TERM PAPER OF

Financial
Accounting
For Managers
Topic Of The Term Paper: -
ANALYSIS OF FINANCIAL
STATEMENTS OF
“DLF private limited”

PRESENTED BY GROUP 04:

 KOKA ANUPRIYA(10219)
 LIPSA NANDA, (10220)
 M. KIRAN JYOTHI(10221)
 M.KRISHNA CHAITANYA(10222)
 MAHANKALIBHAVANI(10223)
 Manojit roy (10224)
Table of contents
1.inroduction…………………………………………..

2. Directors report……………………………………….

3. Objective of the study…………………………………

4. reserves and surplus……………………………………….

5.Income statement…………………………………….

6.Accounting policy

7.Cash flow statement………………………………

8. Observations Drawn With Respect To Balance Sheet…..
9.Liabilities…………………………………………………..
10.Incomes and Gains………………………………………..
11.depreciation …………………………………………………
12.Observations with regard to Cash Flow Statement(CFS)
13.Directors Report……………………………………………..
14.Dividend……………………………………………………….
15.Share Capital…………………………………………………..
16.Corporate Governance and additional information to shareholders
17.Fixed Deposits
18.Auditors Report
19.Corporate Governance Report
20.Conclusion
1.INTRODUCTION-ISO 27001 CERTIFICATION

DLF Limited, is India's largest real estate company in terms of revenues, earnings, market
capitalisation and developable area. It has a 62-year track record of sustained growth, customer
satisfaction, and innovation. The company has approximately 238 msf of completed
development and 423 msf of planned projects, and has pan India presence across 30 cities.

DLF's primary business is development of residential, commercial and retail properties. The
company has a unique business model with earnings arising from development and rentals. Its
exposure across businesses, segments and geographies, mitigates any down-cycles in the market.
DLF has also forayed into infrastructure, SEZ and hotel businesses.

Development Business

The development business of DLF includes Homes and Commercial Complexes

The Homes business caters to 3 segments of the residential market - Super Luxury, Luxury and
Mid-Income. The product offering involves a wide range of products including condominiums,
duplexes, row houses and apartments of varying sizes. DLF has 216 msf of developed area under
homes and residential plots.

DLF is credited with introducing and pioneering the revolutionary concept of developing
commercial complexes in the vicinity of residential areas. Since its inception in 2007, DLF has
successfully launched commercial complexes and is in the process of marking its presence across
various locations in India.

The development business at present has 391 msf of development potential with 25 msf of
projects under construction.

Annuity Business

The annuity business consists of the rental businesses of offices and retail.With over six decades
of excellence, DLF is a name synonymous with global standards, new generation workspaces
and lifestyles. It has the distinction of developing commercial projects and IT parks that are at
par with the best in the world. DLF has become a preferred name with many IT & ITES majors
and leading Indian and International corporate giants, including GE, IBM, Microsoft, Canon,
Citibank, Vertex, Hewitt, Fidelity Investments, WNS, Bank of America, Cognizant, Infosys,
CSC, Symantec and Sapient, among others.
DLF pioneered the  retail revolution in the country and brought about a paradigm shift in the 
industry by redefining shopping, recreation and leisure experiences with the  launch of City
Centre in Gurgaon in 2000. The Retail Malls business is a major thrust area for DLF. Currently,
DLF is  actively creating new shopping and entertainment spaces all over the country.

The company has land resource of 92 msf for  office and retail development, with 17 msf of
projects under construction.

DLF has acquired AMAN Resorts to expand its  presence in the hotel business internationally. It
also has a JV with Hilton  hotels for the development and management of hotels pan-India. DLF
plans to  develop world-class hospitality properties under the luxury, business, leisure  &
recreational segments of the hospitality industry. It has a development  potential of 12 msf for its
hotel business.

For better implementation and execution of its  projects, DLF has created a set of execution
enablers – such as Laing O'Rourke  for construction.

DLF has a strong management team running independent businesses, though complementing

each other in cases of opportunities of mixed land use. DLF's mission is to build a world-class
real estate development company with the highest standards of professionalism, ethics and
customer service and to thereby contribute to and benefit from the growth of the Indian
economy.

