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DLF Ltd.

BSE: 532868 Sector: Infrastructure
NSE: DLF ISIN Code: INE271C01023
BSE 15:46 | 19 Jan 249.30 -0.85
(-0.34%)
OPEN

249.85

HIGH

252.50

LOW

245.55

NSE 15:53 | 19 Jan 249.30 -0.90
(-0.36%)
OPEN

249.00

HIGH

252.75

LOW

245.55

OPEN 249.85
PREVIOUS CLOSE 250.15
VOLUME 551276
52-Week high 273.95
52-Week low 127.20
P/E 84.22
Mkt Cap.(Rs cr) 44,476
Buy Price 0.00
Buy Qty 0.00
Sell Price 249.30
Sell Qty 100.00
OPEN 249.85
CLOSE 250.15
VOLUME 551276
52-Week high 273.95
52-Week low 127.20
P/E 84.22
Mkt Cap.(Rs cr) 44,476
Buy Price 0.00
Buy Qty 0.00
Sell Price 249.30
Sell Qty 100.00

DLF Ltd. (DLF) - Auditors Report

Company auditors report

To the Members of

DLF Limited

Report on the Financial Statements

1. We have audited the accompanying consolidated financial statements of DLF Limited(‘the Holding Company') and its subsidiaries (the Holding Company and itssubsidiaries together referred to as ‘the Group') its associates and joint ventureswhich comprise the Consolidated Balance Sheet as at 31 March 2017 the ConsolidatedStatement of Profit and Loss (including Other Comprehensive Income) the Consolidated CashFlow Statement and the Consolidated Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated FinancialStatements

2. The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated financial statements in terms of the requirements of the Companies Act 2013(‘the Act') that give a true and fair view of the consolidated state of affairs(consolidated financial position) consolidated profit or loss (consolidated financialperformance including other comprehensive income) consolidated cash flows andconsolidated changes in equity of the Group including its associates and joint ventures inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. The HoldingCompany's Board of Directors and the respective Board of Directors/management of thesubsidiaries included in the Group and its associates and joint ventures are responsiblefor the design implementation and maintenance of internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. Further in termsof the provisions of the Act the respective Board of Directors/management of thecompanies included in the Group and its associate companies and joint venture companiescovered under the Act are responsible for maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. These financial statements have been used for the purpose of preparation of theconsolidated financial statements by the Directors of the Holding Company as aforesaid.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these consolidated financialstatements based on our audit.

4. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese consolidated financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the consolidated financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the consolidated financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial controls relevantto the Holding Company's preparation of the consolidated financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the HoldingCompany's Board of Directors as well as evaluating the overall presentation of theconsolidated financial statements.

7. We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in paragraph 10 of the OtherMatters paragraph below is sufficient and appropriate to provide a basis for our auditopinion on these consolidated financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of the reports of the other auditors onseparate financial statements and on the other financial information of the subsidiariesassociates and joint ventures the aforesaid consolidated financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the consolidatedstate of affairs (consolidated financial position) of the Group its associates and jointventures as at 31 March 2017 and their consolidated profit (consolidated financialperformance including other comprehensive income) their consolidated cash flows andconsolidated changes in equity for the year ended on that date.

Emphasis of Matter

9. We draw attention to Note 50 to the consolidated financial statements whichdescribes the uncertainty relating to the outcome of certain matters pending in litigationwith Courts/ appellate authorities pending the final outcome of the aforesaid matterswhich is presently unascertainable no adjustments have been made in the consolidatedfinancial statements. Our opinion is not modified in respect of these matters.

Other Matters

10. (a) We did not audit the financial statements of 66 subsidiaries whose financialstatements reflect total assets of Rs. 558103.17 lakhs and net assets of Rs. 170726.88lakhs as at 31 March 2017 total revenues of Rs. 24825.12 lakhs and net cash inflowsamounting to Rs. 1005.20 lakhs for the year ended on that date as considered in theconsolidated financial statements. The consolidated financial statements also include theGroup's share of net loss (including other comprehensive income) of Rs. 7518.36 lakhs forthe year ended 31 March 2017 as considered in the consolidated financial statements inrespect of 3 associates and 7 joint ventures whose financial statements have not beenaudited by us. These financial statements have been audited by other auditors whosereport(s) have been furnished to us by the management and our opinion on the consolidatedfinancial statements in so far as it relates to the amounts and disclosures included inrespect of these subsidiaries associates and joint ventures and our report in terms ofsub-section (3) of Section 143 of the Act in so far as it relates to the aforesaidsubsidiaries associates and joint ventures is based solely on the reports of the otherauditors.

