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DLF

BSE: 532868|NSE: DLF|ISIN: INE271C01023|SECTOR: Construction & Contracting - Real Estate
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Notes to Accounts Year End : Mar '19

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 above agreements for acquiring development rights, are classified under inventory as development rights.

a) Provident fund

The Company offer 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 funds trust during the year is Rs,441.56 lakhs (31 March 2018: Rs,295.02 lakhs). In this regard, actuarial valuation as on 31 March 2019 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 2019.

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 12.72 years (31 March 2018: 12.84 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 recognized 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

(i) Subsidiary and stepdown subsidiaries companies at any time during the year

1. Aadarshini Real Estate Developers Private Limited [till 18 March 2019]$

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. Ariadne Builders & Developers Private Limited

9. Armand Builders & Constructions Private Limited

10. Benedict Estates Developers Private Limited

11. Beyla Builders & Developers Private Limited

12. Bhamini Real Estate Developers Private Limited

13. Breeze Constructions Private Limited

14. Chakradharee Estates Developers Private Limited

15. Chandrajyoti Estate Developers Private Limited

16. Dae Real Estates Private Limited

17. Daffodil Hotels Private Limited

18. Dalmia Promoters and Developers Private Limited

19. Delanco Home and Resorts Private Limited

20. Delanco Realtors Private Limited

21. Deltaland Buildcon Private Limited

22. DLF Aspinwal Hotels Private Limited

23. DLF Builders and Developers Private Limited [formerly SC Hospitality Private Limited]

24. DLF Cochin Hotels Private Limited

25. DLF Commercial Developers Limited

26. DLF Emporio Restaurants Limited

27. DLF Energy Private Limited

28. DLF Estate Developers Limited

29. DLF Garden City Indore Private Limited

30. DLF Golf Resorts Limited

31. DLF Home Developers Limited

32. DLF Homes Goa Private Limited

33. DLF Homes Services Private Limited

34. DLF Info City Hyderabad Limited

35. DLF Info City Chennai Limited

36. DLF Info Park (Pune) Limited

37. DLF Info Park Developers (Chennai) Limited

38. DLF Lands India Private Limited [formerly Berenice Real Estate Private Limited]

39. DLF Luxury Homes Limited [formerly DLF GK Residency Limited]

40. DLF Phase-IV Commercial Developers Limited

41. DLF Projects Limited

42. DLF Property Developers Limited

43. DLF Real Estate Builders Limited

44. DLF Recreational Foundation Limited

45. DLF Residential Builders Limited

46. DLF Residential Developers Limited

47. DLF Residential Partners Limited

48. DLF South Point Limited [now merged with DLF Commercial Developers Limited]

49. DLF Southern Towns Private Limited

50. DLF Universal Limited

51. DLF Utilities Limited

52. Domus Real Estate Private Limited

53. Eastern India Powertech Limited

54. Edward Keventer (Successors) Private Limited

55. Elvira Builders & Constructions Private Limited

56. Faye Builders & Constructions Private Limited

57. Galleria Property Management Services Private Limited

58. Ghaliya Builders & Developers Private Limited

59. Genisys Property Builders & Developers Private Limited [w.e.f. 14 May 2018]

60. Hansel Builders & Developers Private Limited

61. Hyma Developers Private Limited [formerly DLF Homes Kokapet Private Limited] (till 24 December 2018)®

62. Isabel Builders & Developers Private Limited

63. Kolkata International Convention Centre Limited

64. Lada Estates Private Limited

65. Latona Builders & Constructions Private Limited

66. Lear Builders & Developers Private Limited

67. Lempo Buildwell Private Limited

68. Liber Buildwell Private Limited

69. Livana Builders & Developers Private Limited

70. Lizebeth Builders & Developers Private Limited

71. Lodhi Property Company Limited

72. Mariabella Builders & Developers Private Limited

73. Melosa Builders & Developers Private Limited

74. Mens Buildcon Private Limited

75. Nambi Buildwell Private Limited

76. Narooma Builders & Developers Private Limited

77. Nellis Builders & Developers Private Limited

78. Niobe Builders & Developers Private Limited

79. Nudhar Builders & Developers Private Limited

80. Paliwal Developers Limited

81. Paliwal Real Estate Limited

82. Phoena Builders & Developers Private Limited

83. Pyrite Builders & Constructions Private Limited

84. Qabil Builders & Constructions Private Limited

85. Rachelle Builders & Constructions Private Limited

86. Riveria Commercial Developers Limited

