DLF

1.  Share capital:
 
 (a) Share capital includes:
 
 - 5,877,850 equity shares of Rs. 2 each (originally 1,175,570 shares of
 Rs. 10 each) fully paid allotted pursuant to a scheme of amalgamation
 of DLF United Limited with the Company, without payment being received
 in cash.
 
 - 1,338,603,595 equity shares of Rs.  2 each fully paid issued as bonus
 shares by way of capitalisation of free reserves and share premium
 account.
 
 (b) On May 18, 2007, in pursuance of approval granted by the
 shareholders in their Extra - ordinary General meeting held on November
 14, 2006, the Company upon conversion of 1,029, 2% unsecured optionally
 fully or partly convertible debenture of Rs. 100 each has allotted (a)
 51,450 equity shares of Rs. 2 each and (b) 360,150 equity shares of Rs.
 2 each as bonus shares in the ratio 7:1 aggregating to 411,600 equity
 shares of Rs. 2 each.
 
 (c) During the year, the Company completed its Initial Public Offer
 (‘IPO’) and consequently, the Company has allotted 175,000,000 equity
 shares of Rs. 2 each at a price of Rs. 525 per share on June 28, 2007.
 The fully paid up equity shares of the Company were listed for trading
 on Bombay Stock Exchange and National Stock Exchange on July 5, 2007.
 
 (d) Pursuant to the above transactions, the paid up share capital of
 the Company increased by Rs 3,508.23 lacs (175,411,600 equity shares of
 Rs 2 each) during the period from April 1, 2007 to March 31, 2008.
 
 2.  Secured loans
 
 a) Facilities with banks comprise, term loans and overdraft facilities
 which are secured by equitable mortgages of certain lands/properties of
 the Company/ subsidiary Companies and/or against future receivables of
 the Company.
 
 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.
 
 c) Loans in respects of aircraft, wind mill projects and vehicles are
 secured by hypothecation of the respective assets, thus purchased.
 
 d) Loans due within one year Rs. 221,893.58 lacs (previous year Rs.
 122,863.44 lacs)
 
 3.  Unsecured loans
 
 a) Fixed deposits include unclaimed deposits amounting to Rs.0.27 lac
 (previous year Rs. 0.27 lac) which are not due for credit to ‘Investor
 Education and Protection fund’.
 
 b) Loans due with in one year Rs. 243,999.01 lacs (previous year Rs.
 52,647.77 lacs)
 
 4.  Fixed assets
 
 Leased plant and machinery included in fixed assets is carried at net
 realisable value, pending transfer to the lessee on fulfilment of
 certain conditions against which security of an equivalent amount is
 lying with the Company.
 
 5. a) The profit/loss from sale of developed plots in DLF City, Gurgaon
 (Complex) is accounted for in the year of execution of agreements to
 sell. 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 5.15
 lacs sq. mts. of plotted area during the year (previous year 3.06 lacs
 sq. mts.) 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.
 The Company has also purchased during the year Nil (previous year .01
 lacs sq. mtr.) commercial properties from subsidiary/coordinating
 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 no. 8 stated in schedule 23.
 Final adjustment, if any, will be made on completion of the applicable
 scheme/project.
 
 b) In respect of houses, flats etc. the construction work of which was
 substantially completed upto March 31, 1991, revenue is recognised
 proportionate to sale proceeds, the cost of construction for which has
 been determined by excluding the cost of land based on market price
 prevailing at the time of booking of such properties.
 
 c) The profit/loss from sale of agricultural land comprising land owned
 by the Company and its subsidiary/co-ordinating 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. The
 Company has purchased during the year 2.37 acres of land (previous year
 10.01 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.
 
 d) In terms of the agreement with DLF Housing and Construction Limited
 and Mayur Recreational and Development Limited since merged with the
 Nachiketa Real Estates Private Limited, 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 against the same to 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.
 
 e) 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.
 
 f) 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 no. 7 on revenue recognition, revenue of
 this agreement to sell is being recognised based on “percentage of
 completion” method.
 
 6. 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/to be acquired by these firms.
 
 In terms of accounting policy no. 6 of schedule 23 the advances given
 to these partnership firms which are against these agreements are
 classified as stock.
 
 7.  The Company accrues construction costs under individual vendor
 contracts based on invoices received from the respective vendors.
 Accordingly, construction cost as at the balance sheet date is accrued
 upto the last joint measurement date of the respective contracts
 immediately preceding the balance sheet date as management believes
 that the Company’s obligation under these contracts arises only when
 joint measurement is completed.
 
 8.  Non cash transactions
 
 a) During the year, the Company re- classified the Amex I building and
 related equipments in DLF City Gurgaon from ‘’Fixed assets’’ to
 ‘’Stock’’ at net book value. The gross cost and accumulated
 depreciation of this building as at April 1, 2007 was Rs 1,308.52 lacs
 and Rs 88.90 lacs respectively.
 
 b) During the year, the Company converted investments of Rs 4,096.06
 lacs in DLF City Centre, a partnership firm, held as long term
 investment as at April 1, 2007 into a loan to the partnership firm.
 
 c) During the year, the Company converted loan of Rs 124.00 lacs given
 to DLF Akruti Info Parks (Pune) Limited into a long term investments.
 
 d) Share issue expenses incurred till March 31, 2007 amounting to Rs.
 11,277.40 lacs and carried under loans and advances as on April 1, 2007
 were adjusted against Securities premium received from the public offer
 during the year.
 
 9.  Amounts based on estimates not provided/ under provided in
 previous years are accounted for in the year of final settlement or
 adjustment.
 
 10. Wind Mill projects of the Company are entitled for tax holiday
 under Section 80-IA of the Income tax Act, 1961. 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 ICAI.
 
 11. 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. 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.
 
 12. Previous year figures have been regrouped/recast wherever
 considered necessary to make them comparable with those of the current
 year.