5328680310.Pdf

Contents

Board of Directors 2

Message from the Chairman 3

Milestones 5

Management 6

Notice 7

Directors’ Report 14

Management Discussion & Analysis Report 26

Corporate Governance Report 42

Financial Statements 62

Auditors’ Report 63

Balance Sheet 66

Proﬁ t & Loss Account 67

Cash Flow Statement 68

Schedules 70

Consolidated Accounts 116

Details of Subsidiary Companies 176

Chairmans' Message (F) Final_260810.indd 1 8/26/2010 9:37:26 PM Board of Directors Reference Information

Executive Directors Registered Ofﬁ ce Dr. K.P. Singh Shopping Mall, 3rd ﬂ oor, Arjun Marg Chairman Phase-I, DLF City, Gurgaon-122 002 Mr. Rajiv Singh (Haryana) Vice Chairman

Mr. T.C. Goyal Corporate Ofﬁ ce Managing Director DLF Centre, Sansad Marg New Delhi-110 001 Ms. Pia Singh Whole-time Director

Mr. Kameshwar Swarup Statutory Auditors Group Executive Director - Legal M/s. Walker, Chandiok & Co

Non-Executive Directors Registrar & Share Transfer Agent Mr. G.S. Talwar M/s Karvy Computershare Private Ltd. Dr. D.V. Kapur Mr. K.N. Memani Listed at Mr. M.M. Sabharwal Bombay Stock Exchange National Stock Exchange Mr. Ravinder Narain Mr. B. Bhushan Company Secretary Brig. (Retd.) N.P. Singh Mr. Subhash Setia

Chairmans' Message (F) Final_260810.indd 2 8/26/2010 9:37:26 PM Message from the Chairman

Hon’ble President of India conferring the ‘Padma Bhushan’ Award to Dr. K. P. Singh Dear Shareholders,

In anticipation of a gradual recovery in the global economy during 2009-10, after the very challenging conditions in the previous year, I had assured you in my last Message about your Company’s determination to not just face the challenges resolutely but also to strive to convert them into strategic opportunities to maintain our leadership position in the real estate business in India. I am happy to report to you that, as envisaged, the domestic economy staged a positive turnaround, especially during the second half of the year under review, thanks to the targeted stimulus packages and other timely initiatives taken by the Government, thereby justifying the faith in the inherent strengths and resilience of the Indian economy, even though the improved growth trajectory has been accompanied by higher levels of infl ationary outlook. Refl ecting the overall trends towards economic revival, the real estate sector, too, after tiding over the severe slowdown of the previous year, witnessed an uptrend in residential sales and stabilisation of offi ce lease rentals from the beginning of the current calendar year. Adhering to the strategy of consolidation, your Company remained focused on servicing its obligations to all stakeholders, exiting from non-core assets and placing strong emphasis on execution.

Chairmans' Message (F) Final_260810.indd 3 8/26/2010 9:37:26 PM You will be happy to know that in order to leverage the emerging opportunities in the evolving scenario of revival and renewed growth, and also to reinforce accountability, your Management has devised and implemented a dynamic organisational structure responsible for all real estate development in specifi c geographies with the rental business being in a separate BU. The new structure puts greater emphasis on robust systems, processes and risk management. I have every confi dence that with the support of all stakeholders, your Company will be able to sustain the momentum of growth with consolidation, even in the face of any new challenges that may arise in the months ahead. It would be prudent in this context to bear in mind that the current milieu of infl ationary trends, liquidity constraints and potentially enhanced interest rates, could impact demand and margins in the near term. As you are aware, your Company accords high priority to its CSR agenda, in keeping with its conviction that fulfi lling social outreach commitments is an integral aspect of business growth aspirations and strategies. During the year gone by DLF Foundation, with a dedicated professional team, has been entrusted with the proactive role of a nodal agency to further accelerate your Company’s ongoing thrust in the areas of education, healthcare, training and rural development. I would like to share with all of you a few salient points of my “Vision of India 2020”, which I was called upon to outline at an ASSOCHAM function to felicitate me on being conferred the ‘Padma Bhushan’. In essence, my vision is that every citizen of India should have a Home to call his own within the next ten years. I believe that a nation of homeowners is a nation of responsible and law abiding citizens. It is my considered view that providing a home to every citizen and family, will lead to immense benefi ts for individuals, communities and the society as a whole. It is well documented that stable housing boosts the educational performance of children, induces higher participation in civic and volunteer activities, improves healthcare outcomes, lowers crime, reduces migration of populations and leads to inclusive and stable growth. The moments we cherish the most are those when we see the satisfi ed faces of our customers. I would like to assure all of you that your Company, DLF, will continue to build India by according over-riding priority to promote trust and ensure customer satisfaction while upholding our values and serving the best interests of all our stakeholders. In this we are forever guided and inspired by the visionary precepts and business practices laid down by our Founder, the Late Chaudhary Raghvendra Singh, whose birth centenary is being celebrated this year and who continues to remain an icon and role model for the entire DLF Family.

With best wishes, Sincerely,

New Delhi (Dr. K.P. Singh) July 28, 2010 Chairman

Chairmans' Message (F) Final_260810.indd 4 8/26/2010 9:37:27 PM Milestones

Chairmans' Message (F) Final_260810.indd 5 8/26/2010 9:37:27 PM Management

Chairmans' Message (F) Final_260810.indd 6 8/26/2010 9:37:27 PM Notice

Notice is hereby given that the Forty-fi fth Annual Company computed in the manner referred General Meeting of DLF Limited will be held to in Section 198, 349 and 350 of the Act, in on Tuesday, the 28th September, 2010 at addition to the fees for attending the meetings 10.30 A.M. at Epicentre, Apparel House, of the Board of Directors or Committees Sector-44, Gurgaon-122 003 (Haryana) to thereof, in respect of each fi nancial year of transact the following business: the Company, or part thereof, over a period of fi ve years commencing from 1st April, 2010, Ordinary Business to the Director(s) of the Company (other than 1. To receive, consider and adopt the Audited Managing and Whole-time Directors) or some/ Balance Sheet as at 31st March, 2010, the any of them including Non-resident Director(s), Profi t & Loss Account for the year ended on if any, in such amount(s) or proportions and that date together with the Reports of Directors in such manner as may be decided by the and Auditors thereon. Board of Directors (hereinafter referred to as “the Board”, which term shall include any duly 2. To declare dividend. constituted Committee thereof) in its absolute 3. To appoint a Director in place of Mr. Rajiv discretion, which each such Director may be Singh, who retires by rotation and being entitled to receive, be and is hereby approved. eligible, offers himself for re-appointment. RESOLVED FURTHER THAT the Board be 4. To appoint a Director in place of Brig. (Retd.) and is hereby authorised to modify, amend, N.P. Singh, who retires by rotation and being revise, alter, substitute in any manner in its eligible, offers himself for re-appointment. absolute discretion including the liberty and 5. To appoint a Director in place of Mr. B. authority to decide the mode, manner and Bhushan, who retires by rotation and being time of payment whether in Indian or foreign eligible, offers himself for re-appointment. currency (subject to such restriction on 6. To appoint Auditors of the Company to hold remittances of foreign currency as may be offi ce from the conclusion of this meeting until applicable and for the time being in force) of the conclusion of the next Annual General such commission including the authority to do Meeting and to fi x their remuneration. M/s. all such acts, deeds and things, in its absolute Walker, Chandiok & Co, the retiring Auditors discretion, as it may consider necessary, are eligible for re-appointment. expedient or desirable, for giving effect to the resolution or otherwise considered by the Special Business Board in the best interest of the Company.” 7. To consider and if thought fi t, to pass with 8. To consider and if thought fi t, to pass with or without modifi cation(s), the following or without modifi cation(s), the following resolution as a Special Resolution: resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions “RESOLVED THAT pursuant to the provisions of Section 198, 309, 310 and other applicable of Section 293(1)(e) and other applicable provisions, if any, of the Companies Act, 1956 provisions, if any, of the Companies Act, 1956 (hereinafter referred to as “the Act”, which term (hereinafter referred to as “the Act”, which shall include any statutory modifi cation or re- term shall include any statutory modifi cation enactment thereof, for the time being in force) or re-enactment thereof, for the time being in and subject to requisite consents, approvals, force), the Board of Directors of the Company permissions, if any, from the Government including any duly constituted Committee or statutory authority(ies), the payment of thereof (hereinafter referred to as “the Board”) commission of a sum not exceeding one be and is hereby authorised to contribute, percent per annum of the net profi ts of the from time to time, to charitable and other

Notice - (F) Final_260810.indd 7 8/26/2010 11:24:15 PM funds not directly related to the business of Singh as ‘Business Head (Retail Business)’, the Company or the welfare of its employees, DLF Commercial Developers Limited (DCDL), such amount(s), as the Board may in its a wholly-owned subsidiary of the Company absolute discretion deem fi t, provided that the w.e.f. 1st April, 2010 at a remuneration and aggregate of which shall not exceed in any terms & conditions as set out in the Explanatory fi nancial year by Rs.100 Crores or fi ve percent Statement annexed to this Notice. (5%) of the Company’s average net profi t as RESOLVED FURTHER THAT the Board determined in accordance with the provisions of Directors of the Company (including any of Section 349 and 350 of the Act, during duly constituted Committee thereof) be and three fi nancial years immediately preceding, is hereby authorised to take all such steps as whichever is greater. may be necessary, proper or expedient to give RESOLVED FURTHER THAT the Board be effect to this Resolution.” and is hereby authorised to take all such steps 11. To consider and if thought fi t, to pass with as may be necessary, proper or expedient to or without modifi cation(s), the following give effect to this Resolution and to settle any resolution as a Special Resolution: question, diffi culty or doubt that may arise in this regard, on behalf of the Company.” “RESOLVED THAT pursuant to the provisions of Section 314(1) and other applicable 9. To consider and if thought fi t, to pass with provisions, if any, of the Companies Act, or without modifi cation(s), the following 1956 (including any statutory modifi cation or resolution as an Ordinary Resolution: re-enactment thereof, for the time being in “RESOLVED THAT issue and allotment of force), the consent of the Company, be and 9,20,00,000 equity shares of Rs. 10 each at par is hereby accorded to the appointment of aggregating to Rs. 92 Crores on preferential and remuneration payable to Ms. Anushka basis in accordance with Unlisted Public Singh as ‘Sr. Management Trainee’, DLF Companies (Preferential Allotment) Rules, Home Developers Limited (DHDL), a wholly- 2003 by DLF Brands Limited, a wholly-owned owned subsidiary of the Company, w.e.f. subsidiary, to M/s. Ishtar Retail Private Limited 1st October, 2009 and to her elevation be and is hereby approved. as ‘General Manager—Development’, DHDL, w.e.f. 1st April, 2010 at a remuneration and RESOLVED FURTHER THAT the Board terms & conditions as set out in the Explanatory of Directors of the Company (including any Statement attached to this Notice. duly constituted Committee thereof) be and is hereby authorised to take all such steps RESOLVED FURTHER THAT the Board as may be necessary, proper or expedient to of Directors of the Company (including any give effect to this Resolution and to settle any duly constituted Committee thereof) be and question, diffi culty or doubt that may arise in is hereby authorised to take all such steps as this regard, on behalf of the Company.” may be necessary, proper or expedient to give effect to this Resolution.” 10. To consider and if thought fi t, to pass with or without modifi cation(s), the following resolution as a Special Resolution: “RESOLVED THAT pursuant to the provisions of Section 314(1) and other applicable By Order of the Board provisions, if any, of the Companies Act, 1956 for DLF LIMITED (including any statutory modifi cation or re- enactment thereof, for the time being in force), the consent of the Company, be and is hereby New Delhi Subhash Setia accorded to the appointment of Ms. Savitri Devi July 28, 2010 Company Secretary

Notice - (F) Final_260810.indd 8 8/26/2010 11:24:15 PM Notes Members or their mandates: (a) whose names appear as Benefi cial Owners 1. A Member entitled to attend and vote at the at the end of the business hours on Monday, Meeting is entitled to appoint a Proxy to 20th September, 2010 in the list of Benefi cial attend and vote on a poll instead of himself Owners to be furnished by Depositories and the Proxy need not be a Member of the (NSDL and CDSL) in respect of the shares Company. The Proxies to be effective should held in dematerialised form; and be deposited at the Registered Offi ce of the Company not later than 48 hours before the (b) whose names appear as Members on the commencement of the Meeting. Blank Proxy Company’s Register of Members after giving Form is attached. effect to valid transfer requests in physical form lodged with the Company or its RTA on 2. The Explanatory Statement pursuant to Section or before Monday, 20th September, 2010. 173(2) of the Companies Act, 1956 in respect of Special Business as set out above to be 8. Relevant documents referred to in the transacted at the meeting is annexed hereto and accompanying Notice and Explanatory Statement forms part of this Notice. are open for inspection by the Members at the Registered Offi ce of the Company on all working 3. The details of Directors seeking re-appointment, days, between 1400-1600 hrs. up to the date of in terms of Clause 49 of the Listing Agreement, the meeting. are annexed hereto and form part of this Notice. 9. The Auditors’ Certifi cate as required under 4. M/s. Karvy Computershare Private Limited, Clause 14 of the SEBI (Employees Stock Options Plot No. 17–24, Vittalrao Nagar, Madhapur, Scheme and Employees Stock Purchase Hyderabad-500081, Phone No. 040-44655000 Scheme) Guidelines, 1999 shall be placed at the Fax No. 040-23420814; E-mail: einward.ris@ Annual General Meeting. karvy.com; Website: www.karvy.com, is the 10. In order to provide protection against fraudulent Registrar and Share Transfer Agent (RTA) for encashment of dividend warrants, Members Physical Shares. Karvy is also the depository holding shares in physical form are requested interface of the Company for both NSDL and to provide their Bank Account No., name and CDSL. However, keeping in view the convenience address of the Bank/Branch and MICR Code of the shareholders, documents relating to to the RTA under the signature of First/joint shares will continue to be accepted at Karvy holder(s). Computershare Private Limited, at 105-108, 1st Floor, Arunachal Building, 19, Barakhamba Road, 11. Members who hold shares in dematerialised Connaught Place, New Delhi – 110 001, Phone form may kindly note that their address and Bank No. 011-43509200 and at the Registered Offi ce Account details, as furnished by their depositories of the Company as well as at its Corporate Affairs to the Company, shall be printed on the dividend Department at 1-E, Jhandewalan Extension, warrants as per the applicable regulations of the Naaz Cinema Complex, New Delhi – 110 055. depositories. The Company will not entertain any direct request from such members for deletion of 5. Corporate Members intending to send their or change in address or Bank account details. authorised representatives to attend the meeting Members who wish to change their address are requested to send a certifi ed copy of Board and Bank Account details are requested Resolution authorising their representative(s) to to advise their Depository Participants attend and vote on their behalf at the meeting. about such change with complete details of 6. The Register of Members and Share Transfer address/Bank Account. Books of the Company will remain closed from 12. To avoid loss of dividend warrants in transit and st Tuesday, 21 September, 2010 to Tuesday, undue delay in respect of delivery of dividend th 28 September, 2010 (both days inclusive) for warrants, the Company has provided a facility to determining eligibility for payment of dividend, if the Members for remittance of dividend through declared at the meeting. the Electronic Clearing System (ECS). The ECS 7. The dividend, if declared at the meeting, will be facility is available at locations specifi ed by RBI paid on or before 27th October, 2010 to those and covers most of the major cities and towns.

Notice - (F) Final_260810.indd 9 8/26/2010 11:24:15 PM Members holding shares in physical form and a period of 7 years from the date it became desirous of availing this facility are requested to due for payment will be transferred by the approach RTA. Company to the Fund. Members who have not 13. Members desirous of obtaining any information/ encashed dividend warrants may approach to clarifi cation(s) concerning the accounts and the RTA for obtaining payment thereof. operations of the Company or intending to raise Please note that no claim shall lie in respect any query, are requested to forward the same at of unpaid or unclaimed dividend after its least 10 days prior to the date of meeting to the transfer to the Fund. Company Secretary at the Registered Offi ce of 15. Members are requested: the Company, so that the same may be attended (a) To bring their copies of Annual Report, Notice appropriately. and Attendance Slip duly completed and 14. Pursuant to provisions of Section 205A(5) and signed at the meeting. Not to carry briefcase 205C of the Companies Act, 1956, the Company or bag inside the meeting venue for security has transferred unpaid/unclaimed dividend reasons; for the fi nancial year 2001-02 to the Investor (b) To quote their Folio No./DP Id - Client Id in all Education and Protection Fund (the Fund) of the correspondence; and Central Government. The un-paid/un-claimed dividends for the fi nancial year 2002-03 and (c) To note that no gift or gift coupons will be thereafter, remaining unpaid or unclaimed for distributed at the meeting.

EXPLANATORY STATEMENT [Pursuant to Section 173(2) of the Companies Act, 1956] ITEM NO. 7 All the Non-executive Directors and Dr. K. P. Singh, At the 40th Annual General Meeting held on 29th Mr. Rajiv Singh and Ms. Pia Singh being related to September, 2005, the Members had approved Mr. G. S. Talwar are deemed to be concerned or payment of commission to Non-executive Directors interested in the passing of the said Resolution. of the Company as determined by the Board of ITEM NO. 8 Directors from time to time not exceeding 1% of Pursuant to the provisions of Section 293(1)(e) of the net profi ts of the Company, in aggregate, for all the Companies Act, 1956 (the Act), the Board of the Non-executive Directors in a fi nancial year as Directors of the Company can contribute or make provided under Section 309(4) of the Companies Act, donation for charitable or other purposes, not relating 1956 for a period of 5 years commencing from the to the business of the Company or the welfare of its fi nancial year 2005-06. employees, upto Rs.50,000 or 5% of its average net In this era of Corporate Governance, role of Non- profi ts for preceding three years, as determined in executive Directors has increased manifold and has accordance with the provisions of Section 349 and become very vital for the consistent growth of the 350 of the Act, whichever is greater. Beyond this Company. Accordingly, the Non-executive Directors limit, the approval of shareholders is required. are contributing more in terms of time and efforts and As a part of its Corporate Social Responsibilities, the the Company is benefi ting from their rich, diverse and Company makes contributions/donations for charitable, vast experience. social and philanthropic objects. Accordingly, it is It is proposed to authorise the Board of Directors or any proposed to seek authorisation from the shareholders Committee thereof to determine and pay commission to make such contributions/donations in a fi nancial to the Non-executive Directors of the Company, from year upto an amount not exceeding Rs.100 Crores time to time, not exceeding 1% of the net profi ts of or 5% of Company’s average net profi ts for preceding the Company, in aggregate, or for some/any of them three years, calculated as per Section 349 and 350 of including Non-resident Director(s), if any, in a fi nancial the Act, whichever is greater. year for a further period of 5 fi nancial years of the Your Board commends the Resolution for approval. Company commencing from 1st April, 2010. None of the Directors of the Company is concerned Your Board commends the Resolution for approval. or interested in the passing of the said Resolution.

Notice - (F) Final_260810.indd 10 8/26/2010 11:24:15 PM ITEM NO. 9 of the listed Company, therefore, such transaction DLF Brands Limited (DBL) was incorporated as a should be fair, equitable, transparent, bonaﬁ de and at wholly-owned subsidiary to carry on the business arms length and in the interest of the listed Company of retailing various lifestyle and luxury brands. DBL, and in any case, should not be prejudicial to the listed since its inception, is running into losses and as on Company, its minority shareholders and public at large 31st March, 2010, its accumulated losses were to the and must not militate against the public interest. tune of Rs.42.41 Crores. In the opinion of the Board, the said transaction is not prejudicial to the interest of your Company and As a matter of strategic decision, the Company is its minority shareholders or public interest. Your divesting its non-core business to give more focus on Company is recouping major portion of loans granted its core business of real estate development. DBL to DBL, while retaining its existing investments in the has been identiﬁ ed as non-core business having long enhanced capital in order to avail strategic advantage gestation period and requiring huge investments. for its Malls business. Since the Company is focusing on its core business, hence it does not wish to invest more funds in its Considering the above factors, the Board has accepted non-core business. Therefore, to meet the future the recommendations of the Audit Committee, subject investment requirements of DBL, it was looking for a however to your approval, hence, the proposed strategic partner. resolution. However, the agreements executed with various Your Board commends the Resolution for approval. renowned global brand owners by DBL contains None of the Directors of the Company, except Ms. Pia restrictive covenants and in view thereof, passing of Singh, being a shareholder in Ishtar and Dr. K.P. Singh, controlling interest to a third party would not be in the Mr. Rajiv Singh and Mr. G.S. Talwar being her relatives, interest of the Company as it may not only reduce is concerned or interested in the said Resolution. the enterprise value of the business, but will also ITEM NO. 10 lead to destruction of business of DBL. Therefore, it was considered in the interest of DBL that its majority Ms. Savitri Devi Singh, Vice President, DLF stake through preferential allotment be issued to a Commercial Developers Limited (DCDL), a wholly- promoter entity. owned subsidiary of the Company, has been elevated as ‘Business Head (Retail Business)’ with effect from Being the preferential allotment to a promoter entity, 1st April, 2010. The Board of Directors on the it would tantamount to a related party transaction, recommendation of the Remuneration Committee, in therefore, to keep the said transaction above board its meeting held on 28th July, 2010, subject to your and at arms length, the matter was comprehensively approval, has approved her elevation on the following examined and reviewed by the Audit Committee terms and conditions: which consists of majority of independent Directors. The Audit Committee upon examining various Particulars (Rs./month) strategic options and on the basis of legal opinions 1. Basic Salary : 1,05,000 and valuation reports received from two independent 2. House Rent Allowance : 70% of Basic Salary valuers, recommended the issue of majority stake in 3. Personal Allowance : 75,000 favour of M/s. Ishtar Retail Private Limited (Ishtar), 4. Conveyance Allowance : 83,333 a promoter entity, through 9.2 Crore equity shares 5. SAF Allowance : 15% of Basic Salary of Rs.10 each amounting to Rs.92 Crores, at par. 6. Hard Furnishing/Hard : 8,333 Further, the corporate guarantee already provided by Furnishing Allowance 7. Contribution to Provident : As per rules of the Company the Company and collaterals provided by a subsidiary, Fund and Gratuity DLF Utilities Limited, in connection with credit facilities 8. Annual Performance : Ranging between Rs.30 lacs availed by DBL, shall continue for a further period of Award (minimum guaranteed) and 2 years against lien of shares to be allotted to Ishtar Rs.80 lacs (maximum achiev- and/or counter guarantee/indemnity by a promoter able) as per the policy of the Company. company, subject to regulatory compliances. Since, the above transaction involves a business deal Ms. Savitri Devi Singh shall be entitled like any other between a listed Company and its subsidiary and a employee annual increments/increase as per policy private entity owned and controlled by the promoters of the Company.

Notice - (F) Final_260810.indd 11 8/26/2010 11:24:15 PM Ms. Savitri Devi Singh, being related to Dr. K.P. Singh Your Board commends the Resolution for approval. and Mr. Rajiv Singh, approval of the Members is being None of the Directors, except Dr. K.P. Singh and Mr. sought by way of Special Resolution for the above Rajiv Singh, being relatives of Ms. Savitri Devi Singh, appointment and increase in remuneration pursuant is concerned or interested in the passing of the said to the provisions of Section 314(1) of the Companies resolution. Act, 1956. ITEM NO. 11 The Board of Directors in its meeting held on 29th October, 2009, on the recommendation of Remuneration Committee, had approved the appointment of Ms. Anushka Singh as the ‘Senior Management Trainee’, DLF Home Developers Limited (DHDL), a wholly-owned subsidiary, w.e.f. 1st October, 2009, on the terms and conditions mentioned hereinbelow. The Board, on the recommendations of Remuneration Committee, has also approved in its meeting held on 28th July, 2010 her elevation as ‘General Manager - Development’, DHDL, with effect from 1st April, 2010, subject to your approval, on the following terms and conditions:

Particulars Sr. Management Trainee General Manager–Development (w.e.f. 01/10/2009 ) (w.e.f. 01/04/2010) (Rs./month) (Rs./month) 1. Basic Salary : 17,000 44,000 2. House Rent Allowance : 70% of Basic Salary 70% of Basic Salary 3. Personal Allowance : 7,500 25,000 4. Conveyance Allowance : 10,000 52,500 5. SAF Allowance : -- 15% of Basic Salary 6. Hard Furnishing/Hard Furnishing Allowance : -- 4,167 7. Contribution to Provident Fund and Gratuity : As per rules of the Company As per rules of the Company 8. Annual Performance Award : -- Ranging between Rs.5 lacs (minimum guaranteed) and Rs.15 lacs (maximum achievable) as per the policy of the Company. 9. Medical Reimbursement : Not exceeding one month’s -- salary per year.

Ms. Anushka Singh shall be entitled like any other employee annual increments/increase as per policy of the Company. Ms. Anushka Singh, being related to Dr. K.P. Singh and Mr. Rajiv Singh, approval of the Members is being sought by way of Special Resolution for the above appointment(s) and increase pursuant to the provisions of Section 314(1) of the Companies Act, 1956. Your Board commends the Resolution for approval. None of the Directors of the Company, except Dr. K.P. Singh and Mr. Rajiv Singh, being relatives of Ms. Anushka Singh, is concerned or interested in the passing of the said resolution.

Registered Ofﬁ ce By Order of the Board Shopping Mall, 3rd Floor for DLF LIMITED Arjun Marg, Phase-I, DLF City Gurgaon (Haryana) – 122 002 New Delhi Subhash Setia July 28, 2010 Company Secretary

The Ministry of Corporate Affairs, Government of India, vide its letter No. 47/609/2010-CL-III dated 20th August, 2010 has granted exemption u/s 212(8) of the Companies Act, 1956 from attaching the Balance Sheet, Profi t & Loss Account and other documents of the subsidiary companies with the Balance Sheet of the Company. The annual accounts of the subsidiary companies and the related detailed information will be made available upon request by the investors of the Company and of its subsidiary companies. These documents will be available for inspection by any investors at the Registered/Corporate Offi ce/Corporate Affairs Department of the Company and also at the Registered Offi ces of the subsidiary companies concerned.

Notice - (F) Final_260810.indd 12 8/26/2010 11:24:16 PM Details of Directors seeking Re-appointment at the Annual General Meeting (In pursuance of Clause 49 of the Listing Agreement)

Name of Director Mr. Rajiv Singh Brig. (Retd.) N.P. Singh Mr. B. Bhushan

Date of Birth/ Age 08.05.1959/ 51 years 27.07.1937/ 73 years 24.01.1933 / 77 years

Date of Appointment 16.11.1988 14.01.1993 16.11.1988

Qualiﬁ cations Degree in Mechanical Graduate from Army Staff Fellow Member of the Engineering and Graduate College of Camberley Institute of Chartered from the Massachusetts (U.K.) and National Accountants of India and Institute of Technology, Defence College of India. Associate Member of the U.S.A. Master Degree in Arts Institute of Cost & Works & Science; Associate Accountants of India. Member of British Institute of Management. Trained as Personnel Selection Ofﬁ cer from Psychological Reserch Wing, Ministry of Defence, Government of India.

Expertise in speciﬁ c Presently holding the Has served the Indian Army Experience of over 33 years functional areas position of Vice Chairman over 34 years and has in Capital Market, Finance, of the Company. Has enriched and multifarious Taxation, Corporate Affairs over 28 years of enriched experience of about 17 and General Management. and diverse management years in managing the affairs experience. of the bodies corporate.

Directorships held in DLF India Limited Dhanvantri Laboratories Integrated Capital Services other Public Companies Limited Limited (excluding foreign Eros Retail Private Limited DLF Wind Power Private companies) Enki Retail Private Limited Limited Bhoruka Financial Services Limited DLF Wind Power Private Limited

Committee Positions* Nil Shareholders’/Investors’ Audit Committee–Member in DLF Limited Grievance Committee– Member

Committee Positions* Nil Nil Nil in other Public Companies

Relationships between Related to Dr. K.P. Singh, Nil Nil Directors inter-se Ms. Pia Singh and Mr. G.S. Talwar.

Number of Shares held 164,56,320 Nil Nil

* Committee positions of only Audit and Shareholders’/Investors’ Grievance Committee included.

Notice - (F) Final_260810.indd 13 8/26/2010 11:24:16 PM Notice - (F) Final_260810.indd 14 8/26/2010 11:24:16 PM Directors’ Report

Your Directors have pleasure in presenting their your Company would continue to target reducing 45th Annual Report on the business and operations its overall debt by unlocking cash in non-core of the Company together with the audited results assets, cost-optimisation, process improvements for the fi nancial year ended 31st March, 2010. and effi cient management of working capital while focusing on various segments of real estate development and growth in rental business. Financial Results (Rs. in Crores) Review of Operations Consolidated The global fi nancial crisis and the resultant credit 2009-10 2008-09 crunch in 2008-09 led to subdued demand for Gross Operating Profi t 3,939.60 5,985.98 real estate products across all categories. The Less: Finance Charges 1,110.04 554.84 trend continued in the fi rst half of FY’10. However, Less: Depreciation 324.93 238.96 during the second half, the industry showed Profi t before Tax 2,504.63 5,192.18 signs of reversing the downward spiral as the Less: Provision for Tax 702.25 675.36 country’s economy continued to show signs of Profi t before minority interest 1,802.38 4516.83 recovery. This led to revival of demand in the Share of Profi t/(loss) in associates 0.82 (21.10) residential developments, whereas the commercial developments for sale and leasing did not show Minority interest 10.78 (27.54) any signifi cant signs of improvement. Profi t after Tax and minority interest 1,813.98 4,468.19 Your Company, in order to weather the tremors Your Company recorded consolidated revenues of slowdown, repositioned its product mix and of Rs. 7,851 Crores in FY’10 as compared to changed its business strategies as per the changing Rs. 10,431 Crores in FY’09, a decrease of 24.73%. macro environment. Your Company focused on Consequently, the gross operating profi t, on execution of ongoing projects and chose to exit consolidated basis, reduced from Rs. 5,986 Crores from non-core areas. To ensure sharper focus to Rs. 3,940 Crores, a decrease of 34.19%. The on execution with greater emphasis on robust net profi t after tax and minority interest declined to systems, processes and risk management, Rs. 1,814 Crores as compared to Rs. 4,468 Crores your Company was reorganised around two for the previous year, a decrease of 59.41%. distinct elements – Development Business and The global economic meltdown resulted in very Rental Business. The Development Business thin demand for commercial spaces including SEZ was segmented into three business units with for sale and lease. This impacted the Company’s specifi c geographies with responsibilities for all operations and led to a decline in sales and developments in their respective geographic areas. leasing in this category and consequently the The Rental Business comprising of rental streams profi tability. The FY’10 sales of Rs. 7,851 Crores, from Offi ces, Malls, Facilities Management and were thus largely from residential real estate Utilities ensures sharp focus on the rental income, developments. In residential sales, there was an thereby enhancing stable cash fl ows. increase of about 20% in FY’10 as compared to During the year under review, the Company’s that in FY’09. However, the EBIDTA margin for Board, based on the recommendation of its Special the year is at a healthy 50%, compared to 57% Committee, approved the integration of Caraf in the preceding year. The Company’s profi t was Builders & Constructions Private Limited (Caraf) also adversely impeded due to increase in fi nance (the holding Company of inter-alia, DLF Assets charges from Rs. 554.84 Crores in FY’09 to Rs. Private Limited – ‘DAL’), DLF Info City Developers 1,110.04 Crores in FY’10. (Chandigarh) Limited and DLF Info City Developers Your Company continued its focus on consolidation, (Kolkata) Limited with DLF Cyber City Developers stable growth and risk management. Further, Limited (DCCDL), a 100% subsidiary of DLF.

Directors' Report (F) Final_260810.indd 15 8/26/2010 10:58:24 PM Your Company unlocked about Rs. 1,800 Crores basis for the year ended on 31st March, 2010 is by exiting from very long gestation projects and as under: non-core assets. In view of better returns, your (Rs. in Crores) Company dropped its plans to exit from the Stand Alone wind-power business. Your Company met all its 2009-10 2008-09 stakeholders’ commitments in time during the Turnover 3,220.43 3,839.04 year, including its commitments towards lending Gross Operating Profi t 1,916.38 2,734.80 institutions without any restructuring of debt. Your Less: Finance Charges 847.24 809.86 Company was also able to signifi cantly bring Less: Depreciation 126.05 114.08 down the average cost of debt from 11.9% in Profi t before Tax 943.09 1,810.86 December, 2008 to 10.5% in March, 2010 and Less: Provision for Tax 175.71 261.00 repaid Rs. 5,600 Crores of debt during the year Profi t after Tax 767.38 1,549.86 on or ahead of schedule. Earlier Year Items During the year under review, despite turbulent Income Tax (4.06) -- economic conditions, your Company launched Prior-period expenses (net) 6.38 2.09 approximately 8.0 m.s.f. in Delhi and Gurgaon Net Profi t 765.06 1,547.77 and 5.2 m.s.f. in the rest of India. The customers Balance as per last Balance Sheet 2,676.24 1,734.96 demonstrated their faith in your Company as the Balance available for appropriation 3,441.30 3,282.73 projects received overwhelming response. Appropriations Transfer to Debenture 250.01 113.17 A subsidiary of your Company, in a consortium Redemption Reserve with IL&FS, bagged a contract for construction Transfer to General Reserve 76.51 154.78 of a metro rapid transport system in Cyber City, Dividend on Equity Shares Gurgaon from Government of Haryana. The project Dividend 339.48* 339.44 is fi rst of its kind in the country. Tax on Dividend 11.38 28.91 Your Company believes that there is great Excess provision of previous -- (29.81) year written back potential in the Indian real estate sector and that Surplus carried to Balance Sheet 2,763.92 2,676.24 with economic stability, the demand for residential 3,441.30 3,282.73 as well as commercial segment would further * Proposed strengthen. Therefore, to cater the burgeoning demand for quality real estate, your Company Future Outlook will focus on timely execution of projects, without compromising on quality and compliances. To The Indian economy has shown strong resilience further strengthen its execution machinery during and robustness during the global fi nancial crisis. Given its large domestic consumption base, there the year, your Company’s subsidiary bought out exists a demonstrated ability for future growth .This Laing O’Rourke’s stake in the construction joint economic growth will have a cascading positive venture DLF Laing O’Rourke (India) Limited and impact on the demand for real estate products in increased it to 100%, retaining all the expertise, the residential and commercial segments. human resources and construction equipments. Your Company, is therefore, focused on selling Recognising your Company’s vision, expertise and existing inventory along with selective launching of contribution to the real estate sector, Euromoney new projects across all categories of real estate magazine at Euromoney’s Fifth Annual Real Estate development. However, there will be a specifi c focus Awards, awarded the Best Global Developer on strengthening margins across all projects. Award for 2009 to your Company alongwith Having built a strong asset base of rental assets, your the awards for Best Developer in Asia and Best Company will continue to focus on growing the rental Developer in India. business of the Company to capture the growth in The performance of the Company on stand-alone leasing demand to generate stable cash fl ows.