Awards

DLF IT has been awarded ISO 27001 CERTIFICATION in Security Management system for the
provision of information technology services to Real estate business and support functions
Business Leadership Awards: DLF chosen as the leader
DLF was chosen as the leader in the 'Building & Construction - Real Estate' category, in the 2nd
NDTV Profit Business Leadership Awards held in New Delhi on July 27 2007. This award
reaffirms DLF's leadership position and underlines the contribution made by DLF in the real
estate sector.
K P Singh wins special NDTV Award
Mr. K.P.Singh has won the NDTV Special Award in Business. At a glittering awards function
at the Taj Palace on January 17, the DLF chairman was among a galaxy of eminent personalities
to be honoured for their contributions in various fields, ranging from business and politics to
sports and films.
G.B. Pant University Of Agriculture & Technology

G.B. Pant University Of Agriculture & Technology conferred an Honorary Degree of Doctor of Science to
Mr K P Singh in the April '08, in recognition of his invaluable contribution in the field of Business
Administration.

2. DIRECTORS REPORT-

1.The Company’s total income on consolidated basis decreased from Rs. 14,684 Crores to Rs.
10,431 Crores, a decrease of 29% over the previous financial year.
2. The gross operating profit on consolidated basis reduced from Rs. 9,961 Crores to Rs. 5,986
Crores, resulting in a decrease of 40% and the net profit after tax
3. minority interest for the year is Rs. 4,468 Crores as against Rs.7,813 Crores for the previous
year (2007-08), representing a decrease of about 43%.
4. The revenue and profit figures have been arrived at after adjusting for losses contributed by
non-core businesses of Rs. 163 Crores. DLF has taken aggressive steps to meet the challenges of
the difficult times through major initiatives in sustaining growth, cost-optimization, process
improvement and efficient management of working capital.
The performance of the Company on stand-alone basis for the year ended on 31st March, 2009 is
as under:

3.Objective of the Study

The objectives of doing DLF India Limited Balance Sheet Term paper are the following:

1. To study and understand the Balance Sheet of DLF India Limited for the current and
previous year.
2. To compare the results of the two years (2008-2009).
3. To develop a detailed report of all the observations.
 4. To study and understand the standard framework of guidelines for accounting
information.
5. To study and understand the various concepts and conventions of accounting which
becomes useful in making of financial statements of the organization.

“ACCOUNTING is the art of recording, classifying, and summarizing in a significant manner in

terms of money transactions and events which on part, at least of a financial character and
interpreting the results thereof”.

4.reserves and surplus

In financial accounting, the term reserve is most commonly used to describe any part of
shareholders equity, except for basic share capital. Sometimes, the term is used instead of the
term provision; such a use, however, is inconsistent with the terminology suggested by
International Accounting Standards Board.

Capital surplus is an accounting term which frequently appears as a balance sheet item as a
component of shareholders’ equity. Capital surplus is used to account for any funds the issuing
firm has received over and above the par value of the common stock. It may also be used to
account for any gains the firm may derive from selling treasury stock, although this is less
commonly seen.

ANALYSIS:

There is an increase in general reserve from 38590.57 to 39832.63lakhs.

The capital redemption reserve increased from 24.35 lakhs to 176.82 lakhs.

All surplus reserves increased 173496.08lakhs to 267623.91 lakhs.

5.income statement

Income statement, also called profit and loss statement (P&L) and Statement of Operations, is
a company's financial statement that indicates how the revenue is transformed into the net
income. The purpose of the income statement is to show managers and investors whether the
company made or lost money during the period being reported. The important thing to remember
about an income statement is that it represents a period of time. This contrasts with the balance
sheet, which represents a single moment in time.
Items included in Income Statement are operating section, non-operating section, irregular items
and earnings per share.

ANALYSIS:

Income of DLF India ltd on year 2008-09 is 383904.46 which is reduced when compared to
previous year . It is mainly because of the sale of product and other income from operation is less
in year 2008-09.

Expenditure on year 2008-09 is 202817.64 lakhs which is less when compared to previous year
2007-08 by 91236.08 lakhs.

For the year 2008-09 the cost of land, plots is 77834.17 lakhs which is less than previous year
by 136900.19 lakhs.the establishment expenses are decreased from 14447.28 lakhs in 2007-08 to
10,758.36 lakhs in 2008-09.

The other expenses are increased by 4292.78 lakhs from 2007-08 to 2008-09. The profit before
tax is decreased by 130705.41 from 2007-08 to 2008-09.

The net profit was decreased from 257440.05 in 2007-08 to 154986.40 in 2008-09. The proposed
dividends were decreased to 2903.52 lakhs in 2008-09.