Further of these subsidiaries 2 subsidiaries are located outside India whosefinancial statements and other financial information have been prepared in accordance withaccounting principles generally accepted in their respective countries and which have beenaudited by other auditors under generally accepted auditing standards applicable in theirrespective countries. The Holding Company's management has converted the financialstatements of such subsidiaries located outside India from accounting principles generallyaccepted in their respective countries to accounting principles generally accepted inIndia. We have audited these conversion adjustments made by the Holding Company'smanagement. Our opinion in so far as it relates to the balances and affairs of suchsubsidiaries located outside India is based on the report of other auditors and theconversion adjustments prepared by the management of the Holding Company and audited byus.

(b) We did not audit the financial statements of 1 subsidiary whose financialstatements reflect total assets of Rs. 6320.94 lakhs and net assets of Rs. 5763.67 lakhsas at 31 March 2017 total revenues of ' Nil and net cash outflow amounting to Rs. 2.08lakhs for the year ended on that date as considered in the consolidated financialstatements. The consolidated financial statements also include the Group's share of netloss (including other comprehensive income) of Rs. 1707.13 lakhs for the year ended 31March 2017 as considered in the consolidated financial statements in respect of 1associate and 2 joint ventures whose financial statements have not been audited by us.These financial statements are unaudited and have been furnished to us by the managementand our opinion on the consolidated financial statements in so far as it relates to theamounts and disclosures included in respect of these subsidiaries associates and jointventures and our report in terms of subsection (3) of Section 143 of the Act in so far asit relates to the aforesaid subsidiaries and associates are based solely on suchunaudited financial statements. In our opinion and according to the information andexplanations given to us by the management these financial statements are not material tothe Group.

Our opinion above on the consolidated financial statements and our report on otherlegal and regulatory requirements below are not modified in respect of the above matterswith respect to our reliance on the work done by and the reports of the other auditors andthe financial statements certified by the management.

11. The Company had prepared separate sets of consolidated financial statements for theyear ended 31 March 2016 and 31 March 2015 in accordance with Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended) on which we issued auditor's reports dated 27 May 2016 and 20 May2015 respectively. These separate sets of consolidated financial statements have beenadjusted for the differences in the accounting principles adopted by the Company ontransition to Ind AS which have also been audited by us. Our opinion is not modified inrespect of this matter.

Report on Other Legal and Regulatory Requirements

12. As required by Section 143(3) of the Act based on our audit and on theconsideration of the report(s) of the other auditor(s) on separate financial statementsand other financial information of the subsidiaries associates and joint ventures wereport to the extent applicable that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit of the aforesaidconsolidated financial statements;

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid consolidated financial statements have been kept so far as it appearsfrom our examination of those books and the reports of the other auditors;

c) The consolidated financial statements dealt with by this report are in agreementwith the relevant books of account maintained for the purpose of preparation of theconsolidated financial statements;

d) In our opinion the aforesaid consolidated financial statements comply with Ind ASspecified under Section 133 of the Act;

e) The matter described in paragraph 9 of the Emphasis of Matters paragraph in case ofan unfavorable decision against the Group in our opinion may have an adverse effect onthe functioning of the Group;

f) On the basis of the written representations received from the Directors of theHolding Company and taken on record by the Board of Directors of the Holding Company andthe reports of the other statutory auditors of its subsidiary companies associatecompanies and joint venture companies covered under the Act none of the Directors of theGroup companies its associate companies and joint venture companies covered under theAct are disqualified as on 31 March 2017 from being appointed as a Director in terms ofSection 164(2) of the Act.

g) With respect to the adequacy of the internal financial controls over financialreporting of the Holding Company and its subsidiary companies associate companies andjoint venture companies covered under the Act and the operating effectiveness of suchcontrols refer to our separate report in ‘Annexure A';

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 (as amended)in our opinion and to the best of our information and according to the explanations givento us and based on the consideration of the report of the other auditors on separatefinancial statements as also the other financial information of the subsidiariesassociates and joint ventures.

(i) The consolidated financial statements disclose the impact of pending litigations onthe consolidated financial position of the Group its associates and joint ventures asdetailed in Note 49A 50 and 56 to the consolidated financial statements.

(ii) The Group its associates and its joint ventures did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Holding Company and there were noamounts which were required to be transferred to the Investor Education and Protection

Fund by its subsidiary companies associate companies and jointly controlled companiesincorporated in India.