Directors' Report (F) Final_260810.indd 16 8/26/2010 10:58:24 PM Dividend Report. The Company has made an application to Your Directors are pleased to recommend for the Central Government seeking exemption under approval of the Members a Dividend of Rs. 2 per Section 212(8) of the Companies Act, 1956 from Equity Share (100%) of Rs. 2 each for the FY’10 attaching the Balance Sheet, Profi t & Loss Account amounting to Rs. 350.86 Crores (Rs. 339.48 and other documents of the subsidiaries to the Crores towards Dividend and Rs. 11.38 Crores as Balance Sheet of the Company. The documents/ Dividend tax). details will be made available upon request to any Member of the Company and are also available Corporate Sustainability for inspection by any Member of the Company/ Your Company’s aspiration of continued leadership its subsidiaries at the Registered Offi ce of the in the real estate industry is embedded in its Company/its subsidiaries and at the Corporate culture, offerings and services, whilst upholding Offi ce of the Company during working hours up to its principles of doing business safely and in a the date of Annual General Meeting. fully compliant manner. Your Company being Conservation of Energy, Technology a responsible corporate citizen believes in Absorption and Foreign Exchange sustainable business practices in all spheres Earnings/Outgo etc. of its activities and is committed to contribute to environmental protection, energy conservation The particulars required to be disclosed under and social initiatives while continuing to meet the Section 217(1)(e) of the Companies Act, 1956 read aspirations of all stakeholders. with the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988 are Credit Rating given at Annexure-A annexed hereto and form During the year under review: part of this Report. ● CARE assigned a rating of PR1+, which is the Particulars of Employees highest short term rating, for Company’s short In terms of the provisions of Section 217(2A) of the term debt programme aggregating Rs. 15 bn. Companies Act, 1956 read with the Companies ● ICRA Limited, an associate of Moody’s (Particulars of Employees) Rules, 1975, the names Investors Services, upgraded the rating from and other particulars of the employees are set out ‘A2+’ to ‘A1’ for Rs. 30 bn. short term debt in the annexure to the Directors’ Report. However, programme of the Company. as per the provisions of Section 219(1)(b)(iv) of the ● CRISIL, a unit of Standard & Poor’s, upgraded said Act, the Directors’ Report and the Accounts are the rating from ‘A+ with negative outlook’ to being sent to all the Members of the Company and ‘A+ with stable outlook’ to the Company’s others entitled thereto excluding the statement of Rs. 92.90 bn. term loans, overdraft facilities particulars of employees. Any Member interested in and Rs. 50 bn. non-convertible debenture obtaining such particulars may write to the Company programme and reaffi rmed its ‘P1’ rating to Secretary at the Registered Offi ce of the Company. the Company’s Rs. 15.99 bn. short term loan, bank guarantee, letter of credit and Rs. 30 bn. Employees Stock Option Scheme(ESOS) short term debt programme. During the year under review, your Company Fixed Deposits allotted 2,40,457 equity shares upon exercise of stock options by the eligible employees under the The Company has not accepted/renewed any Employees Stock Options Scheme, 2007. public deposits during the year under review. Information in terms of Clause 12 of the SEBI Subsidiary Companies and (Employees’ Stock Option Scheme and Employees’ Consolidated Financial Statements Stock Purchase Scheme) Guidelines, 1999 is at The consolidated fi nancial statements of the Annexure-B annexed hereto and forms part of Company and its subsidiaries, prepared in this Report. accordance with Accounting Standards AS-21, The certifi cate, as required under Clause 14 of 23 and 27, issued by the Institute of Chartered the said Guidelines, obtained from the Statutory Accountants of India, form part of the Annual Auditors with respect to implementation of the

Directors' Report (F) Final_260810.indd 17 8/26/2010 10:58:24 PM Company’s Employees Stock Option Scheme, The requisite certifi cate from the Statutory Auditors 2006, shall be placed at the Annual General of the Company, M/s. Walker, Chandiok & Co, Meeting. Chartered Accountants, confi rming compliance with the conditions of Corporate Governance Debentures as stipulated under the aforesaid Clause 49, is During the year under review, the Company has attached to the Corporate Governance Report. issued 2 series of Non-convertible Debentures (NCDs) of a face value of Rs. 10 Lacs each on Directors’ Responsibility Statement private placement basis aggregating to Rs. 1,000 As required under Section 217(2AA) of the Crores, as per details below: Companies Act, 1956, your Directors confi rm having: i) 7,000 10.50% Fully-paid Secured Redeemable a) followed in the preparation of the Annual Non-convertible Debentures (NCD’s) of face Accounts, the applicable accounting standards value of Rs. 10 Lacs each, aggregating to with proper explanation relating to material Rs. 700 Crores with semi-annual interest departures, if any; payment, redeemable after 3 years from the b) selected such accounting policies and applied date of allotment; and them consistently and made judgments and ii) 3,000 10% Fully-paid Secured Redeemable estimates that are reasonable and prudent Non-convertible Debentures (RNCDs) of so as to give a true and fair view of the state face value of Rs. 10 Lacs each, aggregating of affairs of your Company at the end of to Rs. 300 Crores with semi-annual interest the fi nancial year and of the profi ts of your payment, redeemable after 2 years from the Company for the period; date of allotment. c) taken proper and suffi cient care for the Listing at Stock Exchanges maintenance of adequate accounting records in accordance with the provisions of the The equity shares of your Company continue to be Companies Act, 1956 for safeguarding the listed on BSE & NSE and form part of S&P CNX assets of your Company and for preventing and Nifty and BSE-30 indices. The Non-convertible detecting fraud and other irregularities; and Debentures issued by your Company are also listed on the Wholesale Debt Market (WDM) segment of d) prepared the Annual Accounts on a going National Stock Exchange. The listing and custody concern basis. fees for the year 2010-11 have been paid to the Auditors Stock Exchanges and NSDL/CDSL, respectively. Pursuant to Clause 5A of the Listing Agreement, The Auditors, M/s. Walker, Chandiok & Co, the Company has opened a suspense account and Chartered Accountants, hold offi ce until the has placed unclaimed equity shares allotted in 2007 conclusion of the forthcoming Annual General IPO. As on 31st March, 2010, 6,410 equity shares Meeting and offer themselves for re-appointment. were lying unclaimed by the rightful owners. Certifi cate from the Auditors has been received to the effect that their re-appointment, if made, Management Discussion & Analysis would be within the limits prescribed under Section Report 224(1B) of the Companies Act, 1956. The Management Discussion and Analysis Auditors’ Report Report as required under Clause 49 of the Listing Agreement with the Stock Exchanges forms part There is no qualifi cation or adverse remarks on the of this Report. stand-alone fi nancials of the Company. Further, the observations given in Point No. 4 of the Auditors’ Corporate Governance Report Report on consolidated fi nancials read with The Report on Corporate Governance as stipulated Note No. 16 of Schedule 24 to the consolidated under Clause 49 of the Listing Agreement forms fi nancials, are self-explanatory and do not call for part of this Report. any further comments.

Directors' Report (F) Final_260810.indd 18 8/26/2010 10:58:24 PM Directors also won the awards for Best Developer in Pursuant to Section 256 of the Companies Act, Asia and Best Developer in India for 2009. 1956 read with the Clause 102 of the Articles of ● The DLF Golf & Country Club retained its Association of your Company, Mr. Rajiv Singh, top position as ‘THE BEST’ course in the Brig. (Retd.) N.P. Singh and Mr. B. Bhushan, country for the third year running at the Asian Directors retire by rotation at the ensuing Annual Golf Monthly Awards, which were held along General Meeting and being eligible have offered with the Asia Pacifi c Golf summit, 2009 in themselves for re-appointment. Kuala Lumpur, Malaysia. Asian Golf Monthly Brief resume of the Directors proposed to be re- Awards are widely regarded as Asia’s golf appointed, nature of their experience and other course Oscars and the premier poll of golfi ng details as stipulated under Clause 49 of the facilities across the Asia-Pacifi c region. Listing Agreement, are provided in the Notice for ● Your Company has been awarded the Golden convening the Annual General Meeting. Peacock Award for CSR, 2010 in recognition Corporate Social Responsibility of its contributions in the fi eld of Corporate Social Responsibility. The award recognises The Company has made signifi cant contributions the path breaking initiatives undertaken by in community welfare initiatives including to DLF in substantially improving the lives of underprivileged through education, training, health, underprivileged communities in its areas of environment, capacity building and rural-centric presence. It is also a recognition of the high interventions as detailed at Annexure-C. The standards of ethics and integrity upheld by the Employees of the Company have also participated DLF group in all its business practices. in many of such initiatives. Acknowledgements Awards and Accreditations Your Directors wish to place on record their sincere Your Directors are pleased to report that your appreciation to the employees at all levels for Chairman Dr. K. P. Singh has been conferred with their hard work, dedication and commitment. The ‘Padma Bhushan’, one of highest civilian awards enthusiasm and unstinting efforts of the employees of the country, in recognition and appreciation of have enabled the Company to remain at the his outstanding leadership role in spearheading forefront of the industry. India’s real estate development including creation Your Company continues to occupy a place of of world-class infrastructure. respect among stakeholders, most of all our Your Company has excelled in various dimensions valuable customers. Your Directors would like to of Corporate achievements, recognized through express their sincere appreciation for assistance peer and public evaluation. The details of awards and co-operation received from the vendors and recognitions to your Company are as under: and stakeholders including fi nancial institutions, banks, Central and State Government authorities, ● Your Company has won the Dun & Bradstreet customers and other business associates, who award for Corporate Excellence. Dun & have extended their valuable sustained support Bradstreet (D&B), is the world’s leading and encouragement during the year under review. provider of global business information, It will be the Company’s endeavour to build and knowledge and insight. The ‘Dun & Bradstreet nurture the strong links with its stakeholders. – Rolta Corporate Awards 2009’ recognised and felicitated corporate India’s leading for and on behalf of the Board of Directors companies from various sectors. ● Your Company has been conferred the Best Global Developer Award for 2009 by Euromoney magazine at Euromoney’s Fifth Annual Real Estate Awards – the most New Delhi (Dr. K.P. Singh) prestigious awards in global real estate. DLF July 28, 2010 Chairman

Directors' Report (F) Final_260810.indd 19 8/26/2010 10:58:24 PM ANNEXURE - ‘A’ Disclosure of particulars under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988

A. Conservation of Energy

a) Energy conservation measures taken 1) Installed 228 MW of Green wind based power turbines in various states of India.

2) Installed co-generation plants using gas based power generators and vapour absorption machines (VAMs). Presently, 5 projects have been commissioned.

b) Additional Investment and proposals, if Additional investment is being planned to install further co-generation plants. any, being implemented for reduction of consumption of energy Use of the Solar energy in the common area lighting is being practised.

c) Impact of the measures at (a) and (b) above 1) DLF Group consumes about 150 MW of electricity in different buildings and generates for reduction of energy consumption and about 228 MW power through clean and green power sources i.e., Wind farms. consequent impact in the cost of production The wind power generation by DLF reduces about 4.7 lac tonnes of CO2 emissions of goods annually.

2) The Company is the largest owner of gas based building co-generation power plants

with an installed capacity of 143 MW reducing 2.4 lac tonnes of CO2, emissions annually.

3) The Company is earning carbon credits of about 3.0 lacs CER (Carbon Emission Reductions) annually from wind power projects. d) Total energy consumption and energy As per Form A Annexed consumption per unit of production

B. Technology Absorption

e) Efforts made in technology absorption DLF is the only Company who has made efforts to install gas turbines and gas engines based building combined heat and power (BCHP) facilities in the basement of its buildings. C. Foreign Exchange Earnings and Outgo

f) i) Activities relating to exports The Company is engaged in developing/constructing residential and commercial properties in India and selling the immovable properties to customers in India and abroad.

ii) Initiatives taken to increase exports The Company does not have any export activities.

iii) Development of new export markets for The Company receives remittances of sale consideration for immovable properties located products and services in India, purchased by the customers’ abroad.

iv) Export plans The Company has taken many initiatives to increase the sale of immovable properties to the customers abroad by designing premium apartments in accordance with the requirements and lifestyle of NRIs, by holding meetings with customers at different locations abroad, attending exhibitions, fairs, etc., through its Senior Executives and Directors with a view to have personal contacts with customers, by giving advertisements in India and abroad, by having continuous touch with enquiries from customers abroad through the Company’s liaison ofﬁ ce in London.

g) Total Foreign Exchange earned and used (Rs. in Crores) 2009-10 2008-09

a) Foreign Exchange earned 198.50 99.28

b) Foreign Exchange used 154.04 62.90

Directors' Report (F) Final_260810.indd 20 8/26/2010 10:58:25 PM FORM - A Form for Disclosure of Particulars with respect to Conservation of Energy

A. Power and fuel consumption

1. Electricity a) Purchased Current Year Previous Year Unit 24,967,349.50 37,421,772.00 Total Amount (in Rs.) 113,601,440.20 178,127,635.00 Rate per Unit 4.55 4.76 b) Own Generation i) Through diesel generation Unit 72,050,010.90 109,431,014.00 Unit per litre of diesel oil 3.81 3.82 Cost/Unit (in Rs.) 10.30 9.81 ii) Through gas turbine/generator Unit 82,080,774.00 40,503,954.00 Unit per litre of fuel oil/gas 3.70 3.70 Cost/Unit (in Rs.) 4.60 3.51 2. Coal (Specify quantity and where used) Quantity (tonnes) NA NA Total Cost (in Rs.) NA NA Average Rate NA NA 3. Furnace Oil Quantity (K. Litres) NA NA Total Amount (in Rs.) NA NA Average Rate NA NA 4. Others/internal generation through wind energy Quantity (Units) 491,879,676.00 364,785,013.00 Total Cost (in Rs.) 418,097,776.00 113,083,345.00 Rate/Unit (in Rs.) 0.85 0.31

B. Consumption per unit of production

Standards (If any) Current Year Previous Year Products (with details) unit - NA NA Electricity - NA NA Furnace Oil - NA NA Coal (specify quality) - NA NA Others (specify) - NA NA

Directors' Report (F) Final_260810.indd 21 8/26/2010 10:58:25 PM FORM - B Form for disclosure of Particulars with respect to Absorption

Research and Development (R&D)

1. Specifi c areas in which R & D carried out by the Company The Company has initiated fi rst of its kind building co-generation activities. The waste heat of the fl ue gases from the gas turbines and gas engines is used in the vapour absorption machines ( VAMs) for air-conditioning of offi ce/ commercial campuses.

2. Beneﬁ ts derived as a result of the above R & D The Company commissioned a 40 MW, ﬁ rst of its kind building co-generation project with a combination of gas turbines and gas engines in Building No. 10, DLF Cyber City, Gurgaon. The above project will lead to save 23% energy by chilled water production through waste heat recovery. This activity is expected to reduce over

52,000 tonnes of CO2 emissions per year in environment. 3. Future plan of action The Company is implementing similar co-generation projects in its upcoming projects at Building No. 5, DLF Cyber City, DLF Silokhera & DLF Phase V, Gurgaon, DLF Hyderabad and DLF Chennai.

4. Expenditure on R & D Nil

Cap ital a. Capital b. Recurring Total c. Total

5. Total R&D expenditure as a percentage of total turnover Nil

Technology Absorption, Adaptation and Innovation

1. Efforts, in brief, made towards technology absorption, Co-generation technology for buildings introduced successfully. adoption and innovation The Company has started wind based power generation in the States of Rajasthan, Gujarat, Karnataka and Tamil Nadu. 2. Beneﬁ ts derived as a result of the above efforts Based on the co-generation technology utilising VAMs, the Company is able to improve cycle efﬁ ciency and save approx 23% of Electrical energy.

The wind based green power generation has been 4,918 lac units for the FY’09-10. 3. In case of imported technology (imported during the last NA 5 years reckoned from the beginning of the ﬁ nancial year) following information may be furnished a) Technology imported b) Year of import c) Has technology been fully absorbed d) If not fully absorbed, areas where this has not taken place, reasons therefor and future plan of action.

Directors' Report (F) Final_260810.indd 22 8/26/2010 10:58:25 PM ANNEXURE - ‘B’ Statement pursuant to Clause 12 of SEBI (Employees’ Stock Option Scheme and Employees’ Stock Purchase Scheme) Guidelines, 1999 as on 31st March, 2010

2007 2008 2009 Total (a) Options granted 25,91,563 14,09,480 38,21,301 78,22,344

(Active Options) (b) Pricing formula Intrinsic Value (c) Options vested 3,39,668 (d) Options exercised 2,70,637 (e) Total number of equity shares arising as a result of exercise of options 2,70,637 (f) Options forfeited 13,11,546 (g) Variation of terms of options N. A. (h) Money realised by exercise of options Rs. 4,80,914 (i) Total number of options inforce at the end of the year 78,22,344 (j) Employee-wise detail of options granted during the fi nancial year 2009-10: Mr. T. C. Goyal, Managing Director Total Options granted till 31.03.2010 = 5,23,810. (i) Senior Managerial Personnel (Directors on Board) (including 1,18,110 options granted in FY’09-10) (ii) Any other employee receiving grant in any one year of option amounting Mr. Rajeev Talwar, Group Executive Director to 5% or more of the options granted during the year. Granted 2,19,552 Stock Options in FY’09-10. Mr.Ashok Kumar Tyagi, Group Chief Financial Offi cer Granted 2,90,733 Stock Options in FY’09-10. (iii) Identifi ed employees who are granted options, during any one year, Nil equal to or exceeding 1% of the total issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. (k) Diluted Earning Per Share (EPS) pursuant to issue of shares on exercise Rs. 4.51 of option calculated in accordance with Accounting Standard (AS – 20— Earnings Per Share) (l) Where the Company has the employee compensation cost using the Difference in employee compensation cost: intrinsic value of the stock options, the difference between the employee Reduction Rs. 348.09 lacs. compensation cost calculated using intrinsic value of stock options and Impact on Profi t: the employee compensation cost recognized if the fair value of the options Increase by Rs. 229.77 (net of Income Tax) had been used and the impact of this difference on profi ts and EPS of the Company. Impact on EPS: Basic = + 0.01; Diluted = + 0.01 (m) Weighted average exercise price and weighted average fair value of Rs. 2 options whose exercise price equals or exceeds or is less than market price Weighted average fair value for options granted on 1st July, 2009: of the stock. Rs. 292.69 Weighted average fair value for options granted on 10th October, 2009: Rs. 397.83 (n) Description of method and signifi cant assumptions used during the year to Weighted average information for options granted on 1st July, estimate fair value of options. 2009: (i) Risk free interest rate: 6.75% (ii) Expected life (in years): 5.5 (iii) Expected volatility: 86.16% (iv) Expected dividend yield: 0.86% (v) Price of the underlying share in the market at the time of option grant: Rs. 310.80 Weighted average information for options granted on 10th October, 2009: (i) Risk free interest rate: 7.26% (ii) Expected life (in years): 5.5 (iii) Expected volatility: 81.87% (iv) Expected dividend yield: 0.64% (v) Price of the underlying share in the market at the time of option grant: Rs. 416.05

Directors' Report (F) Final_260810.indd 23 8/26/2010 10:58:25 PM Corporate Social Responsibility ANNEXURE - ‘C’ DLF over the past many years has undertaken a DLF Foundation. In addition, DLF has opened number of social initiatives in sync with its vision a new DLF Swapana Sarthak School - II of “Building India”. With the formation of the DLF for providing free education to the poor and Foundation as the nodal service organization, underprivileged residing in village Nathupur. DLF has reinforced its strong commitment towards The English medium school is being run as serving the poor and underserved communities. a model school with assistance from Gunjan DLF Foundation, in its second year since Foundation, an NGO committed towards incorporation has continued with its mission of promoting education. Free meals, uniforms, empowering communities and initiated a number of books and bags are provided. charitable projects for the poor and underprivileged ● Rural Schools for Providing Quality in areas of education, training, health, community Education. DLF has partnered Bharti development and environment. Foundation for providing free quality education The Company’s contribution in the fi eld of Corporate to rural children and provide them opportunities Social Responsibility was duly recognized and DLF to be able to compete on an equal footing was awarded the Golden Peacock Award for with those from urban areas. 15 village CSR, 2010. The award recognizes the initiatives based schools in the underserved districts of undertaken by DLF in substantially improving the Rewari, Jhajjar and Kaithal in Haryana have lives of underprivileged communities in its areas of been fi nanced for all their running expenses presence. The CSR activities of the DLF group are in perpetuity, which will benefi t about 3,300 outlined in succeeding paragraphs. children annually.

Education ● SBM Senior Secondary School. DLF is running a CBSE affi liated SBM Senior ● Expanding coverage of DLF Rural Learning Secondary School in Delhi. The school has on Excellence Centres. The DLF-Pratham its rolls 780 students coming from low income Learning Enhancement Programme was group families. DLF has now constructed expanded to cover Government schools in 44 a state-of-the-art school premises with a villages of Gurgaon. It enables underprivileged completely new look at its own cost which has children from the rural community to enhance become functional from this session. quality of learning in English, Mathematics and Hindi. This programme has been extended ● Schools in Gurgaon. In addition to the existing to cover Advanced English learning and CBSE affi liated 10+2 Summerfi elds School, establishment of rural libraries. This has now Gurgaon having 1,800 students, DLF has been further strengthened through the DLF opened the Ridge Valley School. This school Mobile Library Programme. The programme is initially catering to the primary sections and now covers over 5,000 children. will expand thereafter to a 10+2 CBSE school. The school session commences from the 2010 ● Expansion of Schools for the academic year. Underprivileged Programme. DLF has expanded its coverage in this programme by Health extending support to four non-formal schools ● DLF Rural Primary Health Centres. DLF has for the urban underprivileged covering over commenced a rural health care programme 1,200 children. All facilities including fees, under which four Rural Primary Health Centres uniforms, books and mid-day meals are being have been set-up in Haryana. A similar Centre provided free of cost. Out of these, 30 students has commenced operations in Dhaunaran, are being mainstreamed in formal schools Punjab. These are bringing about a signifi cant under a scholarship scheme where all their change in the facilitation of medical care to the education expenses are being supported by rural community by covering over 1,50,000

Directors' Report (F) Final_260810.indd 24 8/26/2010 10:58:25 PM villagers. Specialists are available at the Community Outreach and Integrated Rural Centres during clinic hours and partnerships Development have been established with leading hospitals Community outreach activities for rural development for evacuation and treatment of patients for were undertaken in association with NGOs, secondary and tertiary care. panchayats and local communities in the areas of: ● Eye Care camps. A number of eye care a) Medical care through organising awareness camps have been organized in rural areas and health camps; around Gurgaon in association with Arunodya Eye Centre. In these camps diagnostics and b) Introduction of modern education tools; surgical care is provided. c) Enhancement of education standards ● DLF initiative in animal health care. DLF by enlisting credible professional has taken an initiative in animal health care by organisations; establishing a veterinary hospital in Gurgaon. d) Renovation of village schools and up- This state-of-the-art facility will cater to the gradation of rural infrastructure; and animals in the urban and semi-urban areas, e) Construction of rural roads. while the rural population will be covered through regular mobile veterinary health teams Environment visiting the villages. For holistic urban and rural development, DLF Aapki Rasoi: Mid-day meals for the has paid special attention to environmental disabled improvements. A total of over 1.2 lakh trees have DLF has partnered the Delhi Government’s “Hunger been planted by DLF over a period of time, in Free Delhi Campaign” – Aapki Rasoi for providing Gurgaon. HUDA has consistently over the last daily free meals at a disabled workers site at the seven years awarded DLF with “Excellence in India Gate Lawns in New Delhi. Over 1 lakh meals Horticulture Preservation” award. have been distributed in the past year. Donations for Social Causes Vocational Training Centres DLF has been contributing towards a large number DLF Vocational Training Centres, operating with of social causes. These include education for the the philosophy of providing end to end solutions poor and marginalised sections of society, medicare for unemployed youth from underprivileged for the deprived, construction and upkeep of places backgrounds has trained and placed 1,500 of worship of different religions, animal care etc. trainees in their respective work ﬁ elds. Two new DLF provides the facilities and its premises for training centres were established during the year promotion of pressing social causes by which the in Duskal, Andhra Pradesh, in addition to the two organisations/NGOs set up stalls in the DLF Malls existing centres functioning in Gurgaon. and commercial buildings to propagate their cause.

Directors' Report (F) Final_260810.indd 25 8/26/2010 10:58:25 PM Directors' Report (F) Final_260810.indd 26 8/26/2010 10:58:25 PM Management Discussion & Analysis Report

I. INDIAN ECONOMY & THE REAL ESTATE Residential Segment SECTOR Subsequent to the economic crisis in 2008, there Fiscal 2009-10 began as a challenging year was a sudden and sharp fall in the demand of as a result of the signifi cant slowdown in the real estate products. Customers postponed their economy witnessed in the second-half of FY’09. buying decisions on account of job uncertainties This followed the fi nancial crisis across the globe and concerns of regular income resulting from the and the resultant credit meltdown. The macro economic slowdown. The increased uncertainty economic scenario indicated that the growth rate of business expansion led to companies slowing would remain subdued or trend lower in fi scal year or completely freezing any new employee 2009-10. However, the various stimuli measures additions. This created a huge demand- supply by the Government, both on the monetary and gap, wherein supply exceeded demand leading fi scal front, accompanied by strong domestic to a signifi cant correction in prices. With the demand paved the path for the recovery of Indian fi scal stimuli announced by the Government and economy in the second-half of FY’10. the growth recovery in the economy, this trend gradually reversed in the second half of FY’10 Despite the continuing uncertainty in the global with prices stabilizing to moving up in certain macro environment, the Indian economy micro markets. reported a growth of 7.4% for the fi scal year 2009-10. The recovery of the economy also led The credit crisis in 2008-09 also brought to a revival in capital infl ows which witnessed along with it a paradigm shift in consumer a progressive increase through 2009-10. The preferences from attaining luxury and high end Reserve Bank of India estimates place the real products towards the more affordable and mid- GDP growth in India for the year 2010-11 at a income products. Developers thus shifted focus robust 8.5% making India amongst the fastest from luxury and high end offerings towards offering growing economies globally. a judicial portfolio of mid-income/affordable and luxury residential projects. With this pace of growth being witnessed in the economy, concerns are also beginning While the demand drivers in the homes segment to emerge due to the consistently high rate of continue to drive longer term growth prospects, infl ation being witnessed both at the wholesale higher infl ationary concerns and the Governments and the consumer price index levels. Spiralling initiatives to control infl ation through monetary & prices have seen a year on year growth of 10.2% fi scal measures could result in an interest rate- in Whole-sale Price Index (WPI) and 13.9% in up cycle impacting affordability of customers. In Customer Price Index (CPI) for May, 2010 the current environment, the steep price increase (Source: Labour Bureau and Economic Adviser) that has been witnessed in some micro markets, which have now begun to impact demand and especially city centre locations, are seeing affordability. The Government policy actions will volumes tapering off as customers are holding have to draw a fi ne balance between growth and back their purchase decisions in anticipation of managing infl ation. a marginal price correction. Pricing discipline by various developers would thus hold the key to The recovery in the Indian real estate sector sustainability of volumes witnessed over the last is still in its early stages due to the lag effect. 12 months. Within the sector, the homes segment has seen buoyancy in volumes and prices while the As per Cushman & Wakefi eld research, the pan commercial segment lacks demand both for India cumulative residential demand is estimated offi ces and retail malls. The industry has also to be over 7.5 million units by 2013 across all seen developers in a signifi cant credit crunch categories including the economically weaker and hence accelerated access to the capital sections, affordable, mid and luxury segments. markets, renewed borrowings from the banking The affordable and mid segment category is likely system and non-core asset sales have also been to constitute 85% of the total demand. 43% of the undertaken aggressively by the sector. total demand is likely to be generated in the cities

MDA (F) Final_260810.indd 27 8/28/2010 11:14:42 AM of Bangalore, Mumbai & NCR. The residential by vastly improved business forecasts for the demand in the top seven cities of Bangalore, year. The IT/ITES segment continues to be the Chennai, Hyderabad, Kolkata, Mumbai, NCR & dominant demand driver of commercial space. Pune is estimated to be 4.5 million units by 2013. New and expanding sunshine sectors such as The graph below depicts the year wise demand insurance, telecom & pharmaceuticals are also from 2009-13. emerging as important demand drivers. Whilst the India Inc. growth prospects over the next many years bodes well for the commercial offi ce segment, in the short to medium term the excess supply would need to be absorbed. The industry’s expansion plans and capital outlays may be impacted if tighter policy actions are seen in countries such as U.S.A. and China who are the major global demand drivers and form a signifi cant portion of India’s export markets. As per Cushman & Wakefi eld research, the pan India cumulative demand for offi ce space is Source : Cushman & Wakefi eld Research estimated to be 196 m.s.f. by 2013 with the seven Commercial Segment major cities of Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, NCR & Pune accounting for The Indian offi ce market did not remain insulated approximately 80% of total demand. Hyderabad, from the global upheavals in 2008-09 and Pune & Kolkata are expected to witness the highest consequently real estate activities in the segment compounded annual growth rate of 28% during witnessed a signifi cant slowdown as compared 2009-13, highlighting the growing prominence of to previous years. The majority impact of the these cities in the India growth story. Bangalore is slowdown was observed in the fi rst-half of FY’10, likely to have the highest cumulative demand of when several projects were pulled back due to 34 m.s.f., followed by Chennai, owing to renewed the liquidity crisis. Lack of business confi dence interest from the corporate sector post the and deferment of expansion plans by companies economic crisis. Cumulative demand in Mumbai, also led to a drastic fall in leasing activity. NCR and Bangalore will account for 42% of total Various developers shelved their commercial demand, with Mumbai & NCR accounting for 24 projects which resulted in the reduced supply of and 25 m.s.f. of offi ce space demand through commercial offi ce space across major cities. As 2009-13, respectively. The below graph depicts per certain estimates the total commercial supply the year wise demand from 2009-13. of offi ce space across major cities in 2009 stood at between 40-50 m.s.f., with the absorption rate at between 20-30 m.s.f. SEZ projects were also under pressure during the year due to the STPI extension of one year. As a result, various SEZ projects were deferred, with some developers even de-notifying their SEZs. Almost all micro markets experienced rental corrections over the previous year. The rate of correction, however, eased out by the second half of FY’10, with many locations beginning to Source : Cushman & Wakefi eld Research stabilize. 2010 began on an encouraging note for India’s Retail Segment commercial real estate segment, with take-up A slowdown in demand from both consumers improving across the majority of markets. Several as well as brands/retailers, led to a supply lag IT/ITES occupiers started leasing, spurred on in retail segment as against projections made at

MDA (F) Final_260810.indd 28 8/28/2010 11:14:43 AM the beginning of 2008-09. Slowdown in demand product & price combinations”, weathered the triggered off by reduced footfall conversions turbulent economic environment successfully. As led to low leasing activities and high vacancy in the previous year, the Company focused on its rates further adding to the sector witnessing core areas of business and chose to exit from non- reduced investment interest. Rents slumped due core, non-strategic business. It rationalized its to weakened demand and many projects were land bank and further intensifi ed its concentration delayed, shelved or scrapped in order to avoid on execution of on-going projects. The debt profi le an oversupply situation. Most brands withheld was well managed with all debt obligations being their expansion plans and several retailers exited met on time. The rental business was given an unviable outlets. Revenue sharing model amongst impetus with the consolidation of CARAF/DAL the developers and the retailers emerged as a bringing in the Company’s fold quality assets new trend to mitigate cost pressures for both the that added a robust rental earnings stream to the developer and the retailer. existing rental business. Despite the depressed The beginning of 2010 has witnessed initial signs economic scenario, the Company continued to of interest in the segment. Given the revival in emphasize on earning strong margins in order the economy, growing consumer confi dence to enhance profi tability and provide value to its and the restraint in mall construction leading to a shareholders. healthier supply demand equation, mall rentals (i) Product Pricing & Launches have started stabilising and signs of a gradual The Company’s strategy of launching increase in enquiries for leasing have begun. products in a phased manner and maintaining As per Cushman & Wakefi eld, cumulative retail a healthy volume – profi tability balance demand across India is estimated to be 43 m.s.f. helped it meet its realizations and targeted by 2013 of which, demand in the top 7 cities EBIDTA margins. The Company has always of Bangalore, Mumbai, NCR, Pune, Kolkata, stressed on the fact that in its long cycle Chennai & Hyderabad is estimated at 34.6 m.s.f. business, launches have to be carefully Mumbai, NCR & Bangalore are all expected to weighed in terms of the right pricing providing witness the highest demand, together comprising adequate margins. The Company also gave approximately 20 m.s.f. Highlighting the potential added incentives to its customers in the for retailers to expand pan India, the Investment form of timely payment rebates, rebates on Commission of India expects the increase in move-in, initial inaugural discounts and the share of organised retail to grow from 5% enhanced value specifi cations thus providing to 15.5% by 2016. The graph below depicts the customers with a compelling product offering. year wise demand from 2009-13. As a result the Company was able to sell out 85% of its residential offerings during the year which comprised a balanced mix of both city centric and mid-income properties. (ii) Land Bank Rationalization & Acquisition In order to consolidate its land parcels and rationalize the existing land bank, the Company after due deliberation and consideration earmarked land parcels in select locations that it did not see having any medium term potential and the divestment Source : Cushman & Wakefi eld Research of which would not have any bearing on the II. BUSINESS AND FINANCIAL PERFORMANCE Company’s fi nancial performance. These & OUTLOOK land parcels also included options on land 1. Strategy for long gestation projects. As a result the DLF, through repositioning its product mix and Company divested 19 m.s.f. of land parcels business strategies and focusing on the “right in locations across the country including land

MDA (F) Final_260810.indd 29 8/28/2010 11:14:43 AM parcels in Bangalore, Mumbai and Gurgaon. (Caraf) (the holding Company of inter-alia, DLF In addition it also purchased a land parcel in a Assets Private Limited – ‘DAL’), DLF Info City city centre location that provided it a saleable Developers (Chandigarh) Limited and DLF Info area of approx. 10 m.s.f. As of 31st March, City Developers (Kolkata) Limited with DLF 2010, the total land bank of the Company Cyber City Developrs Limited (DCCDL), a 100% stood at 416 m.s.f. as against 425 m.s.f. at subsidiary of DLF was completed. the beginning of the year. The integration exercise between DCCDL and CARAF/DAL was done under the recommendation While select land bank rationalization will of a Special Committee of Independent Directors be an on-going process, the Company’s which was advised by a group of well established land acquisition strategy has become and reputed transaction/investment banks and concentrated towards purely land parcels independent valuers. Consequent to the above in city centre locations and those that it exercise, the Board of Directors of DLF accepted might consider strategic in nature. Refl ective the recommendation of its Special Committee of these is the land acquisition that the and the relative valuation of DCCDL and CARAF/ Company did in Gurgaon; a land parcel of DAL in the ratio of 60:40. around 350 acres in city centre Gurgaon that it won in an auction by HSIIDC at a value of The above exercise achieves a substantial approximately Rs. 1,700 Crores. consolidation of the rental assets, enhancing stable cash fl ows in the form of rentals from a Land Bank by location as on 31st March, 2010 quality portfolio of assets and increases the proportion of strong, stable and growing rental income in DLF’s overall business portfolio. The integration also resolves the “perceived” confl ict of interest between the promoter entities and DLF and provides an opportunity to unlock value in an integrated Company with all legal structures and enablers in place.

POST BALANCE SHEET DATE EVENT In April, 2010, DLF through its subsidiary CARAF acquired 90% of the Compulsorily Convertible Preference Shares (CCPS) held by DSIPL in Super Metro’s – Delhi Metropolitan Region & Mumbai; Metro’s – DAL. The culmination of this transaction takes Chennai, Bangalore, Kolkata and Hyderabad the overall stake of CARAF in DAL from 50.6% to Tier I – Chandigarh, Goa, Pune, Nagpur, Cochin, Coimbatore and 91.9% hence providing the Company i.e., DLF, an Bhubaneswar opportunity to consolidate its shareholding in DAL. Tier II – Vadodra, Gandhinagar, Ludhiana, Amritsar, Jalandhar, The total consideration paid for the CCPS was Shimla, Sonepat, Panipat, Lucknow and Indore Rs. 3,085 Crores which was funded through a (iii) Debt Proﬁ le & De-leveraging mix of debt, cash in hand and internal accruals. It is important to observe that at the time of The Company, against a mandatory debt integration of DAL, the investment of DSIPL was repayment of Rs. 3,549 Crores, paid Rs. 5,633 valued for and netted off from the valuation of Crores, while improving the quality of debt vis-à- CARAF (including its subsidiaries). vis lower cost and higher maturity. The average cost of debt as on 31st March, 2010 stood at (v) Divestment of non-core assets 10.5%. The Company’s net debt to equity ratio In order to bring a stronger focus on the as on 31st March, 2010 was at 0.53. core strengths of the business & stress on management’s time & effort to these, the (iv) CARAF/DAL Consolidation Company at the beginning of FY’10 had During the year, the integration of Caraf earmarked a programme for divestment of select Builders & Constructions Private Limited non-core assets. Non-core assets primarily

MDA (F) Final_260810.indd 30 8/28/2010 11:14:43 AM comprised monies or advances to be received from the Government for long gestation integrated township projects and convention centres, hotel land and other land parcels with no immediate development plans, advance license fee refunds and select non-core businesses such as hotels and asset management. The monetization of these would not impact the Company’s fi nancial performance over the coming years. The Company unlocked Rs. 1,800 Crores during the year from divestment of non-core assets comprising some of the above mentioned non- In recognition of the Company’s inherent strengths core assets/business. It also rejected an offer and the strategies adopted to face successfully for the wind power business of about Rs. 1,000 a year of challenges and emerge on the top, Crores, since the annuity stream from this the Company was conferred the Best Global business provided a robust post tax yield. Developer Award for 2009 by Euromoney (vi) Internal Business Restructuring magazine at Euromoney’s Fifth Annual Real Estate Awards – the most prestigious awards in the The Company was internally restructured into global real estate industry. Further, the Company two verticals - Development Business and also won the awards for Best Developer in Asia Rental Business, each imparting renewed and Best Developer in India. This prestigious focus on execution with emphasis on robust accolade further fortifi es the Company’s vision to systems, processes and risk management. The be a world-class real estate developer and provide restructuring exercise brings sharp focus on the best quality developments to its customers. rental and development business and enhances stable cash fl ows. Outlook on Risks & Concerns The real estate business in India is impacted by, (a) Development Business inter-alia, regulatory and monetary policies and The Development Business are split investment outlook. The Company’s operations geographically into 3 subsidiaries i.e. and its ability for future deve-lopment has to be Gurgaon, Super Metros and Rest of India viewed in light of the above and resultant factors and will be involved in all real estate such as the availability of real estate fi nancing, development in their respective geographies. uncertainty on monetary and fi scal policy actions, Each of these subsidiaries will be responsible changes in Government regulations, foreign direct for their own Profi t & Loss Account and investments, approval processes, environment Balance Sheet leading to higher accountability laws, actions of government land authorities and from respective management teams. legal proceedings. Other business risks could These subsidiaries will be responsible for be fi nancial stability of commercial and retail all activities across the product value chain tenants, replenishment of land reserves, inability from launch of a product to fi nal delivery to to compete effectively in regional markets and/ the consumer. or new business, lack of ability in identifying (b) Rental Business consumer requirements in a timely manner, The objective of the Rental Business is to over-dependence in a particular market/region, further enhance the rental portfolio of assets input price increases and various other risks that and increase the rental revenue fl ows from may be attributable to real estate. these assets. The subsidiary would be 2. Business Review looking at all gamut of business that lend (a) Development Business themselves to an annuity model and would comprise of commercial offi ces, I.T. Parks, Homes Segment I.T. SEZs, Retail Malls, Utilities and Facilities The Company continued to enhance its reputation Management. as one of the strongest and most established

MDA (F) Final_260810.indd 31 8/28/2010 11:14:43 AM developers in the country with an enviable track Prominent Launches in FY’10 record in developing urban housing, pioneering City Centre — Capital Greens, Delhi – Phase new products and offering an array of products I, II & III – the project comprising of more than across various locations. Its superior execution 2500 units on offer met with an unprecedented track record, exemplary design and architecture response with the fi rst two phases having and strong brand name coupled with a focus being sold out in a matter of days with a 30% on safety helped the Company in making higher price in the second phase vis-à-vis the progressive in-roads into various micro markets. fi rst. Phase III pertaining to the luxury product Performance FY’10 category (as different from the earlier phases) and comprising 150 apartments on offer was After the downturn in 2008, the residential segment recently launched at a price of Rs. 12,000 p.s.f. witnessed healthy growth on account of economic and has also met with a good initial response. stability and revived consumer confi dence. This was also in no small measure a result of Mid-income — DLF Valley, Panchkula, select launches done by the Company, with a Chandigarh — The project was launched compelling “product & price” strategy that helped in February, 2010 and comprised 1200 to revive the market and brought customers units at an average price of approximately back. The Company sold approximately 12.2 Rs. 2400 p.s.f., totalling approx. 2 m.s.f. The m.s.f. (net) during the year. product which was in the form of independent fl oors, met with a phenomenal response with sales of the entire 2 m.s.f. on offer within a week, as against an initial target of sales of approx. 1 m.s.f. Other key launches during the year included residential properties in Goa, Gurgaon and Bangalore.

