. The said loan has been pre-paid during the year.
(f) Term loan of Rs. Nil (31 March 2017: Rs.7,411.61 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company/ subsidiary company, (ii) Charge on receivables of the aforesaid immovable property owned by the Company/ subsidiary company and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property. The said loan has been pre-paid during the year.
(g) Term loan of Rs. Nil (31 March 2017: Rs.8,902.89 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies, (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies and (iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties. The said loan has been pre-paid during the year.
Rate of interest:
The Companyâs total borrowings from banks and others have a effective weighted-average contractual rate of 8.92% (31 March 2017: 9.74%) per annum calculated using the interest rate effective as on 31 March 2018.
Loan Covenants:
Term loans contain certain debt covenants relating to net debt to tangible net worth ratio, debt-equity ratio, minimum tangible net worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of term loan.
The Company has not defaulted on any loans payable.
5.1. Security disclosure for the outstanding short-term borrowings as on 31 March 2018:
Overdraft facility from Banks:
(a) Overdraft facilities of Rs. Nil (31 March 2017: Rs.30,421.19 lakhs) are secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company and (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Overdraft facility of Rs. Nil (31 March 2017: Rs.4,979.49 lakhs) are secured by way of equitable mortgage of Property situated at New Delhi, owned by the Company.
Short-term loans from Banks:
(a) Term loan of Rs.31,000.00 lakhs (31 March 2017: Rs. Nil) is secured by way of (i) Equitable mortgage of Properties situated at Gurugram, owned by subsidiary company and (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Term loan of Rs.35,000.00 lakhs (31 March 2017: Rs.35,000.00 lakhs) is secured by way of (i) Equitable mortgage of Properties situated at Gurugram, owned by the Company and subsidiary companies and (ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(c) Term loan of Rs.19,700.00 lakhs (31 March 2017: Rs.19,700.00 lakhs) is secured by way of (i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company, (ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company and (iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(d) Term loan of Rs.7,645.72 lakhs (31 March 2017: Rs.27,174.69 lakhs) is secured by way of equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
(e) Term loan of Rs. Nil (31 March 2017: Rs.57,000.00 lakhs) was secured by way of (i) Equitable mortgage of Properties situated at Gurugram, owned by subsidiary company and (ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties. The said loan has been pre-paid during the year.
(f) Term loan of Rs. Nil (31 March 2017: Rs.16,000.00 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company, (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company and (iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable property. The said loan has been pre-paid during the year.
(g) Term loan of Rs. Nil (31 March 2017: Rs.7,500.00 lakhs) was secured by way of (i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company and (ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company. The said loan has been pre-paid during the year.
Short-term loans from others:
(a) Term loan of Rs. Nil (31 March 2017: Rs.100,000.00 lakhs) was secured by way of (i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company and (ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company. The said loan has been pre-paid during the year.
Unsecured Loan from related parties:
(a) Unsecured loan of Rs.2,254.00 lakhs (31 March 2017: Rs.3,000.00 lakhs) is repayable as demanded by the lender.
- Trade payables are non-interest bearing and are normally settled 90-120 days terms.
- For terms and conditions with related parties, refer note 47.
* Carrying amount of these financial liabilities are reasonable approximation of their fair values.
The Company had acquired land amounting to Rs.15,299.84 lakhs under SEZ category for developing various SEZ projects and had commenced development work in the year 2008-09 and incurred Rs.12,065.86 lakhs on development activities, which was under capital work-in-progress of investment properties; however considering the slow down in real estate sector and change in economic scenario, now the Company believes that SEZ projects in those locations is not viable and will explore alternative usage. Accordingly, development cost incurred so far does not have any economic value and therefore charged to the statement of profit and loss account as an exceptional item in the current year.
During the year, the Company has paid dividend to its shareholders, which has resulted in payment of dividend distribution tax (DDT) to the Income tax authorities. The Company believes that DDT represents additional payment to Income tax authorities on behalf of the shareholders and hence DDT paid is charged to equity directly.
6. EARNINGS PER EQUITY SHARE
Earnings per Share (âEPSâ) is determined based on the net profit attributable to the shareholders of the Company. Basic earnings per share is computed using the weighted-average number of shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders (after adjusting for interest on the compulsorily convertible debentures) by the weighted-average number of equity shares outstanding during the year plus the weighted number of equity shares that would be issued on conversion of all the dilutive potential equity share into equity shares.
7. FINANCIAL INSTRUMENTS BY CATEGORY
(i) Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability.
(ii) Financial assets measured at fair value - recurring fair value measurements
(iii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) the use of net asset value for mutual funds on the basis of the statement received from investee party.
(b) the use of adjusted net asset value method for certain equity investment and discounted cash flow method (income approach) for remaining equity instruments.
(c) For hedge related effectiveness review and related valuation, details are presented in note 41.
(iv) The Company has used interest rate and USD/ INR swap rate as inputs to arrive at fair value of derivative assets.
(v) The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (ii) above for the valuation techniques adopted.
* Sensitivity has been considered for mentioned inputs, keeping the other variables constant.
A Figures in bracket represent negative numbers.
$ In current year, Comparable transaction multiple method is adopted for valuation. In previous year, Discounted Cash Flow (âDCFâ) method was adopted for valuation.
(vi) The following table presents the changes in level 3 items for the year ended 31 March 2018 and 31 March 2017:
Investments in equity shares of subsidiaries, associates and joint ventures are measured at cost as per Ind AS 27, âSeparate Financial Statementsâ and are not required to disclose here.
* The non-convertible redeemable debentures issued by the Company are listed on stock exchange and there is no comparable instruments having the similar terms and conditions with related security being pledged and hence the carrying value of the debentures represents the best estimate of fair value.â
8. FINANCIAL RISK MANAGEMENT
The Companyâs principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Companyâs senior management that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:
i) Financial instruments by category
For amortised cost instruments, carrying value represents the best estimate of fair value.
* Investment in equity shares of subsidiaries, associate and joint venture are measured at cost as per Ind AS 27, âSeparate financial statementsâ.
** These financial assets are mandatorily measured at fair value.
ii) Risk Management objectives and polices
The Companyâs activities expose it to market risk, liquidity risk and credit risk. The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Companyâs exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and other credit risk related to other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
a) Credit risk management
i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate credit risk
C: High credit risk
The Company provides for expected credit loss based on the following:
Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written-off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written-off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.
b) Credit risk exposure
Provision for expected credit losses
The Company provides for expected credit loss based on 12 months and lifetime expected credit loss basis for following financial assets:
Expected credit loss for trade receivables under simplified approach
The Companyâs trade receivables in respect of projects does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made Rs.2,290.92 lakhs provision towards interest received from customers. In respect of other trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Companyâs trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Maturities of financial liabilities
The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities.
C) Market Risk
a) Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of the change in foreign currency exchange rates. The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Companyâs functional currency.
The Company manages its foreign currency risk by hedging transactions. The Company has hedged its cash flows related to foreign currency transactions covering the entire duration of the foreign currency loan. As at 31 March 2018, the Company hedged 100% of its foreign currency borrowings.
The Companyâs exposure to foreign currency changes for unhedged transactions are not material, therefore not disclosed.
Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.
The sensitivity of profit or loss to changes in the exchange rates arises mainly from hedged foreign currency denominated financial instruments i.e. foreign exchange forward contract, which is described below:
b) Interest rate risk
i) Liabilities
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. Keeping in view of current market scenario.
Interest rate risk exposure
The Companyâs variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:
ii) Assets
The companyâs fixed deposits, interest bearing security deposits and loans are carried at fixed rate. Therefore, the said assets not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
c) Price risk
The Companyâs exposure to price risk arises from investments held and classified as FVTPL and FVOCI. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.
d) Legal, taxation and accounting risk
Change to any of the above laws, rules, regulations related to DLF Business could have a material impact on its financial results. Compliance with any proposed changes could also result in significant cost of DLF. Failure to fully comply with various laws, rules and regulations may expose DLF to proceedings which may materially affect its performance.
DLF is presently involved into various judicial, administrative, regulatory and litigation proceedings concerning matters arising in the ordinary course of business operations including but not limited to personal injury claims, landlord-tenant disputes, commercials disputes, tax disputes, employment disputes and other contractual disputes. Many of these proceedings seek an indeterminate amount of damages. In Situations where management believes that a loss arising from a proceeding is probable and can reasonably be estimated, DLF records the amount of the probable loss. As additional information becomes available, any potential liability related to these proceedings is assessed and the estimates are revised, if necessary.
To mitigate these risks, DLF employs in-house counsel and uses third party tax & legal experts to assist in structuring significant transactions and contracts. DLF also has systems and controls that ensure the timely delivery of financial information in order to meet contractual and regulatory requirements and has implemented disclosure controls and Internal controls over financial reporting which are tested for effectiveness on an ongoing basis.
9. CAPITAL MANAGEMENT
The purpose of the Companyâs capital management is:
- Maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (excluding DDT thereon) as at 31 March 2018.
During the year, the Company has declared and paid interim dividend of Rs.21,408.80 lakhs @ 60% (i.e. Rs.1.20 per equity share having par value of Rs.2/- each) to its shareholders. The Company has also received Dividend of Rs.21,307.10 lakhs from one of its subsidiary company during the year and corporate dividend tax of Rs.4337.62 lakhs has been paid by the said subsidiary company. Accordingly, the Company has taken credit of this corporate dividend tax as per Section 115O of the Income-tax Act, 1961 and has paid balance amount on account of corporate dividend tax amounting to Rs.20.71 lakhs on interim dividend.
Further, the Board of Directors at its meeting held on 21 May 2018, has recommended final dividend of Rs.14,272.54 lakhs @ 40% (i.e. Rs.0.80 per equity share having par value of Rs.2/- each). Since this final dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting, no provision has been made in these financial statements for the same.
10. CASH FLOW HEDGES
A Risk management strategy
The Company uses swaps contracts to hedge its risks associated with fluctuations in foreign currency. The risk being hedged is the risk of potential gain/ loss due to fluctuation in foreign currency rates. The use of swap contracts is covered by the Companyâs overall strategy. The Company does not use swaps for speculative purposes. As per the strategy of the Company, foreign currency loans are covered by hedge, considering the risks associated with the hedging of such loans, which effectively fixes the principal liability of such loans and mitigates or eliminate the financial and market risks in India (the place of business of the Company).
Hedge ratio is the relationship between the quantity of the hedging instrument and the quantity of the hedged item. In the case, total principal payments under the transaction is hedged under the swap contracts with the equivalent amount and at the same dates. Hence the entity hedge 100% of its exposure on the transaction and is considered highly effective.
B Other hedge related disclosures
(i) The maturity profile of hedging instrument is as follows:
(ii) In the Companyâs hedge relationship, source of hedge ineffectiveness are credit risk of the counterparty or of the Company and changes in timing of hedge transaction.
(iii) The amounts relating to items designated as hedging instrument are as follows:
(iv) Fair value of derivative contract:
11. WARRANTS AND COMPULSORILY CONVERTIBLE DEBENTURES
a) During the year, the Company has issued warrants and compulsorily convertible debentures (CCDs) having 0.01% coupon rate to promoter group of companies on preferential allotment basis @ Rs.217.25 per warrant and CCDs aggregating to Rs.1,125,000.00 lakhs. Against the issuance of 138,089,758 warrants, the Company has received 25% of issue price amounting to Rs.75,010.36 lakhs and the remaining amount of 75% will be received at the time of allotment of shares. In respect of issuance of 379,746,836 CCDs, the Company has received 100% amount of Rs.825,000 lakhs which will be converted to equity shares within 18 months of allotment.
b) Utilization of proceeds from preferential issue
Out of the total proceeds of Rs.900,010.36 lakhs by way of allotment of warrants and CCDs, on preferential basis Rs.794,400.00 lakhs has been utilized towards repayment of loans, working capital requirement, capital expenditure and investment in subsidiary companies. The balance amount of Rs.105,600.00 lakhs is invested in Fixed Deposit/ Mutual funds for further utilization.
12. The Company has entered into business development agreements with certain of its group entities for acquisition of sole irrevocable development rights in identified land which are acquired/ or in the final stages of being acquired by these entities.
In terms of accounting policy stated in Note 2.2(g) the amount paid to these entities pursuant to the above agreements for acquiring development rights, are classified under inventory as development rights.
13. REVENUE RELATED DISCLOSURE
Disclosure in respect of projects (except land and plots) under the Guidance Note on âAccounting for Real Estate Transactions (Guidance Note)â is as below. The Company determines project revenue based on percentage of completion method as and when all the conditions mentioned in Guidance Note are met. Further, stage of completion is determined based on actual cost incurred as compared to the total budgeted cost of the project.
14. EMPLOYEE BENEFIT OBLIGATIONS
a) Provident fund
The provident fund trust set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfalls, if any. In this regard, actuarial valuation as on 31 March 2018 was carried out to measure the obligation using projected unit credit method arising due to interest rate guarantee by the Company towards provident fund. In terms of said valuation, the Company has no liability towards interest rate guarantee as on 31 March 2018.
b) Gratuity plan (non-funded)
The Company has a defined benefit gratuity plan, which is unfunded. The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The weighted-average duration of the defined benefit obligation is 12.84 years (31 March 2017: 12.45 years).
Risks associated with plan provisions
The Company is exposed to number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and managementâs estimation of the impact of these risks are as follows:
Salary growth risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.
Interest rate risk
A decrease in interest rate in future years will increase the plan liability.
Life expectancy risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.
Withdrawals Risk
Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact the plan liability.
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss:
These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on managementâs historical experience.
Sensitivities due to mortality and withdrawal are not material and hence impact of change not calculated.
As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.
Maturity Profile of Defined Benefit Obligation:
The following payments are expected contributions to the defined benefit plan in future years:
A Due to terms and conditions of SPSHA, between the Company and Investor, requiring unanimity of agreement in respect of significant matters related to the financial and operating policies of DCCDL and its subsidiaries (âDCCDL Groupâ), the Company considers that it does not solely control DCCDL Group and therefore investment in DCCDL Group has been accounted for as joint venture in accordance with Ind AS 28 âInvestment in Associated and JointVenturesâ and Ind AS111 âJoint Arrangementsâ. Refer note 64 fordetails.
AA During the year, pursuant to National Company Law Tribuual order these companies have been merged with Lodhi Property Company Limited. Accordingly, the transactions with the said entities during the year ended 31 March 2018 and balance outstanding thereto on that date have been disclosed as transactions with and balances outstanding to as the case may be, Lodhi Property Company Limited during the year ended as of 31 March 2018.
15. DISCLOSURES UNDER IND AS 24- RELATED PARTY TRANSACTIONS
a) Holding company
Rajdhani Investments & Agencies Private Limited (w.e.f. 12 March 2018)
b) Subsidiaries/ Joint ventures/ Associates Details are presented in Note 46.
c) Key management personnel, their relatives and Other enterprises under the control of the key management personnel and their relatives:
* A private company with unlimited liability.
** These entities have been merged with DLF Brands Limited
# Pursuant to the order passed by the Honâble National Company Law Tribunal, Ahmedabad Bench, these companies have been merged with Kohinoor Real Estates Company w.e.f. 7 March 2018.
## Pursuant to the order passed by the Honâble National Company Law Tribunal, Ahmedabad Bench, these companies have been merged with Rajdhani Investments & Agencies Private Limited w.e.f. 7 March 2018.
### Pursuant to the order passed by the Honâble National Company Law Tribunal, Ahmedabad Bench, the Company has been merged with Rajdhani Investments & Agencies Private Limited w.e.f. 12 March 2018.
d) The following transactions were carried out with related parties in the ordinary course of business:
* Revenue has been recognized as per the percentage of completion method [refer significant accounting policy no. 2.2(h)] on a project as a whole and not on individual basis.
Terms and conditions of transactions with related parties:
1. The transactions with related parties are made on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs by cheque/ RTGS.
2. The Company has given loans to related parties which are repayable on demand. These loans are provided at interest rates of 11.50% p.a. to subsidiary companies and at interest as per agreement to joint ventures. The loans have been utilized by the related parties for business purposes.
3. The Company has taken loans from related parties which are repayable on demand. These loans carry interest @11.50% p.a. to 12.50% p.a. The loans have been utilized for meeting the working capital requirements.
4. The Company has given corporate guarantee to the bank in respect of loan taken by the subsidiaries/ associate companies and joint ventures from that bank and financial institution and vice versa.
5. The Company provides business and financial support to certain subsidiaries/ associate companies, which are in losses and is dependent on parent Company for meeting out their cash requirements.
16. INFORMATION IN RESPECT OF JOINT VENTURES
a) The Company has entered into a joint venture agreement for development of rehabilitation project in Mumbai, wherein the Companyâs interest is 37.50%. Summarized financial information of the joint venture, based on its Ind AS financial statements is set-out below:
b) The Company entered into a Share Purchase and Shareholders Agreement (âSPSHAâ) with Reco Diamond Private Limited (âInvestorâ), an affiliate of GIC Singapore, DLF Cyber City Developers Limited (âDCCDLâ) and certain promoter group entities wherein the promoters group entities sold certain portion of their stake in DCCDL to the Investor at a purchase consideration of Rs.895,600.00 lakhs. Subsequent to fulfilment of all conditions precedent specified in the SPSHA, the sale and purchase of the securities and other closing actions as contemplated under the SPSHA were completed on 25 December 2017 and consequently, the Investor holds 33.34% equity stake in DCCDL and it became jointly controlled entity of the Company. Summarised financial information of the joint venture based on its standalone Ind AS financial statements is set out below:
17. OPERATING LEASES-COMPANY AS LESSOR
The Company has leased out office and mall premises under non-cancelable operating leases. These leases have terms of between 3 - 15 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total lease rentals recognised as income during the year is Rs.41,288.92 lakhs (31 March 2017: Rs.36,532.61 lakhs).
Future minimum rentals receivable under non-cancelable operating leases as at 31 March 2018 are as follows:
Operating leases - Company as lessee:
The Company has entered into operating leases for various office premises with lease term less than 12 months. There are no restrictions and there are no sub leases. The Company has recognized Rs.1,792.17 lakhs (31 March 2017: Rs.2,871.43 lakhs) towards minimum lease payments.
18. COMMITMENTS
i) Estimated amount of contracts remaining to be executed on capital account and not provided for: At 31 March 2018, the Company had commitments of Rs.5,042.40 lakhs (31 March 2017: Rs.304.93 lakhs) relating to completion of various projects.
ii) The Company is committed to provide business and financial support to certain subsidiaries/ associate companies, which are in losses and is dependent on parent company for meeting out their cash requirements.
iii) The Company has commitment regarding payments under development agreements with certain partnership firms amounting to Rs.31,936.16 lakhs (31 March 2017: Rs.42,452.67 lakhs), where the Company or its subsidiaries are partner and certain third-party entities with whom development agreements are in place.
iv) The Company has commitment regarding purchase of land parcels from one of its group entity related to DLF City-Phase V land of Rs.9,095.19 lakhs (31 March 2017: Rs.8,670.85 lakhs)
19. CONTINGENT LIABILITIES AND LITIGATIONS
a) Contingent liabilities
1) The Income Tax Authorities had made disallowances of SEZ profits u/s 80IAB of the Income-tax Act, 1961 during tax assessment of the Company raising demands amounting to Rs.109.00 lakhs for the assessment year 2015-16; Rs.1,056.00 lakhs for the assessment year 2014-15; Rs.6,834.00 lakhs for the assessment year 2013-14; Rs.7,308.99 lakhs for the assessment year 2011-12; Rs.7,284.99 lakhs for the assessment year 2010-11; Rs.35,523.71 lakhs for the assessment year 2009-10 and Rs.48,723.00 lakhs for assessment year 2008-09, respectively.
The Company had filed appeals before the appropriate appellate authorities against these demands for the said assessment years. In certain cases partial/ full relief has been granted by the Appellate Authorities. The Company and Income Tax Department have further preferred appeals before the higher authorities in those cases.
2) Other than matter mentioned in point no. 1 above, the Income Tax Authorities have raised demands on account of various disallowances pertaining to different assessment years. The Company is contesting these demands, which are pending at various appellate levels.
Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded as mentioned in point 1) and 2) above will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.
3) There are various disputes pending with the authorities of excise, customs, service tax, sales tax, VAT etc. The Company is contesting these demands raised by authorities and are pending at various appellate authorities.
Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
4) There are various litigations going on against the Company primarily by Competition Commission of India and in Consumer Redressal Forum, which have been contested by the Company.
Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.
5) Interest and claims by customers/ suppliers may be payable as and when the outcome of the related matters are finally determined and hence not been included above. Management based on legal advice and historical trends, believes that no material liability will devolve on the Company in respect of these matters.
Further, as per the terms of the SPSHA, the Company has undertaken to indemnify, defend and hold harmless the Investor against all losses incurred or suffered by DCCDL arising out of following matters up to or prior to 25 December 2017 (i.e. Closing Date):
i) Income tax demands related to various matters and assessments year up to the closing date of Rs.159,037.06 lakhs;
ii) Indirect tax demands including service tax and entry tax related to various matters and financial years up to the closing date of Rs.20,916.36 lakhs;
iii) During the previous years, DLF Utilities Limited (âDULâ) had received a notice from the Dakshin Haryana Bijli Vitran Nigam (âDHBVNâ) wherein it had claimed cross subsidy surcharge of? 3,328.00 lakhs on electricity being supplied by DUL to other companies for the period from 1 April 2011 to 30 September 2012 and had questioned the legality of such electricity supply. DUL filed an appeal to Haryana Electricity Regulatory Commission (âHERCâ), wherein HERC vide order dated 11 August 2011 held that the supply of electricity by DUL was legal, however, DUL was liable to pay cross subsidy surcharge. Aggrieved by the said order, DUL filed an appeal before Appellate Tribunal of Electricity (&
Mar 31, 2017
1. NATURE OF PRINCIPAL ACTIVITIES
DLF Limited (âthe Companyâ) is engaged primarily in the business of colonisation and real estate development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects. The Company is also engaged in the business of leasing, maintenance services and recreational activities which are related to the overall development of real estate business. The Company is domiciled in India and its registered office is situated at Shopping Mall, 3rd Floor, Arjun Marg, Phase I, DLF City, Gurugram - 122 002, Haryana.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS
These standalone financial statements (âfinancial statementsâ) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the âInd ASâ) as notified by Ministry of Corporate Affairs (âMCAâ) under Section 133 of the Companies Act, 2013 (âthe Actâ) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented.
These financial statements for the year ended 31 March 2017 are the first financial statements which the Company has prepared in accordance with Ind AS. For all periods up to and including the year ended 31 March 2016, the Company had prepared its financial statements in accordance with accounting standards notified under Section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP), which have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS. For the purpose of comparatives, financial statements for the year ended 31 March 2016 and opening balance sheet as at 1 April 2015 are also prepared as per Ind AS.
The financial statements for the year ended 31 March 2017 were authorized and approved for issue by the Board of Directors on 26 May 2017.
3. BASIS OF PREPARATION
The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities and share based payments which are measured at fair values as explained in relevant accounting policies.
4. RECENT ACCOUNTING PRONOUNCEMENT
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, âStatement of cash flowâ and Ind AS 102, âShare-based payment.â The amendments are applicable to the Company from 1 April 2017.
Amendment to Ind AS 1
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Company is evaluating the requirements of the amendment and its impact on the financial statements. Amendment to Ind AS 102
The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the âfair valuesâ, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that includes a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement. The Company is evaluating the requirements of the amendment and its impact on the financial statements.
The changes in the carrying value of investment properties for the year ended 31 March 2017 are as follows:
(i) Contractual obligations
Refer note 53(II) for disclosure of contractual commitments for the acquisition of investment properties.
(ii) Capitalised borrowing cost
The borrowing costs capitalised during the year ended 31 March 2017 was Rs.521.54 lakhs (31 March 2016: Rs.9,958.75 lakhs and 1 April 2015: Rs.12,830.07 lakhs).
(iii) Amount recognized in statement of profit and loss for investment properties
(iv) Leasing arrangements
Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Refer note 51 for details on future minimum lease rentals.
(v) Fair value
Fair value hierarchy and valuation technique
The fair value of investment property has been determined by external, independent property valuers, having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. The Company obtains independent valuations for its investment properties annually and fair value measurement has been categorised as Level 3. Fair values for some of the properties are arrived using average of fair values calculated basis discounted cash flow and sales comparable method. Further, for other properties the Company has used rent capitalisation and comparable market rate approach to arrive at fair value. In addition to this, the Company (âDeveloperââ) has a land parcels which is notified Special Economic Zone (âSEZâ) and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Private Limited (âDAPLâ or âthe Co-developerâ), one of the subsidiary company and transferred completed bare shell buildings to DAPL. Remaining portion of such land is under development. As per the co-developer agreement, the land underneath the buildings has been given on long-term lease to DAPL. The management has assessed that the value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on sale of land in a SEZ as prescribed under SEZ Rules 2006, the management considered carrying value aggregating Rs.13,214.25 lakhs (31 March 2016: Rs.13,214.25 lakhs and 1 April 2015: Rs.13,214.25 lakhs) to be a reasonable estimate of its fair value.
Disclosure on Specified Bank Notes (SBNs)
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:
The Company does not maintain details of denomination of currency received and paid in its books of account. The above disclosure has been compiled on the basis of total cash collected and paid as per the books of account and denomination wise details of cash deposited in the bank, available from pay-in slips and other information maintained by the Company.
* For the purposes of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.
^ Inclusive of the imprest lying with employees.
Note:
(i) Rs.6,448.30 lakhs (31 March 2016: Rs.6,682.83 lakhs and 1 April 2015: Rs.27.94 lakhs) represents restricted deposits, as these are pledged in lieu of the ongoing legal cases against the Company.
(ii) The bank balances include the margin money amounting to Rs.1,476.32 lakhs (31 March 2016: Rs.1,378.77 lakhs and 1 April 2015: Rs.2,650.00 lakhs) against the bank borrowings.
a) Rights/preferences/restrictions attached to equity shares
âThe Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
During the year ended 31 March 2017, no dividend has been recognized as distributions to equity shareholders (31 March 2016: final dividend Rs.2 per share and interim dividend Rs.2 per share).â
b) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the date 31 March 2017
i) Shares bought back during the financial year 2012-13 to 2016-17
Nil (during FY 2011-12 to 2015-16: Nil ) equity shares of Rs.2 each bought back pursuant to Section 68, 69 and 80 of the Act.
ii) Shares issued under Employees Stock Option Plan (ESOP) during the financial year 2012-13 to 2016-17
The Company has issued total 4,598,954 equity shares of Rs.2 each (during FY 2011-12 to 2015-16: 5,125,871 equity shares) during the period of five years immediately preceding 31 March 2017 on exercise of options granted under the Employee Stock Option Plan (ESOP).
c) Shares reserved for issue under options
For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, refer note 52.
Nature and purpose of reserves Capital reserve
Capital reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.
Capital redemption reserve
The same has been created in accordance with provision of the Act for the buy back of equity shares from the market.
Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve will be utilised in accordance with provisions of the Act. General reserve
The Company is required to create a general reserve out of the profits when the Company declares dividend to shareholders.
Share options outstanding account
The reserve is used to recognize the grant date fair value of the options issued to employees under Companyâs Employee Stock Option Plan. Forfeiture of shares
This reserve was created on forfeiture of shares by the Company. The reserve is not available for the distribution to the shareholders. Debenture redemption reserve
The Company is required to create a debenture redemption reserve out of the profits which are available for redemption of debentures.
5.1. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as at 31 March 2017: Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:
(i) Rs.24,607.56 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.
(ii) Rs.9,377.63 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.
(iii) Rs.24,725.07 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.
(iv) Rs.9,414.29 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.
(v) Rs.24,841.30 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.
(vi) Rs.9,450.52 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.
(vii) Rs.6,237.14 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and date of final redemption is 30 April 2018.
From banks: Secured foreign currency borrowings:
(a) Facility of Rs.157,556.02 lakhs, balance amount is repayable in 14 quarterly installments starting from April 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
From banks: Secured INR borrowings:
(a) Facility of Rs.8,616.44 lakhs, balance amount is repayable in 6 quarterly installments starting from June 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.5,953.94 lakhs, balance amount is repayable in 2 half yearly installments starting from September 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.
(c) Facility of Rs.9,675.01 lakhs, balance amount is repayable in 8 quarterly installments starting from June 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(d) Facility of Rs.8,179.56 lakhs, balance amount is repayable in 14 monthly installments starting from April 2018.
(e) Facility of Rs.6,355.14 lakhs, balance amount is repayable in 18 monthly installments starting from April 2018.
The aforesaid loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary and group companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies.
(f) Facility of Rs.4,529.90 lakhs, balance amount is repayable in 84 monthly installments starting from April 2018.
(g) Facility of Rs.22,581.00 lakhs, balance amount is repayable in 84 monthly installments starting from April 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(h) Facility of Rs.43,241.84 lakhs, balance amount is repayable in 31 monthly installments starting from April 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
From others:
Secured INR borrowings:
(a) Facility of Rs.2,500.00 lakhs, balance amount is repayable in 6 quarterly installments starting from June 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.16,981.48 lakhs, balance amount is repayable in 6 quarterly installments starting from May 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(c) Facility of Rs.12,475.45 lakhs, balance amount is repayable in 5 monthly installments starting from April 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.
(d) Facility of Rs.10,875.43 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.
(e) Facility of Rs.11,515.16 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.
(f) Facility of Rs.12,794.62 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company.
(iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property.
(g) Facility of Rs.17,163.29 lakhs, balance amount is repayable in 18 monthly installments starting from May 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.