6.Accounting Policy
The company conducted our audit in accordance with the auditing standards generally accepted
in India(GAP). Those Standards require that we plan and perform the audit to obtain reasonable
assurance. About whether the financial statements are free of material misstatement. An audit
includes Examining, on a test basis, evidence supporting the amounts and disclosures in the
financial Statements. An audit also includes assessing the accounting principles used and
significant Estimates made by management, as well as evaluating the overall financial statement
presentation. `The company believe that the audit provides a reasonable basis for our opinion

7.CASH FLOW STATEMENT

A summary of cash inflows and cash outflows during an accounting period . It is a
summary of investment, dividend and financing decision with a focus on movements
in cash and cash equivalents during the reporting period. A fund flow statement
explains changes in working capital. While a cash flow statement explains changes
in the cash balance (including cash equivalents). Balance is in the cash credit
account and bank overdraft account should be treated as a part of the balance. A
cash flow statement helps to assess the ability of the firm to generate and use cash
to the benefit of shareholders. It helps to estimate the amount, timing and
uncertainty of future cash flow. It is categorized into operating, investing and
financing activities.

ANALYSIS:

Net cash from the operating activity 136586.41lakhs(for 2008-09), which is less
than from previous year (2008-07) by 149993.06

Net cash from the investing activity is 115116.93(for 2008-09), which is greater
than from previous year (2008-07) by 648787.73 lakhs.

Net cash from financing activity is 43754.07 (for 2008-09), which is less than from
the previous year (2007-08) by 894589.65 lakhs.

There is a net decrease in cash and cash equivalents of rs 73524.27 lakhs.

Cash and cash equivalents as at March 31 (Closing Balance) is

75940.27, which is less than from previous year( 2007-08) by 22284.59 lakhs

8.Observations Drawn With Respect To Balance Sheet

In financial accounting, a balance sheet or statement of financial position is a summary of a

person's or organization's balances. Assets, liabilities and ownership equity are listed as of a
specific date, such as the end of its financial year. A balance sheet is often described as a
snapshot of a company's financial condition. Of the four basic financial statements, the balance
sheet is the only statement which applies to a single point in time. A company balance sheet has
three parts: assets, liabilities and ownership equity. The main categories of assets are usually
listed first and are followed by the liabilities. The difference between the assets and the liabilities
is known as equity or the net assets or the net worth or capital of the company and according to
the accounting equation, net worth must equal assets minus liabilities.

Analysis of dlf

1. Secured loans in the 2009 was 797,996.90 and in 2008 was 494,591.44 the secured loans
have been increased by 303405.46

2. Unsecured loans in the 2009 was 163,500.00and in 2008 344,049.31 by this we can observe
that the unsecured loans had been decreased by180549.31
3. fixed assets were increased by 21710 in 2009 347,325.76 2008 325,615.92 and this includes
the work in progress.
4. Sundry debtors in 2009 was 21,289.05 and in 2008 was 93,018.04 by this we can observe
that sundry debtor have been decreased by 71729
5. Cash and bank balances was in 2009 76,120.04 and in 2008 99,482.37 the cash had been
decreased by 23362.33 .
6.Other current assets in 2009- 66,329.61 2008- 53,965.91 current assets have been increased
by 12363.7.
7.current liabilities have been decreased by 863319 2009- 163,458.38 2008 249,790.28
8. Loans and advances have been increased by 49817from 2009- 1,044,695.79 and in 2008-
994,878.54

9.Liabilities

A liability is a debt assumed by a business entity as a result of its borrowing activities or other
fiscal obligations (such as funding pension plans for its employees). Liabilities are paid off under
either short-term or long-term arrangements. The amount of time allotted to pay off the liability
is typically determined by the size of the debt; large amounts of money usually are borrowed
under long-term plans.
Types of Liabilities:

CURRENT LIABILITIES: Current liabilities are short-term financial obligations that are paid off
within one year or one current operating cycle, whichever is longer. Current liabilities include
such accrued expenses as wages, taxes, and interest payments not yet paid; accounts payable;
short-term notes; cash dividends; and revenues collected in advance of actual delivery of goods
or services.

LONG-TERM LIABILITIES :Liabilities that are not paid off within a year, or within a business's
operating cycle, are known as long-term or noncurrent liabilities. Long-term liabilities include
notes, mortgages, lease obligations, deferred income taxes payable, and pensions and other post-
retirement benefits.