The table below provides a synopsis of the sales volumes and average prices realized for the Homes segment in 2009-10.

Region/Head City Area Area Sold Sales Value Avgerage Launched (m.s.f.) (Rs. Crs) Realisation (m.s.f.) (p.s.f.) Super Metro Delhi 4.56 4.21 3,300 7,838 Gurgaon DLF City & New Gurgaon 3.50 3.12 2,550 8,173 Rest of India Panchkula, Banglore & Goa 5.17 3.90 950 2,439 Existing Stock New Gurgaon, Kochi & Indore 0.00 1.32 350 2,652 Total 13.23 12.55 7,150 21,102

MDA (F) Final_260810.indd 32 8/28/2010 11:14:43 AM Outlook Area under construction (m.s.f.) With the revival in sentiment and the latent demand in the housing segment the Company is well positioned to capitalize on the resultant opportunities. With a development potential of more than 290 m.s.f. spread across the country, the Company will launch projects that cater to different income groups and further fortify its position as provider of quality urban housing in the country. The product mix in the forthcoming year is expected to be a balanced mix of city centre and mid-income housing across locations such as Mumbai, Delhi, Gurgaon, Bangalore, Hyderabad and Chandigarh. Expected sales in FY’11 would be primarily from the existing stock i.e. stock to be released in subsequent phases of Development potential (m.s.f.) already launched projects.

Given the challenges faced in getting a number of approvals from respective authorities in various cities, timing of launches would vary. The Company would continue to focus on launching projects only after ascertaining the “right pricing and costing” parameters and getting the optimum design and planning metrics for better value addition. This is imperative in light of the current high infl ationary concerns that could potentially lead to an input price increases and hence impact margins. The expectation of any (b) Rental Business substantial policy change to control high infl ation (i) Offi ces Segment and the resultant risk of an interest rate upcycle The Company today is amongst the most which may impact demand will also have to preferred names in providing quality work be considered while taking into account future spaces that meet global standards and launches by the Company. provide modern amenities with the best- in-class maintenance & service standards. Project Execution Status and Development The Company offers ready to move in Potential and built to suit options to its clients which The Devco comprising primarily the homes comprise developments encompassing segment, followed by commercial complexes retail & recreation centres, medical services, has a combined area of 39 m.s.f. under business centres, ATMs, food courts and construction as of 31st March, 2010. Within this, other amenities such as modern fi re detection the homes segment has 34 m.s.f., while the and suppression systems. The Company’s commercial complexes segment has 5 m.s.f. of building designs incorporate large effi cient area under construction. As of 31st March, 2010, fl oor plates, wide column span and high the area available for potential development in fl oor to fl oor clearance, for optimal space the Devco (including area under construction) utilization and structures that are designed stood at 315 m.s.f. for maximum safety.

MDA (F) Final_260810.indd 33 8/28/2010 11:14:43 AM A standing testimony to the Company’s signs of initial pickup, is subject to the expertise in the offi ces segment is the Cyber continuing recovery in the economy and City offi ce complex in Gurgaon, the largest the crystallisation of the Indian industry’s privately built offi ce complex in the country growth and expansion plans. Given the on- which spreads across an area of more than going pressures on the Government, the 20 m.s.f. (including potential developments) current macro environment may witness and boasts of global MNC organizations as policy actions that could hamper the current its tenants. growth momentum. Any withdrawal of the stimulus measures in global powerhouses Performance FY’10 such as U.S.A. & China along with the The year gone by was challenging in terms troubles in the European Union could impact of leasing activity as Company’s postponed the leasing momentum in the offi ce space. business expansion plans and new Another major factor that could potentially ventures were delayed or shelved due to favour or impede growth in the offi ce leasing the uncertainty in the environment and lack environment would be the impact of the of business confi dence. Rentals corrected proposed Direct Tax Code and its effect on sharply and existing available inventory the IT SEZ’s. Clarity on this front is yet to forced developers to stall or postpone on- emerge. going constructions. With its superior locations and strong client With the revival in the economy, leasing relationships, the Company is well positioned enquiries gradually picked up pace and to take advantage of the India growth story rentals stabilized. As clarity emerged on and is expected to be amongst the biggest business growth prospects, the offi ce benefi ciaries as and when the leasing segment started showing signs of revival demand strengthens. The Company expects in the last quarter of FY’10. The offi ce to lease 3-4 m.s.f. of offi ce space during leasing environment has been steadily FY’10-11 across various locations. improving with the Company having leased 0.7 m.s.f. area in FY’10 (after accounting for (ii) Retail Segment cancellations). Deliveries of approx. half a In the Retail segment, the Company has the m.s.f. were made during the year. expertise to cater to different retail formats. The focus in the year was on providing value The Company was amongst the earliest added services to clients, reinforcing and one’s to realize & recognize the changing enhancing relationships. Construction of consumer preferences of the Indian customer offi ce properties in select locations was also and resultant spending patterns. With higher re-initiated in order to be well positioned for disposable incomes, a global exposure to the expected demand pickup in the second aspirational and luxury products and the half of FY’11. increasing infl uence & desire of a premium lifestyle by the Indian urban youth, the retail Outlook industry witnessed a paradigm shift. With the With India Inc.’s aggressive hiring plans and benefi ts of an established brand name and the buoyancy in the economy, demand for strong track record coupled with a quality offi ce leasing is expected to improve in the portfolio of premium locations across India, coming years. For the Company, the fi rst the Company was able to serve the needs of quarter of fi scal 2011 has seen leasing of customers with different buying patterns and 0.93 m.s.f., higher than the whole of last purchasing power. With pioneering the retail year. However, while volumes are expected revolution in early 2000, the Company today to show a recovery, given the existing and has well proven expertise in providing a oncoming supply of offi ce space, market “one stop shop” shopping and entertainment rents are unlikely to increase in the short to experience by providing a discernible set medium term. of shopping labels and brands intermingled The offi ce segment, though exhibiting with an array of recreational & leisure options

MDA (F) Final_260810.indd 34 8/28/2010 11:14:43 AM in thoughtfully conceived and aesthetically Rentco. The area available for potential designed premium architectural and development in the Rentco (including area commercial landmarks. under construction) stood at 90 m.s.f.

The Company today has approx. 1 m.s.f. Area under Construction (m.s.f.) of operational Malls located in the cities/ regions of NCR, Delhi, Chandigarh, Kolkata etc. Amongst its prominent retail malls are the Emporio, DLF Promenade & DLF Place, Saket all based in New Delhi and having an enviable tenant proﬁ le comprising luxury, premium and semi premium brands as its tenants.

Performance FY’10 The year gone by has seen the retail segment as the most challenging due to lower consumer spending and preference towards basic necessities rather than luxury offerings, hence impacting tenant business. Development potential (m.s.f.) Rentals corrected sharply and a host of ongoing developments were stopped mid-way due to the complete lack of leasing demand. Brands postponed their expansion plans and existing tenants exited unviable outlets. Revenue sharing agreements between developers and anchor stores emerged as a new trend in the industry where many such transactions were witnessed in the year gone by. The fi rst half of 2009-10 witnessed complete lack of movement in the demand for retail space; the second half saw the emergence of enquiries in select locations. The Energy Centres – Green Initiatives by the current focus for the Company would be to Company consolidate its position in the segment and increase its occupancy levels in existing While providing value added services to operational malls. its tenants in the Rentco, the Company remains conscious of its responsibilities to Outlook the environment. The Company is setting up While still subdued, the revival in the gas based co-generation plants for providing economy and growing consumer confi - electricity and chilled water for air-conditioning dence is expected to result in a gradual pick- of offi ces, commercial buildings, complexes up in leasing transactions. The Governments and malls. These captive power plants are FDI policy in multi-brand retail could be distributed co-generation plants, fully green a signifi cant growth driver in the short to medium term. and environment friendly and generate chilled water (for air-conditioning) by using the waste Project Execution Status and heat from the exhaust of the power generating Development Potential equipments through Vapour Absorption The Company as on 31st March, 2010 has Machines (VAMs) and provide air-conditioning 17 m.s.f. of area under construction in the to commercial buildings/complexes etc. These

MDA (F) Final_260810.indd 35 8/28/2010 11:14:43 AM plants result in higher cycle effi ciencies and and operates the luxurious Aman Resorts across reduce emission of green house gases/ tonnes of the world and also has an alliance with the Hilton group for development and management CO2 by about 50% as compared to conventional power plants. In addition to above mentioned of hotels in India. The hotel business is currently captive co-generation plants, as a part of the undergoing a comprehensive review by the green initiative, the Company has installed over Company as regards its future plans, commitment 228 MW of wind power plants in the states of towards resources and the extent of scale and Rajasthan, Tamil Nadu, Gujarat and Karnataka. size that the Company aspires to achieve in this segment going forward. Select land parcels (c) Execution meant for hotel developments in India have been During the year, DLF added 21 m.s.f. disposed off, with a few more proposed to be (net) under construction in FY’10 spread sold as a part of the non-core asset divestment mainly across the cities of Delhi, Gurgaon programme. As regards the Aman Resorts, the and Bangalore; comprising homes and Company has witnessed an improved operating performance during the year. Aman Resorts has commercial complexes. The total area under been a recipient of many international accolades. construction as of 31st March, 2010 stood at In its recent accomplishments, Aman Resorts approx. 56 m.s.f. received the highest ranking for ‘World’s Best The Company during the year enhanced its Hotel Chain & Marketing Group’ in the Zagat construction prowess and execution ability by World’s Top Hotels, Resorts & Spas 2009/2010 buying out the Laing O’ Rourke stake in the edition. The Company will, at an opportune time, DLF-LOR JV. This not only brings in-house the explore the possibility of a strategic partnership resources of the JV in terms of machinery & for Aman Resorts in order to further strengthen workforce but also supplements the Company’s the current business model. existing technical know-how, systems and (e) Life Insurance processes in the fi eld of construction while providing complete autonomy across the product DLF Pramerica Life Insurance Company Ltd. execution life-cycle. (DPLI), a 74:26 JV between DLF Limited and Prudential International Insurance Holdings (PIIH) commenced operations in September, Area under construction (m.s.f.) 2008 with a purpose to market and sell life Segment/Regionwise insurance products in the country. The Company has completed one full year of commercial operations as on 31st March, 2010. With a consistent focus on a steady strategy of capital conservation, sound liquidity and enhancement of operational and cost effi ciencies, the overall fi nancial performance during the last year was in line with the business plans envisaged.

Performance FY’10 i. During the year, policies issued witnessed a (d) Hotels substantial growth with 19,485 policies versus In order to re-focus on the core business 2,778 in the previous year. Annualised premium operations and in line with the strategy adopted from these policies was at Rs. 44.79 Crores in 2009-10, the Company’s hotel plans across the as against Rs. 6.45 Crores in the previous leisure and business segments were substantially year with a sum assured of Rs. 514.47 Crores scaled down during the year. The Company owns (Previous Year Rs. 66.52 Crores).

MDA (F) Final_260810.indd 36 8/28/2010 11:14:43 AM ii. The Company more than doubled its agency 10.13 as compared to Rs. 26.24 for FY’09. offi ces to 29 by extending its reach in National The decline in revenues was primarily a result Capital Region, Punjab, Haryana and Gujarat of the substantially reduced sales to DAL in with a team of 2115 advisors (Previous 2009-10, as a result of lack of leasing in the Year 113) and tied up with 43 partners thus SEZ space, owing to a drop in demand and the enhancing its reach. continuing uncertainty in the policy environment. iii. The Company launched/modifi ed 13 produ- In FY’09, DLF reported sales of Rs. 10,431 cts during the year, in line with customer Crores, which also included a signifi cant portion requirements and changes in regulations on of sales pertaining to DAL with commensurate ULIPs regarding capping of charges. profi ts. In FY’10, sales stood at Rs. 7,851 Crores in which DAL sales were substantially lower and Outlook at signifi cantly lower margins as these were As life insurance penetration in India continues primarily in relation to fi nishing costs incurred to be low when viewed from the perspective for the DAL properties. The profi tability during of death protection, the Company expects an the year was mainly driven by new launches increasing emphasis on the protection aspects in the residential segment and the scale-up in of life insurance, along with the need for high execution of pre-sold properties. quality advice. The Company will continue The revenue and profi t fi gures of the Company to establish deep distribution partnerships during the year were after adjusting for losses with emphasis on low cost, scalable business contributed by non-core business, like DLF models and at the same time, carefully monitor Pramerica Life Insurance, Hotels & Retail all opportunities and challenges that the rapidly Brands which combined amounted to Rs. 255 changing regulatory environment in the sector Crores. The Life Insurance business is still in could potentially provide. its gestation phase and given the attractive (f) Asset Management market opportunity, this business is expected to contribute positively once it reaches a signifi cant The Company exited its asset management JV size & scale of operations. Both the Hotels and during the year. The Company’s decision to exit the Retail Brands business are undergoing the business was triggered due to the changes by a comprehensive review in light of further SEBI in its evaluation criteria for granting approval substantial investments needed to support to the joint venture mutual fund to commence these businesses through their early stages of business in India. This primarily involved both evolution and the need for prioritising resources the partners to have a fi ve year track record towards the Company’s core business activities. in the fi nancial services sector precluding DLF from partnering Prudential Financial Inc. in the The rental income during the year increased business. to Rs. 725 Crores from Rs. 505 Crores in the previous year, due to the delivery of commercial 3. Financial Review pre-leased properties that added to the existing rental stream. Revenue & Profi tability Total expenditure before fi nance charges declined During the fi scal 2009-10, DLF reported to Rs. 4,236 Crores from Rs. 4,684 Crores consolidated revenues of Rs. 7,851 Crores, during last fi scal. The cost of revenues including lower by 25% from Rs. 10,431 Crores in FY’09. cost of lands, plots, constructed properties and EBIDTA stood at Rs. 3,940 Crores, lower by development rights was contained at Rs. 2,580 34% as compared to Rs. 5,986 Crores in the previous year. Net profi t after tax and minority Crores from Rs. 3,229 Crores in the previous interest before prior period items was at year. This was in-part related to the execution Rs. 1,814 Crores, a decline of 59% from Rs. & scale-up of existing projects and was lower 4,468 Crores. Net profi t after tax, minority than the previous year as a result of the delay interest and prior period items was at in starting construction for new launches due Rs. 1,720 Crores, a decline of 62% from Rs. to certain approvals not being in place. The 4,470 Crores. The EPS for FY’10 stood at Rs. establishment expenses increased marginally

MDA (F) Final_260810.indd 37 8/28/2010 11:14:43 AM to Rs. 467 Crores from Rs. 454 Crores and addition to networth due to profi ts. The loan the other expenditure rose to Rs. 865 Crores funds saw an increase to Rs. 21,677 Crores from Rs. 762 Crores, as a result of the scale- from Rs. 16,320 Crores, primarily as a result of up in business activity in 2009-10. The fi nance the consolidation of CARAF/DAL. The net debt- charges, charged to the Profi t & Loss account equity ratio stood at 0.53 as compared to 0.64 in increased to Rs. 1,110 Crores as against Rs. the previous year. 555 Crores in the previous year. Net fi xed assets grew to Rs. 16,558 Crores from Rs. 7,912 Crores on account of capitalization of EBIDTA margins saw a decline to 50% from 57% leased-out assets and consolidation of assets in the previous year. Margins were impacted due held by CARAF/DAL. to revenues from DAL which were signifi cantly higher in the previous year. Excluding sales to Capital work-in-progress rose to Rs. 11,129 Crores from Rs. 5,688 Crores as area under DAL, EBIDTA margins are comparable to the construction increased and was further enhanced previous year i.e., 2008-09 where volumes were with the recognition of assets under construction lower and the product mix was biased towards by DAL in its books. the mid-income segment. Investments increased to Rs. 5,505 Crores from Rs. 1,402 Crores, with a majority of these investments being in liquid instruments. Stocks increased to Rs. 12,481 Crores from Rs. 10,928 Crores. Other current assets declined to Rs. 4,685 Crores from Rs. 7,622 Crores, primarily as a result of the elemination of assets & liabilities due to the consolidation of CARAF/DAL. Other current assets included the unbilled receivables which were recognised in revenues due to the percentage of completion method (POCM) whereas the payments by the Balance Sheet customers would only be made subsequently as The Company’s Balance Sheet as on 31st per the payment plan provided. The cash and March, 2010 refl ected a healthy position with bank balances reduced to Rs. 928 Crores from a net worth of Rs. 30,433 Crores and net debt Rs. 1,196 Crores. to equity ratio of 0.53. Cash reserves stood The current liabilities stood at Rs. 4,637 Crores, at Rs. 928 Crores with investments of Rs. up from Rs. 4,140 Crores. The increase was 5,505 Crores, mainly in liquid instruments. The mainly on account of monies received as Balance Sheet includes the impact from the advances from customers in the leased out DAL consolidation of CARAF / DAL that was given portfolio properties. effect in the month of March, 2010. With the purchase of 90% of the CCPS held The Company re-paid debt of Rs. 5,633 Crores by DSIPL in April, 2010 i.e., post the Balance for 2009-10 as against mandatory payment of Sheet date, the networth of the Company will Rs. 3,549 Crores, meeting all its stakeholder’s be adjusted to refl ect for the above mentioned commitments on time. Along with meeting transaction accordingly. its debt servicing commitments to banks and fi nancial institutions, the Company also improved III. CORPORATE FUNCTIONS the quality of debt vis-à-vis lower cost and higher (a) Information Technology maturity period. It was able to bring down the Performance FY’10 average cost of debt from 11.9% in December, The IT function focused on increasing the 2008 to 10.5% in March, 2010. usage of already implemented technologies. The shareholders’ funds improved to Rs. 30,433 Additional efforts were put in to conclude on- Crores from Rs. 24,154 Crores on account of going implementations and derive business both the CARAF / DAL consolidation and the values out of it.

MDA (F) Final_260810.indd 38 8/28/2010 11:14:43 AM ● Business Intelligence Tools: While the ERP monitoring system that reports periodically implementation was concluded in FY’09, as a the adherence of or deviations from required next step the RAMCO Business Intelligence statutory compliances and prompts corrective reporting tool has been implemented for actions in a timely manner. more on-line analytical reports. The Company has an internal audit team, ● Set-up of state-of-the-art Documentation headed by a Chief Internal Auditor reporting Centre: Work on setting up state-of-art directly to the Audit Committee comprising documentation centre with fl oor space of a majority of independent Directors. approx. 43,000 sq. ft. in one of the Company’s The team is adequately supported by own buildings in Cyber City, Gurgaon has external Chartered Accountant fi rms which been completed. This centre comprises undertake various department-wise & Technical Reference Section, Media Room, comprehensive pre-audits in order to ensure Scanning Stations etc. that the established systems, processes and ● Geographical Information System: To compliance mechanisms are being diligently test the capability of GIS land information followed and adequate checks and balances system, a pilot project with one of are in place to identify non-observance. the business units of DLF was done. Major observations made by the internal This is being tested with other business units audit team are periodically reviewed by the as well. Audit Committee of the Board and remedial measures, if required, are presented to the Outlook Committee along with their implementation status and resolution timelines. The IT team of the Company intends to focus on the following developments going forward: In addition to the in-house internal audit team, st ● Increased control over expenditure and effective 1 April, 2010, Messrs KPMG & profi tability at project level including enhanced Deloitte have been appointed as independent use of IT based business intelligence internal auditors who would report directly to packages. the Audit Committee of the Board. ● Faster processing of payables. The Company has also implemented a stringent external audit mechanism, as ● Digital video surveillance systems in our required by applicable statutes. Offi ces and Malls. (c) Human Resources (b) Finance and Control Human capital has continued to be the key The Company’s fi nance team continues engine for our growth and aspirations. DLF its strong focus to enhance and streamline has been constantly reviewing its HR policies its systems, controls and risk management and practices to keep abreast with the market processes in order to better manage risks, changes and has embarked upon several provide for smoother information fl ow initiatives to focus on creating a positive work across the organization and ensure that all environment that provides employees with transactions meet with fi nancial propriety ample growth and development opportunities and accurate reporting. The fi nance team as well as ensuring high levels of motivation at the corporate level is well supported and engagement. by the independent fi nance teams of the Recognizing that it is our intellectual capital various business units that operate within that makes all the difference, our on-going pre-defi ned delegation, responsibility and efforts have been towards integrating accountability parameters, providing for an different assets-skills, knowledge, talents effi cient system of fl exibility, control and faster and working styles into forming a responsive decision making. The existing structures and effi cient team and an environment that is are also well supported by a compliance both inclusive and collaborative.

MDA (F) Final_260810.indd 39 8/28/2010 11:14:43 AM Performance FY’10 Our Annual Cricket event is now looked forward by the DLF family. Photography, ● Talent Acquisition & Resource Planning painting competitions, online quizzes, and Our leadership status can be attributed to debates on topical themes enthuse and the diverse and highly talented people in our involve a large number of employees. team. The robust pool of talent has been built by committed efforts to attract, transform and (d) Legal retain the fi nest talent in the industry. The Legal Department provides ‘backbone’ Today the Company has a high calibre, support to its business segments located multifunctional team of 3542 employees (as across the country, securing and providing of 31st March, 2010) up from 3008 employees stability and sustainability to the business. a year earlier. The Company has built a The Company employs a dedicated team of young and vibrant team (average age of 36 legal professionals well qualifi ed in different years) of highly qualifi ed professionals. On legal functions. The team believes in the acquisition of the 50% equity in our JV corporate ethos that blends tail-end creativity, with Laing O’ Rourke, a sizeable number of professionalism and dedication of purpose, competent workforce was added. while keeping an eye on strict Corporate Governance. The Company established a ● Learning & Development track record of achieving many a milestone The changing business scenario necessitates judgments in Company’s favour delivered by continuous development of employees in various courts on material issues. terms of skills and competencies in line with The year 2009-10 witnessed stupendous the business requirements. The evolving success in implementation of compliance training structure includes the following: systems of all applicable laws to Company’s ■ A structured Induction Programme for all business by all rank and personnel located levels and evangelisation to the DLF Way for in different parts of the country. Land being Fresh Campus recruits. a State subject, it was made obligatory for all offi cials of the Company to observe strict ■ Discover yourself as a trainer: Giving a compliance of all laws as may be applicable platform to our employees to unleash their to their projects depending upon the area hidden potential as a trainer and share and location. In discharge of their functional their knowledge with their own DLF Family. responsibilities, this has become a part of Training with our in-house trainers covering their day to day activity. topics in realm of technical & non-technical know-how. The Compliance and Corporate Gover- nance Committee of the Board of Directors, ■ Express learning: An e-learning initiative after due deliberations, rendered valuable for knowledge sharing with employees. guidance from time to time to keep the legal ■ Worker’s development: Training compliance of all the laws on top priority. programme for Class IV employees to address the needs and concerns of Class IV Whistle Blower Mechanism employees and improve their well-being. In pursuit of maintaining highest ethical standards in the course of its business, the ● Employee Engagement & Welfare Company has put in place a mechanism for The employees remain connected and reporting of instances of conduct which is updated through various communication not in conformity with its code. No signifi cant channels including town halls, management complaints were received in Whistle Blower workshops/updates from the Vice Chairman’s Policy during the year. desk, the intranet (DLF Connect) and internal HR help lines. An in-house fortnightly HR (e) Corporate Secretarial newsletter SAMPARK is now a way of life for The Corporate Secretarial department keeping in touch with the growing DLF family. functions as a facilitator for good Corporate

MDA (F) Final_260810.indd 40 8/28/2010 11:14:44 AM Governance practices in the Company. A the actual results could materially differ from those dedicated team of well qualifi ed professionals in such forward looking statements. The risks and ensure that the Company follows the high uncertainties relating to these statements include, but governance standards and guidelines laid are not limited to, risks and uncertainties, regarding down by the Board. Corporate Secretarial fl uctuations in earnings, our ability to manage growth, drives the implementation of robust competition, economic growth in India, ability to attract compliance systems and further assists and retain highly skilled professionals, time and cost the Board in ensuring proper and adequate over runs on contracts, government policies and documentation of its meetings and that actions with respect to investments, fi scal defi cits, of its Committees. It plays a pivotal role in regulation etc. In accordance with the Code of managing a large shareholder base in an Corporate Governance approved by the Securities and effi cient manner. Exchange Board of India, shareholders and readers are cautioned that in the case of data and information Cautionary Statement external to the Company, no representation is made The above Management Discussion and Analysis on its accuracy or comprehensiveness though the Report contains certain forward looking statements same are based on sources thought to be reliable. within the meaning of applicable security laws and The Company does not undertake to make any regulations. These pertain to the Company’s future announcement in case any of these forward looking business prospects and business profi tability, which statements become materially incorrect in future or are subject to a number of risks and uncertainties and any update made thereon.

MDA (F) Final_260810.indd 41 8/28/2010 11:14:44 AM MDA (F) Final_260810.indd 42 8/28/2010 11:14:44 AM Corporate Governance Report

Your Directors present the Company’s Report on Category No. of Directors Percentage Corporate Governance in compliance with Clause 49 to Total No. of the Listing Agreement with Stock Exchanges. of Directors Executive Directors 542 Company’s Philosophy Non-executive Directors - Independent Directors 6 50 DLF fi rmly believes that maintaining the highest - Non-independent Directors 1 8 standards of Corporate Governance is imperative in Total 12 100 our pursuit of industry leadership. We believe that Good Governance is a pre-requisite for establishing The rich and vast professional expertise of Independent a relationship of trust between the Company and Directors gives immense benefi ts to the Company. The all its stakeholders. The Company further believes composition of the Board is in conformity with Clause that the quest for excellence in performance rests on 49 of the Listing Agreement. unfl inching adherence to the core values of honesty, Executive Directors are appointed by the shareholders transparency and accountability in all business for a maximum period of 5 years at a time or such transactions. shorter duration as recommended by the Board, but These beliefs are based on a rich legacy of fair and are eligible for re-appointment upon completion of ethical business practices, steadfast commitment their term. to corporate social responsibility and adherence to Non-executive Directors/Independent Directors do the basic tenets of upholding professional integrity, not have any specifi c term, but retire by rotation in maintaining human values and protecting individual accordance with the provisions of the Companies dignity. Act, 1956. The Board of Directors performs the pivotal Profi le of Directors role in the governance system and they are Dr. K.P. Singh (Kushal Pal Singh) was born on primarily responsible for corporate governance August 15, 1931 at Bulandshahar in Uttar Pradesh. of the Company. The Board has formed several After graduating in Science from Meerut College, Committees to assist them in specifi c areas resulting he went to U.K. to study Aeronautical Engineering. in sharper focus on Good Governance in order to While pursuing engineering in U.K., he was selected ensure that the endeavour to maximise value for the by the British Offi cers Services Selection Board, U.K. entire spectrum of its stakeholders leads to long- to join the Indian Army. After undergoing training term benefi ts to society at large. at the Indian Military Academy at Dehradun, he Board of Directors was commissioned into The Deccan Horse cavalry regiment. The Board of Directors (the Board), an apex body formed by the shareholders, provides and evaluates In 1960, he joined American Universal Electric the strategic directions of the Company; formulates Company, a joint venture with Universal Electric and reviews management policies, serves and Company of Owosso, Michigan. In 1979, he joined protects the overall interests of shareholders to DLF Universal Limited as Managing Director and ensure long-term value creation for stakeholders. later became Chairman of DLF. The Chairman, Vice Chairman, Managing Director During his 48 years of experience in the Real Estate and two Whole-time Directors manage the business industry, he has held several important business, of the Company under the overall supervision and fi nancial and diplomatic positions including as a guidance of the Board. Member of the International Advisory Board of Composition Directors of General Electric; Member, Central Board of the Reserve Bank of India and was President of The Board represents an optimum mix of ASSOCHAM in 1999. Currently, he is Honorary Consul professionalism, knowledge and experience. The General in India of the Principality of Monaco. He is present composition of the Board is as under: also on the Governing Board of several educational

CGR (F) Final_280810.indd 43 8/28/2010 1:58:43 PM institutions, including Indian School of Business (ISB), for over a decade. He is also Managing Trustee of a Hyderabad; Board Member of the Governing Body number of charitable trusts engaged in education and of IIT, Rajasthan and a Trustee of a number of public welfare activities. charitable trusts. He is the Chairman of DLF Universal Limited and DLF Dr. Singh is a recipient of one of the highest civilian Home Developers Limited and Members of several awards in India, the ‘Padma Bhushan’, in recognition other Public/Private Limited Companies. and appreciation of his outstanding leadership role He is Member of Audit, Corporate Governance and in spearheading India’s economic and industrial Finance Committees of the Company. development, particularly the Real Estate industry. Ms. Pia Singh is a graduate from the Wharton School Dr. Singh has also been conferred with: of Business, University of Pennsylvania, U.S.A. with ● ‘Delhi Ratna’ Award for his valuable contribution a degree in Finance. She has worked for the risk- to the development of Delhi in 2005; undertaking department of GE Capital, the investment division of General Electric. ● ‘Special Award’ at the Indian of the Year Award Having over 15 years of experience, Ms. Singh function held in January, 2008 by NDTV; and is actively engaged in developing the Company’s ● Recognised as ‘Key Contributor’ to the luxury and super-luxury retail destinations across the development of Delhi by Times of India. country. In recognition of his invaluable contribution in the Ms. Singh is a Director on the Board of DLF Brands fi eld of Business Administration, the prestigious Limited and several Private Limited Companies. G.B. Pant University of Agriculture & Technology, Mr. K. Swarup is a post graduate in Commerce Pantnagar, conferred on him ‘Doctorate in Science’ and Law from University of Lucknow and a Fellow in April, 2008. Member of the Institute of Company Secretaries of India. He joined the DLF Board on 1st January, 2006. Mr. Rajiv Singh is the Vice Chairman of the Mr. Swarup has an experience of over four decades Company. He is a graduate from the Massachusetts in a number of corporate positions. Institute of Technology, U.S.A. and holds a degree in Mechanical Engineering. Mr. Singh has over 28 Prior to joining the Company, he has worked as years of professional experience. Mr. Singh directs the Senior General Manager of the Delhi Stock the strategy and oversees the operations of our Exchange Association Limited and represented the Company. Exchange on the Committees formed by SEBI, on listing agreements and a uniform code numbering Mr. Singh is the Chairman of DLF India Limited and system for securities. on the Board of several Private Limited Companies. He is the Chairman of Finance Committee of the Mr. Swarup is on the Board of several Public/Private Company. Limited Companies including DLF Commercial Developers Limited, DLF Home Developers Limited, Mr. T. C. Goyal has an honours degree in Commerce DLF India Limited and DLF Universal Limited. He from Shri Ram College of Commerce, University is Member of Audit Committee of DLF Universal of Delhi and is a Fellow Member of the Institute of Limited. Chartered Accountants of India. Also Member of Shareholders’/Investors’ Grievance, He is holding the position of Managing Director of Finance and Corporate Governance Committees of the Company since 1st March, 1998. He has over the Company. 43 years of varied experience in fi nance, real estate Mr. G.S. Talwar is the founding Chairman and development and project counselling. Prior to joining Managing Partner of Sabre Capital worldwide, a the Company in 1981, he worked with Birlas. private equity and investment company focused on Mr. Goyal has been a Member of the Management fi nancial services. He holds Bachelor of Arts (Hons.) Committee of PHD Chamber of Commerce & Industry degree in Economics from St. Stephen’s College,

CGR (F) Final_280810.indd 44 8/28/2010 1:58:43 PM University of Delhi. He was previously Chairman contributions in the fi elds of Technology, Manage- of Centurion Bank of Punjab Limited (merged with ment and Industrial Development, Jawaharlal Nehru HDFC Bank Limited) and Non-executive Director Technological University, Hyderabad conferred on of Fortis Group (Belgium and Netherlands), him the degree of D.Sc. Schlumberger Limited and Pearson PLC. He is Chairman (Emeritus) of Jacobs H&G (P) He is a Founding Member of the Governing Board Limited and Chairman, GKN Driveline (India) of Indian School of Business, Hyderabad and is a Limited. He is also Director on the Boards of Reliance former Governor of the London Business School. Industries, Honda Seil Power Products and Zenith Mr. Talwar is the patron of the Stop Organised Abuse Birla. Earlier he had been a Director on the Boards Board of the National Society for Prevention of of Tata Chemicals, L&T and Ashok Leyland. He is Cruelty to Children. Prior to joining the Company, he Chairman of Audit Committee of Honda Seil Power has worked for Standard Chartered PLC as Group Products and GKN Driveline (India), Shareholders’/ Chief Executive and for Citigroup in various positions Investors’ Relations Committee of Honda Seil Power including as its Executive Vice President. Products and Chairman’s Executive Committee of GKN Driveline (India). He is a Member of Nomination, Mr. Talwar is on the Board of Great Eastern Energy Corporate Governance and Stakeholders’ Interface, Corporation Limited and several Private Limited Remuneration and Health, Safety & Environment Companies. Committees of Reliance Industries Limited and Audit He is a Member of Corporate Governance Committee Committee of Zenith Birla. of the Company. Dr. Kapur is the Chairman of Corporate Governance Dr. Dharam Vir Kapur is a Director of the Company and Shareholders’/Investors’ Committees and a since 21st April, 2006. He is an honours Graduate in Member of Audit Committee of the Company. Electrical Engineering with wide experience in Power, Mr. M. M. Sabharwal a Graduate in Arts (Economics) Capital Goods, Chemicals and Petrochemicals has held various corporate positions including those Industries. of Chairman of Dunlop India Limited, Bata India He had an illustrious career in the Government sector Limited, Britannia Limited, Indian Oxygen Limited, with a successful track record of building vibrant Needle Industries India (Private) Limited, Precision organizations and successful project implementation. Electronics Limited; Director of Oil India Limited, He served Bharat Heavy Electricals Limited (BHEL) National Aluminum Company Limited, Fibre Glass in various positions with distinction. Most remarkable Pilkington Limited, Avery India Limited and Ranbaxy achievement of his career was establishment of a Laboratories Limited. fast growing systems oriented National Thermal Mr. Sabharwal, President (Emeritus) of Helpage Power Corporation (NTPC) of which he was the India, is a Director of Nutrition Foundation of India founder ‘Chairman-cum-Managing Director’. For his and was President of PHD Chamber of Commerce & contribution to success and leadership of the fl edgling Industry; Director, Institute of Management, Kolkata organization, he was described as a ‘Model Manager’ and Vice Chairman of International Management by the Board of Executive Directors of World Bank. Institute, New Delhi. Dr. Kapur served as Secretary to the Government of In recognition of his meritorious social services, the India in the Ministries of Power, Heavy Industries and Government of India has conferred ‘Padma Shri’ Chemicals & Petrochemicals during 1980-86. He was Award on him. also associated with a number of national institutions He has also been conferred with: as Member, Atomic Energy Commission; Member, Advisory Committee of the Cabinet for Science & ● Honorary ‘OBE’ in 1998 by the Government Technology; Chairman, Board of Governors, IIT of U.K. for his role in promoting Indo-British Bombay; Member, Board of Governors, IIM, Lucknow partnership in Social Welfare; and Chairman, National Productivity Council. ● ‘Life Time Achievement Award’ for outstanding In recognition of his services and signifi cant contribution towards the cause of elderly;

CGR (F) Final_280810.indd 45 8/28/2010 1:58:43 PM ● ‘The Chirayushya Samman Award’ by the Union Mr. Memani is Chairman of Audit Committees Minister of Social Justice and Empowerment, of Great Eastern Energy Corporation Limited, Government of India for being a pioneer in HT Media Limited and ICICI Venture Funds building ‘Helpage India’. Management Company Limited. He is also Member of Compensation/Remuneration Committee of Currently, Mr. Sabharwal is a Member of three Great Eastern Energy Corporation Limited and Government Committees in the Ministry of Social HT Media Limited; Compensation Committee, ICICI Justice and Empowerment. Venture Funds Management Company Limited; Audit Committee, National Engineering Industries He is a Member of Audit, Remuneration and Corporate Limited and Chambal Fertilisers and Chemicals Governance Committees of the Company. Limited. Mr. K.N. Memani, a Fellow Member of the Institute of He is also Chairman of Audit Committee and a Chartered Accountants of India is a former Chairman Member of Corporate Governance Committee of the and Country Managing Partner of Ernst & Young, Company. India. He was also Member of the Ernst & Young Global Council. Mr. Ravinder Narain is an active practitioner in Supreme Court and High Courts having experience He specialises in business and corporate advisory, of over four decades. foreign taxation, fi nancial consultancy etc. and is consulted on the corporate matters by several He has been actively associated with leading domestic and foreign companies. constitutional, taxation and commercial matters. His expertise in the fi eld of Indirect Taxes and Mr. Memani headed Quality Review Board – an MRTP cases is well recognised. He was a Member oversight board to review the quality of auditors set- of High Level Committee set up by the Ministry of up by the Government of India. He was associated Finance, Government of India to review and suggest with National Advisory Committee on Accounting simplifi cation of Central Excise and Customs Laws. Standards (NACAS) and an expert committee for amendments in the Companies Act, 1956 Mr. Narain is on the Board of Nestle India Limited, constituted by the Government of India. He was Shree Rajasthan Syntex Limited, DCM Shriram also associated with the External Audit Committee Industries Limited and Shriram Pistons & Rings of International Monetary Fund (IMF). Limited.