(ii) Charge on receivables of the aforesaid immovable property owned by the Company.
(h) Facility of Rs.7,411.61 lakhs, balance amount is repayable in 18 monthly installments starting from May 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company/ subsidiary company.
(ii) Charge on receivables of the aforesaid immovable property owned by the Company/ subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(i) Facility of Rs.8,902.89 lakhs, balance amount is repayable in 31 monthly installments starting from April 2018. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
5.2. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as at 31 March 2016: Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:
(i) Rs.24,491.00 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.
(ii) Rs.9,341.31 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.
(iii) Rs.9,377.94 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.
(iv) Rs.24,608.51 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.
(v) Rs.12,317.68 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 2 equal annual installments starting from 30 April 2017 and date of final redemption is 30 April 2018.
(vi) Rs.9,414.19 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.
(vii) Rs.24,724.74 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.
(viii) Rs.8,953.03 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2017.
(ix) Rs.24,840.99 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2017.
From banks:
Secured foreign currency borrowings:
(a) Facility of Rs.177,169.93 lakhs, balance amount is repayable in 18 quarterly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by subsidiary company.
(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
From banks:
Secured INR borrowings:
(a) Facility of Rs.14,233.62 lakhs, balance amount is repayable in 10 quarterly installments starting from June 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.11,846.53 lakhs, balance amount is repayable in 4 half yearly installments starting from June 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.
(c) Facility of Rs.14,317.76 lakhs, balance amount is repayable in 12 quarterly installments starting from June 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(d) Facility of Rs.2,658.10 lakhs, balance amount is repayable in 2 equal quarterly installments starting from May 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(e) Facility of Rs.328.40 lakhs, balance amount is repayable in the last monthly installment due on April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(f) Facility of Rs.4,052.96 lakhs, balance amount is repayable in 48 equal monthly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(g) Facility of Rs.19,964.68 lakhs, balance amount is repayable in 32 monthly installments starting from April 2017.
(h) Facility of Rs.8,454.36 lakhs, balance amount is repayable in 25 monthly installments starting from April 2017.
The aforesaid loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary and group companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies.
(i) Facility of Rs.4,515.84 lakhs, balance amount is repayable in 96 monthly installments starting from April 2017.
(j) Facility of Rs.23,915.00 lakhs, balance amount is repayable in 97 monthly installments starting from April 2017.
The loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(k) Facility of Rs.63,524.86 lakhs, balance amount is repayable in 43 monthly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
From others: Secured INR borrowings:
(a) Facility of Rs.4,166.67 lakhs, balance amount is repayable in 10 quarterly installments starting from June 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.1,500.00 lakhs, balance amount is repayable in 2 equal quarterly installments starting from May 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(c) Facility of Rs.20,956.59 lakhs, balance amount is repayable in 10 quarterly installments starting from May 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(d) Facility of Rs.2,283.43 lakhs, balance amount is repayable in 2 equal monthly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by a subsidiary company.
(e) Facility of Rs.42,325.06 lakhs, balance amount is repayable in 17 monthly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.
(f) Facility of Rs.16,177.66 lakhs, balance amount is repayable in 73 monthly installments starting from April 2017.
(g) Facility of Rs.6,912.64 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.
(h) Facility of Rs.4,693.33 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.
(i) Facility of Rs.3,829.42 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.
(j) Facility of Rs.2,503.11 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.
(k) Facility of Rs.2,378.54 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.
(l) Facility of Rs.909.96 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.
(m) Facility of Rs.5,432.65 lakhs, balance amount is repayable in 81 monthly installments starting from April 2017.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary companies.
(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
(n) Facility of Rs.5,645.98 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.
(o) Facility of Rs.5,978.10 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.
(p) Facility of Rs.6,642.33 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.
(q) Facility of Rs.8,302.66 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company.
(iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property.
(r) Facility of Rs.3,816.53 lakhs, balance amount is repayable in 5 monthly installments starting from April 2017. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.
5.3. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as on 1 April 2015:
Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:
(i) Rs.18,241.61 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 3 equal annual installments starting from 30 April 2016 and date of final redemption is 30 April 2018.
From banks: Secured foreign currency borrowings:
(a) Facility of Rs.173,492.57 lakhs, balance amount is repayable in 22 quarterly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by subsidiary company.
(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
From banks: Secured INR borrowings:
(a) Facility of Rs.16,545.71 lakhs, balance amount is repayable in 12 quarterly installments starting from December 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.17,677.78 lakhs, balance amount is repayable in 6 half yearly installments starting from September 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.
(c) Facility of Rs.18,802.22 lakhs, balance amount is repayable in 16 quarterly installments starting from June 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(d) Facility of Rs.7,921.42 lakhs, balance amount is repayable in 6 equal quarterly installments starting from May 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(e) Facility of Rs.22,775.43 lakhs, balance amount is repayable in 72 equated monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(iii) Exclusive charge on immovable property situated at Gurugram, owned by the subsidiary company.
(iv) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(f) Facility of Rs.4,329.20 lakhs, balance amount is repayable in 13 equal monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(g) Facility of Rs.5,046.84 lakhs, balance amount is repayable in 60 equal monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(h) Facility of Rs.9,722.22 lakhs, balance amount is repayable in 14 equal monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(i) Facility of Rs.1,250.00 lakhs, balance amount is repayable in 3 equal monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(j) Facility of Rs.23,434.00 lakhs, balance amount is repayable in 12 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.
(k) Facility of Rs.24,946.37 lakhs, balance amount is repayable in 21 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.
(l) Facility of Rs.44,704.54 lakhs, balance amount is repayable in 33 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(m) Facility of Rs.22,526.50 lakhs, balance amount is repayable in 102 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary companies.
(ii) Negative lien on immovable property situated at Gurugram, owned by subsidiary company.
(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
(n) Facility of Rs.28,681.91 lakhs, balance amount is repayable in 108 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.
From others:
Secured INR borrowings:
(a) Facility of Rs.5,000.00 lakhs, balance amount is repayable in 12 quarterly installments starting from December 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.14,740.26 lakhs, balance amount is repayable in 3 equal annual installments starting from August 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.
(c) Facility of Rs.4,500.00 lakhs, balance amount is repayable in 6 equal quarterly installments starting from May 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(d) Facility of Rs.24,926.47 lakhs, balance amount is repayable in 14 quarterly installments starting from May 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.
(e) Facility of Rs.16,016.82 lakhs, balance amount is repayable in 14 equal monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by a subsidiary company.
(f) Facility of Rs.30,347.89 lakhs, balance amount is repayable in 64 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.
(g) Facility of Rs.51,563.42 lakhs, balance amount is repayable in 21 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.
(h) Facility of Rs.72,016.76 lakhs, balance amount is repayable in 29 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.
(i) Facility of Rs.32,724.54 lakhs, balance amount is repayable in 33 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.
(j) Facility of Rs.16,844.71 lakhs, balance amount is repayable in 85 monthly installments starting from April 2016.
(k) Facility of Rs.7,594.67 lakhs, balance amount is repayable in 96 monthly installments starting from April 2016.
(l) Facility of Rs.4,973.72 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.
(m) Facility of Rs.4,103.66 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.
(n) Facility of Rs.2,613.22 lakhs, balance amount is repayable in 96 monthly installments starting from April 2016.
(o) Facility of Rs.2,652.65 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.
(p) Facility of Rs.971.11 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.
(q) Facility of Rs.5,983.24 lakhs, balance amount is repayable in 99 monthly installments starting from April 2016.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/subsidiary companies.
(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.
(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
(r) Facility of Rs.12,955.57 lakhs, balance amount is repayable in 17 monthly installments starting from April 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.
(s) Facility of Rs.5,221.39 lakhs, balance amount is repayable in 12 monthly installments starting from April, 2016. The loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.
Rate of interest:
The Companyâs total borrowings from banks and others have an effective weighted-average contractual rate of 9.74% per annum calculated using the interest rate effective as on 31 March 2017 (31 March 2016: 10.55% and 31 March 2015: 11.48%).
6.1. Security disclosure for the outstanding short-term borrowings as at 31 March 2017:
Overdraft facility from Banks:
(a) Facility of Rs.30,421.19 lakhs
The aforesaid overdraft facilities are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.4,979.49 lakhs
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of property situated at New Delhi, owned by the Company.
Short-term loans from Banks:
(a) Facility of Rs.57,000.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of â16,000.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.
(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable property.
(c) Facility of Rs.35,000.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(d) Facility of Rs.7,500.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.
(e) Facility of Rs.19,700.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.
(iii) Corporate guarantee provided by the Copmany/ subsidiary company owning the aforesaid immovable property.
(f) Facility of Rs.27,174.69 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
Short-term loans from others:
(a) Facility of Rs.100,000.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.
6.2. Security disclosure for the outstanding short-term borrowings as at 31 March 2016:
Overdraft facility from Banks:
(a) Facility of Rs.32,503.28 lakhs
The aforesaid overdraft facilities are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.4,728.79 lakhs
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of properties situated at Goa and Gurugram, owned by subsidiary companies
(ii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
(c) Facility of Rs.4,988.31 lakhs
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of property situated at New Delhi, owned by the Company.
Short-term loans from Banks:
(a) Facility of Rs.60,800.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.18,172.06 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.
(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable property.
(c) Facility of Rs.35,000.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(d) Facility of Rs.7,500.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.
(e) Facility of Rs.19,700.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.
(iii) Corporate guarantee provided by the Copmany/ subsidiary company owning the aforesaid immovable property.
(f) Facility of Rs.16,985.06 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
6.3. Security disclosure for the outstanding short-term borrowings as at 1 April 2015:
Overdraft facility from Banks:
(a) Facility of Rs.29,079.33 lakhs
The aforesaid overdraft facilities are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.1.82 lakhs
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of properties situated at Goa and Gurugram, owned by subsidiary companies.
(ii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.
(c) Facility of Rs.4,998.01 lakhs
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of property situated at New Delhi, owned by the Company.
Short-term loans from Banks:
(a) Facility of Rs.67,800.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.
(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.
(b) Facility of Rs.28,107.94 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/subsidary companies.
(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(c) Facility of Rs.35,000.00 lakhs
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.
(d) Facility of Rs.7,500.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.
(e) Facility of Rs.19,700.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.
(iii) Corporate guarantee provided by the Company/subsidiary company owning the aforesaid immovable property.
(f) Facility of Rs.40,000.00 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidary company.
(g) Facility of Rs.14,777.56 lakhs
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.
i) Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability.
ii) Financial assets measured at fair value - recurring fair value measurements
(iii) Valuation techniques used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) the use of net asset value for mutual funds on the basis of the statement received from investee party.
(b) the use of adjusted net asset value method for certain equity investment and discounted cash flow method (income approach) for remaining equity instruments.
(c) For hedge related effectiveness review and related valuation, details are presented in note 43.
(iv) The Company has used interest rate and USD/INR swap rate as inputs to arrive at fair value of derivative assets.
(v) The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (iii) above for the valuation techniques adopted.
* The non-convertible redeemable debentures issued by the Company are listed on stock exchange and there is no comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of the debentures represents the best estimate of fair value.
i) Financial instruments by category
For amortised cost instruments, carrying value represents the best estimate of fair value.
* Investment in equity shares of subsidiaries, associate and joint venture are measured as per Ind AS 27, âSeparate financial statementsâ.
** These financial assets are mandatorily measured at fair value.
# These financial assets represents investment in equity instruments designated as such upon initial recognition.
ii) Risk Management
The Companyâs activities expose it to market risk, liquidity risk and credit risk. The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Companyâs exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
a) Credit risk management
i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate credit risk
C: High credit risk
* Life time expected credit loss is provided for trade receivables.
Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.
b) Credit risk exposure
Provision for expected credit losses
The Company provides for expected credit loss based on 12 months and lifetime expected credit loss basis for following financial assets:
Expected credit loss for trade receivables under simplified approach Real estate business
The Companyâs trade receivables does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off.
Rental business
In respect of trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Companyâs trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Maturities of financial liabilities
The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities.
C) Market Risk
a) Foreign currency risk
The Company has International transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Companyâs functional currency.
b) Interest rate risk
i) Liabilities
The Companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Interest rate risk exposure
The Companyâs variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:
ii) Assets
The companyâs fixed deposits, interest bearing security deposits and loans are carried at fixed rate. Therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
c) Price risk
The Companyâs exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.
- Safeguard their ability to continue as a going concern, and
- Maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
A. Risk management strategy
The Company uses swaps contracts to hedge its risks associated with fluctuations in foreign currency. The risk being hedged is the risk of potential loss due to fluctuation in foreign currency rates. The use of swap contracts is covered by the Companyâs overall strategy. The Company does not use swaps for speculative purposes. As per the strategy of the Company, foreign currency loans are covered by hedge, considering the risks associated with the hedging of such loans. The Company has designated the hedge as hedge of spot and accordingly, the Company has applied accounting for forward element of forward contracts under Ind AS 109 wherein the changes in fair value derivative is recognized in other comprehensive income and are accumulated in âCash Flow Hedge Reserveâ. Subsequently, the forward element of the derivative is amortised over the tenure of the foreign currency borrowing.
Hedge ratio is the relationship between the quantity of the hedging instrument and the quantity of the hedged item. In the case, total principal payments under the transaction is hedged under the swap con
Mar 31, 2015
A) Rights/preferences/restrictions attached to equity shares
The Company has only one class of equity shares having a par value of Rs.
2 per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except
interim dividend.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts, if any. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
During the year ended March 31,2015, the amount of proposed final
dividend recognised as distributions to equity shareholders is Rs. 2 per
share (March 31,2014: Rs. 2 per share).
d) Aggregate number of shares issued for consideration other than cash
and shares bought back during the period of five years immediately
preceding the date March 31, 2015
i) Shares bought back during the financial year 2010-11 to 2014-15
Nil (during FY 2009-10 to 2013-14: 15,000) equity shares of Rs. 2 each
bought back pursuant to Section 77A of the Companies Act, 1956.
ii) Shares issued under Employee Stock Option Plan (ESOP) during the
financial year 2010-11 to 2014-15
The Company has issued total 3,518,060 equity shares of Rs. 2 each
(during FY 2009-10 to 2013-14: 3,282,457 equity shares) during the
period of five years immediately preceding March 31, 2015 on exercise
of options granted under the Employee Stock Option Plan (ESOP).
b) Shares reserved for issue under options
For details of shares reserved for issue under the Employee Stock
Option Plan (ESOP) of the Company, refer note 36.
2.1. Repayment terms and security disclosure for the outstanding
long-term borrowings (excluding current maturities) as on March
31,2015:
Listed, Secured, Redeemable, Non-convertible Debentures of Rs. 50,000,000
each referred above to the extent of:
Rs. 56,250.00 lac are secured by way of pari passu charge on the
immovable property situated at New Delhi, owned by the subsidiary
company. Coupon rate of these debentures is 12.50% p.a. and repayment
in 3 equal annual installments starting from April 30, 2016 and date of
final redemption is April 30, 2018.
From banks:
Secured foreign currency borrowings:
(a) Facility of Rs. 175,119.75 lac, balance amount is repayable in 22
quarterly installments starting from April, 2016. The loan is secured
by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi,
owned by the subsidiary company.
(ii) Pledge over the shareholding of subsidiary company owning the
aforesaid immovable property.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
From banks:
Secured INR borrowings:
(a) Facility of Rs. 17,500.00 lac, balance amount is repayable in 12
quarterly installments starting from December, 2016. The loan is
secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 18,000.00 lac, balance amount is repayable in 6 half
yearly installments starting from September, 2016. The loan is secured
by way of:
Equitable mortgage of immovable properties situated at Kolkata, owned
by the Company.
(c) Facility of Rs. 19,998.00 lac, balance amount is repayable in 16
quarterly installments starting from June, 2016. The loan is secured by
way of:
Equitable mortgage of immovable properties situated at New Delhi, owned
by the Company.
(d) Facility of Rs. 8,000.00 lac, balance amount is repayable in 6 equal
quarterly installments starting from May, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(e) Facility of Rs. 22,803.18 lac, balance amount is repayable in 72
equated monthly installments starting from April, 2016. The loan is
secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the Company.
(iii) Exclusive charge on immovable property situated at Gurgaon, owned
by the subsidiary company.
(iv) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(f) Facility of Rs. 4,329.20 lac, balance amount is repayable in 13 equal
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(g) Facility of Rs. 5,142.86 lac, balance amount is repayable in 60 equal
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(h) Facility of Rs. 9,722.22 lac, balance amount is repayable in 14 equal
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(i) Facility of Rs. 1,250.00 lac, balance amount is repayable in 3 equal
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(j) Facility of Rs. 24,268.71 lac, balance amount is repayable in 12
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(k) Facility of Rs. 27,650.80 lac, balance amount is repayable in 21
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(l) Facility of Rs. 45,468.15 lac, balance amount is repayable in 33
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(m) Facility of Rs. 23,714.00 lac, balance amount is repayable in 102
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company / subsidiary companies.
(ii) Negative lien on immovable property situated at Gurgaon, owned by
the subsidiary company.
(iii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/subsidiary companies.
(iv) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(n) Facility of Rs. 30,923.75 lac, balance amount is repayable in 108
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at New Delhi,
owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company.
From others:
Secured INR borrowings:
(a) Facility of Rs. 5,000.00 lac, balance amount is repayable in 12
quarterly installments starting from December, 2016. The loan is
secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 15,000.00 lac, balance amount is repayable in 3 equal
annual installments starting from August, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(c) Facility of Rs. 4,500.00 lac, balance amount is repayable in 6 equal
quarterly installments starting from May, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(d) Facility of Rs. 25,000.00 lac, balance amount is repayable in 14
quarterly installments starting from May, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(e) Facility of Rs. 16,036.00 lac, balance amount is repayable in 14
equal monthly installments starting from April, 2016. The loan is
secured by way of:
Equitable mortgage of immovable properties situated at Gurgaon, owned
by the subsidiary company.
(f) Facility of Rs. 30,347.89 lac, balance amount is repayable in 64
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(g) Facility of Rs. 51,563.42 lac, balance amount is repayable in 21
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(h) Facility of Rs. 72,500.00 lac, balance amount is repayable in 29
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(i) Facility of Rs. 33,000.00 lac, balance amount is repayable in 33
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(j) Facility of Rs. 17,722.99 lac, balance amount is repayable in 85
monthly installments starting from April, 2016.
(k) Facility of Rs. 8,166.32 lac, balance amount is repayable in 96
monthly installments starting from April, 2016.
(l) Facility of Rs. 5,372.45 lac, balance amount is repayable in 92
monthly installments starting from April, 2016.
(m) Facility of Rs. 4,118.88 lac, balance amount is repayable in 92
monthly installments starting from April, 2016.
(n) Facility of Rs. 2,809.92 lac, balance amount is repayable in 96
monthly installments starting from April, 2016.
(o) Facility of Rs. 2,865.31 lac, balance amount is repayable in 92
monthly installments starting from April, 2016.
(p) Facility of Rs. 1,024.49 lac, balance amount is repayable in 92
monthly installments starting from April, 2016.
(q) Facility of T 6,258.92 lac, balance amount is repayable in 99
monthly installments starting from April, 2016.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary companies.
(ii) Negative lien on rights under the concession agreements pertaining
to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/subsidiary companies.
(iv) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(r) Facility of Rs. 12,986.10 lac, balance amount is repayable in 17
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company.
(ii) Charge on receivables and other current assets of the aforesaid
immovable property owned by the Company.
(s) Facility of T 5,221.40 lac, balance amount is repayable in 12
monthly installments starting from April, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
2.2. Repayment terms and security disclosure for the outstanding
long-term borrowings (excluding current maturities) as on March
31,2014:
Listed, Secured, Redeemable, Non-convertible Debentures of Rs. 50,000,000
each referred above to the extent of:
(i) Rs. 75,000.00 lac are secured by way of pari passu charge on the
immovable property situated at New Delhi, owned by the subsidiary
company. Coupon rate of these debentures is 12.50% and repayment in 4
equal annual installments starting from April 30, 2015 and date of
final redemption is April 30, 2018.
From banks:
Secured INR borrowings:
(a) Facility of Rs. 20,833.33 lac, balance amount is repayable in 10
equal quarterly installments starting from May, 2015. The loan is
secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 25,246.62 lac, balance amount is repayable in 84
equated monthly installments starting from April, 2015. The loan is
secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the Company.
(iii) Exclusive charge on immovable property situated at Gurgaon, owned
by the subsidiary company.
(iv) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(c) Facility of Rs. 8,330.00 lac, balance amount is repayable in 25 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(d) Facility of Rs. 6,171.43 lac, balance amount is repayable in 72 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(e) Facility of Rs. 18,055.56 lac, balance amount is repayable in 26
equal monthly installments starting from April, 2015. The loan is
secured by way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(f) Facility of Rs. 6,250.00 lac, balance amount is repayable in 15 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(g) Facility of Rs. 81,998.11 lac, balance amount is repayable in 72
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon and
New Delhi, owned by the subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary companies.
(iii) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(h) Facility of Rs. 27,542.50 lac, balance amount is repayable in 24
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(i) Facility of Rs. 4,000.00 lac, balance amount is repayable in October,
2015.
(j) Facility of Rs. 2,999.99 lac, balance amount is repayable in October,
2015.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon, owned by the Company.
(iii) Corporate guarantees provided by the subsidiary company owning
the aforesaid immovable properties.
(k) Facility of Rs. 900.00 lac, balance amount is repayable in October,
2015.
(l) Facility of Rs. 1,100.00 lac, balance amount is repayable in
December, 2015.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon, owned by the Company.
(m) Facility of Rs. 748.57 lac, balance amount is repayable in 2 equal
quarterly installments starting from April, 2015. The loan is secured
by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the subsidiary company.
(ii) Corporate guarantees provided by the subsidiary company owning the
aforesaid immovable property.
(n) Facility of Rs. 29,743.65 lac, balance amount is repayable in 33
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(o) Facility of Rs. 27,624.37 lac, balance amount is repayable in 36
monthly installments starting from January, 2016. The loan is secured
by way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
From others:
Secured INR borrowings:
(a) Facility of Rs. 15,000.00 lac, balance amount is repayable in 3 equal
annual installments starting from August, 2016. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(b) Facility of Rs. 29,000.00 lac, balance amount is repayable in 18
quarterly installments starting from April, 2015. The loan is secured
by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(c) Facility of Rs. 4,375.00 lac, balance amount is repayable in 7 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
Equitable mortgage of immovable properties situated at Gurgaon, owned
by the subsidiary company.
(d) Facility of Rs. 29,788.00 lac, balance amount is repayable in 26
equal monthly installments starting from April, 2015. The loan is
secured by way of:
Equitable mortgage of immovable properties situated at Gurgaon, owned
by the subsidiary company.
(e) Facility of Rs. 34,441.75 lac, balance amount is repayable in 76
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(f) Facility of Rs. 55,466.18 lac, balance amount is repayable in 33
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(g) Facility of Rs. 88,000.00 lac, balance amount is repayable in 41
installments starting from April, 2015. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(h) Facility of Rs. 42,300.00 lac, balance amount is repayable in 45
installments starting from April, 2015. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by the Company/subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
property situated at Gurgaon, owned by the Company.
(i) Facility of Rs. 3,000.00 lac, balance amount is repayable in October,
2015. The loan is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon, owned by the Company.
(j) Facility of Rs. 428.57 lac, balance amount is repayable in 3 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
First and exclusive charge by way of hypothecation on assets viz.
Helicopter and Aircraft owned by the Company.
(k) Facility of Rs. 142.73 lac, balance amount is repayable in 2 equal
monthly installments starting from April, 2015. The loan is secured by
way of:
First and exclusive charge by way of hypothecation on assets viz.
Helicopter owned by the Company.
(l) Facility of Rs. 18,707.55 lac, balance amount is repayable in 97
monthly installments starting from April, 2015.
(m) Facility of Rs. 8,764.72 lac, balance amount is repayable in 108
monthly installments starting from April, 2015.
(n) Facility of Rs. 5,608.97 lac, balance amount is repayable in 104
monthly installments starting from April, 2015.
(o) Facility of Rs. 4,300.21 lac, balance amount is repayable in 104
monthly installments starting from April, 2015.
(p) Facility of Rs. 3,015.82 lac, balance amount is repayable in 108
monthly installments starting from April, 2015.
(q) Facility of Rs. 2,991.45 lac, balance amount is repayable in 104
monthly installments starting from April, 2015.
(r) Facility of Rs. 1,071.79 lac, balance amount is repayable in 104
monthly installments starting from April, 2015.
The aforesaid term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at New Delhi
and Gurgaon, owned by the subsidiary/group companies.
(ii) Negative lien on rights under the concession agreements pertaining
to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/ subsidiary companies/ group companies.
(iv) Corporate guarantees provided by the subsidiary/ group companies
owning the aforesaid immovable properties.
(s) Facility of Rs. 22,152.78 lac, balance amount is repayable in 29
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company.
(ii) Charge on receivables and other current assets of the aforesaid
immovable property owned by the Company.
(t) Facility of Rs. 5,925.76 lac, balance amount is repayable in 24
monthly installments starting from April, 2015. The loan is secured by
way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(u) Facility of Rs. 2,821.43 lac, balance amount is repayable in 2 equal
quarterly installments starting from April, 2015. The loan is secured
by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(v) Facility of Rs. 1,430.00 lac, balance amount is repayable in 2
quarterly installments starting from April, 2015. The loan is secured
by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
4.3. Rate of interest:
The Company's total borrowings from banks and others have an effective
weighted average rate of 11.48% p.a. (previous year 12.08% p.a.)
calculated using the interest rates effective as on March 31, 2015 for
the respective borrowings.
8.1. Security disclosure for the outstanding short-term borrowings as
on March 31,2015:
Overdraft facility from Banks:
(a) Facility of Rs. 29,079.33 lac.
The aforesaid overdraft facilities are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 1.82 lac.
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of properties situated at Goa and Gurgaon, owned
by the subsidiary companies.
(ii) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(c) Facility of Rs. 4,998.01 lac.
The aforesaid overdraft facility is secured by way of:
Equitable mortgage of property situated at New Delhi, owned by the
Company.
Short-term loans from Banks:
(a) Facility of Rs. 67,800.00 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurgaon, owned by the
subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 28,107.94 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/subsidiary companies.
(iii) Corporate guarantee provided by the subsidiary companies owning
the aforesaid immovable properties.
(c) Facility of Rs. 35,000.00 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurgaon, owned by the
Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning
the aforesaid immovable properties.
(d) Facility of Rs. 7,500.00 lac.
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company.
(ii) Charge on receivables and other current assets of the aforesaid
immovable property owned by the Company.
(e) Facility of Rs. 19,700.00 lac.
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(iii) Corporate guarantee provided by the Company/subsidiary company
owning the aforesaid immovable property.
(f) Facility of Rs. 40,000.00 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(g) Facility of Rs. 14,777.56 lac.
The aforesaid short-term loan is secured by way of:
Equitable mortgage of immovable property situated at New Delhi, owned
by the subsidiary company.
8.2. Security disclosure for the outstanding short-term borrowings as
on March 31, 2014:
Overdraft facility from Banks:
(a) Facility of Rs. 22,064.33 lac.
The aforesaid overdraft facilities are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 3,686.90 lac.
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/subsidiary company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(c) Facility of Rs. 3,341.84 lac.
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of properties situated at Gurgaon, owned by the
Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning
the aforesaid immovable properties.
(d) Facility of Rs. 4,821.57 lac.
The aforesaid overdraft facility is secured by way of:
(i) Equitable mortgage of properties situated at Goa and Gurgaon, owned
by the subsidiary companies.
(ii) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
Short-term loans from Banks:
(a) Facility of Rs. 70,100.00 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of properties situated at Gurgaon, owned by
subsidiary company.
(ii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable properties.
(b) Facility of Rs. 31,710.45 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/subsidiary companies.
(iii) Corporate guarantee provided by the subsidiary companies owning
the aforesaid immovable properties.
(c) Facility of Rs. 35,000.00 lac.
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of properties situated at Gurgaon, owned by the
Company and subsidiary companies.
(ii) Corporate guarantee provided by the subsidiary companies owning
the aforesaid immovable properties.
(d) Facility of Rs. 7,500.00 lac.
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company.
(ii) Charge on receivables and other current assets of the aforesaid
immovable property owned by the Company.
(e) Facility of Rs. 19,700.00 lac.
The aforesaid short-term loan is secured by way of:
(i) Equitable mortgage of immovable property situated at New Delhi,
owned by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the subsidiary company.
(iii) Corporate guarantee provided by the Company/subsidiary company
owning the aforesaid immovable property.
(f) Facility of Rs. 40,000.00 lac.
The aforesaid short-term loans are secured by way of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the subsidiary company.
(g) Facility of Rs. 9,048.66 lac.
The aforesaid short-term loan is secured by way of:
Equitable mortgage of immovable property situated at New Delhi, owned
by the subsidiary company.
3. a) The profit/loss from sale of land/developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy stated in Note 1(g) - "Significant Accounting
Policies". The Complex comprise of land owned by the Company as also
those under agreements to purchase entered into with subsidiary/land
owning companies. In terms of such agreements, the Company purchases
plotted area from the land owning companies at the average cost of land
to the Company and/or the land owning companies. The average estimated
internal development costs and external development charges, in respect
of the plots sold have been written off in terms of Accounting Policy
stated in Note 1 (i) - "Significant Accounting Policies". Final
adjustment, if any, is made on completion of the applicable scheme/
project.
b) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in
their meeting held on March 28, 2006, with one of its wholly-owned
subsidiary company namely, DLF Home Developers Limited ("DHDL") to
sell a parcel of land of saleable area consisting 30 million sq. ft.
built-up area under construction/to be constructed. Further, DHDL will
complete all the finishing work before selling the same to its
customers. In terms of the accounting policy stated in Note 1 (g)(i)
on revenue recognition, revenue in respect of projects under
implementation under these agreements to sell is being recognised based
on "percentage of completion" method.
