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Notes to Accounts of DLF Ltd.

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 "Revenue” read with Guidance Note for Real Estate Transactions for Ind AS compliant entities and Ind AS 115 "Revenue from contract with customers”, 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 Contracts”, read with "Guidance Note on Recognition of revenue by Real Estate Transactions” 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 ("DHBVN”) 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 ("HERC”), 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 ("APTEL’) 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.

8) Indemnification of DCCDL

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 ("DLF” or "the Company”) 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 Items”, 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.

52. SEGMENT REPORTING

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 ("NCLT”), 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 Companies”) and demerger and Transfer/ Vesting of real estate undertaking of DLF Utilities Limited ("Demerged Company”) with DLF Limited ("Transferee Company”) 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 ("Developer”) has a land parcels which is notified Special Economic Zone ("SEZ”) 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 Codeveloper”) 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 CCPS”) 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

Securities premium includes premium on issue of shares. It will be utilised 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 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.

Forfeiture of shares

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).

Non-convertible debentures:

(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.

Rate of interest:

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.

Loan Covenants:

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.

Rupee term loans from banks:

(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.

Loan covenants:

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.

Performance obligation

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 Statements” 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.

37. FINANCIAL RISK MANAGEMENT

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.

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

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.

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 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

ii) Assets

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.

c) Price risk

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.

38. CAPITAL MANAGEMENT

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.

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 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 ("Joyous”), a joint venture company, in favour of PNB Housing Finance Limited ("PNBHFL'') to secure the credit facility up to ? 80,000.00 lakhs ["Credit Facility”] availed by Joyous.

48. COMPANY AS A LESSEE

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).

Company as a lessor

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).

49. COMMITMENTS

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 (‘ECB''). 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 ‘Cash 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 “Guidance Note on Real Estate Transactions”, 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 “Revenue from Contracts with Customers”. 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 (“Developer”) has a land parcels which is notified Special Economic Zone (“SEZ”) 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 (“DAPL” or “the Co-developer”), 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 ‘Separate 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 (“Class-B CCPS”) 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 ‘MAT 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 ‘Revenue 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 (‘PoCM'') 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 (‘PoCM'') 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 Company’s 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, “Separate Financial Statements” 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, “Separate financial statements”.

** 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 (‘the Company’) 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 (‘financial statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under Section 133 of the Companies Act, 2013 (‘Act’) 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 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.

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 (“Developer”) has a land parcels which is notified Special Economic Zone (“SEZ”) 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 (“DAPL” or “the Co-developer”), 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 it’s 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 Company’s 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 arm’s 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 (‘FVOCI’) 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 ‘MAT 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.

# 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 (“RERA”). 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 Company’s 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 Company’s 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 (“EPS”) 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 (“DCF”) 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, “Separate Financial Statements” 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.’

8. FINANCIAL RISK MANAGEMENT

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 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, “Separate financial statements”.

** 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. The Company’s 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 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.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 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 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 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 Company’s 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 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 variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:

ii) Assets

The company’s 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 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.

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 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 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 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 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 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.

(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 “Accounting for Real Estate Transactions (Guidance Note)” 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 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 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 management’s 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 (“DCCDL Group”), 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 ‘Investment in Associated and JointVentures’ and Ind AS111 ‘Joint Arrangements’. 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 Hon’ble 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 Hon’ble 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 Hon’ble 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 arm’s 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 Company’s 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 (“SPSHA”) with Reco Diamond Private Limited (“Investor”), an affiliate of GIC Singapore, DLF Cyber City Developers Limited (“DCCDL”) 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 (“DUL”) had received a notice from the Dakshin Haryana Bijli Vitran Nigam (“DHBVN”) 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 (“HERC”), 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 (‘the Company’) 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 (‘financial statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under Section 133 of the Companies Act, 2013 (‘the Act’) 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, ‘Statement of cash flow’ and Ind AS 102, ‘Share-based payment.’ 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 ‘fair values’, 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 (“Developer’’) has a land parcels which is notified Special Economic Zone (“SEZ”) 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 (“DAPL” or “the Co-developer”), 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 ‘Specified Bank Notes’ 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

“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.

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).”

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 Company’s 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 Company’s 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 ‘16,000.00 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, “Separate financial statements”.

** 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 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. The Company’s 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 Company’s 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 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

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.

b) Interest rate risk

i) Liabilities

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.

Interest rate risk exposure

The Company’s variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:

ii) Assets

The company’s 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 Company’s 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 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. 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 ‘Cash Flow Hedge Reserve’. 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 – "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 – "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 – "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 – "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 – "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 – "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 – "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 – "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 – 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 – 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.

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