He held the positions of Chairman, American He is Chairman of Investors’ Grievance Committee Chambers of Commerce in India, President of PHD and a Member of Audit Committee of Nestle India Chamber of Commerce & Industry and Chairman, Limited, Shareholders’ & Remuneration Committee Federation of Indian Export Organisations. of DCM Shriram Industries Limited, Nomination Committee of Shriram Pistons & Rings Limited. Currently, he is on the managing committee/ governing boards of various industry chambers, educational Mr. Narain is also a Member of Corporate Governance institutions and social organisations. and Shareholders’/Investors’ Grievance Committees of the Company. He is on the Board of several Public/Private Limited Companies including Aegon Religare Life Insurance Mr. B. Bhushan, a Fellow Member of the Institute Company Limited, Chambal Fertilisers and Chemicals of Chartered Accountants of India and an Associate Limited, Emami Limited, Great Eastern Energy Member of the Institute of Cost and Works Corporation Limited, HEG Limited, HT Media Limited, Accountants of India, has 33 years of experience in ICICI Venture Funds Management Company Limited, ﬁ nance, capital market, taxation, corporate affairs JK Lakshmi Cement Limited, National Engineering and general management. Industries Limited, Spice Digital Limited and Spice Mobility Limited. He is Chairman of Integrated Capital Services Limited

CGR (F) Final_280810.indd 46 8/28/2010 1:58:44 PM and Director on the Board of several companies. He Minutes: The draft minutes of the proceedings of the is Chairman of Markets & Investment Committee of Board of Directors are circulated in advance and the Integrated Capital Services Limited. comments, if any, received from the Directors are incorporated in the minutes in consultation with the Mr. Bhushan is a Member of Audit and Remuneration Chairman and submitted for confi rmation and signing Committees of the Company. at the subsequent meeting. Brig. (Retd.) N.P. Singh a Graduate of Army Staff College of Camberley (U.K.) and National Defence Follow-up: The Company has an effective post meeting College of India, holds a Master degree in Arts and follow-up, review and reporting process mechanism Science and is an Associate Member of the British for the decisions taken by the Board. The signifi cant Institute of Management. He served the Indian Army decisions of the Board are promptly communicated for over 34 years, prior to the joining of Company’s to the concerned departments/business units. Action Board of Director in 1993. taken report on decisions of the previous meeting(s) is placed at the immediately succeeding meeting for He is a trained Personnel Selection Offi cer from noting/review by the Board. Psychological Research Wing, Ministry of Defence, Government of India. Compliance: DLF has implemented a robust and Brig. Singh is on the Board of several Public/Private comprehensive compliance management system Limited Companies including Dhanvantri Laboratories covering the Company and its subsidiaries. All Limited. He is Chairman of Remuneration Committee project and functional heads submit compliance and member of Shareholders’/Investors’ Grievance certificates confirming compliance with the Committee of the Company. provisions of statutes applicable to their areas of operations. In addition, the Managing Director and Board Meetings Group Chief Financial Officer certify the authenticity The meetings of the Board are mostly held at the and accuracy of the financial results/statements. Corporate Offi ce of the Company at DLF Centre, The Company Secretary ensures compliance Sansad Marg, New Delhi. with SEBI regulations and the provisions of the Listing Agreement. The Company Secretary, Meetings: During the year 2009-10, 9 Board as Compliance Officer submits a composite meetings were held on 6th, 9th and 30th April, compliance certificate confirming compliance of 30th July, 27th August, 15th and 29th October, all laws, rules, regulations, guidelines, bye-laws 15th December, 2009 and 27th January, 2010. The applicable to the Company for review of the Board, maximum interval between any two Board meetings periodically. was of 91 days. The Board meets at least once in every quarter to review the quarterly results and DLF deploys a robust system of internal controls other items on the agenda. Additional meetings are to allow optimum use and protection of assets, held, as and when necessary. facilitate accurate and timely compilation of fi nancial Review: The Board regularly reviews industry statements and management reports and ensure environment, annual business plans, project compliance with statutory laws, regulations and implementation, fi nance and operations, sales & Company policies including identifi cation, review and marketing, HR, major business segments, business management of risks. opportunities, material legal issues, strategy, risk management practices, adoption of quarterly/half- A dedicated internal audit cell ensures that the yearly/annual results and compliance reports on all Company conducts its business with high standards laws applicable. Senior executives are invited to of legal, statutory and regulatory compliances. The provide additional inputs at the Board meetings for Company has instituted internal audit programme in the items being discussed by the Board of Directors, conformity with the best practices prevalent in the as and when necessary. industry.

CGR (F) Final_280810.indd 47 8/28/2010 1:58:44 PM Attendance Name & Designation Financial Year 2009-10 No. of Directorships in other No. of Committee positions Attendance public limited companies* held in public companies including DLF** Board Last AGM Listed Others Chairman Member Meeting (a) Executive Directors Dr. K.P. Singh, Chairman 8 Yes Nil Nil Nil Nil Mr. Rajiv Singh, Vice Chairman 9 Yes Nil 1 Nil Nil Mr. T.C. Goyal, Managing Director 9 Yes Nil 4 Nil 1 Ms. Pia Singh, Whole Time Director 8 Yes Nil 2 Nil Nil Mr. K. Swarup, Sr. Executive Director – Legal 7 Yes Nil 8 Nil 2 (b) Non-executive Directors Mr. G.S. Talwar, Non-independent 5 Yes Nil 1 Nil Nil Dr. D.V. Kapur, Independent 7 Yes 3 2 4 2 Mr. M.M. Sabharwal, Independent 9 Yes Nil Nil Nil 1 Mr. K.N. Memani, Independent 8 Yes 6 5 4 2 Mr. Ravinder Narain, Independent 9 Yes 4 Nil 1 3 Mr. B. Bhushan, Independent 9 Yes 1 1 Nil 1 Brig. (Retd.) N.P. Singh, Independent 8 Yes 1 4 Nil 1

* Excludes private, foreign, unlimited liability companies, Government bodies and Companies registered under Section 25 of the Companies Act,1956. ** Indicates Membership of Audit and Shareholders’/Investors’ Grievance Committees only. Notes 1. The Directorship/Committee Membership is based on the latest disclosures received from Directors. 2. None of the Directors is a Member of the Board of more than 15 companies in terms of Section 275 of the Companies Act, 1956; Member of more than 10 Committees and Chairman of more than 5 Committees, across all companies in which he/she is a Director. 3. Dr. K. P. Singh, Mr. Rajiv Singh, Ms. Pia Singh and Mr. G. S. Talwar are related inter-se. Resume of Directors proposed to be Re- and effi cient manner. Meetings of each Committee appointed are convened by the respective Committee Chairman. The Company Secretary prepares the Agenda and The brief resume of Directors retiring by rotation and Explanatory notes, in consultation with the respective seeking re-appointment is appended herein above in Committee Chairman and circulates the same in the notice for calling Annual General Meeting. advance to all the members. Every member is free to suggest inclusion of items on the agenda. Committees of the Board Minutes of the Committee meetings are approved by The Board has constituted the following standing the respective Committee and thereafter noted and Committees: confi rmed by the Board. 1. Audit Committee The Company has an effective post meeting follow- up, review and reporting process mechanism 2. Shareholders’/Investors’ Grievance Committee for the decisions taken by the Committees. The 3. Finance Committee signifi cant decisions are promptly communicated 4. Corporate Governance Committee to the concerned departments/business units. Action taken report on decisions of the previous meeting(s) 5. Remuneration Committee is placed at the immediately succeeding meeting for In addition, the Board also constitutes functional noting/review by the respective Committee. Committees, from time to time, depending on the (i) Audit Committee business needs. Composition The terms of reference of the Committees are reviewed and modifi ed by the Board from time to time. The The Audit Committee comprises of 5 Directors including Committee meetings facilitates the decision making 4 Independent Directors. Mr. K. N. Memani, a Fellow process at the meetings of the Board in an informed Member of the Institute of Chartered Accountants of

CGR (F) Final_280810.indd 48 8/28/2010 1:58:44 PM India, an Independent Non-executive Director is the functions, approving internal audit plans and Chairman of the Committee. Dr. D. V. Kapur, Mr. M. effi cacy of the functions including the structure of M. Sabharwal, Mr. B. Bhushan, Independent Non- the internal audit department, staffi ng, reporting executive Directors and Mr. T. C. Goyal, Managing structure, coverage and frequency of internal Director are the other members. All the members audit; possess fi nancial, management and accounting 6. Discussion with internal auditor on any signifi cant knowledge expertise/exposure and/or have held or fi ndings and follow-up thereon; hold senior positions in other reputed organisations. The Composition of the Audit Committee meets the 7. Reviewing the fi ndings of any internal requirements of Section 292A of the Companies Act, investigations by internal auditors into matters 1956 read with Clause 49 of the Listing Agreement. where there is suspected fraud or irregularity or failure of internal control systems of a material The Company Secretary acts as Secretary to the nature and reporting the matter to the Board; Committee. 8. Discussion with statutory auditors before the Group Chief Financial Offi cer, Group Chief Internal audit commences, about the nature and scope Auditor and representatives of Statutory Auditors of audit, as well as post-audit discussions to are permanent invitees to the Committee meetings. ascertain any area of concern; Other executives of the Company are invited on need basis. 9. Reviewing with the management discussion Objective and analysis of fi nancial condition and results of operations, statement of signifi cant related The Audit Committee monitors and provides re- party transactions, management letters/letter of assurance to the Board on the existence of an internal control weakness issued by statutory effective internal control environment by supervising auditors, internal audit reports etc.; the fi nancial reporting process with a view to ensure accurate, timely and proper disclosures 10. Reviewing the Company’s fi nancial and risk and transparency, integrity and quality of fi nancial management policies; reporting. 11. Reviewing the uses/applications of funds raised through public offerings; and Terms of Reference 12. Such other functions as may be delegated by the In compliance with Section 292A of the Companies Act, Board from time to time. 1956 read with Clause 49 of the Listing Agreement, the terms of reference of the Audit Committee are as Meetings and Attendance under: During the year 2009-10, 10 meetings of the Audit th th th 1. Overseeing fi nancial reporting process and Committee were held on 30 April, 8 June, 30 th th th th disclosure of fi nancial information, to ensure that July, 12 & 26 August, 29 October, 15 December, th th th the fi nancial statements are correct, suffi cient 2009, 18 & 27 January and 18 February, 2010. and credible; The maximum gap between any two meetings was of 64 days. 2. Recommending appointment and removal of the statutory auditors, fi xation of audit fee and Member No. of Meetings approval for payment of any other services; Meetings attended 3. Reviewing with the management, the periodical held fi nancial statements including of subsidiaries/ Mr. K.N. Memani, Chairman 10 10 associates, in particular the investments made by Dr. D.V. Kapur 10 9 the unlisted subsidiaries of the Company, before Mr. M.M. Sabharwal 10 10 submission to the Board for approval; Mr. B. Bhushan 10 10 4. Reviewing with the management and the Mr. T.C. Goyal 10 10 statutory and internal auditors, the adequacy of internal control systems and recommending The Chairman of Audit Committee, Mr. K.N.Memani improvements to the management; was present at the last Annual General Meeting held 5. Reviewing the adequacy of internal audit on 30th September, 2009.

CGR (F) Final_280810.indd 49 8/28/2010 1:58:44 PM (ii) Shareholders’/Investors’ Grievance During the year under review, a total of 164 investors’ Committee complaints were received and resolved. Except disputed cases, there were no pending complaints Composition and/or requests for share transfer, dematerialisation The Committee comprises of four Directors, namely etc. as on 31st March, 2010. Dr. D.V. Kapur (Chairman), Brig. (Retd.) N. P. Singh, Mr. Ravinder Narain, Independent Non-executive Directors and Mr. K. Swarup, as Members. The Company Secretary acts as Secretary to the Committee. Terms of Reference The Committee inter-alia, oversees and reviews all matters connected with transfer of securities, approve issue of duplicate and split of share certifi cates, redressal of Shareholders’/Investors’ complaints/ grievances including transfer of shares, non-receipt (iii) Finance Committee of Annual Report and the declared dividend. The Committee also reviews performance of the Registrar Composition and Share Transfer Agent and recommends measures The Finance Committee comprises of three Directors, for overall improvement in the quality of investor namely Mr. Rajiv Singh (Chairman), Mr. T.C. Goyal services. With a view to expediting the process of and Mr. K. Swarup, as Members. The Company share transfer etc., on fast track basis, the Board Secretary acts as Secretary to the Committee. The has delegated the powers of approving transfer Group Chief Financial Offi cer is the permanent invitee etc. to Senior Executive Director (Legal) and/or the to the Committee. Company Secretary. Terms of Reference Meetings and Attendance 1. Reviewing Company’s fi nancial policies, strategies During the year 2009-10, the Committee held 4 and capital structure, working capital, cash fl ow meetings on 28th April, 21st July & 26th October, 2009 management, banking and cash management including authorisation for operations; and 25th January, 2010. 2. Reviewing credit facilities and to exercise all Member No. of Meetings powers to borrow monies (otherwise than by Meetings attended issue of debentures) and take necessary actions held connected therewith including refi nancing for Dr. D.V. Kapur, Chairman 4 4 optimisation of borrowing costs and assignment Brig. (Retd.) N.P. Singh 4 4 of assets, both immovable or movable; Mr. Ravinder Narain 4 4 3. Authorising exercise of all powers for investment, loan and providing corporate guarantees/ Mr. K. Swarup 4 3 securities/letter of comforts etc. within the limits specifi ed by the Board; Compliance Offi cer 4. Borrowing of monies by way of loan and/ or Mr. Subhash Setia, Company Secretary is the issuing and allotting Bonds/Notes denominated in Compliance Offi cer of the Company. one or more foreign currency(ies) in international Redressal of Investor Grievances markets and possible strategic investments within the limits approved by the Board; The Company addresses all complaints, suggestions and grievances expeditiously and replies are sent 5. Approve opening and operation of Investment usually within 7-10 days except in case of dispute Management accounts with foreign Banks over facts or other legal impediments. The Company and appoint them as agents, establishment of endeavours to implement suggestions as and when representative/sales offi ces in or outside India received from the investors. etc.;

CGR (F) Final_280810.indd 50 8/28/2010 1:58:44 PM 6. Approve contributions to Statutory or other 4. Reviewing Code of Conduct for Directors, Senior entities, Funds established by Central/State Management Personnel and other executives, Government for national importance, institutions, functioning of Whistle Blower mechanism and trusts, bodies corporate and other entities etc.; Policy for Prevention of Insider Trading; 7. Authorising executives of the Company/subsid- 5. Reviewing compliance mechanism, iaries/associate companies for acquisition of land compliance and audit reports and to including bidding and tenders, sell/ dispose off recommend improvements thereto and to review or transfer any of the properties and to delegate mitigation mechanism for non-observance; authorities from time to time to deal with various 6. Suggesting to the Board, the changes required statutory, judicial authorities, local bodies etc. to in the compliance system in consonance with implement the decision of the Committee; and the changes in legal environment affecting the 8. Reviewing and make recommendations about business of the Company; changes in the Charter of the Committee. 7. Recommending to the Board, the changes Meetings and Attendance required for charging of offi cials pursuant to changes in the offi cials charged and/or structural During the year 2009-10, 18 meetings of Finance changes in the organisation; and Committee were held and the attendance thereat 8. Performing such other functions as may be was as under: delegated by the Board from time to time. Member No. of Meetings held Meetings attended Meetings and Attendance Mr. Rajiv Singh, 18 14 During the year 2009-10, 4 meetings of Committee Chairman th th th Mr. T.C. Goyal 18 17 were held on 29 July, 19 August & 27 October, th Mr. K. Swarup 18 17 2009 and 25 January, 2010. The attendance of members was as follows: (iv) Corporate Governance Committee Member No. of Meetings Meetings During the year under review, the Compliance held attended Committee was integrated with the Corporate Dr. D.V. Kapur, Chairman 4 4 Governance Committee and accordingly, the Mr. M.M. Sabharwal 4 4 Committee was renamed as ‘Corporate Governance Mr. K.N. Memani 4 4 Committee’. Mr. Ravinder Narain 4 4 Composition Mr. T.C. Goyal 4 4 The reconstituted Committee comprises of Mr. K. Swarup 4 4 Dr. D.V. Kapur (Chairman), Mr. M.M. Sabharwal, Mr. G. S. Talwar* — — Mr. K.N. Memani, Mr. Ravinder Narain, Non- * w.e.f 27.01.2010 executive Independent Directors, Mr. G.S. Talwar, (v) Remuneration Committee Non-executive Director, Mr. T.C. Goyal, Managing Director and Mr. K. Swarup, Senior Executive Director Composition — Legal as Members. The Company Secretary acts The Remuneration Committee comprises of three as Secretary to the Committee. Independent Directors namely, Brig. (Retd.) N.P. Singh (Chairman), Mr. M.M. Sabharwal and Mr. B. Terms of Reference Bhushan, as Members. The Company Secretary acts 1. Overseeing implementation of mandatory and as Secretary to the Committee. non-mandatory requirements of Clause 49 of the Listing Agreement; Terms of Reference 2. Suggesting the best available Corporate 1. Determining Remuneration Policy of the Governance practices prevailing in the world for Company; adoption; 2. Recommending remuneration including periodic 3. Reviewing Corporate Governance practices, revision, performance bonus, incentives, Audit Reports and to recommend improvements commission, stock options, and perquisites; thereto; 3. Framing policies and fi xation of compensation

CGR (F) Final_280810.indd 51 8/28/2010 1:58:44 PM including salaries, incentives, bonuses, promotion, Individual performance pay is determined by business beneﬁ ts, stock options and performance targets performance and performance of the individuals for executives of the Company; measured through Annual Appraisal process. 4. Formulation of the detailed terms and conditions Directors’ Remuneration of stock options; granting of administration and i) Executive Directors superintendence thereof. The Company pays remuneration by way of salary, Meetings and Attendance perquisites and allowances (ﬁ xed component) and During the year 2009-10, 3 meetings of Remuneration commission (variable component) to its Executive Committee were held on 30th July, 27th August and Directors based on the recommendations of the 28th October, 2009. The attendance of members was Remuneration Committee as per remuneration as follows: policy of the Company, within the limits prescribed Member No. of Meetings under the Companies Act, 1956 and approved by the Meetings held attended shareholders. The performance based commission Brig. (Retd.) N.P. Singh, Chairman 3 2 paid to the Executive Directors is based on Mr. M.M. Sabharwal 3 3 qualitative and quantitative assessment of Company Mr. B. Bhushan 3 3 performance.

The Chairman of the Committee, Brig. (Retd.) N.P. ii) Non-executive Directors Singh was present at the last Annual General Meeting The Non-executive Directors are entitled to a sitting held on 30th September, 2009. fee of Rs.20,000 per meeting for attending Board and Committee meetings. In addition, the Non-executive Remuneration Policy Directors are paid commission as prescribed under The Remuneration Policy of the Company is driven the Companies Act, 1956, i.e. within the limit of 1% by the success and performance of the individual of the net profi ts of the Company, as determined employee and the Company. Through its compensation by the Board based, inter-alia, on the Company’s programme, the Company endeavours to attract, performance, subject to the approval of Members/ retain, develop and motivate a high performance Central Government. Such commission is payable on workforce. a uniform basis to reinforce the principle of collective The key tenets of the remuneration policy are: responsibility of Directors. ● Industry benchmarks The Company also reimburses out-of-pocket expenses ● Performance track record incurred by the Directors for attending the meetings. ● Company performance The service contract, notice period, severance fee ● Transparency are not applicable to the Non-executive Directors. ● Legal and tax compliant. The Company has also obtained a Directors’ & The Company pays remuneration by way of salary, Offi cers’ Liability Insurance Policy. perquisites, allowances, retiral benefi ts that are fi xed The remuneration paid for the year 2009-10 was as and a variable component. follows: (a) Executive Directors (Rs. in lacs) Name Salary Benefi ts, perks Commission Contribution to Stock Options* Term up to and allowances Provident Fund granted Dr. K.P. Singh 85.29 7.81 400.00 7.56 Nil 30.09.2013 Mr. Rajiv Singh 76.22 49.96 400.00 16.99 Nil 08.04.2014 Mr. T.C. Goyal 265.20 142.03 400.00 24.48 5,23,810 28.02.2013 Ms. Pia Singh 137.90 36.96 125.00 22.68 Nil 17.02.2013 Mr. K. Swarup** 30.90 358.58 175.00# 3.71 Nil 31.12.2011

* Each vested option is exercisable into one equity share against payment of Rs.2 per share. The options granted are exercisable upon the expiry of three years from the date of vesting. 10%, 30% and 60% of the options shall be vested at the end of 2, 4 and 6 years, respectively from the date of grant. ** Entitled to beneﬁ ts equivalent to the value of 32,000 equity shares to be paid in two equal tranches , the 2nd tranch is payable on 30.06.2011 or date of superannuation, whichever is earlier. # Performance Bonus.

CGR (F) Final_280810.indd 52 8/28/2010 1:58:44 PM (b) Non-executive Directors (c) Directors’ Shareholding (Rs. In lacs) The details of shareholding of Directors in the Sitting Name Commission Total Company as on 31st March, 2010 was as under: Fees Mr. G.S. Talwar 1.00 20.00 21.00 Name of Director No. of Equity Shares Dr. D.V. Kapur 5.80 20.00 25.80 Dr. K.P. Singh 1,04,61,000 Mr. M.M. Sabharwal 6.20 20.00 26.20 Mr. Rajiv Singh 1,64,56,320 Mr. K.N. Memani 5.40 20.00 25.40 Mr. T.C. Goyal 2,98,570 Mr. Ravinder Narain 4.20 20.00 24.20 Ms. Pia Singh 3,87,76,000 Mr. B. Bhushan 4.40 20.00 24.40 Mr. K. Swarup 9,150 Brig. (Retd.) N.P. Singh 2.80 20.00 22.80 Mr. G.S. Talwar 1,00,000 Dr. D.V. Kapur 10,000 There were no other pecuniary relationships or Mr. K.N. Memani 14,950 transactions between the Company and its Non- Mr. M.M. Sabharwal 5,500 executive Directors. Mr. Ravinder Narain 10,000 The Company has not granted any stock options to Mr. B. Bhushan Nil any of its Non-executive Directors. Brig. (Retd.) N.P. Singh Nil

Annual General Meetings Location, date and time of last three Annual General Meetings (AGMs) and Special Resolutions passed thereat:

Year Location Date &Time Special Resolutions passed 2006-07 High School Site, Near Summer Field Nursery 29.09.2007 1. For ratiﬁ cation of Employees Stock Option Scheme School, E-Block, Phase-I, DLF City, 10.00 A.M. – 2006 for the employees of the Company. Gurgaon – 122 002 2. For ratiﬁ cation of Employees Stock Option Scheme – 2006 for the employees of Company’s subsidiaries. 2007-08 High School Site, Near Summer Field Nursery 30.09.2008 1. For raising of funds by issue of securities. School, E-Block, Phase-I, DLF City, 10.00 A.M. 2. For appointment of Mrs. Kavita Singh as an ‘Advisor’ Gurgaon – 122 002 to DLF Commercial Developers Limited (DCDL), a wholly-owned subsidiary. 3. For appointment of Ms. Savitri Devi Singh as General Manager in DLF Commercial Developers Limited, a wholly-owned subsidiary. 4. For appointment of Dr. K.P. Singh as Chairman of the Company 2008-09 Epicentre, Apparel House, 30.09.2009 For appointment of Ms. Savitri Devi Singh as Vice Sector 44, Gurgaon – 122 003 10.00 A.M. President in DLF Commercial Developers Limited, a wholly-owned subsidiary.

Disclosures the Company during the past three years by Stock a) Material Related Party Transaction Exchanges or SEBI or any statutory authorities, on None of the transactions with any of the related any matter related to capital market. The Company parties was in conﬂ ict with the interest of the has complied with applicable rules and regulations Company. Details of transactions with related parties prescribed by Stock Exchanges, SEBI or any other are disclosed at Note No. 11 of Schedule 25 to the statutory authority relating to the capital market. Accounts in the Annual Report.

b) Compliances All Returns/Reports were ﬁ led within stipulated time No penalties or strictures have been imposed on with Stock Exchanges/other authorities.

CGR (F) Final_280810.indd 53 8/28/2010 1:58:44 PM c) Code of Conduct Company by an Insider on the basis of unpublished The Code of Conduct (the Code) is applicable to all price sensitive information, the Board has approved Directors and employees of the Company including “Policy for Prevention of Insider Trading” (the Policy) its subsidiaries. The Code is a compre-hensive Code in pursuance of the SEBI (Prohibition of Insider to ensure good governance and to provide for ethical Trading) Regulations, 1992. Under the Policy, standards of conduct on matters including confl ict insiders are prohibited to deal in the Company’s of interest, acceptance of positions of responsibility, shares while in possession of unpublished price treatment of business opportunities and the like. sensitive information. A copy of the Policy has also A copy of the Code of Conduct is posted on the been posted on the website of the Company, www. Company’s website www.dlf.in. dlf.in. All the Board Members and Senior Management Personnel have affi rmed compliance to the Code for Subsidiary Monitoring Framework the year ended on 31st March, 2010. A declaration, All subsidiaries of the Company are Board managed in terms of Clause 49 of the Listing Agreement, with their respective Boards having rights and duly signed by the Managing Director is stated obligations to manage such companies in the hereunder: best interest of their stakeholders. As a majority ‘I hereby confi rm that: shareholder, the Company monitors and reviews the performance of such companies inter-alia, by the The compliance to DLF’s Code of Conduct for the following means: Financial Year 2009-10 has been affi rmed by all the Members of the Board and Senior Management a) Financial Statements, in particular, the Personnel of the Company.’ investments made by the unlisted subsidiary Sd/- companies, are reviewed periodically by the New Delhi T. C. Goyal Audit Committee; 28th July, 2010 Managing Director b) Minutes of the meetings of the unlisted subsidiary companies are placed before the Company’s Board, periodically; and

c) Statements containing signifi cant transactions and arrangements entered into by the unlisted d) Whistle Blower Mechanism subsidiary companies are periodically placed In pursuit to maintain the highest ethical standards before the Board of Directors. in the course of its business, the Company has put DLF Home Developers Limited (DHDL), a wholly- in place a mechanism for reporting of instances of owned subsidiary, has become a material subsidiary conduct which is not in conformity with its Code. in terms of Clause 49 of the Listing Agreement. The Directors, employees, vendors, customers or any Company shall comply with the requirements of person having dealings with the Company may report Clause 49(III) in due course. non-compliance of the Code to the notifi ed person. The report received from the notifi ed person is reviewed by Audit Committee. The Directors and management Means of Communication personnel are obliged to maintain confi dentiality of The Company regularly intimates information like such reporting and ensure that the whistle blowers quarterly fi nancial results and media releases on are not subjected to any discrimination. signifi cant developments in the Company as also No person has been denied access to the Audit presentations that have been made from time to time Committee. A copy of the Whistle Blower Policy is to the media, institutional investors, analysts are posted on the website of the Company,www.dlf.in. posted on the Company’s website www.dlf.in and have also been submitted to the stock exchanges e) Policy for Prevention of Insider Trading on which the Company’s equity shares are listed, to With a view to prevent trading of shares of the enable them to put them on their own websites.

CGR (F) Final_280810.indd 54 8/28/2010 1:58:44 PM The ﬁ nancial results are normally published in c) Book Closure Dates ‘The Economic Times’ (English) and ‘Navbharat From Tuesday, the 21st September, 2010 to Times’/‘Jansatta’ (Hindi) and other national dailies Tuesday, the 28th September, 2010 (both days including ‘Economic Times’ (Gujarati) and ‘Gujarat inclusive) for payment of dividend. Samachar’. Annual Report containing inter-alia, Audited Accounts, d) Dividend Payment Date Consolidated Financial Statements, Directors’ Report, On or before 27th October, 2010. Auditors’ Report, Management Discussion & Analysis Report and Corporate Governance Report including e) Liquidity information for the shareholders and other important information is circulated to the Members and others i) Equity Shares entitled thereto. The equity shares of the Company are listed Printed copy of the Chairman’s Speech is distributed on the Bombay Stock Exchange Limited to all the shareholders at the Annual General Meeting. (BSE), P.J. Tower, Dalal Street, Mumbai- The same is also placed on the Company’s website 400 001 and National Stock Exchange www.dlf.in. Limited (NSE), Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai- Reminders for claiming unpaid dividend are being 400 051. sent to the shareholders as per record. DLF’s shares form part of BSE-30 Indices Exclusive Designated e-mail id and S&P CNX Nifty. The Company has designated a dedicated email id: The Company has paid the listing fees to [email protected] exclusively for investors’ BSE & NSE for 2010-11. The Company has services for faster registration of their queries and/or also paid annual custody fee for 2010-11 grievances. All investors are requested to avail this to National Securities Depository Limited facility. (NSDL) & Central Depository Services (India) General Shareholders’ Information Limited (CDSL). a) Annual General Meeting (i) ISIN Demat No.: INE271C01023 Date : Tuesday, 28th September, 2010 (ii) Stock Code: Time : 10.30 A.M. Bombay Stock Exchange (BSE): 532868 Venue : Epicentre, Apparel House, Sector 44, National Stock Exchange (NSE): DLF Gurgaon - 122 003 (Haryana). No special resolution is proposed to be conducted by (ii) Debt Instruments postal ballot. Non-convertible Debentures issued by the Company on private placement basis are b) Financial Calendar (tentative) listed at National Stock Exchange at its Financial Year April 01, 2010 to March 31, Wholesale Debt Market (WDM) segment. 2011 Adoption of Quarterly Results for the quarter ISIN Nos. ending: i) INE271C07012; ii) INE271C07038; iii) INE271C07046; iv) INE271C07053; rd th June 30, 2010 3 /4 week of July, 2010 v) INE271C07079; vi) INE271C07061; September 30, 2010 3rd/4th week of October, 2010 vii) INE271C07087 December 31, 2010 3rd/4th week of January, 2011 March 31, 2011 3rd/4th week of April, 2011* Debenture Trustees i) IL&FS Trustee Company Limited; and * Instead of publishing quarterly ﬁ nancial results, the Company may also opt to publish Audited Annual Accounts by June, 2011. ii) Axis Trustee Services Limited.

CGR (F) Final_280810.indd 55 8/28/2010 1:58:44 PM f) Stock Market Data

Month National Stock Exchange (NSE) Bombay Stock Exchange (BSE) High (Rs.) Low (Rs.) Volume High (Rs.) Low (Rs.) Volume April, 2009 276.80 165.05 295844799 277.50 165.40 93633136 May, 2009 421.70 190.55 447646434 423.00 220.00 316522418 June, 2009 426.80 304.10 346615411 426.80 304.00 99822848 July, 2009 433.70 259.30 362871099 433.50 259.20 118831355 August, 2009 427.00 350.50 237094278 426.80 350.50 70403259 September, 2009 447.30 387.05 241361317 446.90 350.00 69155974 October, 2009 519.90 367.05 222795462 490.80 366.70 64732391 November, 2009 397.70 325.45 243080340 396.90 326.00 67846911 December, 2009 396.00 349.55 195752406 394.40 348.70 55245722 January, 2010 403.50 311.90 161294435 403.00 312.15 41134596 February, 2010 342.90 281.60 176579358 342.35 281.00 44285955 March, 2010 325.80 287.20 177916856 325.35 287.55 40085829

(Source: NSE & BSE websites)

g) Performance in comparison to BSE Sensex and NSE S&P CNX Nifty

h) Registrar and Share Transfer Agents (RTA) shareholders by RTA. The Board has delegated M/s. Karvy Computershare Private Limited, Plot the authority for approving transfer, transmission No. 17–24, Vittalrao Nagar, Madhapur, Hyderabad- etc. to Senior Executive Director - Legal and/ 500081, Phone No. 040-44655000 Fax No. 040- or Company Secretary. The details of transfers/ 23420814; E-mail: [email protected]; transmission so approved, is placed before the Contact Persons: Shri V.K.Jayaraman, GM (RIS)/ Shareholders’/Investors’ Grievances Committee Ms. Varalakshmi, Senior Manager(RIS); Website: for noting and confi rmation. www.karvy.com is the Registrar and Share Pursuant to Clause 47(c) of the Listing Agreement Transfer Agent (RTA) for Physical Shares. Karvy with the Stock Exchanges, Certifi cate on half- is also the depository interface of the Company yearly basis confi rming due compliance of share for both National Securities Depository Limited transfer formalities by the Company, certifi cates (NSDL) and Central Depository Services (India) for timely dematerialisation of the shares as Limited (CDSL). per SEBI (Depositories and Participants) Regulations, 1996 and a Secretarial Audit Report i) Share Transfer Mechanism for reconciliation of the share capital of the The share transfers received in physical form are Company obtained from a practising Company processed through Registrar and Share Transfer Secretary are submitted to stock exchanges Agent, within seven days from the date of within stipulated time. receipt, subject to the documents being valid and complete in all respects. The share certifi cates j) Investors’ Relations duly endorsed are returned immediately to the In line with global practice of valuing customer

CGR (F) Final_280810.indd 56 8/28/2010 1:58:44 PM relationships, the Company has set-up an and potential investors can also interact with Investor Relations Department to maintain the the department to get any information on the highest standards of Corporate Governance. Company regarding its business, operations, This department acts as a communication performance and vision. interface between the Company and investors. The Investor Relations Department communicates A core team comprising of senior and experienced fi nancial information and corporate developments professionals, headed by Executive Director to the fi nancial community, obtains investor (Finance), has been set-up with roles and opinion/feedback, analyse Company’s perception responsibilities clearly defi ned to achieve the set outside and provides appropriate feedback to the goals to provide the best in class investor relations management. It assists institutional investors, services. The team is instrumental in maintaining analysts, brokers and the general public close liaison with analysts and investors and appreciates Company’s business strategy and represents the Company in investor-related helps them to understand Company’s fi nancial events, road shows and investor conferences on statements in appropriate context. The existing a global platform.

k) Share Ownership Pattern as on 31.03.2010

Sl. No. Category No. of Shares held %age 1. Promoters and Promoter Group 1,33,48,03,120 78.64 2. Directors & their Relatives 6,35,519 0.04 3. Foreign Institutional Investors 25,07,02,383 14.77 4. NRIs & Foreign Nationals 25,48,727 0.15 5. Mutual Funds & UTI 46,79,336 0.28 6. Banks, FIs & Insurance Companies 62,60,667 0.37 7. Bodies Corporate 2,72,40,332 1.60 8. Public 7,05,20,806 4.15 TOTAL 1,69,73,90,890 100.00

CGR (F) Final_280810.indd 57 8/28/2010 1:58:44 PM l) Distribution of Shareholding by Size as on 31.03.2010

Sl. No. Category (Shares) Holders % of Total Holders Shares % of Total Shares 1 1-500 5,88,293 98.12 3,80,23,148 2.24 2 501-1000 5,823 0.97 44,25,665 0.26 3 1001-2000 2,407 0.40 35,85,320 0.21 4 2001-3000 699 0.12 17,85,491 0.10 5 3001-4000 408 0.07 14,80,492 0.09 6 4001-5000 301 0.05 14,11,588 0.08 7 5001-10000 564 0.09 42,02,662 0.25 8 10001-20000 373 0.06 54,17,126 0.32 9 Above 20000 704 0.12 1,63,70,59,398 96.45 TOTAL 5,99,572 100.00 1,69,73,90,890 100.00

m) Geographical Distribution of Shareholders as on 31.03.2010

n) Dematerialisation of Shares Transfer of Unpaid/Unclaimed Dividend Amount to Investor Education and Protection Fund (IEPF) The equity shares of the Company are tradable in compulsory dematerialised segment of the During the year under review, an amount of Stock Exchanges and are available in depository Rs.1,50,988 pertaining to unpaid dividend for the system of National Securities Depository Limited ﬁ nancial year 2001-02 has been transferred to IEPF and Central Depository Services (India) Limited. on 23rd January, 2010. As on 31st March, 2010, 1,68,99,91,092 As per provision of the Section 205A read with equity shares (constituting 99.56%) were in Section 205C of the Companies Act, 1956, the dematerialised form. Company is required to transfer unpaid dividends remaining unclaimed and unpaid for a period of 7 o) Corporate Beneﬁ ts years from the due date(s) to the Investor Education Dividend History and Protection Fund (IEPF) set-up by the Central Government. (Rs. in million) Year Rate(%) Amount All Shareholders, whose dividend is unpaid, are 2005-06 40 14.00 requested to lodge their claim with RTA/Company by submitting an application supported by an indemnity 2006-07 100 3410.00 on or before 30th November, 2010. Kindly note that no 2007-08 200 6820.00 claim will lie against the Company or the IEPF once 2008-09 100 3394.38 the dividend amount is deposited in IEPF. 2009-10 (Proposed) 100 3394.80 Reminder letters are being sent by RTA to all such

CGR (F) Final_280810.indd 58 8/28/2010 1:58:45 PM shareholders whose dividend is unpaid/ unclaimed other queries relating to the equity shares, for the year 2002-03. Investors may contact: Members who have not encashed their dividend For Shares held in Physical Form warrants within their validity period may write to the Company at its Registered Ofﬁ ce or M/s. Karvy Karvy Computershare Private Limited Computershare Private Limited, Registrar & Transfer Unit: DLF Limited Agent of the Company, for revalidating the warrants Plot No.17 - 24, Vittalrao Nagar or for obtaining duplicate warrants/or payments in lieu Madhapur, Hyderabad - 500 081 of such warrants in the form of the demand draft. Phone No. 040-44655000 Fax No. 040-23420814 Given below are the dates when the unclaimed dividend is due for transfer to IEPF by the Company: E-mail: [email protected] Contact Persons: Financial Year Date of Declaration Due Date of Shri V.K.Jayaraman,GM (RIS)/ Transfer of IEPF* Ms. Varalakshmi, Sr.Manager(RIS) 2002-03 28.11.2003 26.12.2010 Website: www.karvy.com 2003-04 29.09.2004 27.10.2011 2004-05 29.09.2005 29.10.2012 For Shares held in Dematerialised Form 2005-06 29.09.2006 28.10.2013 The investors shall get in touch with their 2006-07 29.09.2007 28.10.2014 respective depository participant(s). 2007-08 30.10.2007 05.12.2014 (ii) Any query on Annual Report 30.09.2008 05.11.2015 The Company Secretary 2008-09 30.09.2009 05.11.2016 DLF Limited *Indicative dates, actual dates may vary. 1-E, Jhandewalan Extension p) Equity Shares in Suspense Account Naaz Cinema Complex As per Clause 5A of the Listing Agreement, the New Delhi – 110 055 Company reports that 6,410 equity shares are lying in the suspense account as on 31st March, Risk Management 2010. DLF has evolved an integrated approach aligned with q) Outstanding GDRs/ADRs/Warrants or any the organisational structure and strategic objectives Convertible instruments for managing risks inherent in our business. The details of Risk Management are forming part of The Company has not issued any ADRs/GDRs/ Management Discussion and Analysis (MDA) Report, Warrants or any other convertible instruments appended to the Annual Report. except the stock options to its employees.

r) Plant Locations Utilisation of IPO Proceeds The Company does not have any manufacturing The statement on utilisation of IPO proceeds, duly or processing plants. The Registered Offi ce certifi ed by Statutory Auditors and Monitoring Report of the Company is situated at DLF Shopping issued by IDBI Limited, the Monitoring Agency, duly Mall, 3rd Floor, Arjun Marg, DLF City, Phase-I, reviewed by the Audit Committee and noted by the Gurgaon- 122 002, Haryana. Board, was furnished to the Stock Exchanges. The Corporate Offi ce of the Company is located at Compliance Certifi cate from the Auditors DLF Centre, Sansad Marg, New Delhi- 110 001. Certifi cate from the Auditors of the Company, M/s. Walker, Chandiok & Co, Chartered Accountants, s) Address for Correspondence confi rming compliance with the conditions of (i) Investor Correspondence Corporate Governance as stipulated under Clause For transfer/dematerialisation of equity 49 of the Listing Agreement, is annexed to this Report shares, non-payment of dividend and any forming part of the Annual Report.