87. Rochelle Builders & Constructions Private Limited

88. Royalton Builders & Developers Private Limited

89. Saket Holidays Resorts Private Limited

90. Shivaji Marg Maintenance Services Limited

91. Tiberias Developers Limited [formerly DLF Finvest Limited]

92. Urvasi Infratech Private Limited

93. Vibodh Developers Private Limited

94. Vkarma Capital Investment Management Company Private Limited

95. Vkarma Capital Trustee Company Private Limited

96. Webcity Builders & Developers Private Limited

One of the subsidiary company hold 51% equity in Balaji Highways Holding Limited (Balaji), however, the group was neither control nor exercises any influence over Balaji. Since there is no control or influence and investment being immaterial, the same has not been accounted for as a Subsidiary or an Associate or Joint Venture in terms of Ind AS 28 ‘Investment in Associates or Joint Ventures''.

(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 Venture (JV)/ Associates (A)/ Joint Opeartions (JO)

1. Banjara Hills Hyderabad Complex (JO)

2. DLF Gayatri Home Developers Private Limited (JV)

3. DLF Midtown Private Limited (JV)

4. DLF SBPL Developers Private Limited (JV)

5. DLF Urban Private Limited (JV)

6. GSG DRDL Consortium (JO)

7. Fairleaf Real Estate Private Limited [formerly YG Realty Private Limited] (JV)

8. Designplus Associates Services Private Limited (JV)

9. Spazzio Projects and Interiors Private Limited (JV)

(Wholly-owned subsidiary of Designplus Associates Services Private Limited)

10. DLF Homes Panchkula Private Limited (A)

11. Joyous Housing Limited (JV)

12. Arizona Globalservices Private Limited (A)*

13. Aadarshini Real Estate Developers Private Limited [w.e.f. 19 March 2019]$

14. DCCDL GROUP (JV)

Comprising investment in DLF Cyber City Developers Limited along with its following subsidiaries [w.e.f. 26 December 2017]

i. Caraf Builders & Constructions Private Limited

[now merged with DLF Cyber City Developers Limited (w.e.f. 27 September 2018)]

ii. DLF Assets Private Limited

iii. DLF City Centre Limited

iv. DLF Emporio Limited

v. DLF Info City Developers (Chandigarh) Limited

vi. DLF Info City Developers (Kolkata) Limited

vii. DLF Power & Services Limited

viii. DLF Promenade Limited

ix. Richmond Park Property Management Services Limited

$ Due to terms and conditions of Joint Venture Agreement between the Company and Investor, requiring unanimity of agreement in respect of significant matters related to the financial and operating policies of Aadarshini Real Estate Developers Private Limited (“AREDPL”), the Company considers that it does not solely control AREDPL and therefore investment in AREDPL has been accounted for as joint venture in accordance with Ind AS 28 ‘Investment in Associates and Joint Ventures'' and Ind AS 111 ‘Joint Arrangements''. This was accounted for as subsidiary till 18 March 2019.

* 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 Company. Hence, Arizona has been classified as an associate and the Company recognizes its share in net assets through equity method.

A Due to terms and conditions of Share Purchase and Shareholders Agreement (“SPSHA”), between the Company and Reco Diamond Private Limited (“Investor”), requiring unanimity of agreement in respect of significant matters related to the financial and operating policies of DLF Cyber City Developers Limited 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 Associates and Joint Ventures'' and Ind AS 111 ‘Joint Arrangements''. These entities were accounted for as subsidiaries till 25 December 2017.

@ As per the terms of agreement entered during the period with a third party, the Company has lost control over the entity, further the remaining stake of Company is also to be sold as per the said agreement at a nominal value. As per the terms of the agreement, the Company does not have any influence over the entity in terms of Ind AS 28, ‘Investments in Associates and Joint Ventures'', therefore, the entity has not been considered and accounted for as an associate in terms of Ind AS 28, ‘Investments in Associates and Joint Ventures''.

a) Holding company

Rajdhani Investments & Agencies Private Limited (w.e.f. 12 March 2018)

b) Fellow subsidiary/ partnership firms

DLF Urva Real Estate Developers & Services Private Limited (subsidiary company)

Lion Brand Poultries (partnership firm)

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 loan to related parties which are repayable on demand. These loans are provided at interest rates of 10.00% (31 March 2018: 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(s) in respect of loan taken by the subsidiaries/ associates companies and joint ventures from that bank and financial institution and vice-versa.