CONTINGENT LIABILITIES :A third kind of liability accrued by companies is known as a

contingent liability. Contingent liabilities often come into play when a lawsuit or other legal
measure has been taken against a company. An as yet unresolved lawsuit concerning a business's
products or service, for example, would qualify as a contingent liability. Environmental cleanup
and/or protection responsibility sometimes falls under this classification as well, if the monetary
impact of new regulations or penalties on a company is uncertain.

Liabilities of DLF
1.The current liabilities were down by RS 86332 in 2009 -163,458.38 and in 2008- 249,790.28

2.The Company has taken business advance and loans from two entities covered in the register

3.The short term loans were in 2009 157,500.00 and in 2008 340,050.03 .

4. The secured loans have been increased by 86601.33 in 2009-312,500.53and in 2008

-225,899.20.

5. the unsecured loans have been decreased by 182550.03 2009 157,500.00 2008-340,050.03

 Incomes and Gains

Income statement, also called profit and loss statement (P&L) and Statement of Operations, is a
company's financial statement that indicates how the revenue (money received from the sale of
products and services before expenses are taken out, also known as the "top line") is transformed
into the net income (the result after all revenues and expenses have been accounted for, also
known as the "bottom line"). The purpose of the income statement is to
show managers and investors whether the company made or lost money during the period being
reported.

 The important thing to remember about an income statement is that it represents a period of
time. This contrasts with the balance sheet, which represents a single moment in time.

 Charitable organizations that are required to publish financial statements do not produce an
income statement. Instead, they produce a similar statement that reflects funding sources
compared against program expenses, administrative costs, and other operating commitments.

Analysis in DLF
1.By observing the profit and loss account the income had been decreased by 221941.49 in
2009 the profit was 83,904.46 and in 2008 the profit was 605,845.95

2. The Net profit for the year 2009- 154,777.03 and in 2008-257,459.04 it is observed that the
profit has been decreased by 102682.01.

4. Financial Income has been rated to the 154,777.03

 Depreciation

In simple words we can say that depreciation is the reduction in the value of an asset due to
usage, passage of time, wear and tear, technological outdating or obsolescence, depletion,
inadequacy, rot, rust, decay or other such factors.

How to Calculate Depreciation

 Depreciation expense is calculated utilizing either a straight line depreciation method or an
accelerated depreciation method. The straight line method calculates depreciation by spreading
the cost evenly over the life of the fixed asset. Accelerated depreciation methods such as
declining balance and sum of years digits calculate depreciation by expensing a large part of the
cost at the beginning of the life of the fixed asset.The required variables for calculating
depreciation are the cost and the expected life of the fixed asset. Salvage value may also be
considered.

Straight-Line Method:

Annual depriciation Expense = (Cost of Fixed Assets- Scrap Vaue)/ Life Time(years)

1) Accelerated Depreciation Methods :Accelerated depreciation methods such as declining

balance and sum of year’s digits calculate depreciation by expensing a large part of the cost at
the beginning of the life of the fixed asset. These methods are further classified into three:

i. Sum of the Years Digits - The first step is to sum the digits or numbers starting with the
life and going back to one. For example, an asset with a life of 5 would have a sum of digits
as follows: 5+ 4+ 3 +2 + 1 = 15. To find the percentage for each year divide the year's digit
by the sum.

Depreciation amount =

(Cost – residual value) * number of years of useful life left /sum of digits of the years of life.

ii. Written down value method - Under this method depreciation is calculated every year on the
net value of assets. Unlike in the straight line method depreciation amount is not the same every
year. Net value of assets in a year is the total value of assets after deducting last year’s
depreciation. In case the rate of depreciation is not given then the formula to calculate the rate is
as follows:

Rate of depreciation = 1 – n^residual value / cost

(Where n is the estimated useful life of the asset)

iii. Production Units methods - This method is used when the asset can be classified as a certain

number production units. For example for a vehicle the depreciation is calculated based on the

kilometers run. In such cases, the per unit depreciation is calculated, and the total depreciation is

known by multiplying with the total production units.

Rate of depreciation per unit = cost – residual value /cos

iv. Depreciation and amortization is calculated based on cost using the straight-line method over the
estimated useful life of the asset, unless the useful life is indefinite. Parts of property, plant and
equipment with a cost that is significant in relation to the total cost of the item are depreciated
separately when the useful life of the parts do not coincide with the useful life of other parts of
the item.