CGR (F) Final_280810.indd 59 8/28/2010 1:58:45 PM Adoption of Mandatory and held with NSDL and CDSL, is placed before the Non-Mandatory Requirements Board on quarterly basis and also submitted to the Stock Exchanges. Apart from complying with all the mandatory requirements, the Company has adopted non- Secretarial Audit mandatory requirements of Clause 49 as under: Secretarial Audit pertaining to areas covered (a) Remuneration Committee: The Remun- under the Companies Act, 1956, Depositories Act, eration Committee was constituted to 1996, SEBI Act, 1992, Listing Agreement and the approve and review compensation policies rules, regulations, guidelines and bye-laws made for executive members of the Board. The thereunder, including the following, is carried out as composition of the Committee and the details a part of the Internal Audit process by a Company of meetings held and attendance of members Secretary in practice: thereat are given elsewhere in this Report. ● (b) Financial Statements: The fi nancial SEBI (Substantial Acquisition and Takeover) statements of the Company, on stand-alone Regulations, 1997; basis, are unqualifi ed. ● SEBI (Prohibition of Insider Trading) Regulations, (c) Whistle Blower Policy: The Company has 1992; adopted a Whistle Blower Policy, the detail of ● SEBI (Employees Stock Options Scheme and which are given elsewhere in this Report. Employees Stock Purchase Scheme) Guidelines, Certifi cate from CEO and CFO 1999; ● The Managing Director and Group Chief Financial SEBI (Buy-Back of Securities) Regulations, Offi cer of the Company give Annual certifi cation on the 1998. fi nancial reporting and internal controls to the Board in terms of Clause 49 of the Listing Agreement. Fees to Statutory Auditors The Managing Director and Group Chief Financial The fee paid to the Statutory Auditors for the Offi cer also give quarterly certifi cation on the fi nancial FY’09-10 was Rs. 215.79 lacs (previous year results while placing the same before the Board in Rs. 107.41 lacs) including other certifi cation fee. terms of Clause 41 of the Listing Agreement. Investors Capital Integrity Audit The website of the Company www.dlf.in carries The Company’s Secretarial Audit Report, confi rming information on Financial Results, Corporate that the total issued capital of the Company is in Announcements, Presentations, Credit Rating and agreement with the total number of shares in physical Institutional Investors/Analysts Query, in addition to form and the total number of dematerialised shares other relevant information for investors.

CGR (F) Final_280810.indd 60 8/28/2010 1:58:45 PM Auditors’ Certiﬁ cate on compliance with the conditions of Corporate Governance under Clause 49 of the Listing Agreement

To the Members DLF Limited

We have examined the compliance of conditions of Corporate Governance by DLF Limited (“the Company”) for the year ended on March 31, 2010, as stipulated in Clause 49 of the Listing Agreement of the Company with the Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditions of Corporate Governance as stipulated in said clause. It is neither an audit nor an expression of opinion on the ﬁ nancial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and as per representations made by Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efﬁ ciency or effectiveness with which the management has conducted the affairs of the Company.

for Walker, Chandiok & Co Chartered Accountants

by David Jones New Delhi Partner July 28, 2010 Membership No. 98113

CGR (F) Final_280810.indd 61 8/28/2010 1:58:45 PM CGR (F) Final_280810.indd 62 8/28/2010 1:58:45 PM Auditors’ Report

To c. The Financial Statements dealt with by this report are in agreement with the The Members of DLF Limited books of account; 1. We have audited the attached Balance d. On the basis of written representations Sheet of DLF Limited, (the ‘Company’) as received from the Directors, as on March at March 31, 2010, and also the Profi t & 31, 2010 and taken on record by the Board Loss Account and the Cash Flow Statement of Directors, we report that none of the for the year ended on that date annexed Directors is disqualifi ed as on March 31, thereto (collectively referred as the ‘Financial 2010 from being appointed as a Director Statements’). These Financial Statements in terms of clause (g) of sub-section (1) of are the responsibility of the Company’s Section 274 of the Act; management. Our responsibility is to express e. In our opinion and to the best of our an opinion on these Financial Statements information and according to the based on our audit. explanations given to us, the Financial 2. We conducted our audit in accordance with Statements dealt with by this report the auditing standards generally accepted in comply with the accounting standards India. Those Standards require that we plan referred to in sub-section (3C) of Section and perform the audit to obtain reasonable 211 of the Act and the Rules framed there assurance about whether the Financial under and give the information required Statements are free of material misstatement. by the Act, in the manner so required and An audit includes examining, on a test basis, give a true and fair view in conformity evidence supporting the amounts and with the accounting principles generally disclosures in the Financial Statements. An accepted in India, in the case of: audit also includes assessing the accounting i) the Balance Sheet, of the state of principles used and signifi cant estimates affairs of the Company as at March made by management, as well as evaluating 31, 2010; the overall Financial Statement presentation. ii) the Profi t & Loss Account, of the We believe that our audit provides a reasonable basis for our opinion. profi t for the year ended on that date; and 3. As required by the Companies (Auditor’s Report) Order, 2003 (the ‘Order’) (as iii) the Cash Flow Statement, of the amended), issued by the Central Government cash fl ows for the year ended on of India in terms of sub-section (4A) of that date. Section 227 of the Companies Act, 1956 (the ‘Act’), we enclose in the Annexure a statement on the matters specifi ed 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 for Walker, Chandiok & Co explanations, which to the best of our Chartered Accountants knowledge and belief were necessary for Firm Registration No: 001076N the purposes of our audit; b. In our opinion, proper books of account as required by law have been kept by by David Jones the Company so far as appears from our New Delhi Partner examination of those books; July 28, 2010 Membership No. 98113

Standalone_Pg 63-116_280810.indd 63 8/28/2010 11:48:11 AM Annexure to the Auditors’ Report of even date to the members of DLF Limited, on the ﬁ nancial statements for the year ended March 31, 2010

Based on the audit procedures performed for the purpose of fi rms or other parties covered in the register reporting a true and fair view on the Financial Statements of maintained under Section 301 of the Act. The the Company and taking into consideration the information maximum amount outstanding during the year and explanations given to us and the books of account and and the year end balance was Rs. 3,036.99 other records examined by us in the normal course of audit, lacs in respect of business advance taken in we report that: the previous year by the Company from one (i) (a) The Company has maintained proper records company covered in the register maintained showing full particulars, including quantitative under Section 301 of the Act. details and situation of fi xed assets. (f) In our opinion, the rate of interest and other terms (b) A major portion of the fi xed assets has been and conditions for such loans are not, prima physically verifi ed by the management during the facie, prejudicial to the interest of the Company. year. In our opinion, the frequency of verifi cation (g) In respect of loans taken, the principal amount of the fi xed assets is reasonable having regards is repayble on demand in accordance with the to the size of the Company and nature of its terms and conditions, and payment of interest assets. No material discrepancies were noticed has been regular in accordance with such terms on such verifi cation. and conditions. (c) In our opinion, a substantial part of fi xed assets (iv) In our opinion, there is an adequate internal has not been disposed off during the year. control system commensurate with the size of (ii) (a) The inventory includes land, completed buildings, the Company and the nature of its business for construction work-in-progress, construction and the purchase of inventory and fi xed assets and development material and development rights in for the sale of goods and services. identifi ed land. Physical verifi cation of inventory (v) (a) In our opinion, the particulars of all contracts or (except stocks represented by development arrangements that need to be entered into the rights, confi rmations for which have been register maintained under Section 301 of the Act obtained) have been conducted at reasonable have been so entered. intervals by the management. (b) In our opinion, the transactions made in pursuance (b) The procedures of physical verifi cation of of such contracts or arrangements and exceeding inventory followed by the management are the value of rupees fi ve lakhs in respect of any reasonable and adequate in relation to the size party during the year have been made at prices of the Company and the nature of its business. which are reasonable having regard to prevailing (c) The Company is maintaining proper records of market prices at the relevant time. inventory and no material discrepancies were (vi) Based on an independent legal opinion obtained noticed on physical verifi cation. by the Company and relied upon by the auditors, (iii) (a) There are fourteen companies, including the debentures issued by the Company to a private subsidiaries and associate of DLF Limited, company are not covered under the provisions covered in the register maintained under Section of Section 58A and 58AA of the Act and the rules 301 of the Act to which the Company has granted framed thereunder. Accordingly, the provisions of secured/ unsecured loans. The maximum clause 4(vi) of the Order are not applicable. amount outstanding during the year was Rs. (vii) In our opinion, the Company has an internal audit 741,030.23 lacs and the year-end balance was system commensurate with its size and the nature of Rs. 370,186.30 lacs. its business. (b) In our opinion, the rate of interest and other terms (viii) We have broadly reviewed the books of account and conditions of such loans are not, prima facie, maintained by the Company pursuant to the prejudicial to the interest of the Company. Rules made by the Central Government under (c) In respect of loans granted, the principal amount Section 209(1)(d) of the Act for the maintenance is repayable on demand in accordance with the of cost records in respect of generation and sale terms and conditions, and payment of interest of electricity from the Company’s wind power has been regular in accordance with such terms operations and are of the opinion that, prima facie, and conditions. the prescribed accounts and records have been (d) There is no amount overdue in respect of loans made and maintained. However, we have not granted to companies, fi rms or other parties made a detailed examination of the records with listed in the register maintained under Section a view to determine whether they are accurate or 301 of the Act. complete. (e) During the year, the Company has not taken any (ix) (a) Undisputed statutory dues including provident loans, secured or unsecured from companies, fund, investor education and protection fund,

Standalone_Pg 63-116_280810.indd 64 8/28/2010 11:48:11 AM employees’ state insurance, income-tax, sales- for a period of more than six months from the tax, wealth-tax, service-tax, custom duty, excise date they became payable. duty, cess and other material statutory dues, (b) There are no amounts in respect of sales tax, as applicable, have generally been regularly income tax, customs duty, wealth tax, service deposited with the appropriate authorities, tax, excise duty and cess that have not been though there has been a slight delay in a few deposited with the appropriate authorities on cases. No undisputed amounts payable in account of any dispute except for the amounts respect thereof were outstanding at the year end mentioned below:

Name of the statute Nature of dues Amount Period to which the amount Forum where dispute is (Rs. in lacs) relates pending Income-tax Act, 1961 Demand under Section 143(3) 53.89 Assessment year 1997-98 Income-tax Appellate Tribunal (‘ITAT’) Income-tax Act, 1961 Demand under Section 143(3) 93.22 Assessment year 1999-2000 Income-tax Appellate Tribunal (‘ITAT’) Income-tax Act, 1961 Demand under Section 143(3) 115.19 Assessment year 2000-01 Income-tax Appellate Tribunal (‘ITAT’) Income-tax Act, 1961 Demand under Section 144 34,174.16 Assessment year 2006-07 CIT (Appeals) The Finance Act, 2004 Demand of Service-tax on 34.90 2003-04 till 2005-06 Additional Commissioner- and Service-tax rules import of service Service-tax The Finance Act, 2004 Demand of Service-tax on prop- 143.18 2003-04 till December, 2008 Commissioner-Service-tax and Service-tax rules erty transfer charges received from customers The Finance Act, 2004 Denial of Service-tax input 1,592.08 2007-08 Commissioner-Service-tax and Service-tax rules credit The Finance Act, 2004 Demand of Service-tax on 494.40 2008-09 Commissioner-Service-tax and Service-tax rules sponsorship fee paid The Finance Act, 2004 Denial of Service-tax input 1,523.93 2008-2009 Commissioner-Service-tax and Service-tax rules credit The Finance Act, 2004 Denial of Service-tax input 323.95 April, 2009 till September, 2009 Commissioner-Service-tax and Service-tax rules credit

(x) In our opinion, the Company has no accumulated immediate utilization have been invested in liquid losses at the end of the fi nancial year and it has investments, payable on demand. not incurred cash losses in the current and the (xvii) In our opinion, no funds raised on short-term basis immediately preceding fi nancial year. have been used for long-term investment. (xi) In our opinion, the Company has not defaulted in (xviii) The Company has not made any preferential repayment of dues to a fi nancial institution or a bank allotment of shares to parties or companies covered or debenture holders during the year. in the register maintained under Section 301 of the (xii) The Company has not granted any loans and Act. Accordingly, the provisions of clause 4(xviii) of advances on the basis of security by way of pledge of the Order are not applicable. shares, debentures and other securities. Accordingly, (xix) The Company has created security in respect of the provisions of clause 4(xii) of the Order are not debentures issued during the year. applicable. (xx) The Company has not raised any money by public (xiii) In our opinion, the Company is not a chit fund or issues during the year. The management of the a nidhi/ mutual benefi t fund/ society. Accordingly, Company has disclosed the end use of monies during the provisions of clause 4(xiii) of the Order are not the year, raised through a public issue in the year applicable. 2007 (refer Note 34 of Schedule 25 to the fi nancial (xiv) In our opinion, the Company is not dealing in or statements) and the same has been verifi ed by us. trading in shares, securities, debentures and other (xxi) No fraud on or by the Company has been noticed or investments. Accordingly, the provisions of clause reported during the period covered by our audit. 4(xiv) of the Order are not applicable. (xv) In our opinion, the terms and conditions on which for Walker, Chandiok & Co the Company has given guarantee for loans taken Chartered Accountants by others from banks or fi nancial institutions are not, prima facie, prejudicial to the interest of the Firm Registration No: 001076N Company. by David Jones (xvi) In our opinion, the term loans were applied for the purpose for which the loans were obtained, though New Delhi Partner idle/ surplus funds which were not required for July 28, 2010 Membership No. 98113

Standalone_Pg 63-116_280810.indd 65 8/28/2010 11:48:11 AM Balance Sheet as at March 31, 2010

(Rs. in lacs) Schedule 2010 2009 SOURCES OF FUNDS Shareholders’ funds Share capital 1 33,947.82 33,943.74 Reserves and surplus 2 1,249,052.98 1,203,538.63 1,283,000.80 1,237,482.37 Loan funds Secured loans 3 1,159,018.59 797,996.90 Unsecured loans 4 104,766.73 163,500.00 1,263,785.32 961,496.90 Deferred tax liability (net) 5 6,054.06 5,832.90 2,552,840.18 2,204,812.17 APPLICATION OF FUNDS Fixed assets 6 Gross block 200,285.40 196,839.51 Less: Accumulated depreciation and amortisation 27,383.54 15,287.03 Net block 172,901.86 181,552.48 Capital work-in-progress (including capital advances) 171,850.75 165,773.28 344,752.61 347,325.76

Investments 7 655,888.07 295,631.50 Current assets, loans and advances Stocks 8 653,369.23 662,743.20 Sundry debtors 9 60,796.07 21,289.05 Cash and bank balances 10 17,142.86 76,120.04 Other current assets 11 151,132.76 66,329.61 Loans and advances 12 1,009,860.23 1,044,695.79 1,892,301.15 1,871,177.69 Less : Current liabilities and provisions Current liabilities 13 196,535.68 163,458.38 Provisions 14 143,565.97 145,864.40 340,101.65 309,322.78 Net current assets 1,552,199.50 1,561,854.91 2,552,840.18 2,204,812.17 Signiﬁ cant accounting policies 24 Notes to the ﬁ nancial statements 25 The schedules referred to above form an integral part of the Financial Statements

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Balance Sheet referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants New Delhi per David Jones July 28, 2010 Partner

Standalone_Pg 63-116_280810.indd 66 8/28/2010 11:48:11 AM Proﬁ t & Loss Account for the year ended March 31, 2010

(Rs.in lacs) Schedule 2010 2009 INCOME Sales and other income 15 322,043.15 383,904.46 EXPENDITURE Cost of land, plots, constructed properties and development rights 16 88,925.27 77,834.17 Establishment expenses 17 13,057.24 10,758.36 Finance charges 18 84,723.69 80,985.79 Other expenses 19 28,423.02 21,831.70 Depreciation and amortisation 20 12,605.25 11,407.62 227,734.47 202,817.64 Profi t before tax 94,308.68 181,086.82 Tax expense 21 17,571.16 26,100.42 Profi t after tax 76,737.52 154,986.40 Earlier year items : Tax - earlier years (406.01) - Prior period expenses (net) 22 637.65 209.37 Net profi t 76,505.88 154,777.03 Balance as per last balance sheet 267,623.91 173,496.08 Balance available for appropriation 344,129.79 328,273.11 APPROPRIATION Debenture redemption reserve 25,001.16 11,316.95 Transfer to general reserve 7,650.59 15,477.70 Dividend on equity shares Proposed 33,947.82 33,943.88 Excess provision of previous year written back (0.06) - Tax on dividend Proposed 1,137.91 2,891.21 Excess provision of previous year written back - (2,980.54) Balance carried to balance sheet 276,392.37 267,623.91 344,129.79 328,273.11 EARNING PER SHARE 23 Basic earning per share (Rs.) 4.51 9.09 Diluted earning per share (Rs.) 4.50 9.09

Signiﬁ cant accounting policies 24 Notes to the ﬁ nancial statements 25 The schedules referred to above form an integral part of the Financial Statements

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Proﬁ t & Loss Account referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants

New Delhi per David Jones July 28, 2010 Partner

Standalone_Pg 63-116_280810.indd 67 8/28/2010 11:48:11 AM Cash Flow Statement for the year ended March 31, 2010

(Rs. in lacs) 2010 2009 A. CASH FLOW FROM OPERATING ACTIVITIES Net profi t before tax 94,308.68 181,086.82 Adjustment for: Depreciation 12,605.25 11,407.62 (Profi t)/Loss on sale of fi xed assets, net (301.55) 59.00 (Profi t)/Loss on sale of investments, net (45.07) 0.58 Assets written off/ discarded 14.97 63.17 Amounts written off 155.37 59.77 Interest expense 84,723.69 80,985.79 Interest income (49,338.48) (96,851.14) Loss from partnership fi rms, net 527.56 530.65 Exchange (gain)/loss (848.49) 92.65 Dividend income (28,040.97) (792.76) Amount forfeited on properties (733.80) (129.43) Amortisation of deferred employee compensation 4,147.20 3,786.35 Unclaimed balances written back (432.92) (533.58) Prior period items (466.91) (209.37) Provision for doubtful debts/ advances 4,114.27 328.31 Provision for employee benefi ts 689.87 804.30 Operating profi t before working capital changes 121,078.67 180,688.73 Adjustment for: Trade and other receivables (135,653.50) 114,272.19 Stocks 14,438.65 (64,450.28) Trade and other payables (7,474.72) (16,429.28) Earnest monies (paid)/ refunded to subsidiaries/ partnership fi rms 21,706.73 36,979.29 Others 27.02 (75.61) Payables to subsidiary companies / fi rms 16,087.69 (9,608.16) Realisation under agreement to sell 33,163.03 (74,632.01) Cash from operations 63,373.57 166,744.87 Direct taxes paid (net of refunds) (23,849.13) (30,158.45) Net cash fl ow from operating activities 39,524.44 136,586.42 B. CASH FLOW FROM INVESTING ACTIVITIES Acquisition of fi xed assets (including capital work-in-progress) (7,654.52) (18,688.71) Purchase of investments Subsidiary companies/ partnership fi rms (14,676.70) (129,113.64) Others (349,448.40) (741,996.92) Proceeds from disposal of: Fixed assets 828.26 746.49 Investments: In subsidiary companies/ partnership fi rms 2,456.25 34,981.39 Others 3,175.47 741,068.81 Interest received 45,142.24 94,924.58 Dividend received 1,593.02 792.76 Loans and advances to subsidiary companies/ partnership fi rms, net 76,584.68 (97,831.70) Net cash used in investing activities (241,999.70) (115,116.94)

Standalone_Pg 63-116_280810.indd 68 8/28/2010 11:48:11 AM (Rs. in lacs) 2010 2009 C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of debentures, net 100,000.00 132,000.00 Proceeds from issue of share capital including securities premium 4.81 94.55 Buyback of shares (77.80) (14,235.65) Proceeds from long term borrowings 648,623.00 463,662.00 Repayment of long term borrowings (262,089.00) (413,970.00) Repayment of debentures (10,000.00) - (Repayment)/ proceeds from short term borrowings, net (173,395.15) (58,926.37) Interest paid (122,735.87) (115,467.77) Dividend paid (33,943.82) (34,096.65) Dividend tax paid (2,891.21) (2,814.18) Net cash fl ow from / (used in) fi nancing activities 143,494.96 (43,754.07) Net (decrease) / increase in cash and cash equivalents (58,980.30) (22,284.59) Cash and cash equivalents at the beginning 75,940.27 98,224.86 Cash and cash equivalents at the close 16,959.97 75,940.27 (58,980.30) (22,284.59) Notes Cash and bank balance (as per Schedule 10 to the fi nancial statements) 17,142.86 76,120.04 Less: Fixed deposit (Pledged/ under lien/ earmarked) 24.47 73.37 Uncashed dividend 160.37 110.03 Exchange (loss)/gain (1.94) (3.63) 16,959.97 75,940.27

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Cash Flow Statement referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants

New Delhi per David Jones July 28, 2010 Partner

Standalone_Pg 63-116_280810.indd 69 8/28/2010 11:48:11 AM Schedules forming part of the Financial Statements for the year ended March 31, 2010

(Rs. in lacs) 2010 2009 SCHEDULE : 1 SHARE CAPITAL Authorised 2,497,500,000 (previous year 2,497,500,000) equity shares of Rs. 2 each 49,950.00 49,950.00 50,000 (previous year 50,000) cumulative redeemable preference shares of Rs. 100 each 50.00 50.00 50,000.00 50,000.00 Issued and Subscribed 1,705,028,247 (previous year 1,704,832,680) equity shares of Rs. 2 each 34,100.56 34,096.65 Paid-up 1,704,832,680 (previous year 1,704,832,680) equity shares of Rs. 2 each 34,096.65 34,096.65 Add : New issue under exercise of ESOP 240,457 (previous year nil) equity shares of Rs. 2 each 4.81 - Less : Calls in arrears - 0.44 Less : Forfeited 43,680 (previous year nil) equity shares of Rs. 2 each 0.87 - Less : Buy back of 7,638,567 (previous year 7,623,567) equity shares of Rs. 2 each 152.77 152.47 Net paid up 1,697,390,890 (previous year 1,697,209,113) equity shares of Rs. 2 each 33,947.82 33,943.74

Refer note no. 1 of Schedule 25

(Rs. in lacs) SCHEDULE : 2 RESERVES AND SURPLUS Reserves

Capital reserve As per last balance sheet 250.08 250.08

Capital redemption reserve As per last balance sheet 176.82 24.35 Transfer from general reserve * 0.30 152.47 177.12 176.82 Securities premium account As per last balance sheet 876,535.72 876,535.72 Add: Adjustment towards issue of shares under employees stock option scheme 1,330.46 - 877,866.18 876,535.72 Less: Calls in arrears unpaid ** - 163.29 Less : Forfeiture of shares 228.45 - 877,637.73 876,372.43 ** Net of Rs. nil (previous year Rs. 94.29 lacs) received during the year

Forfeiture of shares 66.55 -

Debenture redemption reserve As per last balance sheet 11,316.95 11,316.95 Transfer from proﬁ t & loss account 25,001.16 - 36,318.11 11,316.95 General reserve As per last balance sheet 39,832.63 38,590.57 Transfer from proﬁ t & loss account 7,650.59 15,477.70 Transfer to capital redemption reserve* (0.30) (152.47) Buyback of equity shares (premium paid) (77.50) (14,083.17) 47,405.42 39,832.63

Standalone_Pg 63-116_280810.indd 70 8/28/2010 11:48:11 AM (Rs. in lacs) SCHEDULE : 2 RESERVES AND SURPLUS (Contd.) 2010 2009 Employees’ stock options outstanding 28,396.61 23,795.94 Less: Deferred employees compensation 17,591.01 15,830.13 10,805.60 7,965.81 Surplus As per proﬁ t & loss account 276,392.37 267,623.91 1,249,052.98 1,203,538.63 * Refer note no. 2 of Schedule 25 ** Refer note no. 1 of Schedule 25

(Rs. in lacs) SCHEDULE : 3 SECURED LOANS From banks Term loans 678,636.37 408,919.05 Overdraft facilities 11,629.22 76,577.32 690,265.59 485,496.37 From others Term loans GE Capital Services India 3,528.07 4,613.63 Infrastructure Development Finance Company Limited 15,000.00 15,000.00 Axis Bank Limited -Trust Series 8,000.00 120,186.90 Housing Development Finance Corporation Limited 215,800.00 40,700.00 GE Money Financial Services Limited 4,424.93 - Secured, redeemable, non-convertible debentures 5,000 (previous year 5,000) 13.70% Non-convertible redeemable debentures face value Rs. 1,000,000 each, redeemable on August 18, 2013 50,000.00 50,000.00 7,200 (previous year 7,200) 14.00% Non-convertible redeemable debentures face value Rs. 1,000,000 each, redeemable on February 24, 2014 72,000.00 72,000.00 3,000 (previous year nil) 10.00% Non-convertible redeemable debentures face value Rs. 1,000,000 each, redeemable on February 17, 2012 30,000.00 - 7,000 (previous year nil) 10.50% Non-convertible redeemable debentures face value Rs. 1,000,000 each, redeemable on February 17, 2013 70,000.00 - Nil (previous year 1,000) 14.00% Non-convertible redeemable debentures face value Rs. 1,000,000 each, redeemable on January 03, 2010 - 10,000.00 468,753.00 312,500.53 1,159,018.59 797,996.90 Refer note no. 3 of Schedule 25

(Rs. in lacs) SCHEDULE: 4 UNSECURED LOANS Short term loans and advances Subsidiary companies 4,766.73 - From banks Standard Chartered Bank - 6,000.00 4,766.73 6,000.00 From others Axis Bank Limited (“Trustees”) - 50,000.00 Commercial paper* 100,000.00 77,500.00 ICICI Home Finance Company Limited - 15,000.00 Indian Loan Receivable Trust - 15,000.00 100,000.00 157,500.00 104,766.73 163,500.00 Refer note no. 4 of Schedule 25

*Maximum amount outstanding at any time during the year Rs. 100,000 lacs (previous year Rs. 205,000 lacs)

Standalone_Pg 63-116_280810.indd 71 8/28/2010 11:48:11 AM Schedules forming part of the Financial Statements (Contd.)

(Rs. in lacs) 2010 2009 SCHEDULE : 5 DEFERRED TAX LIABILITY (NET) Deferred tax liability arising on account of : Depreciation 7,199.62 5,848.61 Deduction claimed under Section 24(b) of the Income-tax Act, 1961 1,001.35 668.27 8,200.97 6,516.88 Less : Deferred tax asset arising on account of : Provision for : Diminution in value of investment 18.28 27.42 Discarding of assets - 3.74 Doubtful advances 1,524.36 125.92 Employee beneﬁ ts 604.27 526.90 2,146.91 683.98 6,054.06 5,832.90

(Rs. in lacs) SCHEDULE : 6 FIXED ASSETS Gross block 2009 Additions Disposals/ 2010 adjustments Intangible assets Software 2,826.52 745.87 7.94 3,564.45

Tangible assets Land Lease hold 25,436.90 843.52 3,689.96 22,590.46 Free hold 28,450.78 1,555.18 - 30,005.96 Buildings and related equipments 28,815.16 6,566.99 11,086.93 24,295.22 Air conditioners and coolers 184.26 31.33 11.65 203.94 Aircraft & helicopter 11,895.80 8,628.47 - 20,524.27 Plant and machinery 96,247.75 60.37 262.37 96,045.75 Furniture and ﬁ xtures 839.41 61.55 70.86 830.10 Vehicles 2,142.93 166.95 84.63 2,225.25 Total - Current year 196,839.51 18,660.23 15,214.34 200,285.40 - Previous year 153,371.52 46,266.94 2,798.95 196,839.51

Depreciation/ amortisation Intangible assets Software 297.62 627.11 1.57 923.16

Tangible assets Land - lease hold 100.57 110.37 - 210.94 Buildings and related equipments 586.39 630.76 101.20 1,115.95 Air conditioners and coolers 71.76 9.66 6.64 74.78 Aircraft and helicopter 1,750.77 915.04 - 2,665.81 Plant and machinery 11,539.38 9,956.13 203.46 21,292.05 Furniture and ﬁ xtures 368.60 52.88 36.32 385.16 Vehicles 571.94 207.68 63.93 715.69 Total - Current year 15,287.03 12,509.63 413.12 27,383.54 - Previous year 5,934.32 11,203.84 1,851.13 15,287.03

Standalone_Pg 63-116_280810.indd 72 8/28/2010 11:48:11 AM (Rs. in lacs) SCHEDULE : 6 FIXED ASSETS (Contd.) Net block 2009 2010 Intangible assets Software 2,528.90 2,641.29

Tangible assets Land Lease hold 25,336.33 22,379.52 Free hold 28,450.78 30,005.96 Buildings and related equipments 28,228.77 23,179.27 Air conditioners and coolers 112.50 129.16 Aircraft and helicopter 10,145.03 17,858.46 Plant and machinery 84,708.37 74,753.70 Furniture and ﬁ xtures 470.81 444.94 Vehicles 1,570.99 1,509.56 Total - Current year 181,552.48 172,901.86 - Previous year 147,437.20 181,552.48

(Rs. in lacs) 2010 2009 SCHEDULE : 7 INVESTMENTS Long term investments (In shares) Class * Share (No.) Book value Share (No.) Book value Trade investment (unquoted) In subsidiary companies DLF Ackruti Info Parks (Pune) Limited Equity 1,339,993 134.00 1,339,993 134.00 (formerly DLF Akruti Info Parks (Pune) Limited) DLF Wind Power Private Limited (formerly Bestvalue Equity 990,000 99.00 -- Housing and Construction Private Limited) DLF Cyber City Developers Limited Equity 75,025,000 2.50 75,025,000 2.50 DLF Commercial Developers Limited Equity 400,000 40.05 400,000 40.05 DLF Estate Developers Limited Equity 5,102 0.51 5,102 0.51 Preference 4,500 4.50 4,500 4.50 DLF Financial Services Limited Equity 240,000 24.00 240,000 24.00 DLF Golf Resorts Limited Equity 400,000 40.00 400,000 40.00 DLF Home Developers Limited Equity 17,489,190 3,271.51 17,489,190 3,271.51 DLF Housing and Construction Limited Equity 27,355 76.52 27,355 76.52 Preference 2,265 2.27 2,265 2.27 DLF Finvest Limited Equity 3,000,000 300.00 3,000,000 300.00 DLF New Delhi Convention Centre Limited Equity 70,000 7.00 70,000 7.00 DLF Phase-IV Commercial Developers Limited Equity 400,000 40.06 400,000 40.06 Eastern India Powertech Limited Equity 69,320,037 6,932.00 69,320,037 6,932.00 DLF Pramerica Life Insurance Company Limited Equity 163,765,000 16,376.50 101,420,000 10,142.00 DLF Retail Developers Limited Equity 44,000,000 2,319.09 44,000,000 2,319.09 DT Cinemas Limited Equity 7,803,570 508.01 7,803,570 508.01 DLF Projects Limited Equity 50,000 5.00 50,000 5.00 DLF SEZ Developers Limited Equity 50,000 5.00 50,000 5.00

Standalone_Pg 63-116_280810.indd 73 8/28/2010 11:48:11 AM Schedules forming part of the Financial Statements (Contd.)