5. The Company provides business and financial support to certain subsidiaries/ associates companies, which are in losses and is dependent on parent company for meeting out their cash requirements.

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,154,590.45 lakhs (31 March 2018: 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,20,819.36 lakhs (31 March 2018: 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 Rs,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 Company was liable to pay the cross subsidy surcharge and accordingly, a demand of Rs,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 who has stayed the execution of the said order and asked DUL to deposit an amount of Rs,284.36 lakhs to DHBVN which has been duly deposited.

Based on the advice of the independent legal counsel, the management believes that there is a reasonably strong likelihood of succeeding before the Hon''ble Supreme Court of India and accordingly no adjustment is required to be made in these financial statements at this stage.

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 on 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 disposal before the Supreme Court of India.

Based on the advice of the independent legal counsel, the management believes that there is strong likelihood of succeeding before the Hon''ble Supreme Court of India.

v) The Company along with its subsidiaries 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 the DCCDL behalf. The Net Block and Capital Work-in-Progress against Silokhera project appearing in DCCDL books as at 31 March 2019 amounts to Rs,160,785.95 lakhs (gross block of Rs,187,490.98 lakhs) and Rs,89,122.37 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 subsidiary 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 counsel, the management believes 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 further adjustment has been made in these financial statements.

b) Certain other 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 12 August 2011 and 29 August 2011 wherein the CCI had imposed a penalty of Rs,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). The COMPAT, pending hearing and till final orders had granted stay on demand of penalty of Rs,63,000.00 lakhs imposed by CCI.

COMPAT vide its order dated 19 May 2014 accepted the arguments of DLF that since the agreements were entered into prior to coming into force of Section 4 of the Competition Act, 2002 the clauses of the agreements entered in 2006-07 could not be looked into for establishing contravention of Section 4 of the Competition Act, 2002, however, COMPAT held that the Company is a dominant player in Gurugram being the relevant market and has abused its dominant position in relation to certain actions which is violative of Section 4 of the Competition Act 2002 and has accordingly upheld the penalty imposed by CCI.

The Company has 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 Rs,63,000.00 lakhs in the Court.

In compliance of the order, the Company has deposited Rs,63,000.00 lakhs with the Hon''ble Supreme Court of India.

The appeals will be listed for arguments before Hon''ble Supreme Court of India in due course.

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 final decisions on the above matter, no adjustment has been made in these standalone financial statements.

b) During the year ended 31 March 2011, the Company received judgments from the Hon''ble High Court of Punjab and Haryana cancelling the sale deeds of land relating to IT SEZ Project in Gurugram. The Company filed Special Leave petitions (SLPs) challenging the orders in the Hon''ble Supreme Court of India.

The Hon''ble Supreme Court of India has admitted the matters 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 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) had issued a Show Cause Notice (SCN) dated 25 June 2013 under Sections

11(1), 11(4), 11A and 11B of the SEBI Act, 1992 (“the SEBI 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 filed 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 10 October 2014 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 13 March 2015 allowed all the appeals and the impugned order passed by SEBI has been quashed and set aside.

SEBI has filed a statutory appeal under Section 15Z of SEBI Act before the Hon''ble Supreme Court of India.

On 24 April 2015, the Hon''ble Supreme Court of India admitted the appeal (‘Appeal'') filed by SEBI and issued notice on interim application. No stay has been granted by Hon''ble Supreme Court of India in favour of SEBI.

SEBI had filed an application stating that proposed sale of Compulsorily Convertible Preference Shares (‘CCPS'') in DLF Cyber City Developers Limited, subsidiary company, by the promoters, to third party Institutional Investors should not be allowed during the pendency of the appeal and have sought stay from the Hon''ble Supreme Court of India on the proposed transactions. The Hon''ble Supreme Court did not pass any order and has kept the application to be heard along with the Appeal.

(ii) SEBI also issued a SCN dated 28 August 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 Officer) Rules, 1995 (“Adjudication Rules”), hearing on which has been completed and the Company has filed its written synopsis/ submissions.