4. The Company has entered into business development agreements with
DLF Commercial Projects Corporation and Rational Builders and
Developers (partnership firms). As per these agreements, the Company
has acquired sole irrevocable development rights in identified land
which are acquired/or in the fi nal stages of being acquired by these
partnership firms.
In terms of accounting policy stated in Note 1(f)(iv) the amount paid
to these partnership fi rms pursuant to the above agreements for
acquiring development rights, are classified under inventory as
development rights.
5. Disclosure in respect of projects which is covered under the
Revised Guidance Note issued by the Institute of Chartered Accountants
of India on "Accounting for Real Estate Transactions (Revised
2012)" and where revenue recognition has been stated as per
accounting policy 1(g)(i).
C. Provident fund
Contribution made by the Company to the provident fund trust set-up by
the Company during the year is Rs. 264.94 lac (previous year Rs. 244.23
lac).
In terms of the guidance on implementing the revised AS-15 'Employee
Benefits' as specified under Section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended),
the provident fund set-up by the
Company is treated as a defined benefit plan since the Company has to
meet the interest shortfalls, if any. The actuary has provided a
valuation for provident fund liabilities as per AS-15 'Employee
Benefits' and based on the assumptions provided below. There is no
shortfall as on March 31, 2015 as per the valuation provided.
6. Related party disclosures
Disclosures in respect of Accounting Standard (AS) - 18 'Related
Party Disclosures', as specified under Section 133 of the Companies
Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as
amended):
a) Relationship:
(i) Subsidiary companies at any time during the year
1_) Aadarshini Real Estate Developers Private Limited
2) Abhigyan Builders & Developers Private Limited
3) Abhiraj Real Estate Private Limited
4) Adeline Builders & Developers Private Limited
5) Americus Real Estate Private Limited
6) Amishi Builders & Developers Private Limited
7) Angelina Real Estates Private Limited
8) Annabel Builders & Developers Private Limited
9) Aqua Space Developers Private Limited [till July 31,2014] #
10) Ariadne Builders & Developers Private Limited
11) Armand Builders & Constructions Private Limited
12) Balaji Highways Holding Private Limited
13) Benedict Estates Developers Private Limited
14) Berenice Real Estate Private Limited
15) Beyla Builders & Developers Private Limited
16) Bhamini Real Estate Developers Private Limited
17) Breeze Constructions Private Limited
18) Cachet Real Estates Private Limited [till February 11,2015] ###
19) Calvine Builders & Constructions Private Limited [till February
11,2015] ###
20) Caraf Builders & Constructions Private Limited
21) Chakradharee Estates Developers Private Limited
22) Chandrajyoti Estate Developers Private Limited
23) Dae Real Estates Private Limited
24) Dalmia Promoters & Developers Private Limited
25) Delanco Home and Resorts Private Limited
26) Delanco Realtors Private Limited
27) Deltaland Buildcon Private Limited
28) Deltaland Real Estate Private Limited
[till February 11, 2015] ###
29) Diwakar Estates Limited [till February 11,2015] ###
30) DLF Aspinwal Hotels Private Limited
31) DLF Assets Private Limited_
32) DLF Buildcon Private Limited
[formerly DLF Limitless Developers Private Limited]_
33) DLF City Centre Limited
34) DLF City Developers Private Limited
35) DLF Cochin Hotels Private Limited
36) DLF Commercial Developers Limited
37) DLF Cyber City Developers Limited
38) DLF Emporio Limited
39) DLF Emporio Restaurants Limited
40) DLF Energy Private Limited_
41) DLF Estate Developers Limited
42) DLF Finvest Limited
43) DLF Garden City Indore Private Limited_
44) DLF GK Residency Limited_
45) DLF Global Hospitality Limited_
46) DLF Golf Resorts Limited_
47) DLF Home Developers Limited
48) DLF Homes Services Private Limited_
49) DLF Homes Goa Private Limited
50) DLF Homes Kokapet Private Limited
51) DLF Homes Panchkula Private Limited [till August 25, 2014] ##_
52) DLF Homes Rajapura Private Limited_
53) DLF Hospitality & Recreational Limited_
54) DLF Hotel Holdings Limited_
55) DLF Info City Developers (Chandigarh) Limited
56) DLF Info City Developers (Chennai) Limited_
57) DLF Info City Developers (Kolkata) Limited_
58) DLF Info Park Developers (Chennai) Limited_
59) DLF Info Park (Pune) Limited_
60) DLF Inns Limited_
61) DLF International Holdings Pte. Limited
62) DLF International Hospitality Corp.
63) DLF Luxury Hotels Limited
64) DLF New Gurgaon Retail Developers Private Limited
65) DLF Phase IV Commercial Developers Limited_
66) DLF Projects Limited_
67) DLF Promenade Limited
68) DLF Property Developers Limited
69) DLF Real Estate Builders Limited_
70) DLF Realtors Private Limited_
71) DLF Recreational Foundation Limited
72) DLF Residential Builders Limited_
73) DLF Residential Developers Limited_
74) DLF Residential Partners Limited_
75) DLF Service Apartments Limited_
76) DLF South Point Limited
77) DLF Southern Homes Private Limited_
78) DLF Southern Towns Private Limited_
79) DLF Telecom Limited
80) DLF Trust Management Pte Limited_
81) DLF Universal Limited
82) DLF Utilities Limited
83) Domus Real Estates Private Limited
84) Domus Realtors Private Limited [till February 11,2015] ###
85) DT Real Estate Developers Private Limited_
86) Eastern India Powertech Limited_
87) Edward Keventer (Successors) Private Limited
88) Elvira Builders & Constructions Private Limited_
89) Faye Builders & Constructions Private Limited_
90) First City Real Estate Private Limited
[till February 11,2015] ###
91) Flora Real Estate Private Limited [till February 11,2015] ###
92) Galleria Property Management Services Private Limited
93) Ghaliya Builders & Developers Private Limited_
94) Gyan Real Estate Developers Private Limited
[till February 11,2015] ###
95) Hansel Builders & Developers Private Limited
96) Hyacintia Real Estate Developers Private Limited
97) Irving Builders & Developers Private Limited
[till February 11,2015] ###
98) Isabel Builders & Developers Private Limited
99) Kavicon Partners Limited
100) Lada Estates Private Limited_
101) Laman Real Estate Private Limited
102) Latona Builders & Constructions Private Limited
103) Lear Builders & Developers Private Limited_
104) Lempo Buildwell Private Limited
105) Liber Buildwell Private Limited
106) Livana Builders & Developers Private Limited_
107) Lizebeth Builders & Developers Private Limited_
108) Lodhi Property Company Limited_
109) Macaria Builders & Developers Private Limited
[w.e.f. April 23, 2014]
110) Mariabella Builders & Developers Private Limited_
111) Mariposa Builders & Developers Private Limited
[till February 11,2015] ###
112) Melanctha Builders & Developers Private Limited
113) Melosa Builders & Developers Private Limited_
114) Mens Buildcon Private Limited
115) Mhaya Buildcon Private Limited_
116) Nambi Buildwell Private Limited
117) Narooma Builders & Developers Private Limited
[w.e.f. March 27, 2015]
118) Nellis Builders & Developers Private Limited_
119) NewGen MedWorld Hospitals Limited
120) Niobe Builders & Developers Private Limited
121) Nudhar Builders & Developers Private Limited
[w.e.f. March 27, 2015]
122) Paliwal Developers Limited_
123) Paliwal Real Estate Limited
124) Philana Builders & Developers Private Limited
125) Phoena Builders & Developers Private Limited_
126) Pyrite Builders & Constructions Private Limited
127) Qabil Builders & Constructions Private Limited_
128) Rachelle Builders & Constructions Private Limited
129) Richmond Park Property Management Services Limited
130) Riveria Commercial Developers Limited
131) Rochelle Builders & Constructions Private Limited
132) Royalton Builders & Developers Private Limited_
133) Saguna Builders & Developers Private Limited [till February
11,2015] ###
134) Sahastrajit Builders & Developers Private Limited
135) Saket Holiday Resorts Private Limited
136) Seaberi Builders & Developers Private Limited
137) Silverlink (Mauritius) Limited
138) Triumph Electronics Private Limited
139) Urvasi Infratech Private Limited
140) Vibodh Developers Private Limited
141) Vilina Estate Developers Private Limited [till February 11,2015]
###
142) Vinanti Builders & Developers Private Limited [till February
11,2015] ###
143) Vkarma Capital Investment Management Company Private Limited
144) Vkarma Capital Trustee Company Private Limited
145) Webcity Builders & Developers Private Limited
146) Zola Real Estate Private Limited [till July 31,2014] #
(ii) Partnership firms
1) DLF Commercial Projects Corporation_
2) DLF Gayatri Developers
3) DLF Green Valley
4) DLF Office Developers
5) Rational Builders and Developers
(iii) Joint Ventures
1) Banjara Hills Hyderabad Complex
2) DLF Gayatri Home Developers Private Limited
3) DLF Green Valley
4) DLF Gayatri Developers
5) DLF SBPL Developers Private Limited_
6) GSG DRDL Consortium
7) Saket Courtyard Hospitalty Private Limited
8) YG Realty Private Limited
(iv) Associates
1) Designplus Associates Services Private Limited [formerly Designplus
Architechture Privated Limited]
2) DLF Homes Panchkula Private Limited [w.e.f. August 26, 2014] ##
3) Joyous Housing Limited [formerly Joyous Housing Private Limited]
# During the year, Zola Real Estate Private Limited has issued fresh
equity to My Home Constructions Private Limited. Pursuant to issue of
fresh equity, Zola Real Estate Private Limited has ceased to be a
subsidiary w.e.f. August 1,2014.
## During the year, DLF Homes Panchkula Private Limited in which one of
the wholly-owned subsidiary, DLF Home Developers Limited was holding
51% equity shares, issued further equity shares on conversion of
Compulsorily Convertible Debentures (CCDs). Consequent to this,
Company's equity holding in Panchkula reduced to 39% from 51% and the
Company became an associate company from subsidiary, w.e.f. August 26,
2014.
### Pursuant to the Order of the Hon'ble High Court of Delhi and the
Hon'ble High Court of Punjab & Haryana at Chandigarh, by virtue of
Scheme of arrangement, the said entities have been merged with DLF
Universal Limited w.e.f. February 12, 2015. Accordingly, the
transactions with the said entities during the year ended March 31,
2015 and balance outstanding thereto on that date have been disclosed
as transactions with and balances outstanding to as the case may be,
DLF Universal Limited during the year ended as of March 31,2015.
(vi) Other enterprises under the control of the key management
personnel and their relatives
1) A.S.G. Realcon Private Limited
2) A4e India Private Limited
3) Adampur Agricultural Farm
4) Adept Real Estate Developers Private Limited
5) AGS Buildtech Private Limited
6) Alfa Investments Global Limited
7) Angus Builders & Developers Private Limited
8) Antriksh Properties Private Limited
9) Anubhav Apartments Private Limited
10) Arihant Housing Company*
11) Atria Partners
12) Beckon Investments Group Limited
13) Belicia Builders & Developers Private Limited
14) Beverly Builders LLP [formerly Beverly Park Operation and
Maintenance Services LLP ]
15) Buland Consultants & Investments Private Limited
16) Carreen Builders & Developers Private Limited
17) Centre Point Property Management Services LLP
18) CGS Charitable Trust
19) Ch. Lal Chand Memorial Charitable Trust
20) Cian Retail Private Limited
21) Das Retail Private Limited [till March 16, 2015]
22) DBL Cosmetics Private Limited [w.e.f. February 19, 2015]
23) DBL Kidskart Online Private Limited [w.e.f. December 9, 2014]
24) Delanco Buildcon Private Limited
25) Desent Promoters & Developers Private Limited
26) Diana Retail Private Limited
27) DLF Brands Limited
28) DLF Building & Services Private Limited
29) DLF Commercial Enterprises
30) DLF Employees Welfare Trust
31) DLF Foundation
32) DLF Investments Private Limited
33) DLF M.T.FBD Medical and Community Facilities Charitable Trust
34) DLF Q.E.C. Educational Charitable Trust
35) DLF Q.E.C. Medical Charitable Trust
36) DLF Raghvendra Temple Trust
37) Elephanta Estates Private Limited
38) Enki Retail Solutions Private Limited [till February 27, 2015]
39) Eros Retail Private Limited
40) Excel Housing Construction LLP
41) Exe. of The Estate of Lt. Ch. Raghvendra Singh
42) Exe. of The Estate of Lt. Smt. Prem Mohini
43) Exotic R - Online Fashion Private Limited [w.e.f. April 4, 2014]
44) Family Idol Shri Radha Krishan Ji [till February 13, 2015]
45) Family Idol Shri Shiv Ji [till February 13, 2015]
46) Ferragamo Retail India Private Limited
47) First City Management Company Private Limited
48) Gangrol Agricultural Farm & Orchard
49) General Marketing Corporation
50) Giorgio Armani India Private Limited
51) Glensdale Enterprise Development Private Limited
52) Good Luck Trust
53) Gujral Design Plus Overseas Private Limited
54) Haryana Electrical Udyog Private Limited
55) Herminda Builders & Developers Private Limited
56) Hitech Property Developers Private Limited
57) Indira Trust
58) Ishtar Retail Private Limited
59) Jhandewalan Ancillaries LLP
60) Juno Retail Private Limited
61) K. P. Singh HUF
62) Kapo Retail Private Limited [till March 30, 2015]
63) Kohinoor Real Estates Company *
64) Krishna Public Charitable Trust
65) Lal Chand Public Charitable Trust
66) Lion Brand Poultries
67) Madhukar Housing and Development Company *
68) Madhur Housing and Development Company *
69) Mallika Housing Company LLP
70) Megha Estates Private Limited
71) Mohit Design Management Private Limited
72) Nachiketa Family Trust
73) Northern India Theatres Private Limited
74) P & S Exports Corporation [till August 11,2014]
75) Panchsheel Investment Company *
76) Parvati Estates LLP
77) Pia Pariwar Trust
78) Plaza Partners
79) Power Housing and Developers Private Limited [formerly Power
Overseas Private Limited]
80) Prem Traders LLP
81) Prem's Will Trust
82) Prima Associates Private Limited
83) Pushpak Builders and Developers Private Limited
84) Qantis Investment & Services Limited [till December 6,2014]
85) R.R Family Trust
86) Raghvendra Public Charitable Trust
87) Raisina Agencies LLP
88) Rajdhani Investments & Agencies Private Limited
89) Realest Builders and Services Private Limited
90) Renkon Overseas Development Limited
91) Renkon Partners
92) Renuka Pariwar Trust
93) Rhea Retail Private Limited
94) River Heights Structurals Private Limited
95) Rod Retail Private Limited
96) Sabre Investment Advisor India Private Limited
97) Sabre Investment Consultants LLP
98) Sambhav Housing and Development Company *
99) Sarna Export International
100) Sarna Exports Limited
101) Satish Gujral
102) Sidhant Housing and Development Company*
103) Singh Family Trust
104) Sketch Promoters and Developers Private Limited [formerly Sketch
Investment Private Limited]
105) Skills Academy Private Limited
106) Skills for India
107) Smt. Savitri Devi Memorial Charitable Trust
108) Solace Housing and Construction Private Limited
109) Solange Retail Private Limited
110) Span Fashions Limited
111) Spherical Developers Private Limited
112) Sudarshan Estates LLP [formerly Sudarshan Estates Private Limited]
#
113) Sukh Sansar Housing Private Limited
114) Super Mart Two Property Management Services LLP
115) Trinity Housing and Construction Company *
116) Udyan Housing and Development Company *
117) Universal Management and Sales LLP
118) Urva Real Estate Developers Private Limited
119) Uttam Builders and Developers Private Limited
120) Uttam Real Estates Company *
121) Vishal Foods and Investments Private Limited
122) Wagishwari Estates Private Limited
123) Willder Limited
124) Yashika Properties and Development Company *
125) Yogananda Films Private Limited
126) Zigma Processing and Manufacturing Private Limited
* A private company with unlimited liability.
# During the year converted into LLP from a limited liability company.
34. Operating leases
a) Assets given on lease *
b) The Company has leased facilities under non- cancellable operating
leases. The future minimum lease payment in respect of these leases as
at March 31, 2015 are:
7. a) The Company uses forward contracts and swaps to hedge its risks
associated with fluctuations in foreign currency and interest rates.
The use of forward contracts and swaps is covered by Company's overall
strategy. The Company does not use forward contracts and swaps for
speculative purposes.
As per the strategy of the Company, foreign currency loans are covered
by hedge, considering the risks associated with the hedging of such
loans, which effectively fixes the principal liability of such loans.
8. Contingent liabilities and commitments:
(I) Contingent liabilities
(Rs. in lac)
2015 2014
a) Guarantees issued by the Company
on behalf of:
Subsidiary companies 898,735.00 737,965.00
Others 92,211.00 76,547.00
b) Claims against the Company
(including unasserted claims) not
acknowledged as debts* 95,208.41 83,719.52
c) Income tax demand in excess of
provisions (pending in appeals) 245,486.57 223,108.43
d) Compensation for delayed possession 0.27 10.22
* Interest and claims by customers/suppliers may be payable as and when
the outcome of the related matters are fi nally determined and hence
not been included above. Management based on legal advice and
historical trends, believes that no material liability will devolve on
the Company in respect of these matters.
9. The Company is primarily engaged in the business of colonization
and real estate development, which as per Accounting Standard - 17 on
"Segment Reporting" as specifi ed under Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014 (as amended) is considered to be the only reportable business
segment. DLF Group is primarily operating in India which is considered
as a single geographical segment.
10. In accordance with the requirements of Schedule II to the Companies
Act, 2013, the Company has re-assessed the useful lives of the
depreciable assets. The depreciation for the year ended March 31, 2015
is higher by Rs. 958.50 lac due to change in useful lives. Further an
amount of Rs. 536.59 lac (net of deferred tax impact of Rs. 135.69 lac) has
been adjusted to the opening balance of the statement of profit and
loss whose remaining useful life is nil as at April 1,2014.
11. Certain matters pending in litigation with Courts/Appellate
Authorities:
(a) The Competition Commission of India (CCI) on a complaint filed by
the Belaire/Park Place owners Association had passed orders dated
August 12, 2011 and August 29, 2011 wherein the CCI had imposed a
penalty of Rs. 63,000 lac on DLF, restraining DLF from formulating and
imposing allegedly unfair conditions with buyers in Gurgaon and further
ordered to suitably modify the alleged unfair conditions on its buyers.
The said orders of CCI were challenged by DLF on several grounds by
filing appeals before the Competition Appellate Tribunal (COMPAT). The
COMPAT pending hearing and till final orders had granted stay on demand
of penalty of Rs. 63,000 lac imposed by CCI.
COMPAT vide its order dated May 19, 2014 accepted the arguments of DLF
that since the agreements were entered into prior to coming into force
Section 4 of the Act, the clauses of the agreements entered in 2006-07
could not be looked into for establishing contravention of Section 4 of
the Act, however COMPAT held that the Company is a dominant player in
Gurgaon being the relevant market and has abused its dominant position
in relation to certain actions which is violative of Section 4 of the
Act and has accordingly upheld the penalty imposed by CCI.
COMPAT further held that CCI could not have directed modifi cations of
the Agreement as the power to modify the agreement under Section 27 is
only in relation to Section 3 and cannot be applied for any action in
contravention of Section 4 of the Act.
The Company has fi led an Appeal in the Hon'ble Supreme Court against
the order dated May 19, 2014 passed by the COMPAT. The Hon'ble Supreme
Court of India vide order dated August 27, 2014 admitted the Appeal and
directed the Company to deposit penalty o^ 63,000 lac in the Court
within 3 months out of which Rs. 5,000 lac was directed to be deposited
within 3 weeks.
The Company fi l ed an application seeking directions to waive the
obligations to deposit the remaining sum of Rs. 58,000 lac.
On hearing the application the directions were given by the Hon'ble
Supreme Court of India, that Company files an undertaking to deposit
the remaining amount of Rs. 58,000 lac in installments, i.e. to deposit
Rs. 7,500 lac every month starting from January 7, 2015 till June 15,
2015 and the last installment of Rs. 3,000 lac on July 15, 2015. In
compliance of the undertaking, the Company has been depositing Rs. 7,500
lac every month and till date has deposited Rs. 52,500 lac with the
Hon'ble Supreme Court of India.
The matter was last listed on March 17, 2015 before the Bench when it
was directed by the Hon'ble Supreme Court of India. The matter to be
listed at its course.
(b) During the year ended March 31, 2011, the Company received judgment
from the Hon'ble High Court of Punjab and Haryana cancelling the
lease/sale deed of land relating to IT SEZ Project in Gurgaon. The
Company filed Special Leave Petitions (SLP) challenging the orders in
the Hon'ble Supreme Court of India.
The Hon'ble Supreme Court of India has admitted the matter and stayed
the operation of the impugned judgments till further orders.
Based on the advice of the independent legal counsels, the management
believes that there is a reasonably strong likelihood of succeeding
before the Hon'ble Supreme Court of India. Pending the fi nal decisions
on the above matter, no adjustment has been done in these standalone
financial statements.
(c) i) Securities and Exchange Board of India (SEBI) had issued a Show
Cause Notice (SCN) dated
June 25, 2013 under Sections 11(1), 11(4), 11A and 11B of the SEBI Act,
1992 ("the Act") read with clause 17.1 of the SEBI (Disclosure &
Investor Protection) Guidelines, 2000 ("DIP Guidelines") and
Regulation 111 of SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2009 ("ICDR Regulations") and levelled certain
allegations in the same.
The Company fi led its reply with SEBI, placed written submissions and
participated in the hearings conducted by the Hon'ble Whole Time
Member, in which it replied to each allegation levelled in the said
Show Cause Notice (SCN).
The Hon'ble Whole Time Member however rejected the reply filed by the
Company and vide its order dated October 10, 2014 has restrained the
Company and six others from accessing the securities market and
prohibiting them from buying, selling or otherwise dealing in
securities, directly or indirectly, in any manner, whatsoever, for a
period of three years.
The Company has filed an appeal against the said order before
Securities Appellate Tribunal (SAT) vide majority order dated March 13,
2015 allowed all the appeals and the impugned order passed by SEBI has
been quashed and set aside.
SEBI has fi led a statutory appeal under Section 15Z of SEBI Act before
Hon'ble Supreme Court of India.
On April 24, 2015, the Hon'ble Supreme Court of India admitted the
appeal filed by SEBI and issued notice on interim application. No stay
has been granted by the Hon'ble Supreme Court of India in favour of
SEBI.
ii) SEBI also issued a SCN dated August 28, 2013 under Sections 15HA
and 15HB of the SEBI Act, 1992 and under Rule 4 of the SEBI (Procedure
for Holding Inquiry and Imposing Penalties by Adjudicating Offi cer)
Rules,1995 ("Adjudication Rules"), hearing on which has been
completed and the Company has filed its written synopsis/submissions.
By way of order dated February 26, 2015, the Adjudicating Officer of
SEBI imposed penalties upon the Company, some of its Directors and
officers under Section 15HA and under Section 15HB of the SEBI Act,
1992.
The Company, its Directors and officers have fi led appeal before SAT
impugning the order dated February 26, 2015 passed by an Adjudicating
Offi cer of SEBI. The Appeal is listed before SAT and in the order
dated April 15, 2015, SEBI has undertaken not to enforce the order
dated February 26, 2015 during pendency of the appeal.
The Company and its legal advisors believe that it has not acted in
contravention of law either during its initial public offer or
otherwise. The Company has full faith in the judicial process and is
confident of vindication of its stand in the near future.
12. As already reported, in the earlier period(s), disallowance of SEZ
profits u/s 80IAB of the Income-tax Act, 1961 were made by the Income
Tax Authorities in the assessment of the Company raising demands
amounting to Rs. 7,308.99 lac for the assessment year 2011-12; Rs. 7,284.99
lac for the assessment year 2010-11; Rs. 35,523.71 lac for the assessment
year 2009-10 and Rs. 48,723 lac for assessment year 2008-09 respectively.
The Company had filed appeals before the Appropriate Appellate
Authorities against these demands for the said assessment years. In
certain cases partial/full relief has been granted by the Appellate
Authorities (CIT Appeal & Income Tax Appellate Tribunal). The Company
and Income Tax Department have further preferred appeals before the
higher authorities in those cases.
Based on the advice from independent tax experts and the development on
the appeals, the management is confi dent that additional tax so
demanded will not be sustained on completion of the appellate
proceedings and accordingly, pending the decision by the appellate
authorities, no provision has been made in these standalone financial
statements.
13. A petition was fi led as a Public Interest Litigation (PIL) before
the Hon'ble Punjab & Haryana High Court stating that the petitioner
therein was a resident of Village Wazirabad, Gurgaon. The petitioner
challenged the action of the Government to acquire the land belonging
to Gram Panchayat of village Wazirabad, District Gurgaon for public
purpose and thereafter selling the same to DLF whereby directions were
sought from the court for quashing of the acquisition proceedings under
Sections 4 & 6 dated August 8, 2003 and January 20, 2004.
The Petitioner therein also sought quashing of the award dated January
19, 2006 and the Regular Letter of Allotment (RLA) dated February 9,
2010 issued in favour of the Company for 350.715 acres of land.
The High Court, vide its final order dated September 3, 2014, while
upholding the acquisition of land has however disapproved the allotment
in favour of the Company. The High Court passed an order to keep the
RLA dated February 9, 2010 issued in favour of the Company in abeyance
and further directed the Haryana State Industrial and Infrastructure
Development Corporation (HSIIDC) to initiate fresh allotment process
for higher returns in respect of the land in question with an option to
State to revive the RLA in case no better bid is quoted by the public
at large.
The Company has filed a Special Leave Petition before the Hon'ble
Supreme Court of India challenging the judgment dated September 3, 2014
passed by Punjab & Haryana High Court. Hon'ble Supreme Court of India
issued notice and directed status quo shall be maintained by the
Parties. HSIIDC has filed counter affidavit and matter is listed on
August 21, 2015 before Registrar for completion of pleadings and
service.
14. Hon'ble Supreme Court in the case of L&T on September 26, 2013, has
upheld the decision given in case of M/s K Raheja in 2005 that any
agreement with prospective buyers prior to completion of construction
will be treated as a Works Contract. Karnataka & Maharashtra States had
amended their respective VAT Acts after the decision of K Raheja's case
in 2005 and Delhi has amended the VAT Act vide notification issued on
September 20, 2013 and Haryana has also amended the VAT Act vide
notification issued on August 12, 2014 & amnesty enabling provision has
been notified on November 5, 2014 for the period prior to March 31,
2014. Except from the State of Kerala, Haryana and Punjab, DLF Group
has not received any show cause/assessment notice from any of the
States where the projects are located with respect to additional VAT
liability in this regard. Further the Company's plea for impleadment
with L&T case in the Hon'ble Supreme Court of India has been allowed,
which will come up for hearing before regular bench for final order in
due course of time.
Moreover based on the terms of the agreement with the buyers,
management is of the opinion that in case the tax would be imposed by
VAT authorities or already been imposed, as the case may be, the same
is recoverable from the respective buyers and where ultimate collection
from customers is doubtful, as an abundant caution, adequate provision
for the same has been made in these standalone financial statements.
15. Corporate Social Responsibility expenses
(a) Gross amount required to be spent by the Company during the year is
Rs. 1,282.05 lac.
(b) Amount spent during the year on:
16. U
Mar 31, 2014
1 a) The profit/loss from sale of land/ developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy stated in Note 1(g)- "Significant Accounting
Policies". The Complex comprises land owned by the Company as also
those under agreements to purchase entered into with
subsidiary/co-ordinating companies. In terms of such agreements, the
Company purchases plotted area from the land owning companies at the
average cost of land to the Company and/or the land owning companies.
The average estimated internal development costs and external
development charges, in respect of the plots sold have been written off
in terms of accounting policy stated in Note 1(i) - "Significant
Accounting Policies". Final adjustment, if any, is made on completion
of the applicable scheme/project.
b) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in its
meeting held on March 28, 2006, with one of its wholly-owned subsidiary
company namely, DLF Home Developers Limited ("DHDL") to sell a parcel
of land of saleable area consisting 30 million sq. ft. built-up area
under construction/to be constructed. Further, DHDL will complete all
the finishing work before selling the same to its customers. In terms
of the accounting policy stated in Note 1(g)(i) on revenue recognition,
revenue in respect of projects under implementation under these
agreements to sell is being recognised based on "percentage of
completion" method.
2 The Company has entered into business development agreements with
DLF Commercial Projects Corporation and Rational Builders and
Developers (partnership firms). As per these agreements, the Company
has acquired sole irrevocable development rights in identified land
which are acquired/or in the process of acquisition by these
partnership firms.
In terms of the accounting policy stated in Note 1(f) the amount paid
to these partnership firms pursuant to the above agreements, are
classified under inventory as development rights.