(Rs. in lacs) SCHEDULE : 7 INVESTMENTS (Contd.) Share (No.) 2010 Share (No.) 2009 DLF Haryana SEZ (Gurgaon) Limited Equity 45,000 4.50 45,000 4.50 DLF Haryana SEZ (Ambala) Limited Equity 45,000 4.50 45,000 4.50 DLF Hotel Holdings Limited Equity 1,259,680,000 125,968.00 1,176,600,000 117,660.00 DLF Brands Limited Equity 8,000,000 800.00 8,000,000 800.00 DLF Telecom Limited Equity 11,150,000 1,115.00 11,150,000 1,115.00 DLF City Centre Limited Equity 100,000 10.00 100,000 10.00 DLF Real Estate Builders Limited Equity 100,000 10.00 100,000 10.00 DLF Property Developers Limited Equity 100,000 10.00 100,000 10.00 DLF Residential Developers Limited Equity 100,000 10.00 100,000 10.00 DLF Residential Partners Limited Equity 100,000 10.00 100,000 10.00 DLF Residential Builders Limited Equity 100,000 10.00 100,000 10.00 DLF Info Park Developers (Chennai) Limited Equity 320,000,000 32,000.00 320,000,000 32,000.00 Beverly Park Maintenance Services Limited Equity 9,000 0.91 9,000 0.91 Preference 4,100 4.10 4,100 4.10 Breeze Constructions Private Limited Equity 10,000 1.00 10,000 1.00 Dankuni World City Limited Equity 50,000 5.00 50,000 5.00 Caressa Builders & Constructions Private Limited Equity 60,000 6.00 60,000 6.00 Cyrilla Builders & Constructions Limited Equity 50,000 5.00 50,000 5.00 Dalmia Promoters and Developers Private Limited Equity 100,000 10.00 100,000 10.00 Edward Keventer (Successors) Private Limited Equity 961,500 43,892.06 961,500 43,892.06 DLF Developers Limited Equity 50,000 5.00 50,000 5.00 Jai Luxmi Real Estate Private Limited Equity 22,500 2.25 22,500 2.25 Kairav Real Estate Private Limited Equity 50,000 5.00 50,000 5.00 Lawanda Builders and Developers Private Limited Equity 10,000 1.00 10,000 1.00 NewGen Medworld Hospitals Limited Equity 50,000 5.00 50,000 5.00 DLF Utilities Limited Equity --14,908,050 1,451.05 Paliwal Developers Limited Equity 10,000 1.00 10,000 1.00 Preference 4,000 4.00 4,000 4.00 Paliwal Real Estate Private Limited Equity 1,000,000 100.00 1,000,000 100.00 Valini Builders and Developers Private Limited Equity 6,500 0.65 6,500 0.65 VSK Investment and Finance Limited Equity 6,520 0.65 6,520 0.65 Preference 4,348 4.35 4,348 4.35 234,192.49 221,002.04 In other companies DLF Gurgaon Developers Limited Equity --25,000 2.50 (formerly DLF SEZ Holdings Limited) DLF Limitless Developers Private Limited Equity 201,255,000 20,125.50 201,255,000 20,125.50 Alankrit Estates Limited Equity 3 -** 3 -** Anuroop Builders and Developers Private Limited Equity 10,000 1.00 10,000 1.00 Digital Talkies Private Limited Preference 80,680 80.68 80,680 80.68 Delanco Real Estate Private Limited Equity 5,000,000 1,500.00 5,000,000 1,500.00 Garv Developers Private Limited Equity 10,000 1.00 10,000 1.00 Garv Promoters Private Limited Equity 10,000 1.00 10,000 1.00 Garv Realtors Private Limited Equity 10,000 1.00 10,000 1.00 Grism Builders and Developers Private Limited Equity 10,000 1.00 10,000 1.00

Standalone_Pg 63-116_280810.indd 74 8/28/2010 11:48:12 AM (Rs. in lacs) SCHEDULE : 7 INVESTMENTS (Contd.) Share (No.) 2010 Share (No.) 2009 Kirtimaan Builders Limited Equity 2 -** 2 -** Luvkush Builders Private Limited Equity 10,000 1.00 10,000 1.00 Joyous Housing Limited (Rs. 100 each) Equity 37,500 37.50 37,500 37.50 Nadish Real Estate Private Limited (Rs. 10 each) Equity 10,000 1.00 10,000 1.00 Northern India Theatres Private Limited Equity 90 0.09 90 0.09 Peace Buildcon Private Limited Equity 10,000 1.00 10,000 1.00 Realest Builders and Services Private Limited Equity 50,012 5.03 50,012 5.03 Skyrise Home Developers Private Limited Equity 10,000 1.00 10,000 1.00 Ujagar Estates Limited Equity 2 -** 2 -** Vibodh Developers Private Limited Equity 10,000 1.00 10,000 1.00 Vinesh Home Developers Private Limited Equity 10,000 1.00 10,000 1.00 Vismay Builders and Developers Private Limited Equity 10,000 1.00 10,000 1.00 21,760.80 21,763.30 255,953.29 242,765.34 Less : Provision for diminution in value 80.68 80.68 255,872.61 242,684.66 * Equity shares of Rs. 10 each, Preference shares of Rs. 100 each - fully paid, unless otherwise stated. ** Rounded off to Rs. ‘Nil’ Long Term (Trade) Debenture Book value Debenture Book value (No) (No) Jawala Real Estate Private Limited 387,450 38,745.00 387,450 38,745.00 38,745.00 38,745.00 In Partnership Firms DLF Commercial Projects Corporation 365.00 365.00 DLF Ofﬁ ce Developers 1,654.82 2,643.09 DLF South Point 2,152.78 2,366.00 DLF GK Residency 50.00 50.00 Kavicon Partners 223.63 112.44 Saket Courtyard Hospitality 400.00 - Rational Builders and Developers 32.00 32.00 4,878.23 5,568.53

In Belaire receivables trust 6,943.81 8,633.31 Current investments Mutual funds Mutual funds In mutual funds (Quoted) (Units) (Units) Kotak Mahindra Mutual Fund 398,257,200 40,143.53 - - Reliance Mutual Fund 3,208,519 32,131.00 - - DSP BlackRock Mutual Fund 2,911,426 29,130.14 - - UTI Mutual Fund 423,616,556 77,205.40 - - Axis Mutual Fund 4,286,598 42,865.98 - - ICICI Prudential Mutual Fund 650,007,013 65,137.20 - - Birla Sun Life Mutual Fund 628,006,333 62,835.17 - - 349,448.42 - 655,888.07 295,631.50 Current Investment - Purchased and sold during the year Refer note no. 5 of Schedule 25 NAV as on March 31, 2010: Rs. 349,448.42 lacs (previous year nil)

Standalone_Pg 63-116_280810.indd 75 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.)

(Rs. in lacs) 2010 2009 SCHEDULE : 8 STOCKS Land, plots and development cost thereon 163.91 368.43 Constructed properties Land and construction work-in-progress 102,478.28 115,077.05 Development/construction materials 226.05 57.85 Development rights: payments made under agreements to purchase land/ development rights/ constructed properties To subsidiary companies 7,442.17 7,836.95 To ﬁ rms in which the Company and/or its subsidiary companies are/is a partners 528,944.46 526,484.87 To others 235.44 262.46 536,622.07 534,584.28 Rented buildings (including land and related equipments) on lease hold land 3,054.27 3,054.27 on free hold land 12,345.09 10,785.05 15,399.36 13,839.32 Less: Depreciation on rented buildings and related equipments 1,520.44 1,183.73 13,878.92 12,655.59 653,369.23 662,743.20

(Rs. in lacs) SCHEDULE : 9 SUNDRY DEBTORS (Considered good unless otherwise stated) Debts over six months Unsecured Subsidiary companies 11,908.26 2,383.54 Others [inlcuding Rs. nil (previous year Rs. 64.30 lacs) doubtful] 12,493.96 7,571.04 24,402.22 9,954.58 Less: Doubtful and provided for - 64.30 24,402.22 9,890.28 Other debts Unsecured Subsidiary companies 34,518.42 1,300.72 Others 1,875.43 10,098.05 36,393.85 11,398.77 60,796.07 21,289.05

(Rs. in lacs) SCHEDULE : 10 CASH AND BANK BALANCES Cash in hand 16.03 6.50 Cheques in hand 1.85 - Bank balances : With scheduled banks in : Current accounts* 13,350.84 5,113.47 Fixed deposit accounts Pledged/under lien/earmarked 24.47 73.37 Others 3,740.00 70,920.75 With HSBC Bank plc, London, UK, in current account, a non - scheduled bank (maximum amount outstanding during the year Rs. 73.53 lacs, previous year Rs. 40.16 lacs) 9.67 5.95 17,142.86 76,120.04 *Includes unutilised monies from public issue - Rs. nil (previous year Rs. 6.96 lacs)

Standalone_Pg 63-116_280810.indd 76 8/28/2010 11:48:12 AM (Rs. in lacs) 2010 2009 SCHEDULE : 11 OTHER CURRENT ASSETS Unbilled receivables DLF Assets Private Limited 64,931.38 18,763.13 Others 79,399.20 44,983.60 144,330.58 63,746.73 Interest accrued On investments in debentures 2,806.03 600.92 From customers 3,570.01 1,960.73 From others 426.14 21.23 151,132.76 66,329.61

(Rs. in lacs) SCHEDULE:12 LOANS AND ADVANCES (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Secured 426.45 484.65 Unsecured [including Rs. 4,484.74 lacs (previous year Rs. 306.17 lacs) doubtful] 132,479.03 116,207.96 132,905.48 116,692.61 Due from subsidiary companies Secured 18,304.25 18,304.25 Unsecured 714,165.82 776,281.17 732,470.07 794,585.42 Due from ﬁ rms in which the Company and/or its subsidiary companies are partners - 14,008.12 2,680.21 current accounts Due from Niharika Shopping Mall - a joint venture (under jointly controlled operations) - 500.00 Security deposits 705.13 481.71 Taxes paid 134,256.17 130,062.01 1,014,344.97 1,045,001.96 Less: Doubtful and provided for 4,484.74 306.17 1,009,860.23 1,044,695.79

(Rs. in lacs) SCHEDULE : 13 CURRENT LIABILITIES Sundry creditors Subsidiary companies 15,830.46 2,010.52 Others 30,057.64 27,256.65 45,888.10 29,267.17 Due to ﬁ rms in which the Company and/or its subsidiary companies are partners - current account 2,379.24 1,591.55 Realisation under agreements to sell Subsidiary companies 61,868.90 53,615.29 Others 28,085.66 3,910.05 Uncashed dividend* 160.37 110.03 Other liabilities Subsidiary companies 27,112.28 24,037.26 Others 20,552.69 32,327.35 Interest accrued but not due on loans 10,488.44 18,599.68 196,535.68 163,458.38

*Not due for credit to “Investor Education and Protection Fund”.

Standalone_Pg 63-116_280810.indd 77 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.)

(Rs. in lacs) 2010 2009 SCHEDULE : 14 PROVISIONS Provision for tax 105,861.06 107,100.00 Proposed dividend 33,947.82 33,943.88 Tax on dividend 1,137.91 2,891.21 Employee beneﬁ ts 2,619.18 1,929.31 143,565.97 145,864.40

(Rs. in lacs) SCHEDULE: 15 SALES AND OTHER INCOME a) Sales and other receipts Sale of land and plots 561.88 4,205.39 Revenue from constructed properties 179,655.82 151,046.70 Revenue from development charges 23,831.37 101,235.83 Sale of development rights 3,651.97 8,297.38 Royalty income 2,377.57 - Revenue from windmills power generation 11,047.26 11,209.62 Service receipts 800.07 908.68 Amounts forfeited on properties 733.80 129.43 Rental income 8,048.17 5,756.93 Sale of gas 706.54 268.18 Sale of construction material 10,506.36 478.06 241,920.81 283,536.20

b) Income from investments Current (other than trade) Dividend from mutual funds 3,031.43 792.76 Profi t on sale of mutual fund investments 10.00 - Profi t on sale of shares 39.76 - Income from investment in trust 358.54 - Long - term (trade investments) Interest (gross #) on debentures 3,099.60 776.43 Dividend from shares 25,009.54 - Profi t/(loss) from partnership fi rms DLF City Centre - (0.12) DLF Commercial Project Corporation (353.93) (1,009.79) DLF Offi ce Developers 265.06 379.98 DLF Property Developers - (0.05) DLF Residential Builders - (0.05) DLF Residential Developers - (0.05) DLF Residential Partners - (0.05) DLF South Point (3.72) 1.28 Saket Courtyard Hospitality (52.41) - Kavicon Partners 109.70 101.10 Rational Builders and Developers (453.33) (2.87) Real Estate Builders - (0.06) DLF GK Residency (38.93) 0.03 (527.56) (530.65) 31,021.31 1,038.54

# Tax deducted at source on interest 309.96 175.51

Standalone_Pg 63-116_280810.indd 78 8/28/2010 11:48:12 AM (Rs. in lacs) SCHEDULE: 15 SALES AND OTHER INCOME (Contd.) 2010 2009 c) Other income Interest (gross*) from : Bank deposits 57.62 447.66 Customers 2,618.13 1,829.03 Loans and deposits 42,212.08 95,388.81 Income-tax refunds 1,319.52 - Others 31.53 238.24 46,238.88 97,903.74 Exchange gain/(loss) 848.49 (92.65) Proﬁ t on disposal of ﬁ xed assets 327.66 1.21 Unclaimed balances and excess provisions written back 432.92 533.58 Miscellaneous income 1,253.08 983.84 49,101.03 99,329.72 322,043.15 383,904.46

* Tax deducted at source on interest 4,197.38 21,740.73

(Rs. in lacs) SCHEDULE : 16 COST OF LAND, PLOTS, CONSTRUCTED PROPERTIES AND DEVELOPMENT RIGHTS Land and Plots (including development cost) Opening stock 368.43 646.48 Purchases during the year 218.67 199.73 Less: Closing stock (163.91) (368.43) 423.19 477.78

Constructed properties Cost of land, development and construction 72,113.84 45,976.75

Cost of development charges 5,947.61 23,954.45

Cost of development rights sold 98.28 6,936.95 Cost of construction material sold 10,342.35 488.24 88,925.27 77,834.17

(Rs. in lacs) SCHEDULE : 17 ESTABLISHMENT EXPENSES Salaries, wages and bonus 7,234.35 5,681.80 Contribution to provident and other funds 204.85 289.23 Employee beneﬁ ts 1,372.25 901.89 Amortisation of deferred employee compensation (net) 4,147.20 3,786.35 Staff welfare 98.59 99.09 13,057.24 10,758.36

Standalone_Pg 63-116_280810.indd 79 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.)

(Rs. in lacs) 2010 2009 SCHEDULE : 18 FINANCE CHARGES Interest Fixed periods loans Debentures 19,211.84 5,757.07 Other ﬁ xed term loans 70,474.80 94,208.48 89,686.64 99,965.55 Other loans 12,724.09 25,105.50 Guarantee, ﬁ nance and bank charges 12,213.89 6,712.98 114,624.62 131,784.03 Less: Transferred to work-in-progress (27,079.52) (40,159.73) Less: Transferred to capital work-in-progress (2,821.41) (10,638.51) 84,723.69 80,985.79

(Rs. in lacs) SCHEDULE : 19 OTHER EXPENSES Rent 172.08 217.58 Rates and taxes 1,387.69 566.32 Electricity, fuel and water 89.45 97.62 Repair and maintenance Buildings 247.78 283.40 Constructed properties/ colonies 612.94 243.16 Computers 841.33 655.53 Others 174.68 124.86 Insurance 356.51 237.69 Commission and brokerage 1,425.94 1,509.13 Advertisement and publicity 3,638.67 3,941.55 TraveIling and conveyance 778.85 736.88 Vehicles running and maintenance 214.32 203.43 Aircraft & helicopter running and maintenance 1,222.73 2,956.44 Operating and maintenance charge of windmill 1,684.06 78.68 Printing and stationery 216.27 257.72 Directors’ fee 29.80 30.00 Commission to non-executive directors 140.00 140.00 Sales promotion 627.80 477.59 Communication 363.05 330.06 Legal and professional 5,716.12 5,924.23 Donation and charity 3,417.63 295.53 Claim and compensation 412.09 898.93 Loss on disposal of ﬁ xed assets 26.11 60.21 Loss on sale of mutual fund investments 4.69 0.58 Assets written off/ discarded 14.97 63.17 Amounts written off 155.37 59.77 Provision for doubtful debts and advances 4,114.27 328.31 Miscellaneous expenses 337.82 1,113.33 28,423.02 21,831.70

Standalone_Pg 63-116_280810.indd 80 8/28/2010 11:48:12 AM (Rs. in lacs) 2010 2009 SCHEDULE : 20 DEPRECIATION AND AMORTISATION * On ﬁ xed assets 12,268.54 11,139.30 On current assets 336.71 268.32 12,605.25 11,407.62 * Net of capitalisation

(Rs. in lacs) SCHEDULE : 21 TAX EXPENSE Income tax 17,350.00 22,600.00 Deferred tax 221.16 2,937.91 Fringe beneﬁ t tax (net) - 562.51 17,571.16 26,100.42

(Rs. in lacs) SCHEDULE : 22 PRIOR PERIOD EXPENSES (NET) Prior period expenses Repair and maintenance Buildings 29.22 44.70 Constructed properties/ colonies - 90.52 Computers - 40.62 Legal and professional 214.52 22.17 Commission and brokerage 75.77 - Advertisement and Publicity - 30.60 Depreciation 170.74 - Operating and maintenance charges of windmill 147.40 18.62 Insurance - 6.77 637.65 254.00 Prior period incomes Depreciation claimed, now written back - (19.44) Miscellaneous income - (25.19) - (44.63) 637.65 209.37

(Rs. in lacs) SCHEDULE : 23 EARNING PER SHARE Net proﬁ t attributable to equity shareholders Proﬁ t after tax 76,737.52 154,986.40 Earlier year items Income tax 406.01 - Prior period expenses (net) (637.65) (209.37) 76,505.88 154,777.03

Nominal value of equity share (Rs.) 2.00 2.00 Total number of equity shares outstanding at the beginning of the year 1,697,209,113 1,704,832,680 Total number of equity shares outstanding at the end of the year 1,697,390,890 1,697,209,113 Weighted average number of equity shares 1,697,243,145 1,703,074,486

Basic earning per share (Rs.) 4.51 9.09

Nominal value of equity share (Rs.) 2.00 2.00 Weighted average number of equity shares used to compute diluted earning per share 1,700,592,070 1,703,615,271 Diluted earning per share (Rs.) 4.50 9.09

Standalone_Pg 63-116_280810.indd 81 8/28/2010 11:48:12 AM SCHEDULE : 24 SIGNIFICANT ACCOUNTING POLICIES

1. Basis of accounting are capitalised when the construction is The Financial Statements are prepared under substantially complete or upon receipt of historical cost convention, on accrual basis, the occupancy certifi cate, whichever is in accordance with the generally accepted earlier. accounting principles in India and to comply Depreciation on assets (including with the Accounting standards prescribed in buildings and related equipments rented the Companies (Accounting Standards) Rules, out and included under current assets 2006 issued by the Central Government in as stocks) is provided on straight-line exercise of the power conferred under sub- method at the rates and in the manner section (I) (a) of Section 642 and the relevant prescribed in schedule XIV to the provisions of the Companies Act, 1956 Companies Act, 1956. (the “Act”). b) Capital work-in-progress represents 2. Use of estimates expenditure incurred in respect of capital The preparation of fi nancial statements projects under development and are in conformity with generally accepted carried at cost. Cost includes land, related accounting principles requires the acquisition expenses, development / management to make estimates and construction costs, borrowing costs assumptions that affect the reported and other direct expenditure including amounts of assets and liabilities and the advances to contractors and others. disclosure of contingent liabilities on the date c) Leasehold land, under perpetual lease, of the fi nancial statements and the results are not amortised. Leasehold lands, of operations during the reporting periods. other than on perpetual lease, are being Although these estimates are based upon amortised on time proportion basis over management’s knowledge of current events their respective lease periods. and actions, actual results could differ from 5. Investments those estimates and revisions, if any, are Investments are classifi ed as long term or recognised in the current and future periods. current, based on management’s intention 3. Intangible assets and amortisation at the time of purchase. Investments that are Softwares which are not integral part of the readily realisable and intended to be held hardware are classifi ed as intangibles and is for not more than a year are classifi ed as stated at cost less accumulated amortisation. current investments. All other investments Softwares are being amortised over the are classifi ed as long-term investments. estimated useful life of 5 years as determined Trade investments are the investments made by the management. for or to enhance the Company’s business 4. Fixed assets and depreciation/ interests. amortisation Current investments are stated at lower of a) Fixed assets (gross block) are stated cost and fair value determined on an individual at historical cost less accumulated investment basis. Long-term investments are depreciation and impairment. Cost stated at cost and provision for diminution in comprises the purchase price and any their value, other than temporary, is made in attributable cost of bringing the asset to its the fi nancial statements. working condition for its intended use. Pro fi t/loss on sale of investments is computed Building / specifi c identifi able portion of with reference to the average cost of the building, including related equipments investment.

Standalone_Pg 63-116_280810.indd 82 8/28/2010 11:48:12 AM 6. Stocks is recognised on the “percentage Stocks are valued as under: of completion method”. Total sale a) Land and plots other than area consideration as per the duly transferred to constructed properties at executed, agreements to sell / the commencement of construction are application forms (containing salient valued at lower of cost/ approximate terms of agreement to sell), is average cost/ as revalued on conversion recognised as revenue based on the to stock and net realisable value. Cost percentage of actual project costs includes land (including development incurred thereon to total estimated project cost, subject to such actual rights and land under agreements to cost incurred being 30 per cent purchase) acquisition cost, borrowing or more of the total estimated cost, estimated internal development project cost. Estimated project cost costs and external development charges. includes cost of land/ development b) Constructed properties other than Special rights, borrowing costs, overheads, Economic Zone (SEZ) projects includes estimated construction and the cost of land (including development development cost of such properties. rights and land under agreements The estimates of the saleable area to purchase), internal development and costs are reviewed periodically costs, external development charges, and effect of any changes in such construction costs, overheads, borrowing estimates is recognised in the cost, development/ construction materials period in which such changes are and is valued at lower of cost/ estimated determined. However, when the total cost and net realisable value. project cost is estimated to exceed c) In case of SEZ projects, constructed total revenues from the project, loss properties include internal development is recognised immediately. costs, external development charges, (ii) For SEZ projects, revenue from construction costs, overheads, borrowing development charges is recognised cost, development/ construction on the percentage of completion materials, and is valued at lower of cost/ method in accordance with the terms estimated cost, and net realisable value. of the Co-developer Agreements / d) Development rights represent amount Memorandum of Understanding paid under agreement to purchase land/ (‘MOU’), read with addendum, if development rights and borrowing cost any. The total development charges incurred by the Company to acquire is recognised as Revenue on irrevocable and exclusive licenses/ the percentage of actual project development rights in identiﬁ ed land and cost incurred thereon to total constructed properties, the acquisition of estimated project cost subject to which is at an advanced stage. such actual cost incurred being e) Cost of construction/ development 30% or more of the total estimated project cost. The estimated project material is valued at lower of cost and cost includes construction cost, net realisable value. development and construction f) Rented buildings and related equipments material, internal development cost, are valued at lower of cost (less external development charges, accumulated depreciation) and net borrowing cost and overheads of realisable value. such project. Revenue from Lease 7. Revenue recognition of land pertaining to such projects a) Revenue from constructed properties: is recognised in accordance with (i) Revenue from constructed the terms of the Co-developer properties, other than SEZ projects, Agreements/ MOU on accrual basis.

Standalone_Pg 63-116_280810.indd 83 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.) b) Sale of land and plots (including 9. Cost of revenue development rights) is recognised in the fi nancial year in which the agreement a) Cost of constructed properties other to sell/ application forms (containing than SEZ projects, includes cost of land salient terms of agreement to sell) is (including cost of development rights/ executed. Where the Company has land under agreements to purchase), any remaining substantial obligations estimated internal development costs, as per the agreements, revenue is external development charges, borrowing recognised on the percentage of costs, overheads, construction costs and completion method of accounting, as development/ construction materials, per a) (i) above. which is charged to the profi t & loss account based on the percentage of c) Revenue from wind power generation is revenue recognised as per accounting recognised on the basis of actual power policy no. - 7 above, in consonance sold (net of reactive energy consumed), with the concept of matching costs and as per the terms of the power purchase agreements entered into with the revenue. Final adjustment is made upon respective purchasers. completion of the specifi c project. For SEZ projects, cost of constructed d) Income from interest is accounted for properties includes estimated on time proportion basis taking into internal development costs, external account the amount outstanding and the applicable rate of interest. development charges, borrowing costs, overheads, construction costs and e) Dividend income is recognised when the development/ construction materials, right to receive is established. which is charged to the profi t & loss f) Share of profi t/ loss from fi rms in which account based on the percentage of the Company is a partner is accounted revenue recognised as per accounting for in the fi nancial year ending on (or policy no. - 7 above, in consonance immediately before) the date of the with the concept of matching costs and balance sheet. revenue. Final adjustment is made upon g) Rent, service receipts and interest from completion of the specifi c project. customers under agreement to sell is b) Cost of land and plots includes land accounted for on accrual basis except (including development rights) acquisition in cases where ultimate collection is cost, estimated internal development considered doubtful. costs and external development charges, h) Sale of Certifi ed Emission Reductions which is charged to profi t & loss account (CERs) and Voluntary Emission based on the percentage of land/ plotted Reductions (VERs) is recognised as area in respect of which revenue is income on the delivery of the CERs/VERs recognised as per accounting policy no.- to the customer’s account and receipt of 7 above to the saleable total land/ plotted payment. area of the scheme, in consonance with the concept of matching cost and 8. Unbilled receivables revenue. Final adjustment is made upon Unbilled receivables disclosed under Schedule completion of the specifi c project. 11 - “Other Current Assets” represents revenue recognised based on Percentage of 10. Borrowing costs completion method (as per para no. 7a and Borrowing costs that are attributable to the 7b above), over and above the amount due acquisition and/or construction of qualifying as per the payment plans agreed with the assets are capitalised as part of the cost customers. of such assets, in accordance with notifi ed

Standalone_Pg 63-116_280810.indd 84 8/28/2010 11:48:12 AM Accounting Standard 16 “Borrowing Costs”. notifi ed Accounting Standard 15 - Employee A qualifying asset is one that necessarily Benefi ts. takes a substantial period of time to get ready (i) Provident fund for its intended use. Capitalisation of borrowing The Company makes contribution to costs is suspended in the period during which statutory provident funds in accordance the active development is delayed due to, with the Employees’ Provident Funds other than temporary interruption. All other and Miscellaneous Provisions Act, borrowing costs are charged to the profi t & 1952. In terms of the Guidance on loss account as incurred. implementing the revised AS – 15, 11. Taxation issued by the Accounting Standards Tax expense for the year comprises current Board of the ICAI, the provident fund trust income tax and deferred tax . Current income set-up by the Company is treated as a tax is determined in respect of taxable income defi ned benefi t plan since the Company with deferred tax being determined as the has to meet the interest shortfall, if tax effect of timing differences representing any. Accordingly, the contribution paid the difference between taxable income and or payable and the interest shortfall, if accounting income that originate in one period, any is recognised as an expense in the and are capable of reversal in one or more period in which services are rendered by the employee. subsequent period(s). Such deferred tax is quantifi ed using rates and laws enacted or (ii) Gratuity substantively enacted as at the end of the Gratuity is a post employment benefi t and fi nancial year. is in the nature of a defi ned benefi t plan. 12. Foreign currency transactions The liability recognised in the balance sheet in respect of gratuity is the present Transactions in foreign currency are value of the defi ned benefi t/ obligation at accounted for at the exchange rate prevailing the balance sheet date less the fair value on the date of the transaction. All monetary of plan assets, together with adjustments items denominated in foreign currency are for unrecognised actuarial gains or converted into Indian rupees at the year-end losses and past service costs. The exchange rate. Income and expenditure of defi ned benefi t / obligation is calculated the overseas liaison offi ce is translated at the at or near the balance sheet date by an yearly average rate of exchange. independent actuary using the projected The exchange differences arising on unit credit method. such conversion and on settlement of the Actuarial gains and losses arising transactions are recognised in the profi t & from past experience and changes in loss account. actuarial assumptions are credited or In terms of the clarifi cation provided by charged to the profi t & loss account in Ministry of Corporate Affairs (‘MCA’) vide a the year in which such gains or losses notifi cation no. G.S.R. 225(E) on Accounting are determined. Standard – 11 “Changes in Foreign Exchange (iii) Compensated absences Rates”, the exchange gain/loss on long term foreign currency monitory items are adjusted Liability in respect of compensated in the cost of depreciable capital assets. absences becoming due or expected The other exchange gains/losses related to to be availed within one year from the current assets has been recognised in the balance sheet date is recognised on the basis of undiscounted value of estimated profi t & loss account amount required to be paid or estimated 13. Employee benefi ts value of benefi t expected to be availed Expenses and liabilities in respect of employee by the employees. Liability in respect of benefi ts are recorded in accordance with the compensated absences becoming due

Standalone_Pg 63-116_280810.indd 85 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.) or expected to be availed more than representing the excess of the market one year after the balance sheet date price on the date of grant over the exercise is estimated on the basis of an actuarial price of the options granted under the valuation performed by an independent “Employees Stock Option Scheme” of the actuary using the projected unit credit Company, and is being amortised as “Deferred method. employee compensation” on a straight-line Actuarial gains and losses arising from basis over the vesting period in accordance past experience and changes in actuarial with the SEBI (Employees Stock Option assumptions are credited or charged to the Scheme and Employee Stock Purchase profi t & loss account in the year in which Scheme) Guidelines, 1999 and Guidance such gains or losses are determined. Note No.18 “Share Based Payments” issued by the ICAI. (iv) Cash settled options 16. Impairment of assets Accounting value of Cash Settled The Company assesses at each balance Options granted to employees under the sheet date whether there is any indication “Employees Shadow Option Scheme” is that an asset may be impaired. If any such determined on the basis of intrinsic value indication exists, the Company estimates representing the excess of the average the recoverable amount of the asset. If market price, during the month before the such recoverable amount of the asset or the reporting date, over the exercise price of recoverable amount of the cash generating the shadow option. The same is charged as employee benefi ts over the vesting unit to which the asset belongs is less than period, in accordance with Guidance its carrying amount, the carrying amount Note No 18 “Share Based Payments”, is reduced to its recoverable amount and issued by the ICAI. the reduction is treated as an impairment loss and is recognised in the profi t & loss (v) Other short term benefi ts account. If at the balance sheet date there Expense in respect of other short-term is an indication that a previously assessed benefi ts is recognised on the basis of the impairment loss no longer exists, the amount paid or payable for the period recoverable amount is reassessed and the during which services are rendered by asset is refl ected at the recoverable amount the employee. subject to a maximum of depreciated historical cost and is accordingly reversed in Contribution made towards the profi t & loss account. Supernnuation Fund (funded by payments to Life Insurance Corporation 17. Contingent liabilities and provisions of India (LIC)) are charged to the profi t & Depending upon the facts of each case and loss account on accrual basis. after due evaluation of legal aspects, claims 14. Leases against the Company are accounted for as either provisions or disclosed as contingent Assets subject to operating leases are liabilities. In respect of statutory dues disputed included under fi xed assets or current assets and contested by the Company, contingent as appropriate. Rent (Lease) income is liabilities are provided for and disclosed as per recognised in the profi t & loss account on a straight-line basis over the lease term. Costs, original demand without taking into account including depreciation, are recognised as an any interest or penalty that may accrue expense in the profi t & loss account. thereafter. The Company makes a provision when there is a present obligation as a result 15. Employees stock option plan (ESOP) of a past event where the outfl ow of economic Accounting value of stock options is resources is probable and a reliable estimate determined on the basis of “intrinsic value” of the amount of obligation can be made.

Standalone_Pg 63-116_280810.indd 86 8/28/2010 11:48:12 AM Possible future or present obligations that split, and reverse share split (consolidation may but will probably not require outﬂ ow of of shares). resources or where the same cannot be For the purpose of calculating diluted reliably estimated, is disclosed as contingent earning per share, the net profit or loss liability in the Financial Statements. for the period attributable to equity 18. Earning per share shareholders and the weighted average Basic earning per share is calculated by number of shares outstanding during the dividing the net proﬁ t or loss for the period period are adjusted for the effects of all attributable to equity shareholders by the dilutive potential equity shares. The period weighted average number of equity shares during which, number of dilutive potential outstanding during the period. The weighted equity shares change frequently, weighted average number of equity shares outstanding average number of shares are computed during the period are adjusted for events based on a mean date in the quarter, including a bonus issue, bonus element in a as impact is immaterial on Earning per rights issue to existing shareholders, share Share.

SCHEDULE : 25 NOTES TO THE FINANCIAL STATEMENTS

1. Share capital 2008 and October 15, 2008 respectively, (a) Issued, subscribed and paid-up share for buy back of its shares from the capital includes open market at a price not exceeding Rs. 600 per share for an aggregate i) 5,877,850 equity shares of Rs. 2 amount not exceeding Rs. 110,000 each (originally 1,175,570 equaity lacs. During the current ﬁ nancial year shares of Rs. 10 each) fully paid- the Company completed the buy back up allotted pursuant to a scheme of process and further bought back 15,000 amalgamation of DLF United Limited equity shares (previous year 76,23,567) with the Company, without payment under the said buy back programme. being received in cash. (d) Upon exercise of Options granted under ii) 1,338,603,595 equity shares of Rs. the Employees Stock Option Scheme 2 each fully paid issued as bonus 2006 (ESOP), 240,457 (previous year shares by way of capitalisation of Nil) equity shares of Rs. 2 each were free reserves and securities premium issued at par during the year. account. (e) Pursuant to the above mentioned (b) The calls in arrears have reduced during transactions the paid-up share capital of the year by Rs. 163.73 lacs (previous the Company increased by Rs. 4.08 lacs, year Rs. 94.55 lacs), comprising share during the year (previous year : decrease capital of Rs. 0.44 lacs (previous year by Rs. 152.21 lacs). Rs. 0.26 lacs) and securities premium of Rs. 163.29 lacs (previous year Rs. 2. Reserves and surplus 94.29 lacs), which includes forfeiture of Pursuant to the buyback programme, referred 43,680 partly paid equity shares of Rs. to in note 1(c) above, Capital redemption 2 each having impact in share capital of reserve has been created out of General Rs. 0.44 lacs and securities premium of reserve for Rs. 0.30 lacs (previous year Rs. Rs. 228.45 lacs. 152.47 lacs) being the nominal value of shares (c) In the previous year, Company had bought back under the buyback programme issued Public Announcement (PA) and in terms of Section 77AA of the Companies Corrigendum to PA dated September 30, Act, 1956.

Standalone_Pg 63-116_280810.indd 87 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.) 3. Secured loans 10,00,000 each and 7200 (previous a) Facilities with banks comprise, term year 7,200), 14% Non Convertible loans and overdraft facilities which are Redeemable Debentures of face secured by equitable mortgages of value of Rs. 10,00,000 each, issued certain freehold and leasehold lands/ to the Life Insurance Corporation properties of the Company/ subsidiary of India are secured by pari passu Companies / sellers / lessors, land under charge over certain lands / properties agreement to sell and/ or against future of the Company / subsidiary receivables of the Company/subsidiary companies. companies. ii) 3,000 (previous year nil), 10% Non Convertible Redeemable Debentures b) Loan from others comprise of term loans of Rs. 10,00,000 each and 7,000 from ﬁ nancial institutions which are (previous year nil), 10.50% Non secured by equitable mortgages of certain Convertible Redeemable Debentures lands/properties of some subsidiary of Rs. 10,00,000 each, issued to entities/associates/group companies and various investors are secured by pari the receivables and/ or against future passu/ exclusive charge over certain receivables of the Company/subsidiary lands / properties of the Company / companies. subsidiary companies. c) Loans for aircraft, helicopter, wind mill e) Loans due within one year Rs. 93,914.70 projects and vehicles are secured by lacs (previous year Rs. 238,181.85 hypothecation of the respective assets, lacs). thus purchased. 4. Unsecured loans d) i) 5,000 (previous year 5,000), 13.70% Non Convertible Redeemable Loans due within one year Rs. 100,000.00 Debentures of face value of Rs. lacs (previous year Rs. 133,500.00 lacs).

5. Following are the details of current investments which were purchased and sold during the year a) Mutual funds

S. No Scheme name Total quantity Total value of Total quantity Total value of purchased (nos.) purchases redeemed (nos.) redemption (Rs. in lacs) (Rs. in lacs) 1 Kotak Liquid (Institutional Premium) - Daily 719,860,175.02 88,025.22 719,860,175.02 88,025.22 Dividend 2 Kotak Floater Long Term - Daily Dividend 352,671,410.23 35,548.57 352,671,410.23 35,548.57 3 Axis Liquid Fund - Institutional Daily Dividend – 7,300,695.10 73,006.95 7,300,695.10 73,006.95 Reinvestment 4 Axis Treasury Advantage Fund - Institutional 4,550,000.00 45,500.00 4,550,000.00 45,500.00 Daily Dividend – Reinvestment 5 DSP Black Rock Cash Manager Fund - 2,499,956.60 25,002.07 2,499,956.60 25,002.07 Institutional Plan - Daily Dividend 6 DSP Black Rock Money Manager Fund - 2,500,312.53 25,023.13 2,500,312.53 25,023.13 Institutional Plan - Daily Dividend 7 DSP Black Rock Liquidity Fund - Institutional 3,349,568.20 33,502.38 3,349,568.20 33,502.38 Plan - Daily Dividend 8 DSP Black Rock Floating Rate Fund - 449,754.79 4,500.00 449,754.79 4,500.00 Institutional Plan - Daily Dividend 9 SBI Magnum Insta Cash Fund - Daily Dividend 334,969,660.39 92,008.78 334,969,660.39 92,008.78 Option

Standalone_Pg 63-116_280810.indd 88 8/28/2010 11:48:12 AM S. No Scheme name Total quantity Total value of Total quantity Total value of purchased (nos.) purchases redeemed (nos.) redemption (Rs. in lacs) (Rs. in lacs) 10 SBI - SHF - Ultra Short Term Fund - Institutional 550,837,409.71 55,112.79 550,837,409.65 55,108.19 Plan - Daily Dividend 11 ICICI Prudential Liquid Super - Institutional Plan 422,809,654.86 422,903.10 422,809,654.86 422,903.10 - Daily Dividend 12 ICICI Prudential Flexible Income Plan Premium 284,194,478.72 57,117.80 284,194,478.72 57,117.80 - Daily Dividend 13 UTI Liquid Cash Plan Institutional 8,737,028.63 89,069.26 8,737,028.63 89,069.26 - Daily Dividend 14 UTI Treasury Adv. Fund - Institutional Plan 2,105,363.91 21,058.15 2,105,363.91 21,058.15 - Daily Dividend 15 Birla Sunlife Cash Plus - Institutional Prem. 2,295,013,564.12 229,948.88 2,295,013,564.12 229,948.88 - Daily Dividend – Reinvestment 16 Birla Sunlife Savings Fund - Institutional 2,068,697,898.94 207,010.46 2,068,697,898.94 207,010.46 - Daily Dividend – Reinvestment 17 Fidelity Cash Fund - Super Institutional 50,038,620.82 5,006.46 50,038,620.82 5,006.46 - Daily Dividend 18 IDFC Cash Fund - Super Institutional Plan C 85,014,461.45 8,503.57 85,014,461.45 8,503.57 - Daily Dividend 19 IDFC Money Manager Fund - TP- Super 85,111,897.35 8,512.47 85,111,897.35 8,512.47 Institutional Plan C - Daily Dividend 20 LIC Liquid Fund - Dividend Plan 45,586,605.77 5,005.45 45,586,605.77 5,005.45 21 LICMF Income Plus Fund - Daily Dividend Plan 50,495,283.09 5,049.53 50,495,283.09 5,049.53 22 Reliance Liquidity Fund - Institutional Plan 11,268,620,866.57 1,127,217.59 11,268,620,866.56 1,127,226.93 - Daily Dividend 23 Reliance Money Manager Fund - Institutional 64,596,189.40 646,695.98 64,596,189.40 646,696.64 Plan - Daily Dividend

6. Particulars regarding partnership ﬁ rms in which the company is a partner

Name of partnership fi rms Profi t/loss Capital sharing ratios (Rs. in lacs) a) DLF Commercial Projects Corporation % DLF Limited 76 365.00 DLF Housing and Construction Limited 24 4.00 100 369.00 b) DLF Offi ce Developers DLF Limited 85 1,654.82 Kirtimaan Builders Limited 5 182.87 Ujagar Estates Limited 5 209.87 Alankrit Estates Limited 5 109.24 100 2,156.80 c) DLF South Point DLF Limited 10 2,152.78 DLF Commercial Developers Limited 80 (14.51) DLF Housing and Construction Limited 5 (0.91) DLF Utilities Limited 5 (0.91) 100 2,136.45 d) DLF GK Residency DLF Limited 10 50.00 DLF Home Developers Limited 90 950.00 100 1000.00

Standalone_Pg 63-116_280810.indd 89 8/28/2010 11:48:12 AM Schedules forming part of the Financial Statements (Contd.)