(iv) These consolidated financial statements have made requisite disclosures in Note 18as to holdings as well as dealings in specified bank notes during the period from 8November 2016 to 30 December 2016 by the Holding Company and its subsidiary companiescovered under the Act. Based on the audit procedures performed and taking intoconsideration the information and explanations given to us and on consideration of thereports of the other auditors on separate financial statements and other financialinformation in our opinion the total receipts total payments and total amount depositedin banks are in accordance with the books of account maintained by the respectivecompanies. However in the absence of sufficient appropriate audit evidence we are unableto comment upon the appropriateness of classification between Specified Bank Notes andother denomination notes of ‘Permitted receipts' ‘Non-permitted receipts'‘Permitted payments' and ‘Amount deposited in banks' as disclosed under suchNote.

for Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Neeraj Sharma
New Delhi Partner
26 May 2017 Membership No.: 502103

Annexure A

Independent Auditor’s report on the Internal Financial Controls under Clause (i)of sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the consolidated financial statements of the DLFLimited ("the Holding Company") and its subsidiaries (the Holding Company andits subsidiaries together referred to as "the Group") its associates andjointly controlled entities as of and for the year ended 31 March 2017 we have auditedthe internal financial controls over financial reporting ("IFCoFR") of theHolding Company its subsidiary companies its associate companies and jointly controlledcompanies which are companies incorporated in India as of that date.

Management’s Responsibility for Internal Financial Controls

2. The respective Board of Directors of the Holding Company its subsidiary companiesits associate companies and jointly controlled companies which are companies incorporatedin India are responsible for establishing and maintaining internal financial controlsbased on the internal control over financial reporting ("the Guidance Note")criteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of the Company's business including adherence to the Company'spolicies the safeguarding of the Company's assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on the IFCoFR of the Holding Companyits subsidiary companies its associate companies and jointly controlled companies asaforesaid based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the ICAI and deemed to be prescribed under Section 143(10) of the Actto the extent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate IFCoFRwere established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based

on the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained and the audit evidence obtainedby the other auditors in terms of their reports referred to in the Other Matter(s)paragraph below is sufficient and appropriate to provide a basis for our audit opinion onthe IFCoFR of the Holding Company its subsidiary companies its associate companies andjointly controlled companies as aforesaid.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and Directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls overFinancial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that the IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

8. In our opinion the Holding Company its subsidiary companies its associatecompanies and jointly controlled companies which are companies incorporated in Indiahave in all material respects adequate internal financial controls over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at 31 March 2017 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

Other Matters

9. (a) We did not audit the IFCoFR in so far as it relates to 64 subsidiary companieswhich are companies incorporated in India whose financial statements reflect total assetsof Rs. 418095.44 lakhs as at 31 March 2017 total revenues of Rs. 24787.40 lakhs and netcash inflows amounting to Rs. 1174.63 lakhs for the year ended on that date; and 3associate companies and 6 jointly controlled companies which are companies incorporatedin India in respect of which the Group's share of net loss of Rs. 7518.23 lakhs for theyear ended 31 March 2017 has been considered in the consolidated financial statements. Ourreport on the adequacy and operating effectiveness of the IFCoFR for the Holding Companyits subsidiary companies its associate companies and jointly controlled companies whichare companies incorporated in India under Section 143(3)(i) of the Act in so far as itrelates to the aforesaid subsidiaries associates and jointly controlled companies whichare companies incorporated in India is solely based on the corresponding reports of theauditors of such companies.

(b) We did not audit the IFCoFR in so far as it relates to 2 associates and 1 jointlycontrolled company which are companies incorporated in India in respect of which theGroup's share of net loss of Rs. 1707.13 lakhs for the year ended 31 March 2017 asconsidered in the consolidated financial statements. These financial statements areunaudited and have been furnished to us by the management and our report on the adequacyand operating effectiveness of the IFCoFR for the Holding Company its subsidiarycompanies its associate companies and jointly controlled companies which are companiesincorporated in India under Section 143(3)(i) of the Act in so far as it relates to theaforesaid associates and jointly controlled company which are companies incorporated inIndia is based solely on representations provided by the management. In our opinion andaccording to the information and explanations given to us by the management thesefinancial statements are not material to the Group.

Our opinion is not modified in respect of the above matters with respect to ourreliance on the work done by and the reports of the other auditors and representationsprovided by the management.

for Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Neeraj Sharma
New Delhi Partner
26 May 2017 Membership No.: 502103