3. Disclosure in respect of project which falls under the Revised
Guidance Note issued by Institute of Chartered Accountants of India on
"Accounting for Real Estate transactions (Revised 2012)"
4. Related party disclosures
a) Relationship
(i) Subsidiary companies at any time during the year
1 Aadarshini Real Estate Developers Private Limited
2 Abhigyan Builders & Developers Private Limited
3 Abhiraj Real Estate Private Limited
4 Adeline Builders & Developers Private Limited
Aman Gocek Insat Taahhut Turizm Sanayi Ve Ticaret AS [till 5 February
6, 2014]###
6 Amancruises (2006) Company Limited [till February 6, 2014]###
7 Amancruises Company Limited [till February 6, 2014]###
8 Amankila Resorts Limited [till February 6, 2014]###
9 Amanproducts Limited [till February 6, 2014]###
10 Amanresorts B.V. [till February 6, 2014]###
11 Amanresorts International Pte Limited [till February 6, 2014]###
12 Amanresorts IPR B.V. [till February 6, 2014]###
13 Amanresorts Limited [till February 6, 2014]###
14 Amanresorts Limited [till February 6, 2014]###
15 Amanresorts Mangement B.V. [till February 6, 2014]###
16 Amanresorts Services Limited [till February 6, 2014]###
17 Amanresorts Technical Services B.V. [till February 6, 2014]###
18 Americus Real Estate Private Limited
19 Amishi Builders & Developers Private Limited
20 Anbest Holdings Limited [till February 6, 2014]###
21 Andaman Development Company Limited [till February 6, 2014]###
22 Andaman Holdings Limited [till February 6, 2014]###
23 Andaman Resorts Co. Limited [till February 6, 2014]###
24 Andaman Thai Holding Co. Limited [till February 6, 2014]###
25 Andes Resort Limited SAC [till February 6, 2014]###
26 Angelina Real Estates Private Limited [w.e.f. September 5, 2013]
27 Annabel Builders & Developers Private Limited
Aqua Space Developers Private Limited [formerly DLF Raidurg
28 Developers Private Limited]
29 Aradal Company N.V. [till February 6, 2014]###
30 Ariadne Builders & Developers Private Limited
31 ARL Marketing Inc. [till February 6, 2014]###
32 ARL Marketing Limited [till February 6, 2014]###
33 Armand Builders & Constructions Private Limited
34 ASL Management (Palau) Limited [till February 6, 2014]###
35 Balaji Highways Holding Private Limited
36 Balina Pansea Company Limited [till February 6, 2014]###
37 Barbados Holdings Limited [till February 6, 2014]###
38 Benedict Estates Developers Private Limited
39 Berenice Real Estate Private Limited
Beyla Builders & Developers Private Limited [w.e.f. September 5,
40 2013]
41 Bhamini Real Estate Developers Private Limited
42 Bhosphorous Investments Limited [till February 6, 2014]###
43 Bhutan Hotels Limited [till February 6, 2014]###
44 Bhutan Resorts Private Limited [till February 6, 2014]###
45 Bodrum Development Limited [till February 6, 2014]###
46 Breeze Constructions Private Limited
47 Cachet Real Estates Private Limited
48 Calvine Builders & Constructions Private Limited
49 Caraf Builders & Constructions Private Limited
50 Cee Pee Maintenance Services Limited [till June 13, 2013]*
51 Ceylon Holdings B.V. [till February 6, 2014]###
52 Chakradharee Estates Developers Private Limited
53 Chandrajyoti Estate Developers Private Limited
54 Columbo Resort Holdings N.V [till February 6, 2014]###
55 Comfort Buildcon Limited [till June 13, 2013]*
56 Current Finance Limited [till February 6, 2014]###
57 Cyrilla Builders & Constructions Limited [till September 30,
2013]***
58 Dae Real Estates Private Limited
59 Dalmia Promoters & Developers Private Limited
60 Delanco Home and Resorts Private Limited
61 Delanco Realtors Private Limited
62 Deltaland Buildcon Private Limited
63 Deltaland Real Estate Private Limited
64 Diwakar Estates Limited
65 DLF Aspinwal Hotels Private Limited
66 DLF Assets Private Limited
67 DLF City Centre Limited
68 DLF City Developers Private Limited
69 DLF Cochin Hotels Private Limited
70 DLF Commercial Developers Limited
71 DLF Construction Limited [till August 28, 2013]**
72 DLF Cyber City Developers Limited
73 DLF Emporio Limited
74 DLF Emporio Restaurants Limited
75 DLF Energy Private Limited
76 DLF Estate Developers Limited
77 DLF Finvest Limited
78 DLF Garden City Indore Private Limited
79 DLF GK Residency Limited [w.e.f. October 8, 2013]****
80 DLF Global Hospitality Limited
81 DLF Golf Resorts Limited
82 DLF Home Developers Limited
83 DLF Homes Services Private Limited
84 DLF Homes Goa Private Limited
85 DLF Homes Kokapet Private Limited
86 DLF Homes Panchkula Private Limited
87 DLF Homes Rajapura Private Limited
88 DLF Hospitality & Recreational Limited
89 DLF Hotel Holdings Limited
90 DLF Hotels & Apartments Private Limited [till August 28, 2013]**
91 DLF Info City Developers (Chandigarh) Limited
92 DLF Info City Developers (Chennai) Limited
93 DLF Info City Developers (Kolkata) Limited
94 DLF Info Park Developers (Chennai) Limited
95 DLF Info Park (Pune) Limited
96 DLF Inns Limited
97 DLF International Holdings Pte. Limited
98 DLF International Hospitality Corp.
99 DLF Limitless Developers Private Limited [w.e.f. March 28, 2014]@
100 DLF Luxury Hotels Limited
DLF New Gurgaon Homes Developers Private Limited [till
101
September 30, 2013]***_
DLF New Gurgaon Offices Developers Private Limited [till 102 September
30, 2013]***_
103 DLF New Gurgaon Retail Developers Private Limited
104 DLF Phase IV Commercial Developers Limited
DLF Pramerica Life Insurance Company Limited [till December
105 18, 2013]##
106 DLF Projects Limited
107 DLF Promenade Limited
108 DLF Property Developers Limited
109 DLF Real Estate Builders Limited
110 DLF Realtors Private Limited [formerly Monroe Builders &
Developers Private Limited]
111 DLF Recreational Foundation Limited
112 DLF Residential Builders Limited
113 DLF Residential Developers Limited
114 DLF Residential Partners Limited
115 DLF Service Apartments Limited
116 DLF South Point Limited [w.e.f. October 17, 2013]****
117 DLF Southern Homes Private Limited
118 DLF Southern Towns Private Limited
119 DLF Telecom Limited
120 DLF Trust Management Pte Limited
121 DLF Universal Limited
122 DLF Utilities Limited
123 Domus Real Estates Private Limited
124 Domus Realtors Private Limited
DT Real Estate Developers Private Limited [formerly Digital
125 Talkies Private Limited]
126 Eastern India Powertech Limited
127 Edward Keventer (Successors) Private Limited
128 Elvira Builders & Constructions Private Limited
129 Faye Builders & Constructions Private Limited
130 First City Real Estate Private Limited
131 Flora Real Estate Private Limited
132 Fonton Limited [till February 6, 2014]###
133 Forerun Group Limited [till February 6, 2014]###
134 Galleria Property Management Services Private Limited
135 Ghaliya Builders & Developers Private Limited
136 Goyo Services Limited [till February 6, 2014]###
137 Guardian International Private Limited [till February 6, 2014]###
138 Gulliver Enterprises Limited [till February 6, 2014]###
139 Gyan Real Estate Developers Private Limited
140 Hampton Furniture Limited [till April 1, 2013]
141 Hansel Builders & Developers Private Limited
142 Heritage Resorts Private Limited [till February 6, 2014]###
143 Highvalue Builders Limited [till June 13, 2013]*
144 Hospitality Tradings Limited [till February 6, 2014]###
145 Hotel Finance International Limited [till February 6, 2014]###
146 Hotel Sales Services Limited [till February 6, 2014]###
147 Hotel Sales Service Private Limited [till February 6, 2014]###
148 Hyacintia Real Estate Developers Private Limited
149 Incan Valley Holdings Limited [till February 6, 2014]###
150 Irving Builders & Developers Private Limited
151 Isabel Builders & Developers Private Limited
152 Jalisco Holdings Pte Limited [till February 6, 2014]###
153 Kavicon Partners Limited [w.e.f. September 11, 2013]****
154 L P Hospitality Company Limited [till February 6, 2014]###
155 Lada Estates Private Limited
156 Laman Real Estate Private Limited
157 Lao Holdings Limited [till February 6, 2014]###
158 Latona Builders & Constructions Private Limited
159 Le Savoy Limited [till February 6, 2014]###
160 Lear Builders & Developers Private Limited
161 Lempo Buildwell Private Limited
162 Liber Buildwell Private Limited
163 Livana Builders & Developers Private Limited
164 Lizebeth Builders & Developers Private Limited
165 Lodhi Property Company Limited
Mariabella Builders & Developers Private Limited
166
[w.e.f September 5 , 2013]
167 Mariposa Builders & Developers Private Limited
168 Marrakech Investments Limited [till February 6, 2014]###
169 Melanctha Builders & Developers Pvt. Ltd.
170 Melosa Builders & Developers Private Limited
171 Mens Buildcon Private Limited
172 Mhaya Buildcon Private Limited
173 Mulvey B.V. [till February 6, 2014]###
174 Mulvey Venice S.r.l. [till February 6, 2014]###
175 Naman Consultants Limited [till February 6, 2014]###
176 Nambi Buildwell Private Limited
177 Nellis Builders & Developers Private Limited
178 NewGen MedWorld Hospitals Limited
Niobe Builders & Developers Private Limited [w.e.f September 5,
179 2013]
180 NOH (Hotel) Private Limited [till February 6, 2014]###
181 Norman Cay''s Holdings Limited [till February 6, 2014]###
182 Nusantara Island Resorts Limited [till February 6, 2014]###
183 Otemachi Tower Resorts Co. Limited [till February 6, 2014]###
184 P.T. Amanresorts Indonesia [till February 6, 2014]###
185 P.T. Amanusa Resort Indonesia [till February 6, 2014]###
186 P.T. Indrakila Villatama Development [till February 6, 2014]###
187 P.T. Moyo Safari Abadi [till February 6, 2014]###
188 P.T. Nusantara Island Resorts [till February 6, 2014]###
189 P.T. Villa Ayu [till February 6, 2014]###
190 Palawan Holdings Limited [till February 6, 2014]###
191 Paliwal Developers Limited
192 Paliwal Real Estate Limited
193 Pee Tee Property Management Services Limited [till June 13, 2013]*
194 Philana Builders & Developers Private Limited
195 Phoena Builders & Developers Private Limited
196 Phraya Riverside (Bangkok) Co Limited [till February 6, 2014]###
197 Princiere Resorts Limited [till February 6, 2014]###
198 Prompt Real Estate Limited [till June 13, 2013]*
199 Puri Limited [till September 17, 2013]
200 Pyrite Builders & Constructions Private Limited
201 Qabil Builders & Constructions Private Limited
202 Queensdale Management Limited [till February 6, 2014]###
203 Rachelle Builders & Constructions Private Limited
204 Red Acres Development Limited [till February 6, 2014]###
205 Regent Asset Finance Limited [till February 6, 2014]###
206 Regent Land Limited [till February 6, 2014]###
207 Regional Design & Research B.V. [till February 6, 2014]###
208 Regional Design & Research N.V. [till February 6, 2014]###
209 Richmond Park Property Management Services Limited
210 Riveria Commercial Developers Limited
211 Rochelle Builders & Constructions Private Limited
212 Royalton Builders & Developers Private Limited
213 Saguna Builders & Developers Private Limited
Sahastrajit Builders & Developers Private Limited
214 [ w.e.f. September 5, 2013]
215 Saket Holiday Resorts Private Limited
Seaberi Builders & Developers Private Limited
216 [ w.e.f. September 5, 2013]
217 Serendib Holdings B.V. [till February 6, 2014]###
218 Silver - Two (Bangkok) Company Limited [till February 6, 2014]###
Silver Oaks Property Management Services Limited [till June 13,
219 2013]*
220 Silverlink (Mauritius) Limited
221 Silverlink (Thailand) Company Limited [till February 6, 2014]###
222 Silverlink Resorts Limited [till February 6, 2014]###
223 Societe Nouvelle de L''Hotel Bora Bora [till February 6, 2014]###
224 Star Alubuild Private Limited [till October 8, 2013]#
225 Sunlight Promoters Limited [till June 13, 2013]*
226 Tahitian Resorts Limited [till February 6, 2014]###
227 Tangalle Property (Private) Limited [till February 6, 2014]###
228 Toscano Holdings Limited [till February 6, 2014]###
229 Triumph Electronics Private Limited
230 Universal Hospitality Limited [till February 6, 2014]###
231 Urvasi Infratech Private Limited
Valini Builders & Developers Private Limited
232 [till September 30, 2013]***
233 Vibodh Developers Private Limited
234 Vilina Estate Developers Private Limited
235 Villajena Development Company Limited [till February 6, 2014]###
236 Vinanti Builders & Developers Private Limited
237 Vkarma Capital Investment Management Company Private Limited
238 Vkarma Capital Trustee Company Private Limited
239 Webcity Builders & Developers Private Limited
240 Yucatan Holdings Pte Limited [till February 6, 2014]###
241 Zeugma Limited [till February 6, 2014]###
242 Zola Real Estate Private Limited
(ii) Partnership firms
1 DLF Commercial Projects Corporation
2 DLF Gayatri Developers
3 DLF GK Residency [till October 7, 2013]****
4 DLF Green Valley
5 DLF Office Developers
6 DLF South Point [till October 16, 2013]****
7 Kavicon Partners [till September 10, 2013]****
8 Rational Builders and Developers
(iii) Joint Ventures
1 DLF Gayatri Home Developers Private Limited
2 DLF Green Valley
3 DLF Gayatri Developers
4 DLF SBPL Developers Private Limited
5 DLF Limitless Developers Private Limited [till March 27, 2014]@
6 GSG DRDL Consortium
7 YG Realty Private Limited
8 Banjara Hills Hyderabad Complex
9 Saket Courtyard Hospitalty Private Limited
(iv) Associates
1 Australian Resorts Limited [till February 6, 2014]###
2 Designplus Architecture Private Limited
3 Eila Builders & Developers Private Limited [till October 21, 2013]
4 Galaxy Mercantiles Limited {till March 10, 2014}
5 Island Aviation Inc [till February 6, 2014]###
6 Joyous Housing Private Limited
7 Kyoto Resorts YK [till February 6, 2014]###
8 P.T Jawa Express Amanda Indah [till February 6, 2014]###
9 Pamalican Island Holdings Inc [till February 6, 2014]###
10 Pamalican Resorts Inc [till February 6, 2014]###
11 Pansea Tourism Company Limited [till February 6, 2014]###
12 Regional D & R Limited [till February 6, 2014]###
13 Revlys SA [till February 6, 2014]###
14 Seven Seas Resorts and Leisure Inc [till February 6, 2014]###
15 Surin Bay Co. Limited [till February 6, 2014]###
16 Villajena [till February 6, 2014]###
17 Rapid Metrorail Gurgaon Limited [till November 28, 2013]
* Pursuant to the order of the Hon''ble High Court of Delhi and Hon''ble
High Court of Punjab and Haryana at Chandigarh by virtue of scheme of
arrangement, these entities have merged with Paliwal Real Estate
Limited w.e.f. June 13, 2013. Accordingly the transactions with the
said entities during the year ended March 31, 2014 and balance
outstanding thereto on that date have been disclosed as transactions
with and balances outstanding to as the case may be, Paliwal Real
Estate Limited during the year ended and as of March 31, 2014.
** Pursuant to the order of the Hon''ble High Court of Delhi and Hon''ble
High Court of Punjab and Haryana at Chandigarh by virtue of scheme of
arrangement, these entities have merged with DLF Projects Limited
w.e.f. August 29, 2013. Accordingly the transactions with the said
entities during the year ended March 31, 2014 and balance outstanding
thereto on that date have been disclosed as transactions with and
balances outstanding to as the case may be, DLF Projects Limited during
the year ended and as of March 31, 2014.
*** Pursuant to the order of the Hon''ble High Court of Delhi by virtue
of scheme of arrangement, these entities have merged with DLF Home
Developers Limited w.e.f. September 30, 2013. Accordingly the
transactions with the said entities during the year ended March 31,
2014 and balance outstanding thereto on that date have been disclosed
as transactions with and balances outstanding to as the case may be,
DLF Home Developers Limited during the year ended and as of March 31,
2014.
**** During the year, converted into Limited Companies.
@ On March 27, 2014, in terms of Share Purchase Agreement DLF Home
Developers Limited (DHDL), a subsidiary of the Company, has purchased
50% share holding in DLF Limitless Developers Private Limited (A JV
Company) from Limitless Holdings-1 Limited and Limitless Hoysala Inc.
Subsequent to acquisition, DLF Limitless Developers Private Limited
became a 100% subsidiary of the Company w.e.f. March 28, 2014.
# On October 8, 2013, in terms of the Share Purchase Agreement and on
receiving the requisite regulatory approvals, DLF Home Developers
Limited along with DLF Projects Limited (both subsidiaries of the
Company) has sold their entire 60% shareholdings in a subsidiary
company namely Star Alubuild Private Limited. Subsequent to divestment,
Star Alubuild Private Limited has ceased to be a subsidiary of the
Company w.e.f. October 9, 2013.
## On July 25, 2013, the Company has signed definitive agreements to
sell its 74% equity stake in its Life Insurance Joint Venture - DLF
Pramerica Life Insurance Company Limited (DPLI), a Joint Venture with
Prudential International Insurance Holdings Ltd, a direct subsidiary of
Prudential Financial, Inc USA to Dewan Housing Finance Corporation
Limited and its group entities. Post completion of all conditions
precedent including regulatory approvals, the Company has sold its
stake in DPLI on December 18, 2013. Subsequent to divestment, DPLI has
ceased to be subsidiary of the Company w.e.f. December 19, 2013.
### On January 2, 2014, DLF Global Hospitality Limited ("DGHL"),
step-down subsidiary of Company entered into the Share Purchase
Agreement with Aman Resorts Group Limited ("ARGL"), for sale of 100%
stake in Silverlink Resorts Limited ("SRL") and its subsidiaries. After
completion of all conditions precedent, the shares of SRL were
transferred to ARGL on February 7, 2014. Subsequent to divestment,
these entities have been ceased to be subsidiaries of the Company
w.e.f. February 7, 2014.
(vi) Other enterprises under the control of the key management
personnel and their relatives :
1 A.S.G. Realcon Private Limited
2 Adampur Agricultural Farm
3 Adept Real Estate Developers Private Limited
4 AGS Buildtech Private Limited
5 Alfa Investments Global Limited
6 Angus Builders & Developers Private Limited
7 Antriksh Properties Private Limited
8 Anubhav Apartments Private Limited
9 Arihant Housing Company*
10 Atria Partners
11 Beckon Investments Group Limited
12 Belicia Builders & Developers Private Limited
13 Beverly Park Operation and Maintenance Services LLP
14 Buland Consultants & Investments Private Limited
15 Carreen Builders & Developers Private Limited
16 Centre Point Property Management Services LLP [formerly Centre Point
Property Management Services Private Limited]#
17 CGS Charitable Trust
18 Ch.Lal Chand Memorial Charitable Trust
19 Cian Retail Private Limited [formerly Cian Builders & Developers
Private Limited]
20 Das Retail Private Limited [w.e.f June 26 , 2013]
21 Delanco Buildcon Private Limited [w.e.f. February 14, 2014]
22 Desent Promoters & Developers Private Limited
23 Diana Retail Private Limited
24 DLF Brands Limited
25 DLF Building & Services Private Limited
26 DLF Commercial Enterprises
27 DLF Employees Welfare Trust
28 DLF Foundation
29 DLF Investments Private Limited
30 DLF M.T.FBD Medical and Community Facilities Charitable Trust
31 DLF Q.E.C. Educational Charitable Trust
32 DLF Q.E.C. Medical Charitable Trust
33 DLF Raghvendra Temple Trust
34 Elephanta Estates Private Limited
35 Enki Retail Solutions Private Limited
36 Eros Retail Private Limited
37 Excel Housing Construction LLP
38 Exe. of The Estate of Lt. Ch. Raghvendra Singh
39 Exe. of The Estate of Lt. Smt. Prem Mohini
40 Family Idol Shri Radha Krishan Ji
41 Family Idol Shri Shiv Ji
42 Ferragamo Retail India Private Limited
43 First City Management Company Private Limited [w.e.f. February 14,
2014]
44 Gangrol Agricultural Farm & Orchard
45 General Marketing Corporation
46 Giorgio Armani India Private Limited
47 Glensdale Enterprise Development Private Limited [w.e.f. February
14, 2014]
48 Good Luck Trust
49 Gujral Design Plus Overseas Private Limited [w.e.f. February 14,
2014]
50 Haryana Electrical Udyog Private Limited
51 Herminda Builders & Developers Private Limited
52 Hitech Property Developers Private Limited
53 Indira Trust
54 Ishtar Retail Private Limited
55 Jhandewalan Ancillaries LLP [formerly Jhandewalan Ancillaries
Private Limited]#
56 Juno Retail Private Limited
57 K. P. Singh HUF
58 Kapo Retail Private Limited
59 Kohinoor Real Estates Company*
60 Krishna Public Charitable Trust
61 Lal Chand Public Charitable Trust
62 Lion Brand Poultries
63 Madhukar Housing and Development Company*
64 Madhur Housing and Development Company*
65 Mallika Housing Company LLP
66 Megha Estates Private Limited
67 Mohit Design Management Private Limited [w.e.f. February 14, 2014]
68 Nachiketa Family Trust
69 Northern India Theatres Private Limited
70 P & S Exports Corporation
71 Panchsheel Investment Company*
72 Parvati Estates LLP
73 Pia Pariwar Trust
74 Plaza Partners
75 Power Overseas Private Limited
76 Prem Traders LLP [formerly Prem Traders Private Limited]#
77 Prem''s Will Trust
78 Prima Associates Private Limited [w.e.f. February 14, 2014]
79 Prime Destek Private Limited [from February 14, 2014 till March 27,
2014]
80 Pushpak Builders and Developers Private Limited
81 Qantis Investment & Services Limited [w.e.f September 23, 2013]
82 R.R Family Trust
83 Raghvendra Public Charitable Trust
84 Raisina Agencies LLP
85 Rajdhani Investments & Agencies Private Limited
86 Realest Builders and Services Private Limited
87 Renkon Overseas Development Limited
88 Renkon Partners
89 Renuka Pariwar Trust
90 Rhea Retail Private Limited
91 River Heights Structurals Private Limited [w.e.f. February 14, 2014]
92 Rod Retail Private Limited
93 S & S Towel Private Limited
94 Sabre Investment Advisor India Private Limited
95 Sabre Investment Consultants LLP
96 Sambhav Housing and Development Company*
97 Sarna Export International
98 Sarna Exports Limited
99 Sarna Property and Industry Private Limited
100 Sidhant Housing and Development Company*
101 Singh Family Trust
102 Sketch Investment Private Limited
103 Skills Academy Private Limited
104 Skills for India [w.e.f. November 27 , 2013]
105 Smt. Savitri Devi Memorial Charitable Trust
106 Solace Housing and Construction Private Limited
107 Solange Retail Private Limited
108 Span Fashions Limited [w.e.f. February 14, 2014]
109 Spherical Developers Private Limited [w.e.f. February 14, 2014]
110 Sudarshan Estates Private Limited
111 Sukh Sansar Housing Private Limited
112 Super Mart Two Property Management Services LLP [formerly Super
Mart Two Property Management Services Private Limited]#
113 Trinity Elastomers Private Limited
114 Trinity Housing and Construction Company*
115 Try Us Hospitality Private Limited
[from February 14,2014 till March 27, 2014]
116 Udyan Housing and Development Company*
117 Universal Management and Sales LLP
118 Urva Real Estate Developers Private Limited
119 Uttam Builders and Developers Private Limited
120 Uttam Real Estates Company*
121 Vishal Foods and Investments Private Limited
122 Designplus Architecture Private Limited [w.e.f. February 14, 2014]
123 Wagishwari Estates Private Limited [w.e.f. February 14, 2014]
124 Willder Limited
125 Yashika Properties and Development Company*
126 Yogananda Films Private Limited
127 Zigma Processing and Manufacturing Private Limited
* A private company with unlimited liability.
# During the year, converted into LLP from a limited liability company.
5. a) The Company uses forward contracts and swaps to hedge its risks
associated with fluctuations in foreign currency and interest rates.
The use of forward contracts and swaps is covered by Company''s overall
strategy. The Company does not use forward covers and swaps for
speculative purposes.
As per the strategy of the Company, foreign currency loans are covered
by hedge, considering the risks associated with such loans, which
effectively fixes the principal and interest liability of
6. Contingent liabilities and Commitments, not provided for, exist in
respect of
(I) Contingent liabilities
(Rs. in lac)
2014 2013
a) Guarantees issued by the Company on behalf of :
Subsidiary companies 737,965.00 779,912.00
Others 76,547.00 39,127.00
b) Claims against the Company (including
unasserted claims) not acknowledged as debts 83,719.52 79,875.26
c) Income tax demand in excess of provisions
d) Compensation for delayed possession 10.22 616.62
7. The Company is primarily engaged in the business of colonization
and real estate development, which as per Accounting Standard - 17 on
"Segment Reporting" notified pursuant to the Companies (Accounting
Standard) Rules, 2006 issued by the Central Government in exercise of
the powers conferred under sub-section (1)(a) of Section 642 of the
Companies Act, 1956 is considered to be the only reportable business
segment. The Company is primarily operating in India which is
considered as a single geographical segment.
8. Wind mill projects of the Company are entitled for tax holiday
under Section 80-IA of the Income Tax Act, 1961. Accordingly, the
computation of tax (current and deferred) has been done as per
Accounting Standard 22 "Accounting for taxes on Income", notified
pursuant to the Companies (Accounting Standard) Rules, 2006 issued by
the Central Government in exercise of the powers conferred under
sub-section (1) (a) of Section 642 of the Companies Act, 1956.
9. Certain matters pending with Competition Commission of India and
various Courts/Appellate Authorities
(a) The Competition Commission of India (CCI) on a complaint filed by
the Belaire/Park Place Owners Association had passed orders dated
August 12, 2011 and August 29, 2011 wherein the CCI had imposed a
penalty of Rs. 63,000 lac on DLF, restraining DLF from formulating and
imposing allegedly unfair conditions with buyers in Gurgaon and further
ordered to suitably modify the alleged unfair conditions on its buyers.
The said orders of CCI were challenged by DLF on several grounds by
filing appeals before the
Competition Appellate Tribunal (COMPAT).
COMPAT by its order dated May 19, 2014 has held that the CCI could not
have entered into an enquiry into the clauses of the Agreement which
were entered into prior to the advent of Section 4 of the Act. COMPAT
further held that CCI could not have directed modifications of the
Agreement as the power to modify the agreement under Section 27 is only
in relation to Section 3 and cannot be applied for any action in
contravention of Section 4 of the Act.
However, COMPAT held DLF a dominant player in Gurgaon and has
considered certain actions by DLF to be violative of the Competition
Act and has accordingly upheld the penalty imposed by CCI.
The Company shall file an appeal before the Hon''ble Supreme Court to
challenge the order of COMPAT within 60 days.
COMPAT at the request of the Company, has allowed time of 60 days for
payment of the penalty alongwith applicable interest. Based on the
advice of the independent legal counsels, management believes that
Company has a strong likelihood of getting the relief in the order of
COMPAT and accordingly no adjustment has been done in these financial
statements.
(b) As already reported, in the earlier years, disallowance of SEZ
profits u/s 80IAB of the Income Tax Act, 1961 were made by the Income
Tax Authorities in the Assessment of the Company raising demand
amounting to Rs. 35,523.71 lac for the assessment year 2009-10 and Rs.
48,723.00 lac for assessment year 2008-09, respectively.
During the year ended March 31, 2014, further disallowance of SEZ
profits u/s 80IAB of the Income Tax Act, 1961 were made by the Income
Tax Authorities, raising demand amounting to Rs. 7,308.99 lac for the
assessment year 2011-12.
The Company has filed appeals before the appropriate appellate
authorities against the said assessment orders. In certain cases,
relief has been granted by the CIT (Appeals). The Income Tax
Department further preferred the appeals before the ITAT in those
cases. Based on the advice from independent tax experts and the
development on the appeals, the management is confident that these
demands will not be sustained on completion of the appellate
proceedings and accordingly, pending the decision by the appellate
authorities, no provision has been made in these financial statements.
(c) During the year ended March 31, 2011, the Company received
respective judgements from the Hon''ble High Court of Punjab and Haryana
cancelling the release/sale deed of land relating to IT SEZ Project in
Gurgaon. The Company filed Special Leave Petitions (SLP) challenging
the orders in the Hon''ble Supreme Court of India.
The Hon''ble Supreme Court has admitted the matter and stayed the
operation of the impugned judgement till further orders.
Based on the advice of the independent legal counsels, management
believes that there is a reasonably strong likelihood of succeeding
before the Hon''ble Supreme Court. Pending the final decisions on the
above matter, no adjustment has been done in these financial
statements.
10. Based on the information available with the Company, there are no
dues outstanding in respect of Micro, Small and Medium enterprises at
the balance sheet date. No amounts were payable to such enterprises
which were outstanding for more than 45 days. Further, no interest
during the year has been paid or payable in respect thereof. The above
disclosure has been determined to the extent such parties have been
identified on the basis of information available with the Company. This
has been relied upon by the auditors.