Name of partnership ﬁ rms Proﬁ t/loss Capital sharing ratios (Rs. in lacs) e) Kavicon Partners DLF Limited 90 223.63 DLF Housing and Construction Limited 5 18.16 Nilayam Builders and Developers Limited 5 40.70 100 282.49 f) Rational Builders and Developers DLF Limited 90 32.00 Kirtimaan Builders Limited 5 1.00 Alankrit Estates Limited 5 0.00 100 33.00 g) Saket Courtyard Hospitality DLF Limited 8 400.00 DLF Home Developers Limited 40 3,000.00 Saket Courtyard Hospitality Private Limited 2 100.00 Sky Light Hospitality Private Limited 50 3,500.00 100 7,000.00

7. a) The profi t/loss from sale of land/ of the sale agreements in favour of developed plots/constructed properties the customers. During the year the in DLF City, Gurgaon (Complex) is Company has purchased 2.32 acres of accounted as per revenue recognition land (previous year Nil acres) from the policy 7 stated in Schedule 24 – land owning companies, consequent to “Signifi cant accounting policies”. The registration of the sale deeds/ transfer Complex comprises lands owned by of ownership in favour of the customers at the Company as also those under the average cost of land to the Company agreements to purchase entered into with and/ or the land owning companies. subsidiary/ coordinating companies. In c) In terms of the agreement with DLF terms of such agreements, the Company Housing and Construction Limited and has purchased 3.32 lacs sq. mts. of Mayur Recreational and Development plotted area during the year (previous Limited, since merged with the DLF year 3.01 lacs sq. mts.) from the land Building & Services Private Limited, the owning companies at the average cost Company has agreed to develop their of land to the Company and/ or the lands along with its own lands at Loni land owning companies. The average (Ankur Vihar) into a colony. In terms of estimated internal development costs the said agreement, the Company is and external development charges, entitled to realise and retain the entire in respect of the plots sold have been sale proceeds and pay the cost of land, written off in terms of accounting policy incidentals etc. plus a sum of Rs. 0.10 9 stated in Schedule 24 – “Signifi cant lacs per acre to the aforesaid land owners accounting policies”. Final adjustment, on registration of the properties and if any, is made on completion of the revenue is recognised on proportionate applicable scheme/ project. realisation basis. b) The profi t/ loss from sale of agricultural d) In respect of Dilshad Garden II Scheme, land comprising land owned by the profi t/loss on sale of developed the Company and its subsidiary/ plots is accounted by adjusting cost coordinating companies, covered proportionate to the realisations made. under agreement to sell the land to the e) The Company on November 3, 2006 Company is accounted for on execution has entered into an agreement to sell

Standalone_Pg 63-116_280810.indd 90 8/28/2010 11:48:12 AM in terms of the resolution passed by 10. Employee benefi ts the Board of Directors in their meeting held on March 28, 2006, with one of A. Gratuity (non funded) its wholly-owned subsidiary company Amount recognised in the profi t & loss namely, DLF Home Developers Limited account is as under (“DHDL”) to sell a parcel of land of saleable area consisting 30 million sq. (Rs. in lacs) ft. built up area under construction / Description 2010 2009 to be constructed. Further, DHDL will Current service cost 76.99 82.02 complete all the fi nishing work before Interest cost 72.23 52.87 Actuarial (gain)/loss recognised (53.78) 154.42 selling the same to its customers. In during the year terms of the accounting policy 7 in Past service cost - - Schedule 24 – “Signifi cant accounting 95.44 289.31 policies” to the fi nancial statements on revenue recognition, revenue in respect Movement in the liability recognised in the of projects under implementation under balance sheet is as under these agreements to sell is being (Rs. in lacs) recognised based on “percentage of Description 2010 2009 completion” method. Present value of defi ned benefi t 902.86 660.81 8. The Company has entered into business obligation as at the start of the year development agreements with DLF Current service cost 76.99 82.02 Commercial Project Corporation and Interest cost 72.23 52.87 Rational Builders and Developers Actuarial (gain)/loss recognised (53.78) 154.42 (partnership firms). As per these during the year agreements, the Company has acquired Benefi ts paid (20.52) (47.26) sole irrevocable development rights in Past service cost - - Present value of defi ned benefi t 977.78 902.86 identified lands which are acquired / to be obligation as at the end of the acquired by these partnership firms. year

In terms of accounting policy 6 in Schedule 24 For determination of the gratuity liability of the – “Signifi cant accounting policies” the amount Company, the following actuarial assumptions paid to these partnership fi rms pursuant to the were used above agreements, are classifi ed as stock of development rights. Description 2010 2009 9. The following expenses have been directly Discount rate 8.00% 8.00% Rate of increase in 7.50% 7.50% charged to work-in-progress, adjustable on compensation levels sale. (Rs. in lacs) B. Compensated absences (non funded) Particulars 2010 2009 Amount recognised in the profi t & loss Salaries, wages and other benefi ts 805.62 520.94 account is as under Legal, professional and 4,664.85 6,193.93 consultancy charges Repairs and maintenance of (Rs. in lacs) 1.16 0.80 machinery Description 2010 2009 Hire charges of machinery - 5.88 Current service cost 94.98 94.58 Power and fuel 0.17 57.06 Interest cost 51.79 32.48 Insurance 98.83 57.58 Actuarial loss recognised during 121.06 172.83 Finance charges 27,079.52 40,159.73 the year Others 2,569.68 913.00 Past service cost - - 35,219.83 47,908.92 267.83 299.89

Standalone_Pg 63-116_280810.indd 91 8/28/2010 11:48:13 AM Schedules forming part of the Financial Statements (Contd.) Movement in the liability recognised in the 11. Related party disclosures balance sheet is as under a) Relationship:

(i) Subsidiary companies at any time during the year (Rs. in lacs) 1 Aadarshini Real Estate Developers Private Limited Description 2010 2009 2 Abhiraj Real Estate Private Limited Present value of defi ned benefi t 647.32 405.96 3 Adelie Builders & Developers Private Limited obligation as at the start of the 4 Adrienne Builders & Constructions Private Limited year 5 Alastair Builders & Developers Private Limited Current service cost 94.98 94.58 6 Alta Builders & Developres Private Limited Interest cost 51.79 32.48 7 Alvernia Limited 8 Alvita Builders & Developers Private Limited Actuarial loss recognised during 121.06 172.83 (w.e.f. June 30, 2009) the year 9 Aman Gocek Insatt Taahhut Turizm Sanayi ve Ticaret AS Benefi ts paid (115.15) (58.53) 10 Amancruises (2006) Company Limited 11 Amancruises Company Limited Past service cost - - 12 Amankila Resorts Limited Present value of defi ned benefi t 799.99 647.32 13 Amanproducts Limited obligation as at the end of the year 14 Amanresorts B.V. 15 Amanresorts International Pte. Limited 16 Amanresorts IPR B.V. 17 Amanresorts Limited For determination of the liability in respect 18 Amanresorts Limited ( w.e.f. April 02, 2009) of compensated absences, the Company has 19 Amanresorts Mangement B.V. used following actuarial assumptions 20 Amanresorts Services Limited 21 Amanresorts Technical Services B.V. 22 Americus Real Estate Private Limited Description 2010 2009 23 Amishi Builders & Developers Private Limited Discount rate 8.00% 8.00% 24 Amoda Builders & Developers Private Limited 25 Anbest Holdings Limited Rate of increase in 7.50% 7.50% compensation levels 26 Andaman Development Company Limited 27 Andaman Holdings Limited 28 Andaman Resorts Co. Limited 29 Andaman Thai Holding Co. Limited C. Provident fund 30 Andes Resort Limited SAC Contribution made by the Company to the 31 Anjuli Builders & Developers Private Limited provident fund trust setup by the Company 32 Annabel Builders & Developers Private Limited 33 Aradal Company N.V. during the year is Rs. 192.51 lacs (previous 34 Argent Holdings Limited year Rs. 199.07 lacs). 35 ARL Marketing Inc. As at the year end, no interest shortfall in 36 ARL Marketing Limited provident fund remains unprovided for as 37 ASL Management (Palau) Limited 38 Balina Pansea Company Limited there is surplus in the fund. In the absence 39 Barbados Holdings Limited of guidance on actuarial valuation of Fund 40 Bedelia Builders & Construction Private Limited liability, which is to be issued by the Actuarial 41 Belmount Estate Developers Limited # # # Society of India, the actuarial valuation liability 42 Berenice Real Estate Private Limited towards Provident Fund is not feasible. 43 Beverly Park Maintenance Services Limited Accordingly, other related disclosures in 44 Bhamini Real Estate Developers Private Limited respect of provident fund have not been 45 Bhoruka Financial Services Limited furnished. 46 Bhosphorous Investments Limited

Standalone_Pg 63-116_280810.indd 92 8/28/2010 11:48:13 AM (i) Subsidiary companies at any time during the year (Contd.) 96 DLF Exotica Hotels Private Limited +++ 47 Bhutan Hotels Limited 97 DLF Financial Services Limited 48 Bodrum Development Limited 98 DLF Finvest Limited 49 Breeze Constructions Private Limited 99 DLF Food Courts Private Limited 50 Bhutan Resorts Private Limited 100 DLF Garden City Indore Private Limited 51 Calantha Builders & Developers Private Limited 101 DLF Global Hospitality Limited 52 Callista Builders & Constructions Private Limited 102 DLF Golf Resorts Limited 53 Caraf Builders & Constructions Private Limited 103 DLF Green Power Private Limited ### (w.e.f. March 19, 2010) 104 DLF Gurgaon Developers Limited (formerly DLF SEZ 54 Carreen Builders & Developers Private Limited Holdings Limited) ( w.e.f. August 31, 2009) ( w.e.f. February 01, 2010) 105 DLF Haryana SEZ (Ambala) Limited 55 Caressa Builders & Constructions Private Limited 106 DLF Haryana SEZ (Gurgaon) Limited 56 Catriona Builders & Constructions Private Limited 107 DLF Hilton Hotels Limited 57 Cee Pee Maintenance Services Limited 108 DLF Hilton Hotels (Mysore) Private Limited 58 Ceylon Holdings B.V. 109 DLF Home Developers Limited 59 Chaitra Realty Limited (up to July 03, 2009) 110 DLF Homes Services Private Limited 60 Chakrita Real Estate Developers Private Limited ++ 111 DLF Homes Ambala Private Limited 61 Chandrajyoti Estate Developers Private Limited 112 DLF Homes Durgapur Private Limited 62 City Icon Limited 113 DLF Homes Goa Private Limited 63 Columbo Resort Holdings N.V 114 DLF Homes Kokapet Private Limited 64 Comfort Buildcon Private Limited 65 Current Finance Limited 115 DLF Homes Panchkula Private Limited 66 Cyrilla Builders & Constructions Limited 116 DLF Homes Pune Private Limited 67 Dalmia Promoters & Developers Private Limited 117 DLF Homes Rajapura Private Limited 68 Dankuni World City Limited 118 DLF Hospitality & Recreational Limited 69 Delanco Home & Resorts Private Limited 119 DLF Hotel Holdings Limited 70 Delanco Realtors Private Limited 120 DLF Hotel Venture Private Limited (till October 16, 2009) 71 Deltaland Buildcon Private Limited 121 DLF Hotels & Apartments Private Limited 72 DHDL Wind Power Private Limited 122 DLF Housing & Construction Limited (formerly Var Infratech Private Limited) 123 DLF Info City Developers (Bangalore) Limited ### 73 Dhoomketu Builders & Developers Private Limited 124 DLF Info City Developers (Chandigarh) Limited 74 Diwakar Estates Limited (w.e.f. March 19, 2010) 75 DLF Ackruti Info Parks (Pune) Limited 125 DLF Info City Developers (Chennai) Limited [formerly DLF Akruti Info Parks (Pune) Limited] 126 DLF Info City Developers (Hyderabad) Limited ### 76 DLF Airport Hotels Private Limited (till October 16, 2009) 127 DLF Info City Developers (Kolkata) Limited 77 DLF Aspinwal Hotels Private Limited (w.e.f. March 19, 2010) 78 DLF Assets Private Limited (w.e.f. March 19, 2010) 128 DLF Info Park Developers (Chennai) Limited 79 DLF Brands Limited 129 DLF Infra Holding Limited 80 DLF Budget Venture Hotels Private Limited 130 DLF Inns Limited (till October 16, 2009) 131 DLF International Holdings Pte. Limited 81 DLF Business Hotels Ventures Private Limited 132 DLF International Hospitality Corp. 82 DLF City Centre Limited 133 DLF Jaipur Convention Center Private Limited 83 DLF City Centre Limited 84 DLF Cochin Hotels Private Limited 134 DLF Jaipur Hotels Private Limited (till October 16, 2009) 85 DLF Comfort Hotels Private Limited 135 DLF Land Limited 86 DLF Commercial Complexes Limited 136 DLF Leisure & Entertainment Private Limited (till October 16, 2009) 87 DLF Commercial Developers Limited 137 DLF Luxury Hotels Limited 88 DLF Conventions & Hotels Private Limited (till October 16, 2009) 138 DLF Metro Limited 89 DLF Cyber City Developer Limited 139 DLF Minor Restaurants Private Limited 90 DLF Deluxe Hotels Private Limited (till October 16, 2009) (till October 16, 2009) 140 DLF Mumbai Hotels Private Limited (till October 16, 2009) 91 DLF Developers Limited 141 DLF New Delhi Convention Center Limited 92 DLF Emporio Resturants Limited 142 DLF New Gurgaon Homes Developer Private Limited 93 DLF Estate Developers Limited 143 DLF New Gurgaon Ofﬁ ces Developer Private Limited 94 DLF Estates (Delhi) Private Limited ## 95 DLF Exhibition Centre Private Limited 144 DLF New Gurgaon Retail Developer Private Limited (till October 16, 2009) 145 DLF Phase IV Commercial Developers Limited

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(i) Subsidiary companies at any time during the year (Contd.) 194 Geocities Airport Infrastructures Private Limited 146 DLF Pleasure Hotels Private Limited 195 G.G.R. Properties Private Limited (till June 24, 2009) 147 DLF Pramerica Life Insurance Co. Limited 196 GMR Constructions Private Limited (till June 24, 2009) 148 DLF Premium Homes Private Limited 197 Goyo Services Limited 149 DLF Projects Limited 198 Grandbay Estate Developers Limited ### 150 DLF Property Developers Limited 199 Guardian International Private Limited 151 DLF Real Estate Builders Limited 200 Gulika Home Developers Private Limited 152 DLF Recreational Foundation Limited 201 Gulliver Enterprises Limited 153 DLF Residential Builders Limited 202 Gyan Real Estate Developers Private Limited 154 DLF Residential Developers Limited 203 Harini Resorts & Properties Private Limited (till June 24, 2009) 155 DLF Residential Partners Limited 204 Heritage Resorts Private Limited 156 DLF Retail Developers Limited 205 Hiemo Builders & Developers Private Limited 157 DLF Retail Services Limited (w.e.f. February 02, 2010) 158 DLF Rohini Hotels Private Limited (till October 16, 2009) 206 Highvalue Builders Private Limited 159 DLF Service Apartments Limited 207 Hospitality Tradings Limited 160 DLF Services Limited 208 Hotel Finance International Limited 161 DLF SEZ Developers Limited 209 Hotel Sales Service Limited 162 DLF Sikkim Hotels Private Limited (till October 16, 2009) 210 Hotel Sales Service Private Limited 163 DLF Southcourt Hotels Private Limited 211 Incan Valley Holdings Limited 164 DLF Southern Homes Private Limited 212 Irama Estates Private Limited # # 165 DLF SouthernTowns Private Limited 213 Isabel Builders & Developers Private Limited 166 DLF Telecom Limited 214 Jackson Hole Holdings Limited 167 DLF Trust Management Pte. Limited 215 Jai Luxmi Real Estate Private Limited 168 DLF Universal Limited 216 Jalisco Holdings Pte. Limited 169 DLF Utilities Limited 217 Janya Estate Developers Private Limited 170 DLF Wind Power Private Limited (formerly Bestvalue 218 Jawala Real Estate Private Limited Housing & Construction Private Limited) 219 Juno Retail Private Limited (w.e.f. June 19, 2009) 171 Domus Real Estate Private Limited (till March 01, 2010) 220 K G Infrastructure Private Limited 172 DT Cinemas Limited 221 Kairav Real Estate Private Limited 173 DT Projects Limited [formerly DLF Laing O’Rourke 222 Kapo Retail Private Limited (India) Limited] (w.e.f. November 11, 2009) 223 Khem Buildcon Private Limited 174 Eastern India Powertech Limited (w.e.f. February 02, 2010) 175 Ecotech Ventures Limited (till October 31, 2009) 224 L P Hospitality Company Limited 176 Edward Keventor(Successors) Private Limited 225 Laman Real Estate Private Limited 177 Eila Builders & Developers Private Limited 226 Lao Holdings Limited 178 Enki Retail Private Limited 227 Lawanda Builders & Developers Private Limited 179 Eros Retail Private Limited 228 Le Savoy Limited 180 Falguni Builders Private Limited 229 Leandra Builders & Developers Private Limited 181 Fonton Limited 230 Life Style Homes Private Limited (till June 24, 2009) 182 Foregiant Agents Limited (till May 18, 2009) 231 Lodhi Property Company Limited 183 Forerum Group Limited 232 Marrakech Investments Limited 184 G.S.R. Properties Private Limited (till June 24, 2009) 233 Mens Buildcon Private Limited 185 G.V.R. Properties Private Limited (till June 24, 2009) 234 Mhaya Buildcon Private Limited 186 Gainway Group Limited (till October 31, 2009) 235 Monroe Builders & Developers Private Limited 187 Gajjala Constructions Private Limited (till June 24, 2009) 236 Mouna Constructions Private Limited (till June 24, 2009) 188 Gajjala Ram Reddy Properties Private Limited 237 Mouna Estates Private Limited (till June 24, 2009) (till June 24, 2009) 238 Mouna Properties Private Limited (till June 24, 2009) 189 Galaxy Mercantiles Limited 239 Mulvey B.V. 190 Galleria Property Management Services Private Limited 240 Mulvey Venice Sri 191 Ganesar Ginning Co. Private Limited (till July 31, 2009) 241 Naman Consultants Limited 192 Ganika Builders Private Limited 242 Nambi Buildwell Private Limited 193 Gavin Builders & Developers Private Limited 243 Necia Builders & Developers Private Limited

Standalone_Pg 63-116_280810.indd 94 8/28/2010 11:48:13 AM (i) Subsidiary companies at any time during the year (Contd.) 296 Sunlight Promoters Private Limited 244 Nellis Builders & Developers Private Limited 297 Tahitian Resorts Limited 245 New Montana Limited (till October 31, 2009) 298 Tangalle Property (Private) Limted 246 NewGen MedWorld Hospitals Limited 299 Toscano Holdings Limited 247 Nilayam Builders & Developers Limited 300 Universal Hospitality Limited 248 NOH (Hotel) Private Limited (Amangalla) 301 Urvasi Infratech Private Limited 249 Nusantara Island Resorts Limited 302 Valini Builders & Developers Private Limited 250 Otemachi Tower Resorts Co. Limited 303 Venezia Estate Developers Limited ### 251 Overseas Hotels Private Limited 304 Villajena Development Company Limited 252 P.T. Amanresorts Indonesia (Amanusa) 305 Vkarma Capital Investment Management Company 253 P.T. Amanusa Resort Indonesia Private Limited 254 P.T. Indrakila Villatama Development 306 Vkarma Capital Trustee Company Private Limited 255 P.T. Moyo Safari Abadi 307 VSK Investments & Finance Limited 256 P.T. Nusantara Island Resorts 308 Yucatan Holdings Pte. Limited ( w.e.f. May 19, 2009) 257 P.T. Tirta Villa Ayu 309 Zeugma Limited 258 P.T. Villa Ayu 310 Zola Real Estate Private Limited 259 Palawan Holdings Limited 311 Zoria Infratech Private Limited 260 Paliwal Developers Limited 261 Paliwal Real Estate Private Limited (ii) Partnership ﬁ rms 262 PAT Infrastructures Private Limited 1 DLF Commercial Projects Corporation 263 Pee Tee Property Management Services Limited 2 DLF GK Residency 264 Phraya Riverside (Bangkok) Co. Limited 3 DLF Ofﬁ ce Developers 265 Princiere Resorts Limited 4 DLF South Point 266 Prompt Real Estate Private Limited 5 Kavicon Partners 267 Puri Limited 6 Rational Builders and Developers 268 Queensdale Management Limited 7 Saket Courtyard Hospitality (w.e.f. October 20, 2009) 269 Rati Infratech Private Limited (iii) Joint Ventures 270 Red Acres Development Limited 1 Banjara Hills Hyderabad Complex 271 Regency Park Property Management Services Private 2 Delanco Real Estates Private Limited Limited 3 DLF Gayatri Home Developers Private Limited 272 Regent Asset Finance Limited 273 Regent Land Limited 4 DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings Limited) (till August 30, 2009) 274 Regional Design & Research B.V. 5 DLF Limitless Developers Private Limited 275 Regional Design & Research N.V. 6 DLF SBPL Developer Private Limited 276 Rhea Retail Private Limited (w.e.f. June 19, 2009) 7 DT Projects Limited [formerly DLF Laing O’Rourke 277 Richmond Park Property Management Services Limited (India) Limited] (till November 11, 2009) 278 Riveria Commercial Developers Limited 8 GSG DRDL Consortium 279 Rod Retail Private Limited 9 Kujjal Builders Private Limited 280 Saket Courtyard Hospitality Private Limited 10 Mount Mary Residential Project (w.e.f. October 14, 2009 ) 281 Samali Builders & Developers Private Limited 11 Niharika Shopping Mall (till August 31, 2009) 282 Sandesh Constructions Private Limited 12 Saket Courtyard Hospitality (w.e.f. October 20, 2009) (till June 24, 2009) 13 Star Alubuild Private Limited (w.e.f June 15, 2009) 283 Sandesh Estates Private Limited (till June 24, 2009) 14 Y.G. Realty Private Limited (w.e.f July 02, 2009) 284 Serendib Holdings B.V. 15 Domus Real Estate Private Limited 285 Shivajimarg Properties Limited (w.e.f March 02, 2010) 286 Silver - Two (Bangkok) Company Limited 16 Cleva Builders and Developers Private Limited 287 Silver Oaks Property Management Services Limited (w.e.f. March 31, 2010) 288 Silverlink (Mauritius) Limited 17 Prowess Buildcon Private Limited (w.e.f. March 31, 2010) 289 Silverlink (Thailand) Company Limited 18 Saket Courtyard Hospitality Private Limited 290 Silverlink Holdings Limited (till October 13, 2009 ) 291 Sinonet Holding Limited (iv) Associates 292 Societe Nouvelle de L’Hotel Bora Bora 1 Australian Resorts Limited 293 Solid Buildcon Private Limited 2 DLF Pramerica Asset Managers Private Limited 294 Springhills Infratech Private Limited (formerly DLF Pramerica Advisory Private Limited) 295 Sunbreaze Estate Developers Limited ### (till March 09, 2010)

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(iv) Associates (Contd.) (vi) Other enterprises under the control of the key 3 DLF Pramerica Trustees Private Limited management personnel and their relatives : (till March 09, 2010) 1 A.S.G. Realcon Private Limited 4 Ferragamo Retail India Private Limited 2 Adampur Agricultural Farm 5 Giorgio Armani India Private Limited 3 Adept Real Estate Developers Private Limited 6 Islan Aviation Limited 4 AGS Buildtech Private Limited 7 Joyous Housing Limited 5 Altamount Real Estate Developers Private Limited 8 Kyoto Resorts YK 6 Angus Builders & Developers Private Limited 9 Lillion Builders and Developers Private Limited (till September 23, 2009) 7 Antriksh Properties Private Limited 10 P.T Jawa Express Amanda Indah 8 Anubhav Apartments Private Limited 11 PAMALICAN Island Holdings Inc. 9 Aquarius Builders & Developers Private Limited 12 Pandis (Thailand) Company Limited 10 Arihant Housing Company* 13 Pansea Tourism Company Limited 11 Atria Partners 14 Regional D & R Limited 12 Bansal Development Company Private Limited 15 Revlys SA 13 Belicia Builders & Developers Private Limited 16 Seven Seas Resorts and Leisure Inc. 17 Surin Bay Co. Limited 14 Beryl Builders & Constructions Private Limited 18 Villajena 15 Beverly Park Operation and Maintenance Services Private Limited 19 Zeus Infrastructure Private Limited 16 Buland Consultants & Investments Private Limited ### Companies which are subsidiaries, merged with the 17 Caraf Builders & Constructions Private Limited DLF Commercial Developers Limited a 100% subsidiary ( till March 18, 2010) company w.e.f April 1, 2008 as per merger order of 18 Centre Point Property Management Services Private respective High Courts fi led with the Registrar of Companies Limited on March 3, 2010. 19 Ch. Lal Chand Memorial Charitable Trust ## Companies which are subsidiaries, merged with the DLF Home Developers Limited a 100% subsidiary company 20 Cian Builders & Developers Private Limited w.e.f April 1, 2008 as per merger order of respective High (formerly DLF SEZ Parks Private Limited) Courts fi led with the Registrar of Companies on February 21 DLF Assets Private Limited (till March 18, 2010) 23, 2010. 22 DLF Info City Developers (Chandigarh) Limited +++ Company already winded up u/s 560, the Registrar of (till March 18, 2010) Companies approval awaited 23 DLF Info City Developers (Kolkata) Limited ++ Company which is a subsidiary merged with DLF Residential (till March 18, 2010) Partners Limited w.e.f. September 1, 2008 as per merger 24 Desent Promoters & Developers Private Limited order of respective High Courts fi led with the Registrar of 25 Diana Retail Private Limited Companies on March 4, 2010. 26 Digital Talkies Private Limited 27 Dilly Builders & Developers Private Limited (v) Key Management Personnel Name Designation Relatives (Relation)* 28 Dinky Builders & Developers Private Limited a) Mr. K.P. Singh Chairman Mrs. Renuka Talwar 29 DLF Building & Services Private Limited (Daughter) 30 DLF Commercial Enterprises b) Mr. Rajiv Singh Vice Chairman Mrs. Kavita Singh (Wife) 31 DLF Foundation Ms. Savitri Devi Singh 32 DLF Investments Private Limited (Daughter) 33 DLF M.T.FBD Medical and Community Facility Ms. Anushka Singh Charitable Trust (Daughter) c) Mr. T.C. Goyal Managing Director Mrs. Sharda Goyal 34 DLF Q.E.C. Educational Charitable Trust (Wife) 35 DLF Q.E.C. Medical Charitable Trust d) Ms. Pia Singh Whole-time Mr Dhiraj Sarna 36 DLF Raghvendra Temple Trust Director (Husband) e) Mr. K. Swarup Sr. Executive Mrs. Veena Swarup 37 Elanor Builders & Developers Private Limited Director (Wife) 38 Excel Housing Construction Private Limited Mr Manish Swarup (Son) 39 Exe. of The Estate of Lt. Ch. Raghvendra Singh * Relatives of key management personnel (other than key 40 Exe. of The Estate of Lt. Smt. Prem Mohini management personnel themselves) with whom there were 41 Family Idol Shri Radha Krishan Ji transactions during the year

Standalone_Pg 63-116_280810.indd 96 8/28/2010 11:48:13 AM (vi) Other enterprises under the control of the key 76 Raghvendra Public Charitable Trust management personnel and their relatives : (Contd.) 77 Raisina Agencies & Investments Private Limited 42 Family Idol Shri Shiv Ji 78 Rajdhani Investments & Agencies Private Limited 43 Galena Builders & Constructions Private Limited 79 Realest Builders and Services Private Limited 44 Gangrol Agricultural Farm & Orchard 80 Renkon Partners 45 General Marketing Corporation 81 Renuka Pariwar Trust 46 Glaze Builders & Developers Private Limited 82 Sabre Investment Advisor India Private Limited 47 Haryana Electrical Udyog Private Limited 83 Sabre Investment Consultants LLP 48 Herminda Builders & Developers Private Limited 84 Sagarika Real Estate Developers Private Limited 49 Hitech Property Developers Private Limited 85 Sambhav Housing and Development Company * 50 Indira Trust 86 Sanidhya Constructions Private Limited 51 Ishtar Retail Private Limited 87 Sidhant Housing and Development Company * 52 Jhandewalan Ancillaries and Investments Private 88 Singh Family Trust Limited 89 Sketch Investment Private Limited 53 K. P. Singh HUF 90 Smt. Savitri Devi Memorial Charitable Trust 54 Kohinoor Real Estates Company * 91 Solace Housing and Construction Private Limited 55 Krishna Public Charitable Trust 92 Solange Retail Private Limited 56 Lal Chand Public Charitable Trust 93 Sudarshan Estates Private Limited 57 Lion Brand Poultries 94 Sukh Sansar Housing Private Limited 58 Maaji Properties and Development Company * 95 Sukomal Builders & Developers Private Limited 59 Madhukar Housing and Development Company * 96 Sulekha Builders & Developers Private Limited 60 Madhur Housing and Development Company * 97 Super Mart One Property Management Services 61 Magna Real Estate Developers Private Limited Private Limited 62 Mallika Housing Company * 98 Super Mart Two Property Management Services 63 Megha Estates Private Limited Private Limited 64 Northern India Theatres Private Limited 99 Trinity Housing and Construction Company * 65 Pace Financial Services 100 Udyan Housing and Development Company * 66 Panchsheel Investment Company * 101 Ultima Real Estate Developers Private Limited 67 Panchvati Estates Private Limited 102 Universal Management & Sales Private Limited 68 Parvati Estates Private Limited 103 Upeksha Real Estate Developers Private Limited 69 Pia Pariwar Trust 104 Uplift Real Estate Developers Private Limited 70 Plaza Partners 105 Urva Real Estate Developers Private Limited 71 Power Overseas Private Limited 106 Uttam Builders and Developers Private Limited 72 Prem Traders & Investments Private Limited 107 Uttam Real Estates Company * 73 Prem’s Will Trust 108 Vishal Foods and Investments Private Limited 74 Pushpak Builders and Developers Private Limited 109 Yashika Properties and Development Company * 75 R.R Family Trust * A private company with unlimited liability.

b) The following transactions were carried out with related parties in the ordinary course of business

(Rs. in lacs) Description Subsidiaries/ partnership ﬁ rms Joint ventures/ Associates 2010 2009 2010 2009 Sale of land and constructed properties 41,144.15 740.99 - - Sale of gas 706.54 268.18 - - Sale of development rights 3,651.97 8,297.38 - - Sale of surplus construction material (including material transfer) 12,483.71 785.26 - - Development charges 629.88 - - - Royalty income 2,377.57 - - - Dividend income 25,009.54 - - - Sale of ﬁ xed assets 15,003.96 1,741.19 - - Interest income – Loan 41,767.08 95,044.43 422.17 206.04 Interest income – Debentures 3,099.60 776.43 - - Miscellaneous income# 55.39 31.25 - -

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(Rs. in lacs) Description Subsidiaries/ partnership fi rms Joint ventures/ Associates 2010 2009 2010 2009 Rent received # 736.16 138.53 - - Maintenance and service charges paid # 537.11 588.64 - - Expenses recovered # 11,830.09 4,475.22 52.35 2,098.75 Purchase of land, developed plots and material 3,997.20 1,104.17 - - Rent paid # 42.68 14.67 - - Interest paid 189.81 141.40 - - Expenses paid 4,692.31 3,779.89 - 51.69 Technical/ professional charges paid 26.96 1,188.00 - 314.11 Payments under construction contracts 13,647.70 - 2,618.04 29,915.24 Investment purchased 15,076.70 60,808.64 - 20,125.00 Investments sold 2,960.80 1,220.13 - - Debentures purchased - 68,245.00 - - Debentures sold - 29,500.00 - - Profi t / (loss) from partnership fi rms (net) (527.56) (530.69) - - Loans given 1,018,377.21 858,492.24 633.00 1,003.00 Loan received back 1,154,379.43 845,244.61 499.00 52.00 Guarantees given (net) 237,747.86 126,567.00 13,005.93 - Advances received under agreement to sell 8,444.02 16,665.89 - 17,600.00 Earnest money paid under agreement to purchase land/ 13,373.46 22,625.26 - - development rights Earnest money paid under agreement to purchase land/ 33,266.98 29,637.36 - - development rights refunded Advances given 4,130.44 2,295.40 3,731.00 517.00 Purchase of development rights - 5,656.29 - - Loans Taken 4,766.73 1,200.00 - - Loans refunded - 1,200.00 - - Claims paid - 875.00 - - # Figures shown above are net of service tax

(Rs. in lacs) Balance at the end of the year Subsidiaries/ partnership ﬁ rms Joint ventures/ associates 2010 2009 2010 2009 Debtors (Including unbilled receivables) 111,358.06 3,684.26 - - Investments in shares/ partnership ﬁ rms 239,070.72 226,520.57 21,663.00 21,665.50 Investments in debentures 38,745.00 38,745.00 - - Interest accrued on debentures 2,806.03 600.92 - - Loans and advances 746,478.19 794,585.67 13,911.57 9,506.89 Earnest money and part payments under agreement to purchase 448,039.32 469,704.93 - - land/ development rights/ constructed properties (net of interest capitalised) Creditors/ amounts payable 18,209.70 3,602.07 154.67 4,378.81 Guarantees given 626,456.09 388,708.23 13,005.93 - Advances received under agreement to sell 61,868.90 53,615.29 - - Earnest money received 23,731.50 23,731.50 - - Security deposit received 343.78 305.76 - - Unsecured loan (taken) 4,766.73 - - - Interest payable 3,036.99 - - - Interest accrued but not due 117.65 - - - Security deposit paid 48.22 - - -

Standalone_Pg 63-116_280810.indd 98 8/28/2010 11:48:13 AM (Rs. in lacs) Description Key Management Personnel Enterprises over which KMP (KMP) and their relatives is able to exercise signiﬁ cant inﬂ uence 2010 2009 2010 2009 Purchase of land and material - - 34.34 10.94 Development charges - - 23,201.48 101,235.83 Remuneration paid 2,591.27 1,693.86 - - Interest income - - - 10.54 Rent paid 21.63 21.63 39.41 41.97 Interest paid - - - 14,432.24 Lease money received - - 23.36 2.09 Expenses recovered - - 6.24 13.56 Miscellaneous income - - - 6.68 Expenses paid - - 792.05 191.06 Loan given - - - 300.00 Loan received back - - - 300.00 Advance received under agreement to sell 1,181.73 279.11 - -

Balance at the end of the year Unbilled receivables - - - 18,763.13 Security deposit given - - 0.06 5.17 Investment - - 85.80 85.80 Earnest money and part payments under agreement to purchase - - 235.44 303.58 land/ constructed properties Advance received under agreement to sell 2,104.16 922.43 - - Amount recoverable/advances - - - 7.00 Creditors/ amounts payable 175.00 94.94 5.02 3,165.23 Managerial commission payable 1,322.35 825.00 - -

Above includes the following material transactions (Rs. in lacs) Description Subsidiaries/ partnership ﬁ rms under control Transactions during the year Name of the entity 2010 2009 Sale of land and constructed properties DLF Home Developers Limited 41,144.15# 740.99# Sale of gas DLF Utilities Limited 706.54 268.18 Sale of development rights DLF Homes Ambala Private Limited - 1,135.29 DLF Garden City Indore Private Limited 46.24 1,633.02 DLF Southern Towns Private Limited 511.09 947.70 DLF New Gurgaon Homes Developer Private Limited - 3,600.00 DLF Southern Homes Private Limited 3,094.64 569.21 Sale of surplus construction material DLF Southern Homes Private Limited 2,707.92 - (including material transfer) Shivajimarg Properties Limited 1,536.59 - DLF New Gurgaon Homes Developer Private Limited 4,836.72 - DLF Cyber City Developers Limited 257.72 646.54 Development charges DLF Assets Private Limited 629.88 - Royalty income DLF Homes Panchkula Private Limited 2,377.57 - Dividend income DLF Home Developers Limited 25,009.54 - Sale of ﬁ xed assets DLF Utilities Limited - 1,741.19 Saket Courtyard Hospitality 15,000.00 - Interest income - loan DLF Retail Developers Limited 19,325.42 37,749.98 DLF Home Developers Limited 4,870.56 22,857.70 Interest income - debentures Jawala Real Estate Private Limited 3,099.60 755.79