Analysis of DLF

Depreciation on Fixed assets (including buildings and related equipment rented out and included
under current assets as stocks) is provided on a straight line method, at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956, or based on the estimated
useful lives of assets (as mentioned below), whichever is higher, as applicable: Depreciation in
respect of assets relating to the power generating division of one of the subsidiary companies of
the Group is provided on the straight line method in terms of the Electricity (Supply) Act, 1948
on the basis of Central Government Notification No. S.O 266 (E) dated March 29, 1994, from
the year immediately following the
Fixed assets (gross block) are stated
at historical cost less accumulated depreciation. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use. Building /
specific identifiable portion of Building, including related equipments are capitalized when the
construction is substantially complete or upon receipt of the occupancy certifi cate, whichever is
earlier.
Depreciation on assets (including buildings and related equipments rented out and included
under current assets as stocks) is provided on straight-line method at the rates and in the manner
prescribed in schedule XIV to the Companies Act,1956.
D The following useful lives are used for depreciation and amortization:
Estimated useful
(years)
Lease hold land/ Over the effective
life of the lease

Buildings 25-62
Plant and machinery 4-20
Computers and software 2-6
Furniture and fixtures 10-15
Office equipment 8
Vehicles 2-10

Dividend
Analysis of DLF
a reduction is being made in the proposed Dividend as compared to the Dividend of Rs.4 per
Equity Share (200%) paid in the previous year. Your Directors are pleased to recommend for
approval of the Members a Dividend of Rs.2 per Equity Share (100%) of Rs. 2 each for the FY
2008-09 amounting to Rs. 368.35 Crores (Rs. 339.44 Crores towards Dividend and Rs. 28.91
Crores as Dividend tax).

Observations with regard to Cash Flow Statement(CFS)

In financial accounting, a cash flow statement or statement of cash flows is a financial

statement that shows how changes in balance sheet and income accounts affect cash and cash
equivalents, and breaks the analysis down to operating, investing, and financing activities. As an
analytical tool, the statement of cash flows is useful in determining the short-term viability of a
company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is
the International Accounting Standard that deals with cash flow statements.
Analysis of DLF:

1. Net cash flow from the financial statement in 2009-(43,754.07) & 2008- 894,589.65
2. Cash and bank balances were decreased to 23362.33 in 2009 76,120.04 2008 -99,482.37 .

 Share Capital
1) 11,338,603,595 equity shares of Rs. 2 each fully paid issued as bonus shares.
2) 5,877,850 equity shares of Rs. 2 each (originally 1,175,570 shares of Rs. 10 each)
3) During the year, the calls in arrears reduced by Rs. 94.55 lakhs, comprising Share Capital
of Rs. 0.26 lakhs and Share Premium of Rs. 94.29 lakhs.

Corporate Governance and additional information to shareholders-

The Board of Directors (the Board), an apex body formed by the shareholders, serve and protect
the overall interests of stakeholders; provides and evaluates the strategic directions of the
Company; Formulates and reviews management policies and ensure their effectiveness. The
Chairman, Vice Chairman, Managing Director and two Whole time Directors manage the
business of the Company under the overall supervision and guidance of the Board. The Board
represents an optimum mix of professionalism, knowledge and experience. The total strength of
the Board is 12 members, comprising of: 5 (42%) Executive Directors and 7 (58%) Non-
Executive Directors [6 (50%) of the total strength of the Board are Independent Directors]. The
Company immensely benefits from the professional expertise of the Independent Directors. The
composition of the Board is in conformity with Clause 49 of the Listing Agreement entered into
with the Stock Exchanges.

Fixed Deposits
The Company has not accepted/renewed any public deposits during the year under review. An
unclaimed public deposit of Rs.0.27 lacs was transferred to Investors Education and
ProtectionFund (IEPF) on 19th June, 2008.
The fixeds deposit for the year 2009- 5,113.47 and in 2008 96,790.03 the fixed deposit have been
decreased to 91676.53

Fixed Assets
Fixed asset, also known as property, plant, and equipment, is a term used in
accountancy for assets and property which cannot easily be converted into cash. This can be
compared with current assets such as cash or bank accounts, which are described as liquid assets.
In most cases, only tangible assets are referred to as fixed. Fixed assets are stated at cost of
acquisition, including any attributable for bringing the asset to its working condition for its
intended use, less accumulated depreciation.
Types of Fixed assets:

1.Intangible Assets : Assets that do not have a definite existence are called intangible assets. They
have neither a physical form nor give their owner definite financial rights. The most important
intangible fixed asset is goodwill. Other intangibles includes patents, copyrights and trademarks.
 2.Tangible assets: Assets that have a physical existence, or give the holders definite set of financial
rights are classified as tangible assets. Examples of tangible assets include land, machinery, bank
deposits and investments.
Fixed Assets of DLF

1) The Group’s total assets increased to 196,839.51ss

2) The fixed assets were increased from 147,437.20 to 181,552.48 from 2008 to 2009
3.The inventory includes land, completed buildings, construction work-in-progress, construction and
development material and development rights in identified land. Physical verification of inventory
(except stocks represented by development rights, confirmations for which have been obtained) have
been conducted at reasonable intervals by the management .
Intangible assets
1.Computer software have been increased by 1947.78 in 2008 878.74 and in 2008 -
2,826.52
Tangible assets
1. Lease hold in 2008 5,946.82 2009 - 25,436.90
2. Free hold 2008 28,522. And 2009- 28,450.78
3. Buildings and 2008 -4,389.19 and in 2009- 28,815.16
4. Air conditioners and coolers in 2008-193.71 and 2009- 184.26
5. Aircraft in 2008-12,084.and 2009- 11,895.80
6. Leased plant and machinery had been newly bought in 2009-1,965.61
7. Plant and machinery and in 2008 96,350 and in 2009 -.56 96,247.75
8. Furniture and fixtures and in 2008-878.14 and in 2009- 839.41
9. Vehicles in 2008- 2,161.50, and in 2009-2,142.93

Auditors Report
1. We have audited the attached Balance Sheet of DLF Limited, (the ‘Company’) as at March
31,2009, and also the Profit & Loss Account and the Cash Flow Statement for the year ended on
that date annexed thereto (collectively referred as the ‘Financial Statements’). These Financial
Statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India
Those Standards require that we plan and perform the audit to obtain reasonable assurance about
whether the fi nancial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and signifi cant estimates made by
management, as well as evaluating the overall fi nancial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (the ‘Order’) (as amended),
issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956 (the ‘Act’), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, we report that:
a. We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by
the Company so far as appears from our examination of those books;
c. The Financial Statements dealt with by this report are in agreement with the books of
account;
d. On the basis of written representations received from the Directors, as on March 31, 2009
and taken on record by the Board of Directors, we report that none of the
Directors is disqualified as on March 31, 2009 from being appointed as a Director
in terms of clause
(g) of sub-section (1) of Section 274 of the Act; e. In our opinion and to the best of our
information and according to the explanations given to us, the Financial Statements dealt with by
this report comply with the accounting standards referred to in sub-section (3C) of Sectio211 of
the Act and the Rules framed there under and give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at March 31, 2009;
ii) the Profit & Loss Account, of the profit for the year ended on that date; and
iii) the Cash Flow Statement, of the cash fl ows for the year ended on that date.

Corporate Governance Report

The Company adheres to good corporate practices and is constantly striving to better them and
adopt emerging best practices. It is believed that adherence to business ethics and commitments
to corporate social responsibility have enabled the Company to achieve its goal of building India
through maximizing value for all its stakeholders. By combining ethical values with the business
acumen, strengthening of professional resources with national interests and core business with
emerging business, the Company maintains its legendary status of the largest and most respected
Real Estate Development Company. The Company will continue to focus its resources, strengths
and strategies to achieve its vision of becoming the world’s most valuable Real Estate Company,
while upholding the core values of excellence, integrity, responsibility, quality and customer
services, which are fundamental to the DLF group.

Conclusion
1. The net profit had been decreased by 102682 2008-257,459.04 2009 - 154,777.03

2. The company uses the generally accepted principles in India.

3. During the fiscal 2008-09, DLF consolidated revenues of Rs. 10,431 Crores for For Year 09
down by 29% from Rs. 14,684 Crores for Year 08. EBIDTA stood at Rs. 5,986 Crores, down by
40% as compared to Rs. 9,961 Crores in the previous year. Net profit remained at Rs. 4,469
Crores, a fall of 43% from Rs. 7,813 Crores. The EPS for FY09 stood at Rs. 26.24 as compared
to Rs. 46.90 for FY08.
4. The Company has initiated strategic and comprehensive portfolio adjustments concentrating
both on real estate assets and non-real estate business, with a view to exit non-core businesses.