11. Exceptional items
i) On January 31, 2013, a Business Transfer Agreement was executed
between the Company and BLP Vaiyu (Project 1) Private Limited, a
subsidiary of Bharat Light & Power Private Limited to transfer the
Company''s undertaking comprising 150MW capacity wind turbines situated
at Kutch, Gujarat. On receipts of required regulatory approvals and
permissions, the Company has transferred the said undertaking including
related assets and liabilities along with relevant long-term loans on
''as is where is basis'' by way of slump-sale for a lump-sum
consideration ofRs. 32,537.95 lac on July 5, 2013. Profit before tax on
transfer of this undertaking amounting to Rs. 9,064.16 lac is classified
as exceptional items in these financial statements.
ii) On September 30, 2013 a Business Transfer Agreement was executed,
between the Company and Rugby Renergy Private Limited, a subsidiary of
Goyal MG Gases Private Limited to transfer the Company''s undertaking
comprising 11.2 MW capacity wind turbines situated at Karnataka. On
receipts of required regulatory approvals and permissions, the Company
has transferred the said undertaking including related assets and
liabilities along with relevant long-term loans on ''as is where is
basis'' by way of slump-sale for a lump-sum consideration of Rs. 2,625.35
lac on March 10, 2014. Profit before tax of Rs. 254.37 lac is classified
as exceptional items in these financial statements.
iii) The Company entered into a final settlement with Delhi Development
Authority (''''DDA'''') in the Dwarka Convention Centre Project. Pursuant
to the terms of the settlement agreement, the Company received a refund
ofRs. 67,581.00 lac from DDA as full and final settlement, after
forfeiture of 25% of the earnest money resulting loss amounting to
Rs.41,072.35 lac which is shown as exceptional item in these financial
statements.
iv) The Company entered into a Share Purchase Agreement dated February
22, 2013 and supplementary Agreement dated July 11, 2013 for sale of a
project through one of its subsidiary company. As per the terms of
agreement, a loss/foreseeable loss of Rs. 7,261.84 lac reflecting the
difference between the sales consideration and carrying cost of the
project is classified as an exceptional item in these financial
statements.
12. The Company entered into Development Agreement with two Subsidiary
Companies to give irrevocable development rights of certain land
parcels. As per these agreements, the consideration was in the form of
share in revenue on sale of properties, depending upon achieving
project gross margin and providing minimum returns to the minority
shareholders. During the year, the subsidiary companies reassessed its
business plans and the resultant, project gross margin and minimum
returns to the minority shareholders and reversed the entire revenue
share accrued till March 31, 2013 amounting to Rs. 7,982.15 lac
considering that the guaranteed minimum returns to the minority
shareholders are not likely to be achieved.
13. Hon''ble Supreme Court in the case of L&T on September 26, 2013,
has upheld the decision given in the case of M/s. K Raheja in 2005 that
any agreement with prospective buyers prior to completion of
construction will be treated as a Works Contract. Karnataka &
Maharashtra states had amended their respective VAT Acts after the
decision of K Raheja''s case in 2005 and Delhi has amended the VAT Act
vide notification issued on September 20, 2013. Except from the state
of Kerala, Haryana and Punjab, the Group has not received any show
cause/ assessment notice from any of the states where the projects are
located with respect to additional VAT liability in this regard.
Further, the Company''s plea for impleadment with L&T case in Hon''ble
Supreme Court has been allowed , which will come up for hearing before
regular bench for final orders in due course of time. Moreover based
on the terms of the agreement with the buyers, management is of the
opinion that in case the tax is imposed by VAT authorities, the same is
recoverable from the respective buyers and do not foresee any material
liability.
14. Under the Income Tax Act, 1961 for domestic Transfer Pricing
transaction introduced with effect from April 1, 2012, the Company is
required to use specified methods for computing arm''s length price in
relation to domestic transactions with its associated enterprises.
Further, Company is required to maintain prescribed information and
documents in relation to such transactions. The appropriate method to
be adopted will depend on the nature of transactions/ class of
transactions, class of associated persons, functions performed and
other factors, which have been prescribed. The Company is in the
process of conducting a transfer pricing study for the current
financial year. Based on the preliminary study for the current year and
completed study for the financial year ended March 31, 2013, the
management is of the view that the same would not have a material
impact on the tax expenses provided for in these financial statements.
Accordingly, these financial statements do not include any adjustments
for the transfer pricing implications, if any.
15. In the opinion of the management, current assets, loans and
advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the balance
sheet and provisions for all known/expected liabilities have been made.
16. a) On May 20, 2013, the Company issued 81,018,417 equity shares of
face value of Rs. 2 each at an issue price ofRs." 230 per share,
aggregating to Rs. 186,342.36 lac. The issue was made through the
Institutional Placement Programme in terms of Chapter VIII-A of the
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009, as amended (the "SEBI Regulations") in
order to achieve minimum public shareholding of 25%. Post issue, the
paid-up share capital of the Company was increased by Rs. 1,620.37 lac.
17. Previous year figures have been regrouped/recast, wherever
considered necessary to make them comparable with those of current
year.
Mar 31, 2013
1. a) The profit/loss from sale of land / developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy stated in Note 1 (g) - "Significant accounting
policies". The Complex comprises lands owned by the Company as also
those under agreements to purchase entered into with
subsidiary/coordinating companies. In terms of such agreements, the
Company has purchased 0.82 lac sq. mts. of plotted area during the
year (previous year 0.003 lac sq. mts.) from the land owning companies
at the average cost of land to the Company and/ or the land owning
companies. The average estimated internal development costs and
external development charges, in respect of the plots sold have been
written off in terms of accounting policy stated in Note 1 (i) -
"Significant accounting policies". Final adjustment, if any, is
made on completion of the applicable scheme/ project.
b) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in
their meeting held on March 28, 2006, with one of its wholly-owned
subsidiary company namely, DLF Home Developers Limited ("DHDL") to
sell a parcel of land of saleable area consisting 30 million sq. ft
built up area under construction / to be constructed. Further, DHDL
will complete all the finishing work before selling the same to its
customers. In terms of the accounting policy stated in Note 1(g)(i) on
revenue recognition, revenue in respect of projects under
implementation under these agreements to sell is being recognised based
on "percentage of completion" method.
2. The Company has entered into business development agreements with
DLF Commercial Project Corporation and Rational Builders and Developers
(partnership firms). As per these agreements, the Company has acquired
sole irrevocable development rights in identified land which are
acquired/or in the process of acquisition by these partnership firms.
In terms of accounting policy stated in Note 1 (f), the amount paid to
these partnership firms pursuant to the above agreements, are
classified under inventory as development rights.
3. a) During the year, the Company re-assessed its accounting policy
in respect of accruals for Timely Payment Rebate (''TPR'') to
customers, and with effect from April 1, 2012 has decided to recognize
the entire liability for the same upon fulfilment by the respective
customers of their complete obligations to receive the TPR as set out
in the agreement to sell, as against the previous policy of recognizing
these liabilities upon the Company''s formal acknowledgment of the TPR
to the customer. Management is of the opinion that this change has
resulted in a more representative presentation of the financial
obligations of the Company with respect to TPRs.
Had the Company continued to follow the previous accounting policy with
respect to accrual for TPRs as enumerated above, revenues and the net
profit before tax for the year ended March 31, 2013 would have been
higher by Rs. 3,153.41 lac and Rs. 3,146.73 lac respectively.
b) Pursuant to issuance of revised Guidance Note on "Accounting for
Real Estate Transactions (Revised 2012)", by The Institute of
Chartered Accountants of India ("ICAI"), as stated in Note 1(g),
the Company revised its Accounting Policy of revenue recognition for
all projects commencing on or after April 1, 2012 or project where the
revenue is recognised for the first time on or after the above date.
During the year, the company launched two projects namely
"Skycourt" and "Ultima" which came under the purview of the
revised guidance note. As at March 31, 2013, the conditions for
recognizing revenue for both these projects were not met and
accordingly no revenue has been recognised from these projects.
4. The following expenses have been directly charged to
work-in-progress, adjustable on sale.
C) Provident fund
Contribution made by the Company to the provident fund trust setup by
the Company during the year is Rs. 194.67 lac (previous year Rs. 199.84
lac).
The Guidance on implementing AS-15, Employee Benefits (revised 2005)
issued by the Accounting Standards Board (ASB) states that benefits
involving employer established provident funds, which require interest
shortfalls to be recompensed are to be considered as defined benefit
plans. Pending the issuance of guidance note from the Actuarial
Society of India, the Company''s actuary has expressed an inability to
reliably measure provident fund liabilities. Accordingly the Company is
unable to exhibit the related information.
5. Related party disclosures
a) Relationship
1 Aadarshini Real Estate Developers Private Limited
2 Abhigyan Builders & Developers Private Limited
3 Abhiraj Real Estate Private Limited
4 Adelie Builders & Developers Private Limited
4 {till September 27, 2012} *
5 Adeline Builders & Developers Private Limited
6 Adone Hotels & Hospitality Limited {till June 11, 2012}#
7 Aman Gocek Insat Taahhut Turizm Sanayi Ve Ticaret AS
8 Amancruises (2006) Company Limited
9 Amancruises Company Limited
10 Amankila Resorts Limited
11 Amanproducts Limited
12 Amanresorts B.V.
13 Amanresorts International Pte Limited
14 Amanresorts IPR B.V.
15 Amanresorts Limited
16 Amanresorts Limited
17 Amanresorts Mangement B.V.
18 Amanresorts Services Limited
19 Amanresorts Technical Services B.V.
20 Americus Real Estate Private Limited
21 Amishi Builders & Developers Private Limited
22 Anbest Holdings Limited
23 Andaman Development Company Limited
24 Andaman Holdings Limited
25 Andaman Resorts Co. Limited
26 Andaman Thai Holding Co. Limited
27 Andes Resort Limited SAC
28 Annabel Builders & Developers Private Limited
29 Aradal Company N.V
30 Ariadne Builders & Developers Private Limited
31 ARL Marketing Inc.
32 ARL Marketing Limited
33 Armand Builders & Constructions Private Limited
34 ASL Management (Palau) Limited
35 Balaji Highways Holding Private Limited
36 Balina Pansea Company Limitd
37 Barbados Holdings Limited
38 Bedelia Builders & Construction Private Limited (till December 27,
2012)**
39 Benedict Estates Developers Private Limited
40 Berenice Real Estate Private Limited
41 Bhamini Real Estate Developers Private Limited
42 Bhosphorous Investments Limited
43 Bhutan Hotels Limited
44 Bhutan Resorts Private Limited
45 Bodrum Development Limited
46 Breeze Constructions Private Limited
47 Cachet Real Estates Private Limited
48 Calvine Builders & Constructions Private Limited
49 Caraf Builders & Constructions Private Limited
50 Catriona Builders & Constructions Private Limited {till September
27, 2012} *
51 Cee Pee Maintenance Services Limited
52 Ceylon Holdings B.V.
53 Chakradharee Estates Developers Private Limited
54 Chandrajyoti Estate Developers Private Limited
55 Columbo Resort Holdings N.V
56 Comfort Buildcon Limited
57 Current Finance Limited
58 Cyrilla Builders & Constructions Limited
59 Dae Real Estates Private Limited
60 Dalmia Promoters & Developers Private Limited
61 Dankuni World City Limited {till December 27, 2012}**
62 Delanco Home and Resorts Private Limited
63 Delanco Real Estate Private Limited {till September 27, 2012} *
64 Delanco Realtors Private Limited
65 Deltaland Buildcon Private Limited
66 Deltaland Real Estate Private Limited
67 DHDL Wind Power Private Limited {till December 27, 2012} **
68 Dhoomketu Builders & Developers Private Limited {till January 18,
2013} ##
69 Digital Talkies Private Limited
70 Diwakar Estates Limited
71 DLF Aspinwal Hotels Private Limited
72 DLF Assets Private Limited
73 DLF City Centre Limited
74 DLF City Developers Private Limited {formerly DLF Gurgaon Golflink
Private Limited}
75 DLF Cochin Hotels Private Limited
76 DLF Comfort Hotels Private Limited {till September 27, 2012) *
77 DLF Commercial Developers Limited
78 DLF Construction Limited
79 DLF Cyber City Developers Limited
80 DLF Developers Limited {till December 27, 2012} **
81 DLF Emporio Limited {formerly Regency Park Property Management
Services Limited }
82 DLF Emporio Restaurants Limited
83 DLF Energy Private Limited
84 DLF Estate Developers Limited
85 DLF Financial Services Limited {till September 27, 2012}*
86 DLF Finvest Limited
87 DLF Garden City Indore Private Limited
88 DLF Global Hospitality Limited
89 DLF Golf Resorts Limited
90 DLF Gurgaon Developers Limited {till December 27,2012} **
91 DLF Haryana SEZ (Ambala) Limited {till September 27, 2012} *
92 DLF Haryana SEZ (Gurgaon) Limited {till September 27, 2012} *
93 DLF Home Developers Limited
94 DLF Homes Services Private Limited
95 DLF Homes Ambala Private Limited {till September 27, 2012} *
96 DLF Homes Goa Private Limited
97 DLF Homes Kokapet Private Limited
98 DLF Homes Panchkula Private Limited
99 DLF Homes Pune Private Limited {till January 18, 2013} ##
100 DLF Homes Rajapura Private Limited
101 DLF Hospitality & Recreational Limited
102 DLF Hotel Holdings Limited
103 DLF Hotels & Apartments Private Limited
104 DLF India Limited {till September 27, 2012} *
105 DLF Info City Developers (Chandigarh) Limited
106 DLF Info City Developers (Chennai) Limited
107 DLF Info City Developers (Kolkata) Limited
108 DLF Info Park Developers (Chennai) Limited
109 DLF Info Park (Pune) Limited {formerly Ackruti City Magnum Limited}
110 DLF Inns Limited
111 DLF International Holdings Pte. Limited
112 DLF International Hospitality Corp.
113 DLF Luxury Hotels Limited
114 DLF New Delhi Convention Center Limited {till September 27, 2012} *
115 DLF New Gurgaon Homes Developers Private Limited
116 DLF New Gurgaon Offices Developers Private Limited
117 DLF New Gurgaon Retail Developers Private Limited
118 DLF Phase IV Commercial Developers Limited
119 DLF Pramerica Life Insurance Company Limited
120 DLF Projects Limited DLF Promenade Limited
121 {formerly Beverly Park Maintenance Services Limited}
122 DLF Property Developers Limited
123 DLF Raidurg Developers Private Limited
124 DLF Real Estate Builders Limited
125 DLF Recreational Foundation Limited
126 DLF Residential Builders Limited
127 DLF Residential Developers Limited
128 DLF Residential Partners Limited
129 DLF Service Apartments Limited
130 DLF Southern Homes Private Limited
131 DLF Southern Towns Private Limited
132 DLF Telecom Limited
133 DLF Trust Management Pte Limited
134 DLF Universal Limited
135 DLF Utilities Limited
136 DLF Wind Power Private Limited {till December 27, 2012} **
137 Domus Real Estates Private Limited
138 Domus Realtors Private Limited
139 Eastern India Powertech Limited
140 Edward Keventer (Successors) Private Limited
141 Eila Builders & Developers Private Limited {till March 30, 2013}
####
142 Elvira Builders & Constructions Private Limited
143 Faye Builders & Constructions Private Limited
144 First City Real Estate Private Limited
145 Flora Real Estate Private Limited
146 Fonton Limited
147 Forerun Group Limited
148 Galleria Property Management Services Private Limited
149 Ghaliya Builders & Developers Private Limited {w.e.f. May 7, 2012}
150 Geocities Airport Infrastructures Private Limited {till December
27, 2012}**
151 Goyo Services Limited
152 Guardian International Private Limited
153 Gulliver Enterprises Limited
154 Gyan Real Estate Developers Private Limited
155 Hampton Furniture Limited
156 Hansel Builders & Developers Private Limited
157 Heritage Resorts Private Limited
158 Hiemo Builders & Developers Private Limited {till December 27,
2012}**
159 Highvalue Builders Limited
160 Hospitality Tradings Limited
161 Hotel Finance International Limited
162 Hotel Sales Services Limited
163 Hotel Sales Service Private Limited
164 Hyacintia Real Estate Developers Private Limited
165 Incan Valley Holdings Limited
166 Irving Builders & Developers Private Limited
167 Isabel Builders & Developers Private Limited
168 Jackson Hole Holdings Limited {till March 31, 2012}
169 Jai Luxmi Real Estate Private Limited {till December 27, 2012} **
170 Jalisco Holdings Pte Limited
171 Jawala Real Estate Private Limited {till October 31, 2012} ###
172 Khem Buildcon Private Limited {till December 27, 2012} **
173 LP Hospitality Company Limited
174 Lada Estates Private Limited
175 Laman Real Estates Private Limited
176 Lao Holdings Limited
177 Latona Builders & Constructions Private Limited
178 Lawanda Builders & Developers Private Limited {till December 27,
2012}**
179 Le Savoy Limited
180 Lear Builders & Developers Private Limited
181 Lempo Buildwell Private Limited
182 Liber Buildwell Private Limited
183 Livana Builders & Developers Private Limited
184 Lizebeth Builders & Developers Private Limited
185 Lodhi Property Company Limited
186 Marala Real Estate Private Limited {till June 11, 2012} #
187 Mariposa Builders & Developers Private Limited
188 Marrakech Investments Limited
189 Melanctha Builders & Developers Pvt Ltd {w.e.f. November 9, 2012}
190 Melosa Builders & Developers Private Limited
191 Mens Buildcon Private Limited
192 Mhaya Buildcon Private Limited
193 Monroe Builders & Developers Private Limited
194 Mulvey B.V
195 Mulvey Venice S.r.l.
196 Naman Consultants Limited
197 Nambi Buildwell Private Limited
198 Nellis Builders & Developers Private Limited
199 NewGen MedWorld Hospitals Limited
200 Nilayam Builders & Developers Limited {till September 27, 2012} *
201 NOH (Hotel) Private Limited
202 Norman Cay''s Holding Limited
203 Nusantara Island Resorts Limited
204 Otemachi Tower Resorts Co. Limited
205 P.T. Amanresorts Indonesia
206 P.T. Amanusa Resort Indonesia
207 P.T. Indrakila Villatama Development
208 P.T. Moyo Safari Abadi
209 P.T. Nusantara Island Resorts
210 P.T. Villa Ayu
211 Palawan Holdings Limited
212 Paliwal Developers Limited
213 Paliwal Real Estate Limited
214 Pee Tee Property Management Services Limited
215 Penthea Builders & Developers Private Limited {till March 25, 2013}
216 Philana Builders & Developers Private Limited
217 Phoena Builders & Developers Private Limited
218 Phraya Riverside (Bangkok) Company Limited
219 Princiere Resorts Limited
220 Prompt Real Estate Limited
221 Puri Limited
222 Pyrite Builders & Constructions Private Limited
223 Qabil Builders & Constructions Private Limited
224 Queensdale Management Limited
225 Rachelle Builders & Constructions Private Limited
226 Rati Infratech Private Limited {till December 27, 2012} **
227 Red Acres Development Limited
228 Regent Asset Finance Limited
229 Regent Land Limited
230 Regional Design & Research B.V
231 Regional Design & Research N.V
232 Richmond Park Property Management Services Limited
233 Riveria Commercial Developers Limited
234 Rochelle Builders & Constructions Private Limited
235 Royalton Builders & Developers Private Limited
236 Saguna Builders & Developers Private Limited
237 Saket Holiday Resorts Private Limited
238 Serendib Holdings B.V.
239 Shivajimarg Properties Limited {till December 27, 2012} **
240 Silver - Two (Bangkok) Company Limited
241 Silver Oaks Property Management Services Limited
242 Silverlink (Mauritius) Limited
243 Silverlink (Thailand) Company Limited
244 Silverlink Resorts Limited
245 Societe Nouvelle de L''Hotel Bora Bora
246 Springhills Infratech Private Limited {till December 27, 2012} **
247 Star Alubuild Private Limited
248 Sunlight Promoters Limited
249 Tahitian Resorts Limited
250 Tangalle Property (Private) Limited
251 Toscano Holdings Limited
252 Triumph Electronics Private Limited
253 Universal Hospitality Limited
254 Urvasi Infratech Private Limited
255 Valini Builders & Developers Private Limited
256 Vibodh Developers Private Limited
257 Vilina Estate Developers Private Limited
258 Villajena Development Company Limited
259 Vinanti Builders & Developers Private Limited
260 Vkarma Capital Investment Management Company Private Limited
261 Vkarma Capital Trustee Company Private Limited
262 Webcity Builders & Developers Private Limited
263 Yucatan Holdings Pte Limited
264 Zeugma Limited
265 Zola Real Estate Private Limited
266 Zoria Infratech Private Limited {till December 27, 2012} **
(ii) Partnership firms
1 DLF Commercial Projects Corporation
2 DLF Gayatri Developers
3 DLF GK Residency
4 DLF Green Valley
5 DLF Office Developers
6 DLF South Point
7 Kavicon Partners
8 Rational Builders and Developers
(iii) Joint Ventures
1 Kujjal Builders Private Limited {till March 30, 2013} ####
2 DLF Gayatri Home Developers Private Limited
3 DLF Green Valley
4 DLF Gayatri Developers
5 DLF SBPL Developers Private Limited
6 DLF Limitless Developers Private Limited
7 GSG DRDL Consortium
8 YG Realty Private Limited
9 Banjara Hills Hyderabad Complex
10 Saket Courtyard Hospitalty Private Limited
11 Cleva Builders and Developers Private Limited {till December 27,
2012} ***
12 Prowess Buildcon Private Limited {till December 27, 2012} ***
1 Australian Resorts Limited
2 Designplus Architechture Private Limited {w.e.f. April 1, 2012)
3 Eila Builders & Developers Private Limited {w.e.f. March 31, 2013}
####
4 Galaxy Mercantiles Limited
5 Island Aviation Inc
6 Joyous Housing Limited
7 Kyoto Resorts YK
8 PT Jawa Express Amanda Indah
9 Pamalican Island Holdings Inc
10 Pamalican Resorts Inc
11 Pansea Tourism Company Limited
12 Regional D & R Limited
13 Revlys SA
14 Seven Seas Resorts and Leisure Inc
15 Surin Bay Co. Limited
16 Villajena
17 Rapid Metrorail Gurgaon Limited
6. Employee Stock Option Scheme, 2006 (ESOP)
a) During the year ended March 31, 2007, the Company had announced an
Employee Stock Option Scheme (the "Scheme") for all eligible
employees of the Company, its subsidiaries, joint ventures and
associates. Under the Scheme, 17,000,000 equity shares have been
earmarked to be granted under the Scheme and the same will vest as
follows:
Pursuant to the above Scheme, the employee will have the option to
exercise the right within three years from the date of vesting of
shares at Rs. 2 per share, being its exercise price.
b) As per the Scheme, the Remuneration Committee has granted Options as
per details below :
7. Employee Shadow Option Scheme
Under the Employee Shadow Option Scheme (the "Scheme"), employees
are entitled to get cash compensation based on the average market price
of equity share of the Company, upon exercise of shadow option on a
future date. As per the scheme, shadow options will vest as follows:-
8. a) The Company uses forward contracts and Swaps to hedge its risks
associated with fluctuations in foreign currency and interest rates.
The use of Forward contracts and Swaps is covered by Company''s
overall strategy. The Company does not use forward covers and Swaps for
speculative purposes.
As per the strategy of the Company, foreign currency loans are covered
by comprehensive hedge, considering the risks associated with the
hedging of such loans, which effectively fixes the principal and
interest liability of such loans and further there is no additional
risk involved post hedging of these loans.
9. Contingent liabilities and Commitments, not provided for, exist in
respect of (I) Contingent liabilities
(Rs. in lac)
2013 2012
a) Guarantees issued by the Company
on behalf of :
Subsidiary companies 779,912.00 971,122.23
Others 39,127.00 69,000.00
b) Claims against the Company
(including unasserted claims) not
acknowledged as debts 79,875.26 73,999.26
c) Income tax demand in excess of
provisions (pending in appeals) 163,979.87 116,933.82
d) Compensation for delayed possession 616.62 1,057.07
10. The Company is primarily engaged in the business of colonization
and real estate development, which as per Accounting Standard - 17 on
"Segment Reporting" notified pursuant to the Companies (Accounting
Standard) Rules, 2006 issued by the Central Government in exercise of
the powers conferred under sub-section (1) (a) of Section 642 of the
Companies Act, 1956 is considered to be the only reportable business
segment. The Company is primarily operating in India which is
considered as a single geographical segment.
11. Wind mill projects of the Company are entitled for tax holiday
under Section 80-IA of the Income Tax Act, 1961. Accordingly, the
computation of tax (current and deferred) has been done as per
Accounting Standard 22 "Accounting for taxes on Income", notified
pursuant to the Companies (Accounting Standard) Rules, 2006 issued by
the Central Government in exercise of the powers conferred under sub
section (1) (a) of Section 642 of the Companies Act, 1956.
12. Income tax and other matters
(a) As already reported, in the earlier year, disallowance of SEZ
profits u/s 80IAB of the Income Tax Act, 1961 were made by the Income
Tax Authorities in the Assessment of the Company amounting to Rs.
35,523.71 lac for the assessment year 2009-10 and Rs. 48,723.00 lac for
assessment year 2008-09.
The Company had filed appeals before the appropriate appellate
authorities against the said assessment orders. In certain cases,
relief has been granted by the CIT (Appeals). The Company and Income
Tax Department further preferred the appeals before the ITAT in those
cases.
Based on the advice from independent tax experts and the development on
the appeals, the management is confident that additional tax so
demanded will not be sustained on completion of the appellate
proceedings and accordingly, pending the decision by the appellate
authorities, no provision has been made in the financial statements.
(b) During the year ended March 31, 2011, the Company received
judgement from the Hon''ble High Court of Punjab and Haryana
cancelling the release/ sale deed of land relating to IT SEZ Project in
Gurgaon. The Company has filed Special Leave Petitions (SLPs)
challenging the orders in the Hon''ble Supreme Court of India.
The Hon''ble Supreme Court has admitted the matter and stayed the
operation of the impugned judgment till further orders.
Based on the advice of the independent legal counsel, the management
belives that there is a reasonably strong likelihood of succeeding
before the Hon''ble Supreme Court. Pending the final decisions on the
above matter, no adjustment has been done in these financial
statements.
(c) The Competition Commission of India (CCI) on a complaint filed by
the Belaire / Park Place Owners Associations had passed orders dated
August 12 and August 29, 2011, wherein the CCI had imposed a penalty of
Rs. 63,000 lac on DLF, restrained DLF from formulating and imposing
allegedly unfair conditions with buyers in Gurgaon and further ordered
to suitably modify the alleged unfair conditions on its buyers.
The said order of CCI is challenged by DLF on several grounds by filing
appeals before the Competition Appellate Tribunal (COMPAT).
COMPAT has granted stay against the orders of CCI imposing penalty.
During subsequent hearings they have further ordered that the
directions of CCI for modifications of terms of the Agreement shall
remain in abeyance.
The appeals are part heard and are listed before COMPAT on July 15,
2013 for final hearing. Pending the final decisions, no adjustment has
been done in these financial statements.
13. a) The Company along with its two wholly-owned subsidiaries,
divested its entire stake in Jawala Real Estate Pvt. Ltd. (Jawala) (a
wholly-owned subsidiary company). Consequent to divestment, Jawala has
ceased to be a subsidiary of the Company w.e.f. November 1, 2012.
Profit before tax on disposal of its investment in debentures amounting
to Rs. 11,829.14 lac is classified as ''other income'' in these
financial statements.
b) Based on the information available with the Company, there are no
dues outstanding in respect of Micro, Small and Medium enterprises at
the balance sheet date. No amounts were payable to such enterprises
which were outstanding for more than 45 days. Further, no interest
during the year has been paid or payable in respect thereof. The above
disclosure has been determined to the extent such parties have been
identified on the basis of information available with the Company. This
has been relied upon by the auditors.
14. The Company was selected as successful bidder in a Global Tender
issued by Delhi Development Authority (DDA) for Dwarka Project (the
project) in FY 2007-08. Total Investment made by the Company in the
project as of March 31, 2013 is Rs. 107,569.07 lac, which comprise Rs.
90,108.00 lac purchase consideration paid to DDA towards cost of land
and Rs. 17,461.07 lac further incurred on construction/ development
expenses (including interest & overheads) on the project. The Company
is under litigation for recovery of this complete amount with DDA and
is opposing the suit / claim of DDA for specific performance. The
Company had also been under discussion with DDA through Hon''ble Delhi
High Court Mediation Cell appointed by Hon''ble High Court of Delhi
for alternative options to execute the project.
The Company based upon opinions of legal experts believes that the
investment made (classified under Capital Work in Progress) in the
project is fully recoverable and accordingly no adjustment has been
done in these financial statements.
15. On January 31, 2013, the Company has entered into definitive
Business Transfer Agreement with BLP Vayu (Project 1) Private Limited,
a subsidiary of Bharat Light & Power Private Limited. For transferring
of its undertaking comprising of 150 MW capacity wind turbines situated
at Kutch, Gujarat on ''as is where is basis'' by way of slump-sale
for a lump sum consideration of Rs. 28,230 lac subject to the
fulfillment of the terms and conditions by both the parties in
accordance with the said agreement, the said undertaking including
related assets and liabilities along with relevant long term loans
would be transferred to BLP Vayu (Project 1) Private Limited. As the
transaction is expected to be consummated on receipt of requisite
regulatory approvals and the closing conditions, no effect of the same
is taken in these financial statements.