By way of orders dated 26 February 2015, the Adjudicating Officer of SEBI imposed penalties upon the Company, some of its Directors, officer, its three subsidiaries and their Directors under Section 15HA and under Section 15HB of the SEBI Act, 1992.

The Company, its Directors, officer, its three subsidiaries and their Directors have filed appeal before SAT impugning the order dated 26 February 2015 passed by an Adjudicating Officer of SEBI. The appeal was listed before SAT and in its order dated 15 April 2015, SEBI has undertaken not to enforce the orders dated 26 February 2015 during pendency of the appeal.

The appeals were listed for hearing before SAT on 25 April 2018. The SAT vide its order passed on 25 April 2018 held that in view of SAT''s majority decision dated 13 March 2015, the Adjudication Officer''s decision dated 26 February 2015 cannot be sustained. Accordingly, the Hon''ble SAT disposed of the appeals, along with Intervention Application of Kimsuk Krishna Sinha. According to the judgment, the said appeals, shall stand automatically revived once Hon''ble Supreme Court disposes of the civil appeals filed by SEBI against the SAT''s judgment dated 13 March 2015.

d) The petitions were filed before the Hon''ble Punjab & 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 & 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 Rs,99,969.26 lakhs to government towards purchase of this land out of total consideration of Rs,182,437.49 lakhs.

The Hon''ble Punjab & 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 & 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, the management believes that there is a reasonably 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.

e) DLF has filed an Special Leave Petition (SLP) against the order dated 2.12.2016 passed by the Hon''ble Punjab & 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. DLF 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 Supreme Court on the grounds that the 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 Hon''ble Supreme Court of India in due course.

Based on the advice of the independent legal counsels, the management believes that there is reasonably strong likelihood of succeeding before the Hon''ble Supreme Court of India. Pending the final decisions on the above matter, no adjustments has been made in these financial statements.

Employee Stock Option Scheme, 2006 (ESOP):

During the year ended 31 March 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.

Options are granted under the plan for the consideration of Rs,2/- per share and carry no dividend or voting rights. When exercisable, each option is convertible into one equity share. For the options which were vested before 31 March 2015, using the Ind AS transition exemption (as explained in the significant accounting policies no. 5(o)) the expense related to options is arrived at using intrinsic value of the shares on the date of grant. For options which were vested after 31 March 2015, the expense related to options is arrived at using fair value of the options on the date of grant.

Share options outstanding at the end of the year (tranche wise) have the following exercise prices:

The expected volatility was determined based on historical volatility data of the Company''s shares listed on the National Stock Exchange of India Limited.

Employee Shadow Option Scheme (Cash settled options):

a) Under the Employee Shadow Option Scheme (the ‘scheme''), employees are entitled to get cash compensation based on the average market price of equity share upon exercise of shadow option on a future date. As per the scheme, Shadow options will vest as follows:

* For tranche I and II, 50% options have already been vested in the financial year ended 31 March 2010 and remaining 50% vested in financial year ended 31 March 2012. For tranche III & IV, 50% options vested in the financial year ended 31 March 2011 and remaining 50% vested in financial year ended 31 March 2012. For tranche V, the options vested in financial year ended 31 March 2012. For tranche VII, 33.33% vested in financial year ended 31 March 2014 and 33.33% vested in 31 March 2015 and remaining 50% vested in financial year ended 31 March 2016. For tranche VIII, 33.34% vested in financial year ended 31 March 2017. For tranche VI, the entire options vested in financial year ended 31 March 2018. For tranche VIII, all the remaining options have forfeited during the financial year ended 31 March 2018.

Subsequent to the Balance Sheet date, the Company in accordance with Board Resolution dated 5 February 2019, has transferred Mall of India, Noida (consisting of shopping mall-cum-multiplex and basement for parking and other services including common area and facilities) to one of its subsidiary company for a consideration of Rs,295,000.00 lakhs. Accordingly, as per Ind AS 105 ''Non Current Assets held for Sale and Discontinuing Operations'', the related assets of Mall of India, Noida have been classified as held for sale as the carrying amount of the assets will be recovered principally through sales transaction rather than continuing use. The assets held for sale have been recognized and measured at carrying amount as the fair value of consideration is more than the carrying amount. The details of assets held for sale are as under:

59. The following subsidiary companies have also filed amalgamation/ arrangement petitions as per details below before the Hon''ble National Company Law Tribunal (NCLT), Chandigarh Bench during the year. The respective petitions are in process before the said Hon''ble NCLT and hence, no effect thereto has been given in the standalone financial statements:

On 29 March 2019, the Company issued 173,000,000 equity shares of face value of Rs,2/- each at an issue price of Rs,183.40 per share, aggregating to Rs,317,282.00 lakhs. The Issue was made through the Qualified Institutions Placement in terms of Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Section 42 and other applicable provisions of the Companies Act, 2013 (including the rules made thereunder), as amended (the “SEBI Regulations”)

Pursuant to the allotment of Equity Shares in the QIP the paid-up equity share capital of the company stands increased to Rs,39,149.00 lakhs comprising 1,957,475,112 Equity Shares.

b) Warrants and compulsorily convertible debentures

During the previous year, the Company had issued 138,089,758 Warrants and 379,746,836 number of 0.01% Compulsorily Convertible Debentures (CCDs) 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 had 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 excercise of Warrants. In respect of issuance of 379,746,836 CCDs, convertible into equity shares within 18 months of allotment, the Company had received 100% amount of Rs,825,000.00 lakhs.

Further, in accordance with Securities Issuance Committee Resolution dated 29 March 2019, the Company allotted 249,746,836 Equity Shares by converting equal number of Compulsorily Convertible Debentures (“CCDs”) of Rs,217.25 each allotted to Promotor/ Promotor group companies into Equity Shares of Rs,2/-. Upon conversion of CCDs, the paid-up equity share capital of the Company stands increased to Rs,44,144.00 lakhs comprising 2,207,221,948 Equity Shares.

c) Utilization of proceeds from QIP, Warrants and CCDs

i) Against receipt of Rs,317,282.00 lakhs from QIP, no amount has been utilized during the year ended 31 March 2019 and the amount stands partially invested in fixed deposits and balance remains in current account.

ii) Against receipt of Rs,900,010.36 lakhs by way of allotment of Warrants and Compulsorily Convertible Debentures on preferential basis, entire amount has been utilized towards repayment of loans and investment in subsidiary companies.

Ind AS 115 supercedes 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 of all 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 Company adopted Ind AS 115 using the modified retrospective method of adoption with the date of initial application of 1 April 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. 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. Consequently, the disclosures required under the Guidance Note on “Accounting for Real Estate Transactions” have not been given.

Foot notes to Note 61:

(a) 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 the Institute of Chartered Accountants of India, revenue has been recognized at a point in time in accordance with and pursuant to conditions specified in revised accounting standard, Ind AS 115 “Revenue from Contracts with Customers”. However, for other contracts, the Company continues to recognize revenue over the period of time. The criteria for recognition of revenue over the period of time or at point in time is depandant on the five step method as defined in policy.

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 of Rs,212,786.24 lakhs) pertaining to recognition of revenue based on satisfaction of performance obligation at a point in time.

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 March 31, 2019 is higher by Rs,80,488.37 lakhs (net of tax of Rs,43,232.90 lakhs), than it would have been if erstwhile standards were applicable. Consequential impacts are reflected in folllowing balances:

(i) Inventories have increased by Rs,219,873.69 lakhs as on 1 April 2018 since revenue has been reversed for units where control has not been transferred. This in turn leads to decrease in trade receivables by Rs,19,346.49 lakhs and decrease in unbilled revenue by Rs,135,881.91 lakhs (appearing under other financial assets). Further amounting to Rs,330.15 lakhs has been reclassified to contract assets in accordance with Ind AS 115.

(ii) Increase in other current liabilities by Rs,674,081.62 lakhs due to recognition of contract liabilities (Rs,670,116.46 lakhs) and Cost to Complete (Rs,3,963.16 lakhs).

(b) Represents changes in deferred tax assets, inventories, trade receivable, other financial assets and other current liabilities on account of adoption of Ind AS 115 w.r.t. similar reasons as explained in (a) above.

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

1. Ind AS 116 Leases

Ind AS 116 Leases was notified by MCA on 30 March 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees

- leases of ‘low-value'' assets and short-term leases (i.e. leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g. a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting under Ind AS 116 is substantially unchanged from today''s accounting under Ind AS 17. Lessors will continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases. The Company intends to adopt these standards from 1 April 2019.