16. Under the Income Tax Act, 1961, for domestic transaction
introduced with effect from April 1, 2012, the Company is required to
use specified methods for computing arm''s length price in relation to
domestic transactions with its associated enterprises. Further, Company
is required to maintain prescribed information and documents in
relating to such transactions. The appropriate method to be adopted
will depend on the nature of transactions/ class of transactions, class
of associated persons, functions performed and other factors, which
have been prescribed. The Company is in the process of conducting a
transfer pricing study for the current financial year. Based on the
preliminary study, the management is of the view that the same would
not have a material impact on the tax expenses provided for in these
financial statements. Accordingly, these financial statements do not
include any adjustments for the transfer pricing implications, if any.
17. In the opinion of the management, current assets, loans and
advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the balance
sheet and provisions for all known / expected liabilities have been
made.
18. Subsequent to the year end, on May 20, 2013, the Company issued
81,018,417 equity shares of face value of Rs. 2 each at an issue price
of Rs. 230 per share, aggregating to Rs. 186,342.36 lac. The Issue was
made through the Institutional Placement Programme in terms of Chapter
VIII-A of the Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2009, as amended (the "SEBI
Regulations") in order to achieve minimum public shareholding of 25%.
Post issue, the paid-up share capital of the Company was increased by
Rs. 1,620.37 lac.
19. Previous year figures has been regrouped / recast, wherever
considered necessary to make them comparable with those of current
year.
Mar 31, 2012
A) Rights/preferences/restrictions attached to equity shares
The Company has only one class of equity shares having a par value of Rs.
2 per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except
interim dividend. In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts, if any.
The distribution will be in proportion to the number of equity shares
held by the shareholders. During the year ended March 31, 2012, the
amount of proposed final dividend recognized as distributions to equity
shareholders was Rs. 2 per share (March 31, 2011 : Rs. 2 per share)
b) Aggregate number of bonus shares issued, shares issued for
consideration other than cash and shares bought back during the period
of five years immediately preceding the date March 31, 2012
i) Bonus Shares issued during the financial year 2007-08 to 2011-12
Nil (during FY 2006-07 to 2010-11: 1,338,243,445) equity shares of Rs. 2
each fully paid up allotted by way of capitalisation of free reserves
and securities premium account.
ii) Shares bought back during the financial year 2007-08 to 2011-12
7,638,567 (during FY 2006-07 to 2010-11: 7,638,567) equity shares of Rs.
2 each bought back pursuant to Section 77A of the Companies Act, 1956.
iii) Shares issued under Employees Stock Option Plan (ESOP) during the
financial year 2007-08 to 2011-12 The Company has issued total
1,235,286 equity shares of Rs. 2 each (during FY 2006-07 to 2010-11:
421,361 equity shares) during the period of five years immediately
preceding March 31, 2012 on exercise of options granted under the
Employee Stock Option Plan (ESOP).
1. Repayment terms and security for the outstanding long term
borrowings (including current maturities) as on March 31, 2012 :
Listed, Secured, Redeemable, Non Convertible Debentures of Rs. 1,000,000
each referred above to the extent of :-
(i) Rs. 72,000.00 lacs are secured by way of pari passu charge on the
immovable properties situated at Gurgaon, owned by subsidiary
companies. Coupon rate of these debentures is 14.00% and date of
redemption is February 24, 2014.
(ii) Rs. 50,000.00 lacs are secured by way of pari passu charge on the
immovable property situated at Gurgaon, owned by a subsidiary company.
Coupon rate of these debentures is 13.70% and date of redemption is
August 18, 2013.
(iii) Rs. 20,000.00 lacs are secured by way of pari passu charge on the
immovable property situated at Gurgaon, owned by the Company/
subsidiary company and corporate guarantee of subsidiary company owing
the aforesaid immovable property. Coupon rate of these debentures is
10.24% and date of redemption is May 18, 2013.
(iv) Rs. 15,000.00 lacs are secured by way of pari passu charge on the
immovable property situated at Gurgaon, owned by the Company/
subsidiary company and corporate guarantee of subsidiary company owing
the aforesaid immovable property. Coupon rate of these debentures is
10.24% and date of redemption is February 18, 2013.
(v) Rs. 70,000.00 lacs are secured by way of pari passu charge on the
immovable properties situated at Gurgaon owned by a subsidiary company.
Coupon rate of these debentures is 10.50% and date of redemption is
February 17, 2013.
(vi) Rs. 15,000.00 lacs are secured by way of pari passu charge on the
immovable property situated at Gurgaon, owned by the Company/
subsidiary company and corporate guarantee of subsidiary company owing
the aforesaid immovable property. Coupon rate of these debentures is
10.24% and date of redemption is November 18, 2012.
2 (a) Repayment terms (excluding current maturities) and security for
the outstanding long term borrowings as on March 31, 2012 :
From banks :
Secured foreign currency borrowings :-
(a) Facility of Rs. 143,400.00 lacs, balance amount is repayable in
bullet installment falling due in July, 2014. The loan is secured by
way of :-
(i) Equitable mortgage of immovable properties situated at New Delhi
and Mumbai, owned by certain subsidiary companies.
(ii) Pledge over the shareholding of certain subsidiary companies owing
the aforesaid immovable property.
(b) Facility of Rs. 4,573.64 lacs, balance amount is repayable in bullet
installment falling due in December, 2013. The loan is secured by way
of :-
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary companies.
(ii) Corporate guarantees provided by subsidiary companies owning the
aforesaid immovable properties.
Secured INR borrowings :-
(a) Facility of Rs. 50,000.00 lacs, balance amount is repayable in 3
monthly installments starting from November, 2014. The loan is secured
by way of :
Equitable mortgage of immovable properties situated at New Delhi,
Gurgaon, Kochi and Ludhiana, owned by the Company/subsidiary/ group
companies.
(b) Facility of Rs. 50,000.00 lacs, balance amount is repayable in 5
equal monthly installments starting from April, 2014. The loan is
secured by way of :
Equitable mortgage of immovable property situated at New Delhi, owned
by the Company.
(c) Facility of Rs. 16,331.60 lacs, balance amount is repayable in 49
equal monthly installments starting from April, 2013. The loan is
secured by way of :
(i) Equitable mortgage of immovable property situated at Gurgaon, owned
by the Company/ subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company.
(iii) Corporate guarantee provided by the subsidiary company owning the
aforesaid immovable property.
(d) Facility of Rs. 43,500.00 lacs, balance amount is repayable in 15
monthly installments starting from April, 2013. The loan is secured by
way of :
(i) Equitable mortgage of immovable properties situated at New Delhi
and Gurgaon, owned by subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by subsidiary companies.
(iii) Corporate guarantees provided by subsidiary companies owning the
aforesaid immovable properties.
(e) Facility of Rs. 86,174.10 lacs, balance amount is repayable in 96
installments starting from April, 2013. The loan is secured by way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by a subsidiary company.
(iii) Corporate guarantees provided by subsidiary companies owning the
aforesaid immovable properties.
(f) Facility of Rs. 50,000.00 lacs, balance amount is repayable in 18
equal monthly installments starting from April, 2013. The loan is
secured by way of :
(i) Equitable mortgage of immovable properties situated at New Delhi,
owned by subsidiary companies.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by subsidiary companies.
(iii) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(g) Facility of Rs. 39,186.00 lacs, balance amount is repayable in 48
monthly installments starting from April, 2013. The loan is secured by
way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by subsidiary company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by subsidiary company.
(h) Facility of Rs. 50,000.00 lacs, balance amount is repayable in bullet
installment falling due in August, 2013. The loan is secured by way
of:
(i) Equitable mortgage of immovable properties situated at Gurgaon,
Kochi and Ludhiana, owned by the subsidiary/ group companies.
(ii) Corporate guarantees provided by the subsidiary/ group companies
owning the aforesaid immovable properties.
(i) Facility of Rs. 11,994.31 lacs, balance amount is repayable in 3
equal annual installments starting from April, 2013.
(j) Facility of Rs. 8,999.99 lacs, balance amount is repayable in 3 equal
annual installments starting from April, 2013.
(k) Facility of Rs. 3,998.45 lacs, balance amount is repayable in 2 equal
annual installments starting from April, 2013.
The aforesaid term loans are secured by way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by a subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon owned by the Company.
(iii) Corporate guarantees provided by the subsidiary company owning
the aforesaid immovable properties.
(l) Facility of Rs. 2,699.24 lacs, balance amount is repayable in 3 equal
annual installments starting from April, 2013.
(m) Facility of Rs. 3,299.00 lacs, balance amount is repayable in 3 equal
annual installments starting from April, 2013.
The aforesaid term loans are secured by way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by a subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon owned by the Company.
(n) Facility of Rs. 11,777.55 lacs, balance amount is repayable in 39
monthly installments starting from April, 2013. The loan is secured by
way of :
(i) Equitable mortgage of immovable properties situated at New Delhi,
owned by the Company.
(ii) Charge on receivables pertaining to the aforesaid immovable
property owned by the Company.
(o) Facility of Rs. 58,333.15 lacs, balance amount is repayable in 10
equal monthly installments starting from April, 2013. The loan is
secured by way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by the Company/ subsidiary company.
(ii) Corporate guarantees provided by the subsidiary company owning the
aforesaid immovable properties.
(p) Facility of Rs. 7,578.51 lacs, balance amount is repayable in 31
monthly installments starting from April, 2013.
(q) Facility of Rs. 6,595.74 lacs, balance amount is repayable in 31
monthly installments starting from April, 2013.
(r) Facility of Rs. 6,595.74 lacs, balance amount is repayable in 31
monthly installments starting from April, 2013.
The aforesaid term loans are secured by way of :
Equitable mortgage on land underneath windmills and exclusive charge on
movable assets and receivables of windmills situated at Gujarat.
From others :
Secured INR borrowings :-
(a) Facility of Rs. 110,000.00 lacs, balance amount is repayable in 8
equal quarterly installments starting from June, 2013. The loan is
secured by way of :
Equitable mortgage of immovable properties situated at Gurgaon,
Hyderabad and Chennai, owned by subsidiary companies.
(b) Facility of Rs. 19,375.00 lacs, balance amount is repayable in 31
equal monthly installments starting from April, 2013. The loan is
secured by way of :
Equitable mortgage of immovable properties situated at Gurgaon owned by
a subsidiary company.
(c) Facility of Rs. 9,000.00 lacs, balance amount is repayable in 3 equal
annual installments starting from April, 2013. The loan is secured by
way of :
(i) Equitable mortgage of immovable properties situated at Gurgaon,
owned by a subsidiary company.
(ii) Negative lien over immovable properties and assignment of lease
rentals in respect of certain immovable properties situated at New
Delhi and Gurgaon owned by the Company.
(d) Facility of Rs. 271.39 lacs, balance amount is repayable in 3 equal
monthly installments starting from April, 2013. The loan is secured by
way of :
First and exclusive charge by way of hypothecation on assets viz
Aircraft owned by the Company.
(e) Facility of Rs. 1,926.99 lacs, balance amount is repayable in 27
equal monthly installments starting from April, 2013. The loan is
secured by way of :
First and exclusive charge by way of hypothecation on assets viz
Helicopter owned by the Company.
(f) Facility of Rs. 19,648.07 lacs, balance amount is repayable in 124
monthly installments starting from April, 2013. The loan is secured by
way of :
(i) Equitable mortgage of immovable properties situated at New Delhi
and Gurgaon, owned by subsidiary/group companies.
(ii) Negative lien on rights under the concession agreements pertaining
to certain immovable properties situated at New Delhi.
(iii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/ subsidiary companies/ group companies.
(iv) Corporate guarantees provided by the subsidiary/ group companies
owning the aforesaid immovable properties.
Vehicle Loans are repayable in 60 equal monthly installments over the
tenure of the loans and the final installments are due for payment in
September, 2014. The loans are secured by way of hypothecation on
assets, thus purchased.
Security for the short term borrowings :
(i) Equitable mortgage of immovable properties situated at New Delhi
and Gurgaon, owned by the Company/subsidiary companies/partnership
firm.
(ii) Charge on receivables pertaining to the aforesaid immovable
properties owned by the Company/ subsidiary companies/partnership firm.
(iii) Corporate guarantees provided by the subsidiary companies owning
the aforesaid immovable properties.
(iv) Corporate guarantee provided by the company and its subsidiary
company, in capacity as partner in the partnership firm owning the
immovable property.
3. a) The profit/loss from sale of land/developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy stated in Note 1(g) - "Significant accounting
policies". The Complex comprises land owned by the Company as also
those under agreements to purchase entered into with
subsidiary/coordinating companies. In terms of such agreements, the
Company has purchased 0.003 lacs sq. mts. of plotted area during the
year {previous year (2.70) lacs sq. mts.} from the land owning
companies at the average cost of land to the Company and/ or the land
owning companies. The average estimated internal development costs and
external development charges, in respect of the plots sold have been
written off in terms of accounting policy stated in Note 1(i) -
"Significant accounting policies". Final adjustment, if any, is
made on completion of the applicable scheme/ project.
b) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in
their meeting held on March 28, 2006, with one of its wholly owned
subsidiary company namely, DLF Home Developers Limited ("DHDL") to
sell a parcel of land of saleable area consisting 30 million sq. ft
built up area under construction/ to be constructed. Further, DHDL will
complete all the finishing work before selling the same to its
customers. In terms of the accounting policy stated in Note 1(g)(i) on
revenue recognition, revenue in respect of projects under
implementation under these agreements to sell is being recognised based
on "percentage of completion" method.
4. The Company has entered into business development agreements with
DLF Commercial Projects Corporation and Rational Builders and
Developers (partnership firms). As per these agreements, the Company
has acquired sole irrevocable development rights in identified land
which are acquired/or in the process of acquisition by these
partnership firms.
In terms of accounting policy stated in Note 1(f) the amount paid to
these partnership firms pursuant to the above agreements, are
classified as stock of development rights.
5. The following expenses have been directly charged to
work-in-progress, adjustable on sale:
C. Provident fund
Contribution made by the Company to the provident fund trust setup by
the Company during the year is Rs. 199.84 lacs (previous year Rs. 184.09
lacs).
The Guidance on implementing AS-15, Employee Benefits (revised 2005)
issued by the Accounting Standards Board (ASB) states that benefits
involving employer established provident funds, which require interest
shortfalls to be recompensed are to be considered as defined benefit
plans. Pending the issuance of guidance note from the Actuarial
Society of India, the Company's actuary has expressed an inability to
reliably measure provident fund liabilities. Accordingly, the Company
is unable to exhibit the related information.
* Pursuant to the orders of the Hon'ble High Court of Delhi and
Hon'ble High Court of Punjab and Haryana at Chandigarh by virtue of
scheme of arrangement, Falguni Builders Private Limited, Ganika
Builders Private Limited and Gulika Home Developers Private Limited
have been merged with Aadarshini Real Estate Developers Private Limited
w.e.f. April 13, 2011. Accordingly the transactions with the said
entities during the year ended March 31, 2012 and balance outstanding
thereto on that date have been disclosed as transactions with and
balances outstanding to as the case may be, Aadarshini Real Estate
Developers Private Limited during the year ended and as of March 31,
2012.
** Pursuant to the orders of the Hon'ble High Court of Delhi and
Hon'ble High Court of Punjab and Haryana at Chandigarh by virtue of
scheme of arrangement, Bhoruka Financial Services Limited, DLF Metro
Limited and Shakirah Real Estates Private Limited have been merged with
DLF Universal Limited w.e.f. March 20, 2012. Accordingly, the
transactions with the said entities during the year ended March 31,
2012 and balance outstanding thereto on that date have been disclosed
as transactions with and balances outstanding to as the case may be,
DLF Universal Limited during the year ended and as of March 31, 2012.
*** Argent Holdings Limited and Sinonet Holding Limited have been
merged with Overseas Hotels Limited w.e.f. April 20, 2011.
Accordingly, the transactions with the said entities during the year
ended March 31, 2012 and balance outstanding thereto on that date have
been disclosed as transactions with and balances outstanding to as the
case may be, Overseas Hotels Limited during the year ended and as of
March 31, 2012.
**** Overseas Hotels Limited has been merged with Silverlink Resorts
Limited w.e.f. May 17, 2011. Accordingly, the transactions with the
said entities during the year ended March 31, 2012 and balance
outstanding thereto on that date have been disclosed as transactions
with and balances outstanding to as the case may be, Silverlink Resorts
Limited during the year ended and as of December 31, 2011.
# The Company along with its joint venture partner Hubtown Limited
("Hubtown"), have sold 100% of their respective shareholding in DLF
Ackruti Info Park (Pune) Limited ("DLF Ackruti"), to an entity
controlled by real estate fund affiliated with The Blackstone Group,
BRE/Mauritius Investments II, after obtaining all necessary approvals.
Prior to the sale of their respective shareholding, the Company and
Hubtown held 67% and 33% equity shares in "DLF Ackruti",
respectively. Consequent of this disinvestment, DLF Ackruti has ceased
to be a subsidiary of DLF Limited w.e.f. December 28, 2011.
## Galaxy Mercantiles Limited ("GML"), a JV Company of DLF Home
Developers Limited ("DHDL"); received two tranches of infusion of
capital from Infrastructure Development Finance Company Limited
("IDFC") as part of a process for IDFC to acquire 100% stake in
GML. An aggregate amount of Rs. 22,049 lacs, has been received in two
tranches by the JV partners including DHDL, with the balance to be
received from IDFC linked to agreed milestones. DHDL is a wholly owned
subsidiary of the Company and prior to the infusion, DHDL had a 71%
equity stake in GML and consequent to this capital infusion, DHDL's
equity stake got diluted to 40.15% (Post 2nd Tranche) and GML ceased to
be a subsidiary of the Company w.e.f. December 2, 2011 and has become
an associate company.
* A private company with unlimited liability.
# Bansal Development Company Private Limited was merged (w.e.f.
December 15, 2011) in Prem Traders & Investments Private Limited as per
the order of the Hon'ble High Court of Delhi dated August 30, 2011.
## Magna Real Estate Developers Private Limited was merged (w.e.f. June
6, 2011) in Parvati Estates Private Limited as per the order of the
Hon'ble High Court of Delhi dated March 29, 2011.
### Panchvati Estates Private Limited was merged (w.e.f. November 18,
2011) in Super Mart Two Property Management Services Private Limited as
per the order of the Hon'ble High Court of Delhi dated September 8,
2011.
#### Super Mart One Property Management Services Private Limited was
merged (w.e.f. July 27, 2011) in Beverly Park Operation and Maintenance
Services Private Limited as per the order of the Hon'ble High Court
of Delhi dated May 20, 2011.
6. Employees Stock Option Scheme, 2006 (ESOP)
a) During the year ended March 31, 2007, the Company had announced an
Employee Stock Option Scheme (the "Scheme") for all eligible
employees of the Company, its subsidiaries, joint ventures and
associates. 17,000,000 equity shares have been earmarked to be granted
under the Scheme and the same will vest as follows:
Pursuant to the above Scheme, the employee will have the option to
exercise the right within three years from the date of vesting of
shares at Rs. 2 per share, being its exercise price.
The Company has calculated the employee compensation cost using the
intrinsic value of the stock options measured by a difference between
the fair value of the underline equity shares at the grant date and the
exercise price. Had compensation cost been determined in a manner
consistent with the fair value method, based on Black Scholes model,
the employees compensation cost would have been lower by Rs. 348.13 lacs
and proforma profit after tax would have been Rs. 104,414.45 lacs (higher
by Rs. 235.18 lacs). On a proforma basis, the basic and diluted earnings
per share would have been Rs. 6.15 and Rs. 6.14 respectively.
The fair value of the options granted is determined on the date of the
grant using the "Black Scholes option pricing model" with the
following assumptions:
7. Employee Shadow Option Scheme
Under the Employee Shadow Option Scheme (the "Scheme"), employees
are entitled to get cash compensation based on the average market price
of equity share of the Company, upon exercise of shadow option on a
future date. As per the scheme, shadow options will vest as follows:-
8. a) The Company uses forward contracts and Swaps to hedge its risks
associated with fluctuations in foreign currency and interest rates.
The use of Forward contracts and Swaps is covered by Company's
overall strategy. The Company does not use forward covers and Swaps for
speculative purposes.
As per the strategy of the Company, foreign currency loans are covered
by comprehensive hedge, considering the risks associated with the
hedging of such loans, which effectively fixes the principal and
interest liability of such loans and further there is no additional
risk involved post hedging of these loans.
9. Contingent liabilities and Commitments, not provided for, exist in
respect of
(I) Contingent liabilities
(Rs. in lacs)
2012 2011
a) Guarantees issued by the Company
on behalf of :
Subsidiary companies 971,122.23 901,156.09
Others 64,000.00 13,005.93
b) Claims against the Company (including
unasserted claims) not acknowledged as debts 73,999.26 13,001.41
c) Income tax demand in excess of provisions
(pending in appeals) 116,933.82 71,855.86
d) Compensation for delayed possession 1,057.07 -
10. The Company is primarily engaged in the business of colonization
and real estate development, which as per Accounting Standard - 17 on
"Segment Reporting" notified pursuant to the Companies (Accounting
Standard) Rules, 2006 issued by the Central Government in exercise of
the powers conferred under sub-section (1)(a) of Section 642 of the
Companies Act, 1956 is considered to be the only reportable business
segment. The Company is primarily operating in India which is
considered as a single geographical segment.
11. (a) Wind mill projects of the Company are entitled for tax holiday
under Section 80-IA of the Income Tax Act, 1961. Accordingly, the
computation of tax (current and deferred) has been done as per
Accounting Standard 22 "Accounting for taxes on Income", notified
pursuant to the Companies (Accounting Standard) Rules, 2006 issued by
the Central Government in exercise of the powers conferred under
sub-section (1)(a) of Section 642 of the Companies Act, 1956.
(b) The Company's profits from Special Economic Zone ("SEZ")
business are exempted under Section 80-IAB of the Income Tax Act, 1961
and the dividend declared out of such SEZ profits are exempted from
Dividend Distribution Tax under the provisions of Section 115-O(6) of
the Income Tax Act, 1961.
12. Income tax and other matters
(a) Subsequent to the year ended March 31, 2012, the company received
an assessment order for A.Y. 2009-10 from the Income Tax Authorities,
creating a demand of Rs. 45,739.22 lacs, out of which, Rs.35,523.71 lacs
pertains to demand on account of disallowance of SEZ profits U/s 80-IAB
of the Income Tax Act. As already reported last year, similar
disallowance of SEZ profits were made by the Income Tax Authorities for
the assessment year 2008-09, raising a demand of Rs. 48,723.00 lacs. The
Company has filed appeals before the appropriate Appellate Authorities
against the said assessment orders.
Based on the advice from independent tax experts, the Company is
confident that additional tax so demanded will not be sustained on
completion of the appellate proceedings and accordingly, pending the
decision by the Appellate Authorities, no provision has been made in
these financial statements.
(b) During the year ended March 31, 2011, the Company received judgment
from the Hon'ble High Court of Punjab and Haryana cancelling the
release/ sale deed of land relating to IT SEZ Project in Gurgaon. The
Company has filed Special Leave Petitions (SLPs) challenging the orders
in the Hon'ble Supreme Court of India.
The Hon'ble Supreme Court has admitted the matter and stayed the
operation of the impugned judgment till further orders.
Based on the advice of the independent legal counsel, the Company has a
reasonably strong likelihood of succeeding before the Hon'ble Supreme
Court. Pending the final decisions on the above matter, no adjustment
has been done in these financial statements.
(c) The Competition Commission of India (CCI) on a complaint filed by
the Belaire/ Park Place Owners Associations had passed orders dated
August 12, 2011 and August 29, 2011 wherein the CCI had imposed a
penalty of Rs. 63,000 lacs on DLF, restrained DLF from formulating and
imposing allegedly unfair conditions with buyers in Gurgaon and further
ordered to suitably modify the alleged unfair conditions on its buyers.
The said order of CCI is challenged by DLF on several grounds by filing
appeals before the Competition Appellate Tribunal (COMPAT).
COMPAT after the hearing on November 9, 2011, has granted stay against
the orders of CCI imposing penalty and have further ordered that the
directions of CCI for modifications of terms of the Agreement shall
remain in abeyance.
The appeals are listed before COMPAT on July 18, 2012 for final
hearing. Pending the final decisions, no adjustment has been recorded
in these financial statements.
13. The Company was selected as successful bidder in a Global Tender
issued by Delhi Development Authority (DDA) for Dwarka Project (the
project) in FY 2007-08. Total investment made by the Company in the
project as of March 31, 2012 is Rs. 107,402.55 lacs. The company is under
litigation for recovery of this amount with DDA. The Company is also
under discussion with DDA through Delhi High Court Mediation Cell
appointed by Hon'ble High Court of Delhi for alternative options to
execute the project.
The Company based upon opinions of legal experts believes that the
investment made (classified under Capital Work-in-Progress) in the
project is fully recoverable from DDA and accordingly no adjustment has
been done in the financial statements.
14. Based on the information available with the Company, there are no
dues outstanding in respect of Micro, Small and Medium enterprises at
the balance sheet date. No amounts were payable to such enterprises
which were outstanding for more than 45 days. Further, no interest
during the year has been paid or payable in respect thereof. The above
disclosure has been determined to the extent such parties have been
identified on the basis of information available with the Company. This
has been relied upon by the auditors.
15. During the year ended March 31, 2012, the revised Schedule VI
notified under the Companies Act, 1956, has become applicable to the
Company for the preparation and presentation of its financial
statements, accordingly previous year figures have also been
regrouped/recast wherever considered necessary.
Mar 31, 2011
1. Share capital
(a) Issued, subscribed and paid-up share capital includes:
(i) 5,877,850 equity shares of Rs. 2 each (originally 1,175,570 shares of
Rs. 10 each) fully paid-up allotted pursuant to a Scheme of Amalgamation
of DLF United Limited with the Company, without payment being received
in cash.
(ii) 1,338,603,595 equity shares of Rs. 2 each fully paid issued as bonus
shares by way of capitalisation of free reserves and securities premium
account.
(b) Upon exercise of Options granted under the Employees Stock Option
Scheme 2006 (ESOP), 180,904 (Previous year 240,457) equity shares of Rs.
2 each were issued at par during the year.
(c) Pursuant to the above mentioned transaction the paid-up share
capital of the Company increased by Rs. 3.62 lacs, during the year
(Previous year: increase by Rs. 4.08 lacs).
2. Secured loans
a) Facilities with banks comprise, term loans and overdraft facilities
which are secured by equitable mortgages of certain freehold and
leasehold lands/ properties of the Company/subsidiary companies/
sellers/lessors, land under agreement to sell and/ or against future
receivables of the Company/subsidiary companies.
b) Loan from others comprise of term loans from financial institutions
which are secured by equitable mortgages of certain lands/ properties
of some subsidiary entities/ associates/ group companies and the
receivables and/ or against future receivables of the Company/
subsidiary companies.
c) Loans for aircraft, helicopter and vehicles are secured by
hypothecation of the respective assets, thus purchased.
d) i) 5,000 (previous year 5,000), 13.70%
Non-Convertible Redeemable
Debentures of face value of Rs.1,000,000/- each and 7,200 (previous year
7,200), 14% Non- Convertible Redeemable Debentures of face value of Rs.
1,000,000/- each, issued to the Life Insurance Corporation of India are
secured by pari passu charge over certain lands / properties of the
Company / subsidiary companies.
ii) 3,000 (previous year 3,000), 10% Non- Convertible Redeemable
Debentures of Rs. 1,000,000/- each and 7,000 (previous year 7,000),
10.50% Non- Convertible Redeemable Debentures of Rs. 1,000,000/- each,
issued to various investors are secured by pari passu / exclusive
charge over certain lands / properties of the Company / subsidiary
companies.
iii) 1,500 (previous year Nil), 10.24% Non-Convertible Redeemable
Debentures of Rs. 1,000,000/- each, 1500 (previous year Nil), 10.24% Non-
Convertible Redeemable Debentures of Rs. 1,000,000/- each and 2,000
(previous year Nil), 10.24% Non Convertible Redeemable Debentures of Rs.
1,000,000/- each, issued to Bank of India are secured by pari passu
charge over certain lands/ properties of the Company/subsidiary
companies.
iv) The Company has transferred Rs. 74,600.00 lacs to the debenture
redemption reserve in respect of outstanding debentures for the year
ended March 31, 2011 in line with the provisions of the Companies Act,
1956.
e) Loans due within one year Rs. 274,605.12 lacs (previous year Rs.
93,914.70 lacs).
3. Unsecured loans
Loans due within one year Rs. 35,884.73 lacs (previous year Rs. 100,000.00
lacs).
6 a) The profit/loss from sale of land / developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy 7 stated in Schedule 24 Ã "Significant accounting
policies". The Complex comprises lands owned by the Company as also
those under agreements to purchase entered into with subsidiary/
coordinating companies. In terms of such agreements, the Company has
purchased (2.70) lacs sq. mts. of plotted area during the year
(previous year 3.32 lacs sq. mts.) from the land owning companies at
the average cost of land to the Company and/ or the land owning
companies. The average estimated internal development costs and
external development charges, in respect of the plots sold have been
written off in terms of accounting policy 9 stated in Schedule 24 Ã
"Significant accounting policies". Final adjustment, if any, is made on
completion of the applicable scheme/ project.
b) The profit/ loss from sale of agricultural land comprising land
owned by the Company and its subsidiary/ coordinating companies,
covered under agreement to sell the land to the Company is accounted
for on execution of the sale agreements in favour of the customers.
During the year the Company has purchased Nil acres of land (previous
year 2.32 acres) from the land owning companies, consequent to
registration of the sale deeds/ transfer of ownership in favour of the
customers at the average cost of land to the Company and/ or the land
owning companies.
c) In terms of the agreement with DLF Home Developers Limited (earlier
DLF Housing and Construction Limited, since merged with DLF Home
Developers Limited), and Mayur Recreational and Development Limited,
since merged with the DLF Building & Services Private Limited, the
Company has agreed to develop their lands along with its own lands at
Loni (Ankur Vihar) into a colony. In terms of the said agreement, the
Company is entitled to realise and retain the entire sale proceeds and
pay the cost of land, incidentals etc. plus a sum of Rs. 0.10 lacs per
acre to the aforesaid land owners on registration of the properties and
revenue is recognised on proportionate realisation basis.
d) In respect of Dilshad Garden II Scheme, the profit/loss on sale of
developed plots is accounted by adjusting cost proportionate to the
realisations made.
e) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in
their meeting held on March 28, 2006, with one of its wholly owned
subsidiary company namely, DLF Home Developers Limited ("DHDL") to sell
a parcel of land of saleable area consisting 30 million sq. ft built
up area under construction / to be constructed. Further, DHDL will
complete all the finishing work before selling the same to its
customers. In terms of the accounting policy 7(a) in Schedule 24 Ã
"Significant accounting policies" to the financial statements on
revenue recognition, revenue in respect of projects under
implementation under these agreements to sell is being recognised based
on "percentage of completion" method.
7. The Company has entered into business development agreements with
DLF Commercial Project Corporation and Rational Builders and Developers
(partnership firms). As per these agreements, the Company has acquired
sole irrevocable development rights in identified lands which are
acquired / or in the process of acquisition by these partnership firms.
In terms of accounting policy 6 in Schedule 24 Ã "Significant
accounting policies" the amount paid to these partnership firms
pursuant to the above agreements, are classified as stock of
development rights.
10. Related party disclosures a) Relationship:
(i) Subsidiary companies at any time during the year
1 Aadarshini Real Estate Developers Private Limited
2 Abhigyan Builders & Developers Private Limited ( w.e.f. November 10,
2010)
3 Abhiraj Real Estate Private Limited
4 Adelie Builders & Developers Private Limited
5 Adeline Builders & Developers Private Limited ( w.e.f. December 7,
2010)
6 Adrienne Builders & Constructions Private Limited ##
7 Alastair Builders & Developers Private Limited ##
8 Alta Builders & Developers Private Limited
9 Alvernia Limited
10 Alvita Builders & Developers Private Limited
11 Aman Gocek Insatt Taahhut Turizm Sanayi ve Ticaret AS
12 Amancruises (2006) Company Limited
13 Amancruises Company Limited
14 Amankila Resorts Limited
15 Amanproducts Limited
16 Amanresorts B.V.
17 Amanresorts International Pte Limited
18 Amanresorts IPR B.V
19 Amanresorts Limited
20 Amanresorts Limited
21 Amanresorts Management BV
22 Amanresorts Services Limited
23 Amanresorts Technical Services B.V
24 Americus Real Estate Private Limited
25 Amishi Builders & Developers Private Limited
26 Amoda Builders & Developers Private Limited ##
27 Amon Builders & Developers Private Limited ( till December 3, 2010)
++
28 Anbest Holdings Limited
29 Andaman Development Company Limited
30 Andaman Holdings Limited
31 Andaman Resorts Co. Limited
32 Andaman Thai Holding Co. Limited
33 Andes Resort Limited SAC
34 Anjuli Builders And Developers Private Limited ####
35 Annabel Builders & Developers Private Limited
36 Aradal Company N.V.
37 Argent Holdings Limited
38 Ariadne Builders & Developers Private Limited ( w.e.f. September 9,
2010)
39 ARL Marketing Inc.
40 ARL Marketing Limited
41 Armand Builders & Constructions Private Limited ( w.e.f. December 7,
2010)
42 ASL Management (Palau) Limited
43 Baakir Real Estates Private Limited ( w.e.f. September 6, 2010)
44 Balaji Highways Holding Private Limited (w.e.f. May 15, 2010 )
45 Balina Pansea Company Limited
46 Barbados Holdings Limited
47 Bedelia Builders & Construction Private Limited
48 Benedict Estates Developers Private Limited ( w.e.f. November 10,
2010)
49 Berenice Real Estate Private Limited
50 Beverly Park Maintenance Services Limited
51 Bhamini Real Estate Developers Private Limited
52 Bhoruka Financial Services Limited
53 Bhosphorous Investments Limited
54 Bhutan Hotels Limited
55 Bodrum Development Limited
56 Breeze Constructions Private Limited
57 Butan Resorts Private Limited (Amankora)
58 Cachet Real Estates Private Limited ( w.e.f. December 7, 2010)
59 Calantha Builders & Developers Private Limited ####
60 Callista Builders & Constructions Private Limited ##
61 Calvine Builders & Constructions Private Limited ( w.e.f. December
7, 2010)
62 Caraf Builders & Constructions Private Limited
63 Careen Builders & Developers Private Limited (till October 31, 2010)
64 Caressa Builders & Constructions Private Limited ####
65 Catriona Builders & Constructions Private Limited
66 Cee Pee Maintenance Services Limited
67 Ceylon Holdings B.V.
68 Chakradharee Estates Developers Private Limited (w.e.f. November 10,
2010)
69 Chandrojyoti Estate Developers Private Limited
70 City Icon Limited (till April 27, 2010) ++
71 Colombo Resort Holdings N.V
72 Comfort Buildcon Private Limited
73 Current Finance Limited
74 Cyrilla Builders & Constructions Limited
75 Dae Real Estates Private Limited (w.e.f. November 10, 2010)
76 Dalmia Promoters & Developers Private Limited
77 Dankuni World City Limited
78 Delanco Home & Resorts Private Limited
79 Delanco Real Estate Private Limited (w.e.f. December 16, 2010)
80 Delanco Realtors Private Limited
81 Deltaland Buildcon Private Limited
82 Deltaland Real Estate Private Limited (w.e.f. December 7, 2010)
83 DHDL Wind Power Private Limited (Formerly Var Infratech Private
Limited)
84 Dhoomketu Builders & Developers Private Limited
85 Digital Talkies Private Limited (w.e.f. October 29, 2010)
86 Diwakar Estates Limited
87 DLF Ackruti Info Parks (Pune) Limited (Formerly DLF Akruti Info
Parks (Pune) Limited)
88 DLF Aspinwal Hotels Private Limited
89 DLF Assets Private Limited
90 DLF Brands Limited (till October 31, 2010)
91 DLF Business Hotels Ventures Private Limited (till September 29,
2010) ++
92 DLF City Centre Limited
93 DLF City Centre Limited (till April 27, 2010) ++
94 DLF Cochin Hotels Private Limited
95 DLF Comfort Hotels Private Limited
96 DLF Commercial Complexes Limited ##
97 DLF Commercial Developers Limited
98 DLF Construction Limited (Formerly DLF Projects Limited )
99 DLF Cyber City Developers Limited
100 DLF Developers Limited
101 DLF Emporio Restaurants Limited
102 DLF Estate Developers Limited
103 DLF Exotica Hotels Private Limited ++
104 DLF Financial Services Limited
105 DLF Finvest Limited
106 DLF Food Courts Private Limited ##
107 DLF Garden City Indore Private Limited
108 DLF Global Hospitality Limited
109 DLF Golf Resort Limited
110 DLF Gurgaon Developers Limited (Formerly DLF SEZ Holdings Limited)
111 DLF Haryana SEZ (Ambala) Limited
112 DLF Haryana SEZ (Gurgaon) Limited
113 DLF Hilton Hotels (Mysore) Private Limited
114 DLF Home Developers Limited
115 DLF Home Services Private Limited
116 DLF Homes Ambala Private Limited
117 DLF Homes Durgapur Private Limited ####
118 DLF Homes Goa Private Limited
119 DLF Homes Kokapet Private Limited
120 DLF Homes Panchkula Private Limited
121 DLF Homes Pune Private Limited
122 DLF Homes Rajapura Private Limited
123 DLF Hospitality & Recreational Limited
124 DLF Hotel Holdings Limited
125 DLF Hotels & Apartments Private Limited
126 DLF Hotels & Hospitality Limited
(Formerly DLF Hilton Hotels Limited)
127 DLF Housing & Construction Limited ####
128 DLF India Limited (Formerly DLF Universal Limited)
129 DLF Info City Developers (Chandigarh) Limited
130 DLF Info City Developers (Chennai) Limited
131 DLF Info City Developers (Kolkata) Limited
132 DLF Info Park Developers (Chennai) Limited
133 DLF Infra Holding Limited ####
134 DLF Inns Limited
135 DLF International Holdings Pte Limited
136 DLF International Hospitality Corp
137 DLF Jaipur Convention Center Private Limited
(till September 29, 2010) ++
138 DLF Land Limited ####
139 DLF Luxury Hotels Limited
140 DLF Metro Limited
141 DLF New Delhi Convention Center Limited
142 DLF New Gurgaon Homes Developers Private Limited
143 DLF New Gurgaon Offices Developers Private Limited
144 DLF New Gurgaon Retail Developers Private Limited
145 DLF Phase IV Commercial Developers Limited
146 DLF Pramerica Life Insurance Company Limited
147 DLF Premium Homes Private Limited ####
148 DLF Projects Limited (Formerly DT Projects Limited )
149 DLF Property Developers Limited
150 DLF Real Estates Builders Limited
151 DLF Recreational Foundation Limited
152 DLF Residential Builders Limited
153 DLF Residential Developers Limited
154 DLF Residential Partners Limited
155 DLF Retail Services Limited ##
156 DLF Service Apartments Limited
157 DLF Services Limited (till October 12, 2010) ###
158 DLF SEZ Developers Limited ####
159 DLF Southcourt Hotels Private Limited
(till September 29, 2010) ++
160 DLF Southern Homes Private Limited
161 DLF SouthernTowns Private Limited
162 DLF Telecom Limited
163 DLF Trust Management Pte Limited
164 DLF Universal Limited
(Formerly DLF Retail Developers Limited)
165 DLF Utilities Limited
166 DLF Wind Power Private Limited (Formerly Bestvalue
Housing & Construction Private Limited)
167 Domus Real Estates Private Limited
(w.e.f. December 16, 2010)
168 Domus Realtors Private Limited
(w.e.f. December 7, 2010)
169 DT Cinemas Limited (till October 12, 2010) ###
170 Eastern India Powertech Limited
171 Edward Keventer(Successors) Private Limited
172 Eila Builders & Developers Private Limited
173 Elvira Builders & Constructions Private Limited
( w.e.f. December 7, 2010)
174 Enki Retail Private Limited (till October 31, 2010)
175 Eros Retail Private Limited (till October 31, 2010)
176 Falguni Builders Private Limited
177 Faye Builders & Constructions Private Limited
(w.e.f. December 7, 2010)
178 First City Real Estate Private Limited
(w.e.f. December 7, 2010)
179 Flora Real Estate Private Limited
(w.e.f. December 7, 2010)
180 Fonton Limited
181 Forerum Group Limited
182 Galaxy Mecantiles Limited
183 Galleria Property Management Services Private Limited
184 Ganika Builders Private Limited
185 Gavin Builders & Developers Private Limited ##
186 Geocities Airport Infrastructures Private Limited
187 Goyo Services Limited
188 Guardian International Private Limited
189 Gulika Home Developers Private Limited
190 Gulliver Enterprises Limited
191 Gyan Real Estate Developers Private Limited
192 Hansel Builders & Developers Private Limited (w.e.f.
December 7, 2010)
193 Heritage Resorts Private Limited
194 Hiemo Builders & Developers Private Limited
195 Highvalue Builders Private Limited
196 Hospitality Tradings Limited
197 Hotel Finance International Limited
198 Hotel Sales Service Limited
199 Hotel Sales Service Private Limited
200 Hyacintia Real Estate Developers Private Limited
(w.e.f. September 9, 2010)
201 Incan Valley Holdings Limited
202 Irving Builders & Developers Private Limited
(w.e.f.December 7, 2010)
203 Isabel Builders & Developers Private Limited
204 Ishayu Builders & Developers Private Limited
(till December 3, 2010) ++
205 Jackson Hole Holdings Limited
206 Jai Luxmi Real Estate Private Limited
207 Jalisco Holdings Pte Limited
208 Janya Estate Developers Private Limited ####
209 Jawala Real Estate Private Limited
210 Juno Retail Private Limited (till October 31, 2010)
211 K G Infrastructure Private Limited
212 Kairav Real Estate Private Limited ####
213 Kapo Retail Private Limited (till October 31, 2010)
214 Khem Buildcon Private Limited
215 L P Hospitality Company Limited
216 Lada Estates Private Limited (w.e.f. December 7, 2010)
217 Laman Real Estate Private Limited
218 Lao Holdings Limited
219 Lawanda Builders & Developers Private Limited
220 Le Savoy Limited
221 Leandra Builders & Developers Private Limited ##
222 Lear Builders & Developers Private Limited
(w.e.f. December 7, 2010)
223 Lempo Buildwell Private Limited
(w.e.f. December 7, 2010)
224 Liber Buildwell Private Limited
(w.e.f. December 7, 2010)
225 Lizebeth Builders & Developers Private Limited
(w.e.f. November 10, 2010)
226 Lodhi Property Company Limited
227 Mariposa Builders & Developers Private Limited
(w.e.f. December 7, 2010)
228 Marrakech Investments Limited
229 Melosa Builders & Developers Private Limited
(w.e.f. December 7, 2010)
230 Mens Buildcon Private Limited
231 Mhaya Buildcon Private Limited
232 Monroe Builders & Developers Private Limited
233 Mulvey B.V
234 Mulvey Venice Sri
235 Naman Consultants Limited
236 Nambi Buildwell Private Limited
237 Necia Builders & Developers Private Limited ##
238 Nellis Builders & Developers Private Limited
239 NewGen MedWorld Hospitals Limited
240 Nilayam Builders & Developers Limited
241 NOH (Hotel) Private Limited
242 Nusantara Island Resorts Limited
243 Otemachi Tower Resorts Co. Limited
244 Overseas Hotels Limited
245 P.T. Amanresorts Indonesia
246 P.T. Amanusa Resort Indonesia
247 P.T. Indrakila Villatama Development
248 P.T. Moyo Safari Abadi
249 P.T. Nusantara Island Resorts
250 P.T. Tirta Villa Ayu
251 P.T. Villa Ayu
252 Palawan Holdings Limited
253 Paliwal Developers Limited
254 Paliwal Real Estate Private Limited
255 PAT Infrastructures Private Limited ##
256 Pee Tee Property Management Services Limited
257 Penthea Builders & Developers Private Limited
(w.e.f. November 10, 2010)
258 Philana Builders & Developers Private Limited
(w.e.f. November 10, 2010)
259 Phoena Builders & Developers Private Limited
(w.e.f. November 10, 2010)
260 Phraya Riverside (Bangkok) Co. Limited
261 Princiere Resorts Limited
262 Prompt Real Estate Private Limited
263 Puri Limited
264 Pyrite Builders & Constructions Private Limited
(w.e.f. December 7, 2010)
265 Qabil Builders & Constructions Private Limited
(w.e.f. December 7, 2010)
266 Queensdale Management Limited
267 Rachelle Builders & Constructions Private Limited (w.e.f.
December 7, 2010)
268 Rati Infratech Private Limited
269 Red Acres Development Limited
270 Regency Park Property Management Services Private
Limited
271 Regent Asset Finance Limited
272 Regent Land Limited
273 Regional Design & Research B.V
274 Regional Design & Research N.V
275 Reha Retail Private Limited (till October 31, 2010)
276 Richmond Park Property Management Services Limited
277 Riveria Commercial Developers Limited
278 Rochelle Builders & Constructions Private Limited (w.e.f.
December 7, 2010)
279 Rod Retail Private Limited (till October 31, 2010)
280 Royalton Builders & Developers Private Limited
(w.e.f. December 7, 2010)
281 Saguna Builders & Developers Private Limited
(w.e.f. December 7, 2010)
282 Saket Holiday Resorts Private Limited
(Formerly Saket Courtyard Hospitality Private Limited )
283 Samali Builders & Developers Private Limited ####
284 Serendib Holdings B.V.
285 Shakirah Real Estates Private Limited
(Formerly DLF Pleasure Hotels Private Limited )
286 Shivajimarg Properties Limited
287 Silver - Two (Bangkok) Company Limited
288 Silver Oaks Property Management Services Limited
289 Silverlink (Mauritius) Limited
290 Silverlink (Thailand) Company Limited
291 Silverlink Resorts Limited
(Formerly Silverlink Holdings Limited)
292 Sinonet Holding Limited
293 Societe Nouvelle de LHotel Bora Bora
294 Solid Buildcon Private Limited ####
295 Springhills Infratech Private Limited
296 Sunlight Promoters Private Limited
297 Tahitian Resorts Limited
298 Tangalle Property Private Limited
299 Toscano Holdings Limited
300 Triumph Electronics Private Limited
301 Universal Hospitality Limited
302 Urvasi Infratech Private Limited
303 Valini Builders & Developers Private Limited
304 Vibodh Developers Private Limited
(w.e.f. November 10, 2010)
305 Vilina Estate Developers Private Limited
(w.e.f. December 7, 2010)
306 Villajena Development Company Limited
307 Vinanti Builders & Developers Private Limited
(w.e.f. December 7, 2010)
308 Vkarma Capital Investment Management Company
Private Limited
309 Vkarma Capital Trustee Company Private Limited
310 VSK Investment & Finance Limited #
311 Wagishwari Estates Private Limited
(till December 3, 2010) ++
312 Webcity Builders & Developers Private Limited
(w.e.f. November 10, 2010)
313 Yucatan Holdings Pte Limited
314 Zeugma Limited
315 Zola Real Estate Private Limited
316 Zoria Infratech Private Limited
317 Norman Cays Holdings Limited
(ii) Partnership firms
1 DLF Commercial Projects Corporation
2 DLF Office Developers
3 DLF South Point
4 Kavicon Partners
5 Rational Builders and Developers
6 DLF GK Residency
7 Saket Courtyard Hospitality
8 DLF Green Valley (w.e.f. December 31, 2010)
(iii) Joint Ventures
1 Star Alubuild Private Limited
2 Delanco Real Estates Private Limited
(till December 15, 2010)
3 Kujjal Builders Private Limited
4 DLF Gayatri Home Developers Private Limited
5 DLF SBPL Developer Private Limited
(iii) Joint Ventures (Contd.)
6 DLF Limitless Developers Private Limited
7 Mount Mary Residential Project
8 GSG DRDL Consortium
9 Y.G. Realty Private Limited
10 Design Plus Architecture Private Limited
( w.e.f. December 7, 2010)
11 Banjara Hills Hyderabad Complex
12 Saket Courtyard Hospitality
13 Domus Real Estate Private Limited
(till December 15, 2010)
14 Cleva Builders and Developers Private Limited
15 Prowess Buildcon Private Limited
(iv) Associates
1 Australian Resorts Limited
2 Ferragamo Retail India Private Limited
(till October 31, 2010)
3 Giorgio Armani India Private Limited
(till October 31, 2010)
4 Islan Aviation Limited
5 Joyous Housing Limited
6 Kyoto Resorts YK
7 P.T Jawa Express Amanda Indah
8 Pamalican Island Holdings Inc
9 Pandis (Thailand) Company Limited
10 Pansea Tourism Company Limited
11 Regional D & R Limited
12 Revlys SA
13 Seven Seas Resorts and Leisure Inc
14 Surin Bay Co. Limited
15 Villajena
16 Zeus Infrastructure Private Limited
17 Rapid Rail Metro Gurgaon Limited (w.e.f. May 27, 2010)
# Pursuant to the Order of the Honourable High Court of Delhi by virtue
of Scheme of Arrangement, the said entity has been merged with DLF Real
Estate Builders Limited. Accordingly, transactions with the said
entity during the year ended March 31, 2011 and balance outstanding
thereto on that date have been disclosed as transactions with and
balances outstanding to as the case may be, DLF Real Estate Builders
Limited during the year ended and as of March 31, 2011.
## Pursuant to the Order of the Honourable High Court of Delhi by
virtue of Scheme of Arrangement, the said entities have been merged
with DLF Universal Limited (Formerly DLF Retail Developers Limited).
Accordingly, transactions with the said entities during the year ended
March 31, 2011 and balance outstanding thereto on that date have been
disclosed as transactions with and balances outstanding to as the case
may be, DLF Universal Limited (Formerly DLF Retail Developers Limited)
during the year ended and as of March 31, 2011.
### Pursuant to the Order of the Honble High Court of Punjab and
Haryana at Chandigarh by virtue of scheme of arrangement, the said
entities have been merged with DLF Utilities Limited. Accordingly,
transactions with the said entities during the year ended March 31,
2011 and balance outstanding thereto on that date have been disclosed
as transactions with and balances outstanding to as the case may be,
DLF Utilities Limited during the year ended and as of March 31, 2011.
#### Pursuant to the Order of the Honble High Court of Delhi and the
Honble High Court of Punjab & Haryana by virtue of Scheme of
Arrangement, the said entities have been merged with DLF Home
Developers Limited. Accordingly, transactions with the said entities
during the year ended March 31, 2011 and balance outstanding thereto on
that date have been disclosed as transactions with and balances
outstanding to as the case may be, DLF Home Developers Limited during
the year ended and as of March 31, 2011.
++ Company already wound up u/s 560, Registrar of Companies approval
awaited.
16. a) The Company uses forward contracts and Swaps to hedge its risks
associated with fluctuations in foreign currency and interest rates.
The use of Forward contracts and Swaps is covered by Companys overall
strategy. The Company does not use forward covers and Swaps for
speculative purposes. As per the strategy of the Company, foreign
currency loans are covered by comprehensive hedge, considering the
risks associated with the hedging of such loans, which effectively
fixes the principal and interest liability of such loans and further
there is no additional risk involved post hedging of these loans.
17. Contingent liabilities, not provided for, exist in respect of :
(Rs. in lacs)
2011 2010
a) Guarantees issued by the Company on
behalf of :
Subsidiary companies 901,156.09 626,456.09
Others 13,005.93 13,005.93
b) Claims against the Company (including
unasserted claims) not acknowledged
as debts 13,001.41 13,778.33
c) Income tax demand in excess of
provisions (pending in appeals) 71,855.86 50,992.28
d) Undertaki ng to buy back preference shares in subsidiary/ associate
companies -- 186,629.82 28. (a) Wind mill projects of the Company are
entitled for tax holiday under section 80-IA of the Income tax Act,
1961. Accordingly, the computation of tax (current and deferred) has
been done as per Accounting Standard 22 "Accounting for taxes on
Income" issued by the ICAI.
(b) The Companys profits from Special Economic Zone ("SEZ") business
are exempt under section 80- IAB of the Income Tax Act, 1961 and the
dividend declared out of such SEZ profits are exempt from Dividend
Distribution Tax under the provisions of section 115-O(6) of the Income
tax Act, 1961.
In line with the above provisions, the Company has not provided the
dividend Tax since the dividend has been declared out of non SEZ
profits and after adjustment of the dividend received from its wholly
owned subsidiary company in terms of provisions of section 115-O(1A)(i)
of the Income tax Act, 1961.
29. Income Tax and other matters
a) Subsequent to the year ended March 31, 2011, the Company received an
assessment order for A.Y. 2008-2009 from the Income Tax Authorities,
creating an additional demand of Rs. 54,684.97 lacs, out of which, Rs.
48,723.00 lacs pertains to demand on account of disallowance of SEZ
profit u/s 80IAB of Income Tax Act. The Company is challenging the
order with the appropriate authorities.
Based on the advice from independent tax experts, the Company is
confident that the additional demand so created will not be sustained.
Pending of the order of the appellate authorities no provision has been
made in the financial statements.
b) On March 25, 2011, the Company received Appellate Order from CIT
(Appeals) in respect of the A.Y. 2006-2007. As per this appeal order,
the Appellate authority has given significant relief under the various
items resulting reducing the demand from Rs. 48,274.34 lacs to Rs. 7,314.24
lacs.
The Company has further filed an appeal before the ITAT, Delhi against
the appellates order for the remaining demand of Rs.7,314.24 lacs.
Based on the advice from independent tax experts, the Company is
confident that this balance demand of Tax will also not be sustained by
the appellate authorities. Pending the order of ITAT, no provision has
been made in the financial statements.
c) During the year ended March 31, 2011, the Company received a
judgement from the Honble High Court of Punjab and Haryana cancelling
the release / sale deed of land relating to IT SEZ project in Gurgaon.
The Company has filed Special Leave petitions, challenging the order in
the Honble Supreme Court of India.
Based on the advice of the independent legal counsel, the Company has a
reasonably strong likelihood of succeeding before the Honble Supreme
Court. Pending the final decision on the matter; no adjustment has been
done in these financial statements.
30. Based on the information available with the Company, there are no
dues outstanding in respect of Micro, Small and Medium enterprises at
the balance sheet date. No amounts were payable to such enterprises
which were outstanding for more than 45 days. Further, no interest
during the year has been paid or payable in respect thereof. The above
disclosure has been determined to the extent such parties have been
identified on the basis of information available with the Company. This
has been relied upon by the auditors.
31. Previous year figures have been regrouped/ recast wherever
considered necessary to make them comparable with those of the current
year.
Mar 31, 2010
1. Share capital
(a) Issued, subscribed and paid-up share capital includes
i) 5,877,850 equity shares of Rs. 2 each (originally 1,175,570 equaity
shares of Rs. 10 each) fully paid- up allotted pursuant to a scheme of
amalgamation of DLF United Limited with the Company, without payment
being received in cash.
ii) 1,338,603,595 equity shares of Rs. 2 each fully paid issued as
bonus shares by way of capitalisation of free reserves and securities
premium account.
(b) The calls in arrears have reduced during the year by Rs. 163.73
lacs (previous year Rs. 94.55 lacs), comprising share capital of Rs.
0.44 lacs (previous year Rs. 0.26 lacs) and securities premium of Rs.
163.29 lacs (previous year Rs. 94.29 lacs), which includes forfeiture
of 43,680 partly paid equity shares of Rs. 2 each having impact in
share capital of Rs. 0.44 lacs and securities premium of Rs. 228.45
lacs.
(c) In the previous year, Company had issued Public Announcement (PA)
and Corrigendum to PA dated September 30, 2008 and October 15, 2008
respectively, for buy back of its shares from the open market at a
price not exceeding Rs. 600 per share for an aggregate amount not
exceeding Rs. 110,000 lacs. During the current fi nancial year the
Company completed the buy back process and further bought back 15,000
equity shares (previous year 76,23,567) under the said buy back
programme.
(d) Upon exercise of Options granted under the Employees Stock Option
Scheme 2006 (ESOP), 240,457 (previous year Nil) equity shares of Rs. 2
each were issued at par during the year.
(e) Pursuant to the above mentioned transactions the paid-up share
capital of the Company increased by Rs. 4.08 lacs, during the year
(previous year : decrease by Rs. 152.21 lacs).
2. Reserves and surplus
Pursuant to the buyback programme, referred to in note 1(c) above,
Capital redemption reserve has been created out of General reserve for
Rs. 0.30 lacs (previous year Rs. 152.47 lacs) being the nominal value
of shares bought back under the buyback programme in terms of Section
77AA of the Companies Act, 1956.
3. Secured loans
a) Facilities with banks comprise, term loans and overdraft facilities
which are secured by equitable mortgages of certain freehold and
leasehold lands/ properties of the Company/ subsidiary Companies /
sellers / lessors, land under agreement to sell and/ or against future
receivables of the Company/subsidiary companies.
b) Loan from others comprise of term loans from fi nancial institutions
which are secured by equitable mortgages of certain lands/properties of
some subsidiary entities/associates/group companies and the receivables
and/ or against future receivables of the Company/subsidiary companies.
c) Loans for aircraft, helicopter, wind mill projects and vehicles are
secured by hypothecation of the respective assets, thus purchased.
d) i) 5,000 (previous year 5,000), 13.70%
Non Convertible Redeemable Debentures of face value of Rs. 10,00,000
each and 7200 (previous year 7,200), 14% Non Convertible Redeemable
Debentures of face value of Rs. 10,00,000 each, issued to the Life
Insurance Corporation of India are secured by pari passu charge over
certain lands / properties of the Company / subsidiary companies.
ii) 3,000 (previous year nil), 10% Non Convertible Redeemable
Debentures of Rs. 10,00,000 each and 7,000 (previous year nil), 10.50%
Non Convertible Redeemable Debentures of Rs. 10,00,000 each, issued to
various investors are secured by pari passu/ exclusive charge over
certain lands / properties of the Company / subsidiary companies.
e) Loans due within one year Rs. 93,914.70 lacs (previous year Rs.
238,181.85 lacs).
4. Unsecured loans
Loans due within one year Rs. 100,000.00 lacs (previous year Rs.
133,500.00 lacs).
5. a) The profit/loss from sale of land/ developed plots/constructed
properties in DLF City, Gurgaon (Complex) is accounted as per revenue
recognition policy 7 stated in Schedule 24 Ã "Signifi cant accounting
policies". The Complex comprises lands owned by the Company as also
those under agreements to purchase entered into with subsidiary/
coordinating companies. In terms of such agreements, the Company has
purchased 3.32 lacs sq. mts. of plotted area during the year (previous
year 3.01 lacs sq. mts.) from the land owning companies at the average
cost of land to the Company and/ or the land owning companies. The
average estimated internal development costs and external development
charges, in respect of the plots sold have been written off in terms of
accounting policy 9 stated in Schedule 24 Ã "Signifi cant accounting
policies". Final adjustment, if any, is made on completion of the
applicable scheme/ project.
b) The profit/ loss from sale of agricultural land comprising land
owned by the Company and its subsidiary/ coordinating companies,
covered under agreement to sell the land to the Company is accounted
for on execution of the sale agreements in favour of the customers.