The Company has established an implementation team to implement Ind AS 116 related to the recognition of revenue from lease contracts with customers and accrual of lease expense where company is a lessee. The Company continues to evaluate the changes to accounting systems and processes and additional disclosure requirements that may be necessary.

Upon adoption, the Company expects there to be a change in the manner that revenue and expenses is recognized/ accrued in respect of lease contracts entered into by the Company. A reliable estimate of the quantitative impact of Ind AS 116 on the financial statements will be concluded once the evaluation and assessment by the Company has been completed.

2. Appendix C to Ind AS 12 Uncertainty over Income Tax Treatment

The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of Ind AS 12 and does not apply to taxes or levies outside the scope of Ind AS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:

- Whether an entity considers uncertain tax treatments separately

- The assumptions an entity makes about the examination of tax treatments by taxation authorities

- How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

- How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainity should be followed. In determining the approach that better predicts the resolution of the uncertainty, an entity might consider, for example, (a) how it prepares its income tax filings and supports tax treatments; or (b) how the entity expects the taxation authority to make its examination and resolve issues that might arise from that examination.

The interpretation is effective for annual reporting periods beginning on or after 1 April 2019, but certain transition reliefs are available. The Company will apply the interpretation from its effective date. Since the Company operates in a complex multinational tax environment, applying the Interpretation may affect its standalone financial statements. In addition, the Company may need to establish processes and procedures to obtain information that is necessary to apply the Interpretation on a timely basis.

3. Amendments to Ind AS 109: Prepayment Features with Negative Compensation

Under Ind AS 109, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are ‘solely payments of principal and interest on the principal amount outstanding'' (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to Ind AS 109 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract.

The amendments should be applied retrospectively and are effective for annual periods beginning on or after 1 April 2019. These amendments have no impact on the standalone financial statements of the Company.

4. Amendments to Ind AS 19: Plan Amendment, Curtailment or Settlement

The amendments to Ind AS 19 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to:

- Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event.

- Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability (asset).

The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognized in profit or loss.

An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognized in other comprehensive income.

The amendments apply to plan amendments, curtailments, or settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 April 2019. These amendments will apply only to any future plan amendments, curtailments, or settlements of the Company.

5. Amendments to Ind AS 28: Long-term interests in associates and joint ventures

The amendments clarify that an entity applies Ind AS 109 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in Ind AS 109 applies to such long-term interests.

The amendments also clarified that, in applying Ind AS 109, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying Ind AS 28 Investments in Associates and Joint Ventures.

The amendments should be applied retrospectively in accordance with Ind AS 8 for annual reporting periods on or after 1 April 2019. Since the Company does not have such long-term interests in its associate and joint venture, the amendments will not have an impact on its standalone financial statements.

6. Annual improvement to Ind AS (2018):

These improvements include:

- Amendments to Ind AS 103: Party to a Joint Arrangements obtains control of a business that is a Joint Operation

The amendments clarify that, when an party to a joint arrangement obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its entire previously held interest in the joint operation.

An entity applies those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 April 2019. These amendments are currently not applicable to the Company but may apply to future transactions.

- Amendments to Ind AS 111: Joint Arrangements

A party that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in Ind AS 103. The amendments clarify that the previously held interests in that joint operation are not premeasured.

An entity applies those amendments to transactions in which it obtains joint control on or after the beginning of the first annual reporting period beginning on or after 1 April 2019. These amendments are currently not applicable to the Company but may apply to future transactions.

- Amendments to Ind AS 12: Income Taxes

The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events.

An entity applies those amendments for annual reporting periods beginning on or after 1 April 2019. Since the Company''s current practice is in line with these amendments, the Company does not expect any effect on its standalone financial statements.

- Amendments to Ind AS 23: Borrowing Costs

The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

An entity applies those amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the entity first applies those amendments. An entity applies those amendments for annual reporting periods beginning on or after 1 April 2019. Since the Company''s current practice is in line with these amendments, the Company does not expect any effect on its standalone financial statements.

63. The figures for the corresponding previous year have been regrouped reclassified, wherever considered necessary, to make them comparable with current year classification.

Source : Dion Global Solutions Limited
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