During the year the Company has purchased 2.32 acres of land (previous
year Nil acres) from the land owning companies, consequent to
registration of the sale deeds/ transfer of ownership in favour of the
customers at the average cost of land to the Company and/ or the land
owning companies.
c) In terms of the agreement with DLF Housing and Construction Limited
and Mayur Recreational and Development Limited, since merged with the
DLF Building & Services Private Limited, the Company has agreed to
develop their lands along with its own lands at Loni (Ankur Vihar) into
a colony. In terms of the said agreement, the Company is entitled to
realise and retain the entire sale proceeds and pay the cost of land,
incidentals etc. plus a sum of Rs. 0.10 lacs per acre to the aforesaid
land owners on registration of the properties and revenue is recognised
on proportionate realisation basis.
d) In respect of Dilshad Garden II Scheme, the profit/loss on sale of
developed plots is accounted by adjusting cost proportionate to the
realisations made.
e) The Company on November 3, 2006 has entered into an agreement to
sell in terms of the resolution passed by the Board of Directors in
their meeting held on March 28, 2006, with one of its wholly-owned
subsidiary company namely, DLF Home Developers Limited ("DHDL") to sell
a parcel of land of saleable area consisting 30 million sq. ft. built
up area under construction / to be constructed. Further, DHDL will
complete all the fi nishing work before selling the same to its
customers. In terms of the accounting policy 7 in Schedule 24 Ã
"Signifi cant accounting policies" to the fi nancial statements on
revenue recognition, revenue in respect of projects under
implementation under these agreements to sell is being recognised based
on "percentage of completion" method.
8. The Company has entered into business development agreements with
DLF Commercial Project Corporation and Rational Builders and Developers
(partnership firms). As per these agreements, the Company has acquired
sole irrevocable development rights in identified lands which are
acquired / to be acquired by these partnership firms.
In terms of accounting policy 6 in Schedule 24 Ã "Signifi cant
accounting policies" the amount paid to these partnership fi rms
pursuant to the above agreements, are classifi ed as stock of
development rights.
C. Provident fund
Contribution made by the Company to the provident fund trust setup by
the Company during the year is Rs. 192.51 lacs (previous year Rs.
199.07 lacs).
As at the year end, no interest shortfall in provident fund remains
unprovided for as there is surplus in the fund. In the absence of
guidance on actuarial valuation of Fund liability, which is to be
issued by the Actuarial Society of India, the actuarial valuation
liability towards Provident Fund is not feasible. Accordingly, other
related disclosures in respect of provident fund have not been
furnished.
6. Related party disclosures
a) Relationship:
(i) Subsidiary companies at any time during the year
1 Aadarshini Real Estate Developers Private Limited
2 Abhiraj Real Estate Private Limited
3 Adelie Builders & Developers Private Limited
4 Adrienne Builders & Constructions Private Limited
5 Alastair Builders & Developers Private Limited
6 Alta Builders & Developres Private Limited
7 Alvernia Limited
8 Alvita Builders & Developers Private Limited (w.e.f. June 30, 2009)
9 Aman Gocek Insatt Taahhut Turizm Sanayi ve Ticaret AS
10 Amancruises (2006) Company Limited
11 Amancruises Company Limited
12 Amankila Resorts Limited
13 Amanproducts Limited
14 Amanresorts B.V.
15 Amanresorts International Pte. Limited
16 Amanresorts IPR B.V.
17 Amanresorts Limited
18 Amanresorts Limited ( w.e.f. April 02, 2009)
19 Amanresorts Mangement B.V.
20 Amanresorts Services Limited
21 Amanresorts Technical Services B.V.
22 Americus Real Estate Private Limited
23 Amishi Builders & Developers Private Limited
24 Amoda Builders & Developers Private Limited
25 Anbest Holdings Limited
26 Andaman Development Company Limited
27 Andaman Holdings Limited
28 Andaman Resorts Co. Limited
29 Andaman Thai Holding Co. Limited
30 Andes Resort Limited SAC
31 Anjuli Builders & Developers Private Limited
32 Annabel Builders & Developers Private Limited
33 Aradal Company N.V.
34 Argent Holdings Limited
35 ARL Marketing Inc.
36 ARL Marketing Limited
37 ASL Management (Palau) Limited
38 Balina Pansea Company Limited
39 Barbados Holdings Limited
40 Bedelia Builders & Construction Private Limited
41 Belmount Estate Developers Limited # # #
42 Berenice Real Estate Private Limited
43 Beverly Park Maintenance Services Limited
44 Bhamini Real Estate Developers Private Limited
45 Bhoruka Financial Services Limited
46 Bhosphorous Investments Limited
47 Bhutan Hotels Limited
48 Bodrum Development Limited
49 Breeze Constructions Private Limited
50 Bhutan Resorts Private Limited
51 Calantha Builders & Developers Private Limited
52 Callista Builders & Constructions Private Limited
53 Caraf Builders & Constructions Private Limited (w.e.f. March 19,
2010)
54 Carreen Builders & Developers Private Limited ( w.e.f. February 01,
2010)
55 Caressa Builders & Constructions Private Limited
56 Catriona Builders & Constructions Private Limited
57 Cee Pee Maintenance Services Limited
58 Ceylon Holdings B.V.
59 Chaitra Realty Limited (up to July 03, 2009)
60 Chakrita Real Estate Developers Private Limited ++
61 Chandrajyoti Estate Developers Private Limited
62 City Icon Limited
63 Columbo Resort Holdings N.V
64 Comfort Buildcon Private Limited
65 Current Finance Limited
66 Cyrilla Builders & Constructions Limited
67 Dalmia Promoters & Developers Private Limited
68 Dankuni World City Limited
69 Delanco Home & Resorts Private Limited
70 Delanco Realtors Private Limited
71 Deltaland Buildcon Private Limited
72 DHDL Wind Power Private Limited (formerly Var Infratech Private
Limited)
73 Dhoomketu Builders & Developers Private Limited
74 Diwakar Estates Limited
75 DLF Ackruti Info Parks (Pune) Limited [formerly DLF Akruti Info
Parks (Pune) Limited]
76 DLF Airport Hotels Private Limited (till October 16, 2009)
77 DLF Aspinwal Hotels Private Limited
78 DLF Assets Private Limited (w.e.f. March 19, 2010)
79 DLF Brands Limited
80 DLF Budget Venture Hotels Private Limited (till October 16, 2009)
81 DLF Business Hotels Ventures Private Limited
82 DLF City Centre Limited
83 DLF City Centre Limited
84 DLF Cochin Hotels Private Limited
85 DLF Comfort Hotels Private Limited
86 DLF Commercial Complexes Limited
87 DLF Commercial Developers Limited
88 DLF Conventions & Hotels Private Limited (till October 16, 2009)
89 DLF Cyber City Developer Limited
90 DLF Deluxe Hotels Private Limited (till October 16, 2009)
91 DLF Developers Limited
92 DLF Emporio Resturants Limited
93 DLF Estate Developers Limited
94 DLF Estates (Delhi) Private Limited ##
95 DLF Exhibition Centre Private Limited (till October 16, 2009)
96 DLF Exotica Hotels Private Limited +++
97 DLF Financial Services Limited
98 DLF Finvest Limited
99 DLF Food Courts Private Limited
100 DLF Garden City Indore Private Limited
101 DLF Global Hospitality Limited
102 DLF Golf Resorts Limited
103 DLF Green Power Private Limited ###
104 DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings Limited)
( w.e.f. August 31, 2009)
105 DLF Haryana SEZ (Ambala) Limited
106 DLF Haryana SEZ (Gurgaon) Limited
107 DLF Hilton Hotels Limited
108 DLF Hilton Hotels (Mysore) Private Limited
109 DLF Home Developers Limited
110 DLF Homes Services Private Limited
111 DLF Homes Ambala Private Limited
112 DLF Homes Durgapur Private Limited
113 DLF Homes Goa Private Limited
114 DLF Homes Kokapet Private Limited
115 DLF Homes Panchkula Private Limited
116 DLF Homes Pune Private Limited
117 DLF Homes Rajapura Private Limited
118 DLF Hospitality & Recreational Limited
119 DLF Hotel Holdings Limited
120 DLF Hotel Venture Private Limited (till October 16, 2009)
121 DLF Hotels & Apartments Private Limited
122 DLF Housing & Construction Limited
123 DLF Info City Developers (Bangalore) Limited ###
124 DLF Info City Developers (Chandigarh) Limited (w.e.f. March 19,
2010)
125 DLF Info City Developers (Chennai) Limited
126 DLF Info City Developers (Hyderabad) Limited ###
127 DLF Info City Developers (Kolkata) Limited (w.e.f. March 19, 2010)
128 DLF Info Park Developers (Chennai) Limited
129 DLF Infra Holding Limited
130 DLF Inns Limited
131 DLF International Holdings Pte. Limited
132 DLF International Hospitality Corp.
133 DLF Jaipur Convention Center Private Limited
134 DLF Jaipur Hotels Private Limited (till October 16, 2009)
135 DLF Land Limited
136 DLF Leisure & Entertainment Private Limited (till October 16, 2009)
137 DLF Luxury Hotels Limited
138 DLF Metro Limited
139 DLF Minor Restaurants Private Limited (till October 16, 2009)
140 DLF Mumbai Hotels Private Limited (till October 16, 2009)
141 DLF New Delhi Convention Center Limited
142 DLF New Gurgaon Homes Developer Private Limited
143 DLF New Gurgaon Offi ces Developer Private Limited
144 DLF New Gurgaon Retail Developer Private Limited
145 DLF Phase IV Commercial Developers Limited
146 DLF Pleasure Hotels Private Limited
147 DLF Pramerica Life Insurance Co. Limited
148 DLF Premium Homes Private Limited
149 DLF Projects Limited
150 DLF Property Developers Limited
151 DLF Real Estate Builders Limited
152 DLF Recreational Foundation Limited
153 DLF Residential Builders Limited
154 DLF Residential Developers Limited
155 DLF Residential Partners Limited
156 DLF Retail Developers Limited
157 DLF Retail Services Limited
158 DLF Rohini Hotels Private Limited (till October 16, 2009)
159 DLF Service Apartments Limited
160 DLF Services Limited
161 DLF SEZ Developers Limited
162 DLF Sikkim Hotels Private Limited (till October 16, 2009)
163 DLF Southcourt Hotels Private Limited
164 DLF Southern Homes Private Limited
165 DLF SouthernTowns Private Limited
166 DLF Telecom Limited
167 DLF Trust Management Pte. Limited
168 DLF Universal Limited
169 DLF Utilities Limited
170 DLF Wind Power Private Limited (formerly Bestvalue Housing &
Construction Private Limited)
171 Domus Real Estate Private Limited (till March 01, 2010)
172 DT Cinemas Limited
173 DT Projects Limited [formerly DLF Laing ORourke (India) Limited]
(w.e.f. November 11, 2009)
174 Eastern India Powertech Limited
175 Ecotech Ventures Limited (till October 31, 2009)
176 Edward Keventor(Successors) Private Limited
177 Eila Builders & Developers Private Limited
178 Enki Retail Private Limited
179 Eros Retail Private Limited
180 Falguni Builders Private Limited
181 Fonton Limited
182 Foregiant Agents Limited (till May 18, 2009)
183 Forerum Group Limited
184 G.S.R. Properties Private Limited (till June 24, 2009)
185 G.V.R. Properties Private Limited (till June 24, 2009)
186 Gainway Group Limited (till October 31, 2009)
187 Gajjala Constructions Private Limited (till June 24, 2009)
188 Gajjala Ram Reddy Properties Private Limited (till June 24, 2009)
189 Galaxy Mercantiles Limited
190 Galleria Property Management Services Private Limited
191 Ganesar Ginning Co. Private Limited (till July 31, 2009)
192 Ganika Builders Private Limited
193 Gavin Builders & Developers Private Limited
194 Geocities Airport Infrastructures Private Limited
195 G.G.R. Properties Private Limited (till June 24, 2009)
196 GMR Constructions Private Limited (till June 24, 2009)
197 Goyo Services Limited
198 Grandbay Estate Developers Limited ###
199 Guardian International Private Limited
200 Gulika Home Developers Private Limited
201 Gulliver Enterprises Limited
202 Gyan Real Estate Developers Private Limited
203 Harini Resorts & Properties Private Limited (till June 24, 2009)
204 Heritage Resorts Private Limited
205 Hiemo Builders & Developers Private Limited (w.e.f. February 02,
2010)
206 Highvalue Builders Private Limited
207 Hospitality Tradings Limited
208 Hotel Finance International Limited
209 Hotel Sales Service Limited
210 Hotel Sales Service Private Limited
211 Incan Valley Holdings Limited
212 Irama Estates Private Limited # #
213 Isabel Builders & Developers Private Limited
214 Jackson Hole Holdings Limited
215 Jai Luxmi Real Estate Private Limited
216 Jalisco Holdings Pte. Limited
217 Janya Estate Developers Private Limited
218 Jawala Real Estate Private Limited
219 Juno Retail Private Limited (w.e.f. June 19, 2009)
220 K G Infrastructure Private Limited
221 Kairav Real Estate Private Limited
222 Kapo Retail Private Limited
223 Khem Buildcon Private Limited (w.e.f. February 02, 2010)
224 L P Hospitality Company Limited
225 Laman Real Estate Private Limited
226 Lao Holdings Limited
227 Lawanda Builders & Developers Private Limited
228 Le Savoy Limited
229 Leandra Builders & Developers Private Limited
230 Life Style Homes Private Limited (till June 24, 2009)
231 Lodhi Property Company Limited
232 Marrakech Investments Limited
233 Mens Buildcon Private Limited
234 Mhaya Buildcon Private Limited
235 Monroe Builders & Developers Private Limited
236 Mouna Constructions Private Limited (till June 24, 2009)
237 Mouna Estates Private Limited (till June 24, 2009)
238 Mouna Properties Private Limited (till June 24, 2009)
239 Mulvey B.V.
240 Mulvey Venice Sri
241 Naman Consultants Limited
242 Nambi Buildwell Private Limited
243 Necia Builders & Developers Private Limited
244 Nellis Builders & Developers Private Limited
245 New Montana Limited (till October 31, 2009)
246 NewGen MedWorld Hospitals Limited
247 Nilayam Builders & Developers Limited
248 NOH (Hotel) Private Limited (Amangalla)
249 Nusantara Island Resorts Limited
250 Otemachi Tower Resorts Co. Limited
251 Overseas Hotels Private Limited
252 P.T. Amanresorts Indonesia (Amanusa)
253 P.T. Amanusa Resort Indonesia
254 P.T. Indrakila Villatama Development
255 P.T. Moyo Safari Abadi
256 P.T. Nusantara Island Resorts
257 P.T. Tirta Villa Ayu
258 P.T. Villa Ayu
259 Palawan Holdings Limited
260 Paliwal Developers Limited
261 Paliwal Real Estate Private Limited
262 PAT Infrastructures Private Limited
263 Pee Tee Property Management Services Limited
264 Phraya Riverside (Bangkok) Co. Limited
265 Princiere Resorts Limited
266 Prompt Real Estate Private Limited
267 Puri Limited
268 Queensdale Management Limited
269 Rati Infratech Private Limited
270 Red Acres Development Limited
271 Regency Park Property Management Services Private Limited
272 Regent Asset Finance Limited
273 Regent Land Limited
274 Regional Design & Research B.V.
275 Regional Design & Research N.V.
276 Rhea Retail Private Limited (w.e.f. June 19, 2009)
277 Richmond Park Property Management Services Limited
278 Riveria Commercial Developers Limited
279 Rod Retail Private Limited
280 Saket Courtyard Hospitality Private Limited (w.e.f. October 14,
2009 )
281 Samali Builders & Developers Private Limited
282 Sandesh Constructions Private Limited (till June 24, 2009)
283 Sandesh Estates Private Limited (till June 24, 2009)
284 Serendib Holdings B.V.
285 Shivajimarg Properties Limited
286 Silver - Two (Bangkok) Company Limited
287 Silver Oaks Property Management Services Limited
288 Silverlink (Mauritius) Limited
289 Silverlink (Thailand) Company Limited
290 Silverlink Holdings Limited
291 Sinonet Holding Limited
292 Societe Nouvelle de LHotel Bora Bora
293 Solid Buildcon Private Limited
294 Springhills Infratech Private Limited
295 Sunbreaze Estate Developers Limited ###
296 Sunlight Promoters Private Limited
297 Tahitian Resorts Limited
298 Tangalle Property (Private) Limted
299 Toscano Holdings Limited
300 Universal Hospitality Limited
301 Urvasi Infratech Private Limited
302 Valini Builders & Developers Private Limited
303 Venezia Estate Developers Limited ###
304 Villajena Development Company Limited
305 Vkarma Capital Investment Management Company Private Limited
306 Vkarma Capital Trustee Company Private Limited
307 VSK Investments & Finance Limited
308 Yucatan Holdings Pte. Limited ( w.e.f. May 19, 2009)
309 Zeugma Limited
310 Zola Real Estate Private Limited
311 Zoria Infratech Private Limited
(ii) Partnership firms
1 DLF Commercial Projects Corporation
2 DLF GK Residency
3 DLF Office Developers
4 DLF South Point
5 Kavicon Partners
6 Rational Builders and Developers
7 Saket Courtyard Hospitality (w.e.f. October 20, 2009)
(iii) Joint Ventures
1 Banjara Hills Hyderabad Complex
2 Delanco Real Estates Private Limited
3 DLF Gayatri Home Developers Private Limited
4 DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings Limited)
(till August 30, 2009)
5 DLF Limitless Developers Private Limited
6 DLF SBPL Developer Private Limited
7 DT Projects Limited [formerly DLF Laing ORourke (India) Limited]
(till November 11, 2009)
8 GSG DRDL Consortium
9 Kujjal Builders Private Limited
10 Mount Mary Residential Project
11 Niharika Shopping Mall (till August 31, 2009)
12 Saket Courtyard Hospitality (w.e.f. October 20, 2009)
13 Star Alubuild Private Limited (w.e.f June 15, 2009)
14 Y.G. Realty Private Limited (w.e.f July 02, 2009)
15 Domus Real Estate Private Limited (w.e.f March 02, 2010)
16 Cleva Builders and Developers Private Limited (w.e.f. March 31,
2010)
17 Prowess Buildcon Private Limited (w.e.f. March 31, 2010)
18 Saket Courtyard Hospitality Private Limited (till October 13, 2009 )
(iv) Associates
1 Australian Resorts Limited
2 DLF Pramerica Asset Managers Private Limited (formerly DLF Pramerica
Advisory Private Limited) (till March 09, 2010)
3 DLF Pramerica Trustees Private Limited (till March 09, 2010)
4 Ferragamo Retail India Private Limited
5 Giorgio Armani India Private Limited
6 Islan Aviation Limited
7 Joyous Housing Limited
8 Kyoto Resorts YK
9 Lillion Builders and Developers Private Limited (till September 23,
2009)
10 P.T Jawa Express Amanda Indah
11 PAMALICAN Island Holdings Inc.
12 Pandis (Thailand) Company Limited
13 Pansea Tourism Company Limited
14 Regional D & R Limited
15 Revlys SA
16 Seven Seas Resorts and Leisure Inc.
17 Surin Bay Co. Limited
18 Villajena
19 Zeus Infrastructure Private Limited
### Companies which are subsidiaries, merged with the
DLF Commercial Developers Limited a 100% subsidiary company w.e.f April
1, 2008 as per merger order of respective High Courts fi led with the
Registrar of Companies on March 3, 2010.
## Companies which are subsidiaries, merged with the DLF
Home Developers Limited a 100% subsidiary company w.e.f April 1, 2008
as per merger order of respective High Courts fi led with the Registrar
of Companies on February 23, 2010.
+++ Company already winded up u/s 560, the Registrar of
Companies approval awaited ++ Company which is a subsidiary merged with
DLF Residential Partners Limited w.e.f. September 1, 2008 as per merger
order of respective High Courts fi led with the Registrar of Companies
on March 4, 2010.
(v) Key Management Personnel
Name Designation Relatives (Relation)*
a) Mr. K.P Singh Chairman Mrs. Renuka Talwar
(Daughter)
b) Mr. Rajiv Singh Vice Chairman Mrs. Kavita Singh
(Wife)
Ms. Savitri Devi Singh
(Daughter)
Ms. Anushka Singh
(Daughter)
c) Mr. T.C. Goyal Managing Director Mrs. Sharda Goyal
(Wife)
d) Ms. Pia Singh Whole-time Mr Dhiraj Sarna
Director (Husband)
e) Mr. K. Swarup Sr. Executive Mrs. Veena Swarup
Director (Wife)
Mr Manish Swarup
(Son)
* Relatives of key management personnel (other than key management
personnel themselves) with whom there were transactions during the year
(vi) Other enterprises under the control of the key management
personnel and their relatives :
1 A.S.G. Realcon Private Limited
2 Adampur Agricultural Farm
3 Adept Real Estate Developers Private Limited
4 AGS Buildtech Private Limited
5 Altamount Real Estate Developers Private Limited
6 Angus Builders & Developers Private Limited
7 Antriksh Properties Private Limited
8 Anubhav Apartments Private Limited
9 Aquarius Builders & Developers Private Limited
10 Arihant Housing Company*
11 Atria Partners
12 Bansal Development Company Private Limited
13 Belicia Builders & Developers Private Limited
14 Beryl Builders & Constructions Private Limited
15 Beverly Park Operation and Maintenance Services Private Limited
16 Buland Consultants & Investments Private Limited
17 Caraf Builders & Constructions Private Limited ( till March 18,
2010)
18 Centre Point Property Management Services Private Limited
19 Ch. Lal Chand Memorial Charitable Trust
20 Cian Builders & Developers Private Limited (formerly DLF SEZ Parks
Private Limited)
21 DLF Assets Private Limited (till March 18, 2010)
22 DLF Info City Developers (Chandigarh) Limited (till March 18, 2010)
23 DLF Info City Developers (Kolkata) Limited (till March 18, 2010)
24 Desent Promoters & Developers Private Limited
25 Diana Retail Private Limited
26 Digital Talkies Private Limited
27 Dilly Builders & Developers Private Limited
28 Dinky Builders & Developers Private Limited
29 DLF Building & Services Private Limited
30 DLF Commercial Enterprises
31 DLF Foundation
32 DLF Investments Private Limited
33 DLF M.T.FBD Medical and Community Facility Charitable Trust
34 DLF Q.E.C. Educational Charitable Trust
35 DLF Q.E.C. Medical Charitable Trust
36 DLF Raghvendra Temple Trust
37 Elanor Builders & Developers Private Limited
38 Excel Housing Construction Private Limited
39 Exe. of The Estate of Lt. Ch. Raghvendra Singh
40 Exe. of The Estate of Lt. Smt. Prem Mohini
41 Family Idol Shri Radha Krishan Ji
42 Family Idol Shri Shiv Ji
43 Galena Builders & Constructions Private Limited
44 Gangrol Agricultural Farm & Orchard
45 General Marketing Corporation
46 Glaze Builders & Developers Private Limited
47 Haryana Electrical Udyog Private Limited
48 Herminda Builders & Developers Private Limited
49 Hitech Property Developers Private Limited
50 Indira Trust
51 Ishtar Retail Private Limited
52 Jhandewalan Ancillaries and Investments Private Limited
53 K. P. Singh HUF
54 Kohinoor Real Estates Company *
55 Krishna Public Charitable Trust
56 Lal Chand Public Charitable Trust
57 Lion Brand Poultries
58 Maaji Properties and Development Company *
59 Madhukar Housing and Development Company *
60 Madhur Housing and Development Company *
61 Magna Real Estate Developers Private Limited
62 Mallika Housing Company *
63 Megha Estates Private Limited
64 Northern India Theatres Private Limited
65 Pace Financial Services
66 Panchsheel Investment Company *
67 Panchvati Estates Private Limited
68 Parvati Estates Private Limited
69 Pia Pariwar Trust
70 Plaza Partners
71 Power Overseas Private Limited
72 Prem Traders & Investments Private Limited
73 Prems Will Trust
74 Pushpak Builders and Developers Private Limited
75 R.R Family Trust
76 Raghvendra Public Charitable Trust
77 Raisina Agencies & Investments Private Limited
78 Rajdhani Investments & Agencies Private Limited
79 Realest Builders and Services Private Limited
80 Renkon Partners
81 Renuka Pariwar Trust
82 Sabre Investment Advisor India Private Limited
83 Sabre Investment Consultants LLP
84 Sagarika Real Estate Developers Private Limited
85 Sambhav Housing and Development Company *
86 Sanidhya Constructions Private Limited
87 Sidhant Housing and Development Company *
88 Singh Family Trust
89 Sketch Investment Private Limited
90 Smt. Savitri Devi Memorial Charitable Trust
91 Solace Housing and Construction Private Limited
92 Solange Retail Private Limited
93 Sudarshan Estates Private Limited
94 Sukh Sansar Housing Private Limited
95 Sukomal Builders & Developers Private Limited
96 Sulekha Builders & Developers Private Limited
97 Super Mart One Property Management Services Private Limited
98 Super Mart Two Property Management Services Private Limited
99 Trinity Housing and Construction Company *
100 Udyan Housing and Development Company *
101 Ultima Real Estate Developers Private Limited
102 Universal Management & Sales Private Limited
103 Upeksha Real Estate Developers Private Limited
104 Uplift Real Estate Developers Private Limited
105 Urva Real Estate Developers Private Limited
106 Uttam Builders and Developers Private Limited
107 Uttam Real Estates Company *
108 Vishal Foods and Investments Private Limited
109 Yashika Properties and Development Company *
7 a) The Company uses forward contracts and Swaps to hedge its risks
associated with fl uctuations in foreign currency and interest rates.
The use of Forward contracts and Swaps is covered by Companys overall
strategy. The Company does not use Forward covers and Swaps for
speculative purposes.
As per the strategy of the Company, foreign currency loans are covered
by comprehensive hedge, considering the risks associated with the
hedging of such loans, which effectively fi xes the principal and
interest liability of such loans and further there is no additional
risk involved post hedging of these loans.
8 Contingent liabilities, not provided for, exist in respect of
(Rs. in lacs)
2010 2009
a) Guarantees issued by the
Company on behalf of :
Subsidiary companies 626,456.09 388,708.23
Others 13,005.93 12,000.00
b) Claims against the Company
(including unasserted claims) not
acknowledged as debts 13,778.33 12,097.05
c) Income tax demand in excess of
provisions (pending in appeals) 50,992.28 53,283.03
d) Undertaking to buy back preference
shares in subsidiary/ associate
companies * 186,629.82 170,939.57
* 29.81 acres of land of the Company and 55.8475 acres of land of
subsidiary companies is also pledged as collateral securities against
these undertakings. Further subsequent to the balance sheet date on May
5, 2010, preference shares amounting to Rs. 50,132.44 lacs have been
redeemed by one of the subsidiary company.
9. The Company is primarily engaged in the business of colonisation
and real estate development, which as per Accounting Standard 17 on
"Segment Reporting" issued by the ICAI is considered to be the only
reportable business segment. The Company is primarily operating in
India which is considered as a single geographical segment.
10. (a) Wind mill projects of the Company are entitled for tax holiday
under Section 80-IA of the Income Tax Act, 1961. Accordingly, the
computation of tax (current and deferred) has been done as per
Accounting Standard 22 "Accounting for taxes on Income" and Accounting
Standard Interpretation 3, issued by the ICAI.
(b) The Companys profits from Special Economic Zone ("SEZ") business
are exempt under Section 80-IAB of the Income Tax Act, 1961 and the
dividend declared out of such SEZ profits are exempt from Dividend
Distribution Tax under the provisions of Section 115-O(6) of the Income
Tax Act, 1961.
In line with the above provisions, the Company has provided dividend
tax only on the proportionate amount of dividend declared out of non
SEZ profits and after adjustment of the dividend received from its
wholly owned subsidiary company in terms of provisions of Section
115-O(1A)(i) of the Income Tax Act, 1961.
11. On May 6, 2009, the Company received an assessment order for the
AY 2006 Ã 2007, from the Income Tax authorities creating an additional
tax demand amounting to Rs. 48,274.34 lacs on the Company. The Company
has fi led an appeal against the order and based on advice from
experts, is confi dent that the additional tax demanded will not be
sustained by the appellate authorities. Pending the order of the
appellate authorities, no provision has been made in the current year
for the additional tax so demanded and the same has been disclosed as a
contingent liability.
12. Based on the information available with the Company, there are no
dues outstanding in respect of Micro, Small and Medium enterprises at
the balance sheet date. No amounts were payable to such enterprises
which were outstanding for more than 45 days. Further, no interest
during the year has been paid or payable in respect thereof. The above
disclosure has been determined to the extent such parties have been
identifi ed on the basis of information available with the Company.
This has been relied upon by the auditors.
13. Events after Balance Sheet date
Subject to the approval of shareholders and other requisite approvals,
the Board of Directors approved in their meeting held on July 28, 2010,
the proposal for further issue of equity shares by its wholly owned
subsidiary à DLF Brands Limited (DBL) under the Unlisted Public
Companies (Preferential Allotment) Rules, 2003 to M/s. Ishtar Retail
Private Limited, a promoter group company. Upon further issue of equity
shares, DBL will cease to be subsidiary of DLF Limited. Pending further
approvals no effect has been given to the proposal in the above fi
nancial statements.
14. Previous year figures have been regrouped/ recast wherever
considered necessary to make them comparable with those of the current
year.