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(Rs. in lacs) Description Subsidiaries/ partnership fi rms under control Transactions during the year Name of the entity 2010 2009 Miscellaneous income# DLF Utilities Limited 5.00 5.00 DLF Housing and Construction Limited 5.00 5.00 Edward Keventor (Successors) Private Limited 5.00 5.00 DLF Services Limited 26.40 - Rent received # DLF Retail Developers Limited 27.67 83.00 DLF Brands Limited 149.79 27.48 DLF Commercial Developers Limited 5.20 5.20 DT Cinemas Limited 325.00 - DLF Food Courts Private Limited 150.43 4.88 Maintenance and service charges paid # DT Cinemas Limited - 209.40 DLF Services Limited 229.99 - DLF Estate Developers Limited 283.45 379.24 Expenses recovered # DLF Cyber City Developers Limited 376.77 686.10 DLF Utilities Limited 5,013.21 2,124.99 DLF Retail Developers Limited 46.72 81.14 DLF Commercial Developers Limited 238.37 480.98 DLF Home Developers Limited 4,264.08 312.49 Purchase of land, developed plots and DLF Utilities Limited 1,609.89 915.38 material DLF Housing & Construction Limited 125.24 188.79 DLF Cyber City Developers Limited 961.44 - DLF Assets Private Limited 1,181.93 - Rent paid # DLF Offi ce Developers - 13.55 Lodhi Property Company Limited 41.55 - Interest expenses Bhoruka Financial Services Limited - 141.40 DT Cinemas Limited 130.73 - DT Projects Limited [formerly DLF Laing O’Rourke 59.08 - (India) Limited] Expenses paid DLF Projects Limited - 3,069.47 DLF Commercial Developers Limited 0.45 297.99 DLF Home Developers Limited 0.86 0.20 DLF Assets Private Limited 4,440.52 - Technical/professional charges paid DLF Hotel Holdings Limited 26.96 1,188.00 Payments under construction contracts DT Projects Limited [formerly DLF Laing O’Rourke 13,647.70 - (India) Limited] Investments purchased DLF Info Park Developers (Chennai) Limited - 32,000.00 DLF Hotel Holdings Limited 8,308.00 16,045.00 DLF Pramerica Life Insurance Company Limited 6,234.50 10,137.00 Investments sold DLF Offi ce Developers 209.50 622.48 DLF South Point 1,262.56 503.65 Kavicon Partners - 94.00 DLF Utilities Limited 1,486.24 - Debentures purchased Jawala Real Estate Private Limited - 38,745.00 DLF SEZ Developers Limited - 29,500.00 Debentures sold DLF SEZ Developers Limited - 29,500.00 Profi t / (loss) on partnership fi rms (net) DLF Offi ce Developers 265.06 379.98 Kavicon Partners 109.70 101.10 DLF Commercial Projects Corporation (353.93) (1,009.79) DLF South Point (3.72) 1.28 Rational Builders & Developers (453.33) (2.87)

100

Standalone_Pg 63-116_280810.indd 100 8/28/2010 11:48:13 AM (Rs. in lacs) Description Subsidiaries/ partnership ﬁ rms under control Transactions during the year Name of the entity 2010 2009 Saket Courtyard Hospitality (52.41) - Loans given DLF Retail Developers Limited 136,088.90 190,412.04 DLF Commercial Developers Limited 50,551.81 181,562.51 DLF Home Developers Limited 329,124.87 316,663.52 DLF Cyber City Developers Limited 281,249.15 11,744.00 Loan received back DLF Retail Developers Limited 153,910.33 249,828.09 DLF Commercial Developers Limited 61,055.00 196,162.89 DLF Home Developers Limited 577,002.90 251,680.52 DLF Cyber City Developers Limited 182,945.00 14,721.54 Guarantees given (net) DLF Commercial Developers Limited (4,900.00) (44,500.00) Regency Park Property Management Services Private - 41,100.00 Limited DLF Cyber City Developers Limited (15,650.00) 117,500.00 Jawala Real Estate Private Limited - (90,000.00) DLF Home Developers Limited 40,000.00 - DLF Commercial Complexes Limited (36,567.00) - DLF Ackruti Info Parks (Pune) Limited 30,534.86 - [formerly DLF Akruti Info Parks (Pune) Limited] DT Projects Limited [formerly DLF Laing O’Rourke 28,000.00 - (India) Limited] DLF Global Hospitality Limited 179,580.00 - Advances received under agreement DLF New Gurgaon Homes Developers Private Limited 8,444.02 16,665.89 to sell Earnest money paid under agreement to DLF Commercial Projects Corporation 8,849.52 16,770.00 purchase land/ development rights Rational Builders & Developers 3,105.50 5,855.26 Earnest money paid under agreement DLF Commercial Projects Corporation 32,375.22 25,522.28 to purchase land/ development rights refunded Rational Builders & Developers 891.76 4,115.08 Advances given (net) DLF Projects Limited 4,130.44 2,295.40 Purchase of development rights DLF Commercial Projects Corporation - 3,000.00 Rational Builders and Developers - 2,266.29 Loan taken DT Cinemas Limited 4,766.73 - Bhoruka Financial Services Limited - 1,200.00 Loan refunded Bhoruka Financial Services Limited - 1,200.00 Claim paid DLF Hilton Hotels Limited - 875.00 # Figures shown above are net of service tax

(Rs. in lacs) Subsidiaries/ partnership ﬁ rms under control Balance at the end of the year Name of the entity 2010 2009 Debtors (Including unbilled receivables) DLF Homes Ambala Private Limited 1,135.29 1,135.29 DLF Garden City Indore Private Limited 942.89 896.65 DLF Southern Towns Private Limited 1,458.79 947.70 DLF Southern Homes Private Limited 3,663.86 569.21 DLF Assets Private Limited 64,931.38 - DLF Home Developers Limited 28,405.21 - Investments in shares / partnership ﬁ rms DLF Info Park Developers Chennai Limited 32,000.00 32,000.00 Edward Keventor (Successors) Private Limited 43,892.06 43,892.06 DLF Hotel Holdings Limited 125,968.00 117,660.00

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(Rs. in lacs) Subsidiaries/ partnership ﬁ rms under control Balance at the end of the year Name of the entity 2010 2009 Investments in debentures Jawala Real Estate Private Limited 38,745.00 38,745.00 Interest accrued on debentures Jawala Real Estate Private Limited 2,789.64 584.53 Loans and advances given DLF Retail Developers Limited 294,018.96 294,363.14 DLF Home Developers Limited 58,516.76 278,599.04 DLF Cyber City Developers Limited 99,488.48 60.54 Earnest money and part payments under DLF Commercial Projects Corporation 348,248.54 371,774.24 agreement to purchase land/ development rights/ constructed properties (net of interest capitalised) Rational Builders & Developers 92,348.60 90,134.86 Creditors/ amounts payable DLF Hotel Holdings Limited 1,737.45 1,712.07 DLF Commercial Projects Corporation 1,888.24 1,534.31 DT Projects Limited [formerly DLF Laing O’Rourke 4,895.19 - (India) Limited] DLF Commercial Developers Limited 2,457.88 - DLF Assets Private Limited 5,591.37 - Guarantees given DLF Commercial Developers Limited 43,000.00 43,000.00 Regency Park Property Management Services Private 41,100.00 41,100.00 Limited DLF Cyber City Developers Limited 143,850.00 159,500.00 DLF Info City Developers (Chennai) Limited 27,700.00 27,700.00 DLF Global Hospitality Limited 179,580.00 - Advances received under agreement DLF New Gurgaon Homes Developers Private Limited 61,868.90 53,424.89 to sell DLF Financial Services Limited - 29.75 DLF Utilities Limited - 117.53 Diwakar Estates Limited - 25.27 Earnest money received DLF Home Developers Limited 23,731.50 23,731.50 Security deposit received DT Cinemas Limited - 62.97 DLF Brands Limited 148.00 96.14 Kapo Retail Private Limited 51.94 45.59 DLF Food Courts Private Limited 125.69 84.77 Unsecured loan (taken) DT Cinemas Limited 4,766.73 - Interest payable DLF Assets Private Limited 3,036.99 - Interest accrued but not due DT Cinemas Limited 117.65 - Security deposits paid Lodhi Property Company Limited 44.22 -

(Rs. in lacs) Description Joint Ventures/ Associates Transactions during the year Name of the entity 2010 2009 Interest income on loan Delanco Real Estate Private Limited 330.80 206.04 Joyous Housing Limited 91.37 - Expenses recovered # DLF New Gurgaon Homes Developer Private Limited - 2,011.47 DT Projects Limited [formerly DLF Laing O’Rourke 52.35 85.06 (India) Limited] Expenses paid Delanco Real Estate Private Limited - 51.68 Advances received under agreement DLF New Gurgaon Homes Developers Private Limited - 17,600.00 to sell

102

Standalone_Pg 63-116_280810.indd 102 8/28/2010 11:48:13 AM (Rs. in lacs) Description Joint Ventures/ Associates Transactions during the year Name of the entity 2010 2009 Technical/ professional charges paid WSP Engineering Services Limited - 314.11 Payments under construction contracts DT Projects Limited [formerly DLF Laing O’Rourke 2,325.64 29,915.24 (India) Limited] Star Alubuild Private Limited 292.40 - Investment purchased DLF Limitless Developers Private Limited - 20,125.00 Guarantees given Kujjal Builders Private Limited 11,900.00 - Loans given Delanco Real Estate Private Limited 633.00 1,003.00 Loan received back Delanco Real Estate Private Limited 499.00 52.00 Advances given Joyous Housing Limited 3,731.00 517.00

# Figures shown above are net of service tax

(Rs. in lacs) Joint Ventures/ Associates Balance at the end of the year Name of the entity 2010 2009 Investments in shares DLF Limitless Developers Private Limited 20,125.50 20,125.50 Delanco Real Estate Private Limited 1,500.00 1,500.00 Loans and advances Delanco Real Estate Private Limited 2,647.37 2,215.65 Joyous Housing Limited 11,104.48 7,291.24 Creditors/ amounts payable DT Projects Limited [formerly DLF Laing O’Rourke - 4,376.88 (India) Limited] Star Alubuild Private Limited 154.46 - Guarantees given Kujjal Builders Private Limited 11,900.00 -

(Rs. in lacs) Description Enterprises over which KMP is able to exercise signiﬁ cant inﬂ uence Transactions during the year Name of the Entity 2010 2009 Purchase of land and material DLF Building & Services Private Limited 34.34 10.94 Development charges DLF Assets Private Limited 23,201.48 101,235.83 Interest income DLF Q.E.C. Medical Charitable Trust - 10.54 Rent paid # Realest Builders & Services Limited 4.89 9.67 DLF Q.E.C. Medical Charitable Trust 14.20 13.13 DLF Q.E.C. Educational Charitable Trust 18.93 17.51 Interest paid DLF Assets Private Limited - 14,432.85 Lease money received DLF Assets Private Limited 23.36 2.09 Expenses recovered # DLF Assets Private Limited 0.08 1.77 DLF Info City Developers (Chandigarh) Limited 2.04 6.87 DLF Info City Developers (Kolkata) Limited 3.50 4.63 DLF Commercial Enterprises 0.55 0.14 Miscellaneous income # DLF Building & Services Private Limited - 6.68 Expenses paid DLF Q.E.C. Medical Charitable Trust - 22.37 DLF Q.E.C. Educational Charitable Trust - 108.71 Pace Financial Services 4.56 35.24 DLF Foundation 787.49 24.75 Loan given DLF Q.E.C. Medical Charitable Trust - 300.00 Loan received back DLF Q.E.C. Medical Charitable Trust - 300.00

# Figures shown above are net of service tax

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(Rs. in lacs) Description Enterprises over which KMP is able to exercise signiﬁ cant inﬂ uence Balance at the end of the year Name of the Entity 2010 2009 Unbilled receivables DLF Assets Private Limited - 18,763.13 Security deposit given DLF Q.E.C. Medical Charitable Trust - 1.25 DLF Q.E.C. Educational Charitable Trust - 3.86 Investments Digital Talkies Private Limited 80.68 80.68 Earnest money and part payments DLF Building & Services Private Limited under agreement to purchase land/ 201.18 269.31 constructed properties Amount recoverable/advances DLF Info City Developers (Chandigarh) Limited - 6.85 DLF Commercial Enterprises - 0.14 Creditors/ amounts payable DLF Q.E.C. Educational Charitable Trust 0.77 101.70 DLF Q.E.C. Medical Charitable Trust 0.10 20.87 DLF Building & Services Private Limited 0.94 - Plaza Partners 2.84 2.84 Amount payable DLF Assets Private Limited - 3,039.44

(Rs. in lacs)

Description Key Management Personnel (KMP) and their relatives Transactions during the year Name of the KMP and their relatives 2010 2009 Remuneration paid Mr. K.P. Singh 500.66 306.52 Mr. Rajiv Singh 543.17 332.30 Mr. K. Swarup 393.19 181.14 Mr. T.C. Goyal 831.70 559.42 Ms. Pia Singh 322.54 284.48 Rent paid Mrs. Veena Swarup 21.63 21.63 Advance received under agreement to sell Mr. T.C. Goyal 302.76 - Mrs. Sharda Goyal 437.08 - Mr. Dhiraj Sarna 244.17 279.11 Mr. K. Swarup 144.47 - Balance at the end of the year Creditors/ amounts payable Mr. K.P. Singh - 7.22 Mr. Rajiv Singh - 10.73 Ms. Pia Singh - 1.99 Mr. K. Swarup 175.00 75.00 Managerial commission payable Mr. K.P. Singh 398.59 250.00 Mr. Rajiv Singh 398.76 250.00 Mr. T.C. Goyal 400.00 225.00 Ms. Pia Singh 125.00 100.00 Advance received under agreement to sell Mr. T.C. Goyal 302.76 - Mrs. Sharda Goyal 437.08 - Mr. Dhiraj Sarna 1,087.30 843.13

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(Rs. in lacs) a. Loans and advances in the nature of loans to Subsidiaries/ Balance as on Maximum balance Associates/Joint ventures/ partnership ﬁ rms/others March 31 during the year Name of the entity Status 2010 2009 2010 2009 1 Kairav Real Estate Private Limited Subsidiary 4,953.72 5,193.92 6,414.78 5,193.92 2 DLF Housing and Construction Limited Subsidiary 918.88 940.00 965.50 940.00 3 DLF Commercial Developers Limited Subsidiary 1,672.84 10,882.20 28,396.94 105,507.38 4 DLF Retail Developers Limited Subsidiary 293,355.62 293,784.17 340,532.61 341,612.39 5 DLF Home Developers Limited Subsidiary 31,658.53 275,153.06 278,817.22 275,153.06 6 Paliwal Developers Limited Subsidiary 1,690.24 1,134.27 1,690.24 1,749.23 7 Beverly Park Maintenance Services Limited Subsidiary 41,792.02 34,944.00 41,792.02 46,963.09 8 DLF Cyber City Developers Limited Subsidiary 99,675.32 - 99,675.32 14,021.54 9 Breeze Construction Private Limited Subsidiary 14,854.16 13,681.45 14,854.16 13,681.45 10 DLF Utilities Limited Subsidiary 38,516.11 11,666.29 38,516.11 11,666.29 11 VSK Investment and Finance Limited Subsidiary 13,873.20 14,240.62 14,240.62 14,240.62 12 DLF Brands Limited Subsidiary 11,058.80 5,911.56 11,058.80 72,085.72 13 DT Cinemas Limited Subsidiary 2,407.43 4,240.62 5,403.91 4,240.62 14 DLF Services Limited Subsidiary 45.85 604.63 1,988.39 604.63 15 DLF Estate Developers Limited Subsidiary 1,294.25 955.88 1,294.25 1,328.50 16 NewGen MedWorld Hospitals Limited Subsidiary 50.51 46.64 50.51 46.64 17 Dalmia Promoters and Developers Private Limited Subsidiary 827.93 762.32 827.93 762.32 18 DLF Finvest Limited Subsidiary - 31.00 31.34 611.41 19 Eastern India Powertech Limited Subsidiary 44,527.14 38,855.68 44,527.14 38,855.68 20 DLF Hotel Holdings Limited Subsidiary 8,370.43 - 8,370.43 10,478.78 21 DLF SEZ Developers Limited Subsidiary 370.78 318.03 373.42 318.03 22 Edwards Keventor (Successors) Private Limited Subsidiary 1,413.57 7,494.79 7,622.29 7,494.79 23 Bhoruka Financial Services Limited Subsidiary - 3,762.13 3,762.13 3,960.00 24 DLF Info City Developers (Chennai) Limited Subsidiary 581.33 1,527.45 22,700.56 2,954.00 25 Delanco Real Estate Private Limited Joint Venture 2,647.37 2,215.65 2,647.37 2,215.65 26 DLF Ackruti Info Parks (Pune) Limited Subsidiary - 14,176.52 14,452.56 14,176.52 [formerly DLF Akruti Info Parks (Pune) Limited] 27 DLF Emporio Restaurants Limited Subsidiary 2,411.04 408.30 2,411.04 408.30 28 DLF Financial Services Limited Subsidiary - 0.69 0.69 0.69 29 Galleria Property Management Services Private Limited Subsidiary 3,989.74 2,637.93 3,989.74 3,922.43 30 Regency Park Property Management Services Private Subsidiary 106.13 1,237.77 2,035.77 20,230.13 Limited 31 DLF City Centre Limited Subsidiary 110.50 5,952.37 6,918.17 5,952.37 32 DLF Food Court Private Limited Subsidiary 1,272.27 240.58 1,272.27 240.58 33 Jawala Real Estate Private Limited Subsidiary 7,781.38 2,534.68 7,781.38 2,534.68 34 DLF Property Developers Limited Subsidiary 374.40 61.70 513.70 146.00 35 DLF Commercial Complexes Limited Subsidiary 43,411.24 21,965.25 49,698.75 21,965.25 36 DLF Land Limited Subsidiary 1,118.61 - 1,118.61 - 37 DLF Real Estate Builders Limited Subsidiary 252.04 - 252.04 - 38 DLF Residential Partners Limited Subsidiary 885.14 - 885.14 - 39 DLF Residential Developers Limited Subsidiary 417.97 - 417.97 - 40 DLF Wind Power Private Limited (formerly Bestvalue Housing and Construction Private Limited) Subsidiary 69.66 - 69.66 - 41 Diwakar Estates Limited Subsidiary - - 1.00 - 42 DLF Info Park Developers Chennai Limited Subsidiary 72.32 - 72.32 - 43 Caressa Builders & Construction Private Limited Subsidiary 1.05 - 1.05 -

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Standalone_Pg 63-116_280810.indd 105 8/28/2010 11:48:13 AM Schedules forming part of the Financial Statements (Contd.)

13. Operating leases A) Assets given on lease *

(Rs. in lacs) Class of assets Gross block as on Depreciation Cumulative March 31, 2010 for the year Depreciation 2009-10 March 31, 2010 a) Fixed assets (Leasehold land and building) 35,701.44 559.76 612.48 b) Current assets (Constructed buildings and related equipments including land) Lease hold 3,054.27 52.12 949.84 Free hold 12,345.09 284.59 570.60

* Includes partly self occupied properties.

B) The Company has leased facilities under non- cancelable operating leases. The future minimum lease payment in respect of these leases as at March 31, 2010 are:

(Rs. in lacs) Minimum lease payments receivables: March 31, 2010 March 31, 2009 (i) Not later than one year 8,690.15 6,446.58 (ii) Later than one year and not later than ﬁ ve years 7,469.84 9,766.17 (iii) Later than 5 years - - Total 16,159.99 16,212.75

14. Investments in Joint Ventures

S. No Joint venture Location Principal activities Ownership interest 1 Niharika Shopping Mall Joint Venture* (till August 31, 2009) Mumbai Development and construction 50% of shopping mall 2 Mount Mary Residential Project Mumbai Development and construction 50% of residential building 3 Delanco Real Estate Private Limited New Delhi Real estate consulting and 50% brokerage 4 DLF Limitless Developers Private Limited New Delhi Development and construction 50% of townships 5 DLF Gurgaon Developers Limited (formerly DLF SEZ New Delhi Development and construction 50% Holdings Limited) (till August 30, 2009) of townships

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Standalone_Pg 63-116_280810.indd 106 8/28/2010 11:48:13 AM A) The Company’s share of the assets, liabilities, income and expenditure of the signiﬁ cant joint ventures (under jointly controlled operations) are as follows:

(Rs. in lacs) a) Amount in respect of Niharika Shopping Mall Joint Venture* – Balance Sheet 2010 2009 (till August 31, 2009) Reserves and surplus - 1.54 Secured loans - 3,437.01 Unsecured loans - - Fixed assets (less accumulated depreciation) - 5.44 Inventories - 7,766.38 Cash and bank - 220.50 Sundry debtors - 2.54 Loans and advances - 978.01 Current liabilities and provisions - 334.30 Amount in respect of Niharika Shopping Mall Joint Venture – Statement of Proﬁ t & Loss Account Selling, general and administrative expenses 0.86 0.49 Interest received - 0.01 Net proﬁ t / (loss) after tax & prior period item (0.86) (0.48) * The Company has exit from the joint venture on August 31, 2009

b) Amounts in case of Mount Mary Project (under jointly controlled operations) is Rs. Nil, as the project has not yet commenced.

B) The Company’s share of the assets, liabilities, income and expenditure of the signiﬁ cant joint ventures (under jointly controlled entities) are as follows:

(Rs. in lacs) a) Amount in respect of Delanco Real Estate Private Limited – Balance Sheet 2010 2009 Reserves and surplus 652.29 537.27 Secured loans 5.31 9.69 Unsecured loans 1,174.83 1,028.15 Fixed assets (less accumulated depreciation) 15.45 23.67 Investments 1.30 0.80 Sundry debtors 197.96 19.00 Cash and bank 17.57 110.39 Loans and advances 2,441.67 2,214.83 Current liabilities and provisions 341.53 293.59 Amount in respect of Delanco Real Estate Private Limited – Proﬁ t & Loss Account Income from operations 317.25 302.91 Other income 319.00 244.78 Selling, general and administrative expenses 312.06 513.72 Finance expenses 166.34 104.49 Net proﬁ t / (loss) after tax & prior period item 115.03 (77.64)

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(Rs. in lacs) b) Amount in respect of DLF Limitless Developers Private Limited – Balance Sheet 2010 2009 Cash and bank 9,687.48 4.74 Loans and advances 10,800.00 20,000.00 Other current assets 730.24 - Current liabilities and provisions 165.03 8.21 Reserves and surplus 927.18 (128.96) Amount in respect of DLF Limitless Developers Private Limited – Proﬁ t & loss account Interest received 1,621.64 - Selling, general and administrative expenses 6.50 13.91 Net proﬁ t / (loss) after tax & prior period item 1,056.14 (13.91)

(Rs. in lacs) c) Amount in respect of DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings 2010 2009 Limited) – Balance Sheet (till August 30, 2009) Cash and bank - 1.89 Current liabilities and provisions - 1.62 Reserves and surplus - 2.23 Amount in respect of DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings Limited) – Proﬁ t & loss account Selling, general and administrative expenses - 1.64 Net proﬁ t / (loss) after tax & prior period item - (1.67)

Note: Disclosure of ﬁ nancial data as per Accounting Standard - 27 “Financial Reporting of interest in the joint venture” is made based on the audited ﬁ nancial statements of the above mentioned Joint Venture Operations or Joint venture entities, as the case may be.

15. Employees stock options scheme, 2006 (ESOP) a) During the year ended March 31, 2007, the Company had announced an Employees stock options 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:

Block I Block II Block III Year 2 Year 4 Year 6 10% of the total grant 30% of the total grant 60% of the total grant

Pursuant to the above Scheme, the employee will have the option to exercise the right within three years from the date of vesting of shares at Rs. 2 per share, being its exercise price.

b) As per the Scheme, the Remuneration Committee has granted options as per details below:

Grant No. Date of grant Number of options granted Outstanding options as on March 31, 2010 (Net of options exercised/forfeited) I June 27, 2007 3,734,057 2,461,680 (3,734,057) (3,184,900) II October 10, 2007 308,077 129,883 (308,077) (291,177) III July 01, 2008 1,645,520 1,321,860 (1,645,520) (1,514,040)

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Standalone_Pg 63-116_280810.indd 108 8/28/2010 11:48:13 AM Grant No. Date of grant Number of options granted Outstanding options as on March 31, 2010 (Net of options exercised/forfeited) IV October 10, 2008 160,059 87,620 (160,059) (157,659) V July 01, 2009 3,355,404 3,300,441 (-) (-) VI October 10, 2009 588,819 520,860 (-) (-)

According to the Guidance Note 18 on “Share Based Payments” issued by ICAI, Rs. 4,167.92 lacs have been provided during the year as proportionate cost of ESOPs. c) Outstanding stock options for equity shares of the Company under the “Employees Stock Options Scheme”:

Particulars 2010 Grant No. Date of grant Exercise Numbers Number of options Total price Rs. outstanding committed to be granted in the future I July 1, 2007 2 2,461,680 - 2,461,680 (3,184,900) (293,300) (3,478,200) II October 10, 2007 2 129,883 - 129,883 (291,177) (88,259) (379,436) III July 01, 2008 2 1,321,860 - 1,321,860 (1,514,040) (-) (1,514,040) IV October 10, 2008 2 87,620 - 87,620 (157,659) (-) (157,659) V July 01, 2009 2 3,300,441 - 3,300,441 (-) (-) (-) VI October 10, 2009 2 520,860 - 520,860 (-) (-) (-)

d) In accordance with the guidance note - 18 “Share based payments” issued by ICAI the following information relates to the stock options granted by the Company.

2010 Particulars Stock options Range of Weighted- Weighted-average (numbers) exercise prices average exercise remaining (Rs.) prices (Rs.) contractual life (years) Outstanding, beginning of the year 5,529,335 2 - - (4,962,810) (2) (-) (-) Add: Granted during the year 3,944,223 2 2 - (1,276,929) (2) (2) (-) Less: Forfeited during the year 1,311,546 2 2 - (710,404) (2) (2) (-) Less: Exercised during the year 270,637 2 2 - (-) (-) (-) (-) Less: Lapsed during the year -- - - (-) (-) (-) (-) Outstanding, end of the year 7,822,344 2 2 5.05 (5,529,335) (2) (2) (5.22) Exercisable at the end of the year 69,031 2 2 - (-) (-) (-) (-)

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Standalone_Pg 63-116_280810.indd 109 8/28/2010 11:48:13 AM Schedules forming part of the Financial Statements (Contd.) e) The following table summarizes information about stock options outstanding as at March 31, 2010:

Options outstanding Options exercisable Range of Numbers Weighted average Weighted average Numbers Weighted exercise remaining exercise price average prices contractual life exercise price 2 7,822,344 5.05 2 69,031 2 (2) (5,529,335) (5.22) (2) (-) (-)

(Figures in brackets pertain to previous year.) The Company has calculated the employee compensation cost using the Intrinsic value of the stock Options measured by a difference between the fair value of the underline equity shares at the grant date and the exercise price. Had compensation cost been determined in a manner consistent with the fair value method, based on Black – Scholes model, the employees compensation cost would have been lower by Rs. 348.09 lacs and proforma proﬁ t after tax would have been Rs. 76,735.64 lacs (higher by Rs. 229.77 lacs). On a proforma basis, the basic and diluted earnings per share would have been Rs. 4.52 and Rs. 4.51 respectively. The fair value of the options granted is determined on the date of the grant using the “Black- Scholes option pricing model” with the following assumptions:

Grant I Grant ll Grant lll Grant IV Grant V Grant VI Dividend yield (%) 0.28 0.28 0.57 0.73 0.86 0.64 Expected life (no. of years) 6.50 6.50 5.50 5.50 5.50 5.50 Risk free interest rate (%) 8.37 8.09 9.46 8.17 6.75 7.26 Volatility (%) 82.30 82.30 52.16 59.70 86.16 81.87

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

Trench Date of Grant Vesting at the end Vesting at the end Vesting at the end of year 2 of year 3 of year 4 I July 1, 2007* 50% - 50% II September 1, 2007* 50% - 50% III July 01, 2008 50% 50% - IV October 10, 2008 50% 50% - V July 01, 2009 100% - - Details of outstanding options and the expenses recognised under the employee shadow option scheme is as under :-

No of Shadow Exercise Average Fair value of Total expenses charged Liability as on March options price market price shadow option to Profi t & Loss 31, 2010 (Included in outstanding as Account (Included in Schedule 14-Provision – on March 31, Schedule-17 – Employee Employee Benefi ts) 2010 benefi ts) (No.) Rs./Option Rs./Option Rs./Option Rs. in lacs Rs. in lacs 483,701 2 307.15 305.15 1,021.29 841.40 (487,490) (2) (160.30) (158.30) (379.13) (379.13)

(Figures in brackets pertain to previous year.) * For trench I & II 50% options have already been vested in the current ﬁ nancial year ended March 31, 2010, hence remaining 50% are disclosed above.

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Standalone_Pg 63-116_280810.indd 110 8/28/2010 11:48:13 AM 17 a) The Company uses forward contracts and Swaps to hedge its risks associated with ﬂ uctuations in foreign currency and interest rates. The use of Forward contracts and Swaps is covered by Company’s overall strategy. The Company does not use Forward covers and Swaps for speculative purposes. As per the strategy of the Company, foreign currency loans are covered by comprehensive hedge, considering the risks associated with the hedging of such loans, which effectively ﬁ xes the principal and interest liability of such loans and further there is no additional risk involved post hedging of these loans. The following are the outstanding forward contracts and swaps as at March 31, 2010:

(Rs. in lacs) For hedging any risks 2010 2009 Secured Loans 314,102.06 69,998.93 Interest on Secured Loans 503.41 - Unsecured Loans - - Interest on Unsecured Loans - - b) The detail of foreign currency exposure that are not hedged by derivative instrument or otherwise included in the creditors is as mentioned below:- (Amount in lacs) 2010 2009 INR USD* INR USD Secured Loans 6,895.79 152.76 5,662.55 111.14 Interest on Secured Loans 14.08 0.31 19.98 0.39 Unsecured Loans ---- Interest on Unsecured Loans ----

* Conversion rate applied 1 USD = Rs. 45.14 (previous year Rs. 50.95)

18 Contingent liabilities, not provided for, exist in respect of

(Rs. in lacs) 2010 2009 a) Guarantees issued by the Company on behalf of : Subsidiary companies 626,456.09 388,708.23 Others 13,005.93 12,000.00 b) Claims against the Company (including unasserted claims) not acknowledged as debts 13,778.33 12,097.05 c) Income tax demand in excess of provisions (pending in appeals) 50,992.28 53,283.03 d) Undertaking to buy back preference shares in subsidiary/ associate companies * 186,629.82 170,939.57

* 29.81 acres of land of the Company and 55.8475 acres of land of subsidiary companies is also pledged as collateral securities against these undertakings. Further subsequent to the balance sheet date on May 5, 2010, preference shares amounting to Rs. 50,132.44 lacs have been redeemed by one of the subsidiary company.

19. The Company is primarily engaged in the business of colonisation and real estate development, which as per Accounting Standard 17 on “Segment Reporting” issued by the ICAI is considered to be the only reportable business segment. The Company is primarily operating in India which is considered as a single geographical segment. 20. Capital expenditure commitments (Rs. in lacs) 2010 2009 38,105.38 21,510.34

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Standalone_Pg 63-116_280810.indd 111 8/28/2010 11:48:14 AM Schedules forming part of the Financial Statements (Contd.) 21. Directors’ remuneration*

(Rs. in lacs) 2010 2009 Salaries and bonus 595.51 586.60 Commission – Whole-time directors 1,325.00 825.00 Commission – Non-executive directors 140.00 140.00 Directors fees 29.80 30.00 Provident and other funds 75.42 87.05 Other perquisites and beneﬁ ts 595.34 165.21 2,761.07 1,833.86

* Exclusive of provisions for gratuity, compensated absence, premium for personal accident insurance policy, Share based payments, made in the ﬁ nancial statements as per accounting policy number 13 and 15 as stated in Schedule 24.

Computation of net profi ts in accordance with Section 349 of the Companies Act, 1956 and commission payable to directors (Rs. in lacs) Profi t before tax as per the Profi t & Loss Account 94,308.68 Add: Directors’ remuneration (including Directors’ fee) 2,761.07 Add: Loss on sale of fi xed assets 26.11 Add: Assets written off /discarded 14.97 Add: Provision for doubtful debts and advances 4,114.27 Less: Profi t on sale of fi xed assets (327.66) Less: Profi t on sale of investments (45.07) Net profi t as per Section 349 of the Companies Act, 1956 100,852.37

Commission Whole-time Directors 1,325.00 Non-executive Directors 140.00 Overall limit of managerial remuneration allowed as per Section 198 of the Companies Act, 1956 11,093.76 Managerial remuneration paid 2,761.07

22. Dividend to non-resident shareholders (in foreign currency)

(Rs. in lacs) 2010 2009 Number of shareholders 4 3 Number of shares held 17,010 16,465 Dividend remitted 0.34 0.33 Year to which it relates 2009 2008

23. Expenditure in foreign currency (on cash basis)

(Rs. in lacs) 2010 2009 Travelling 344.36 189.79 Professional charges 7,629.93 2,667.51 Interest paid 6,726.87 245.73 Others 1,105.36 3,196.29

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Standalone_Pg 63-116_280810.indd 112 8/28/2010 11:48:14 AM 24. Receipts in foreign currency (on cash basis) (Rs. in lacs) 2010 2009 Receipts from customers (against agreements to sell) 12,162.78 9,918,74 Interest from customers (under agreement to sell) 82.72 9.44

25. CIF value of import (Rs. in lacs) 2010 2009 Material (including material purchased in high seas) 1,807.36 7,268.50 Others 184.05 -

26. Payment to auditors (Rs. in lacs) 2010 2009 Audit fee 70.68 57.29 Tax audit fee 6.00 6.00 Tax matters 56.60 - Certiﬁ cation and other matters 62.37 32.76 Service tax 20.14 11.36 215.79 107.41

27. Details of stocks, purchases and turnover

Land and plots (including development 2010 2009 cost) Area Amount Area Amount (In acres) (Rs. in lacs) (In acres) (Rs. in lacs) Opening stock 6.47 368.43 7.59 646.48 Purchases/ transfer 6.64 218.67 1.98 199.73 Sales 6.24 561.88 3.10 4,205.39 Closing stock 6.87 163.91 6.47 368.43

28. Details of capital work-in-progress as on March 31, 2010 (Rs. in lacs) 2010 2009 Land 121,928.21 121,928.21 Development and construction expenses 30,782.91 27,867.51 Finance charges 17,740.26 15,020.74 Advances to contractors and others 1340.63 402.24 Softwares – under development / implementation 58.74 554.58 171,850.75 165,773.28

29. (a) Wind mill projects of the Company are entitled for tax holiday under Section 80-IA of the Income Tax Act, 1961. Accordingly, the computation of tax (current and deferred) has been done as per Accounting Standard 22 “Accounting for taxes on Income” and Accounting Standard Interpretation 3, issued by the ICAI. (b) The Company’s proﬁ ts from Special Economic Zone (“SEZ”) business are exempt under Section 80-IAB of the Income Tax Act, 1961 and the dividend declared out of such SEZ proﬁ ts are exempt from Dividend Distribution Tax under the provisions of Section 115-O(6) of the Income Tax Act, 1961.

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Standalone_Pg 63-116_280810.indd 113 8/28/2010 11:48:14 AM Schedules forming part of the Financial Statements (Contd.) In line with the above provisions, the Company has provided dividend tax only on the proportionate amount of dividend declared out of non SEZ profi ts and after adjustment of the dividend received from its wholly owned subsidiary company in terms of provisions of Section 115-O(1A)(i) of the Income Tax Act, 1961. 30. On May 6, 2009, the Company received an assessment order for the AY 2006 – 2007, from the Income Tax authorities creating an additional tax demand amounting to Rs. 48,274.34 lacs on the Company. The Company has fi led an appeal against the order and based on advice from experts, is confi dent that the additional tax demanded will not be sustained by the appellate authorities. Pending the order of the appellate authorities, no provision has been made in the current year for the additional tax so demanded and the same has been disclosed as a contingent liability. 31. Based on the information available with the Company, there are no dues outstanding in respect of Micro, Small and Medium enterprises at the balance sheet date. No amounts were payable to such enterprises which were outstanding for more than 45 days. Further, no interest during the year has been paid or payable in respect thereof. The above disclosure has been determined to the extent such parties have been identifi ed on the basis of information available with the Company. This has been relied upon by the auditors. 32. Utilisation of money raised by Public issue (IPO) of the Company upto March 31, 2010 (Rs. in lacs) S. No Nature of expenditure 2010 2009 1 Acquisition of land and development rights 566,955 566,955 2 Development and construction costs for existing projects 63,625 63,625 3 Prepayment of loans 257,802 257,795 4 Issue related expenses 30,298 30,298 Total 918,680 918,673

The Company has fully utilised the IPO proceeds for the purposes as stated in the ‘Objects of the Issue’ clause of the Prospectus dated June 18, 2007. 33. Events after Balance Sheet date Subject to the approval of shareholders and other requisite approvals, the Board of Directors approved in their meeting held on July 28, 2010, the proposal for further issue of equity shares by its wholly owned subsidiary – DLF Brands Limited (DBL) under the Unlisted Public Companies (Preferential Allotment) Rules, 2003 to M/s. Ishtar Retail Private Limited, a promoter group company. Upon further issue of equity shares, DBL will cease to be subsidiary of DLF Limited. Pending further approvals no effect has been given to the proposal in the above ﬁ nancial statements. 34. Previous year ﬁ gures have been regrouped/ recast wherever considered necessary to make them comparable with those of the current year.

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

New Delhi July 28, 2010

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Standalone_Pg 63-116_280810.indd 114 8/28/2010 11:48:14 AM BALANCE SHEET ABSTRACT AND COMPANY’ S GENERAL BUSINESS PROFILE

i) Registration details Registration Number 2484 Balance Sheet Date 31 March, 2010 State Code 05

ii) Capital Raised during the year (Amount in Rs. Thousands) Public Issue Nil Right Issue Nil Bonus Issue Nil Private Placement 481

iii) Position of Mobilization and Deployment of Funds (Amount in Rs. Thousands) Total Liabilities (including shareholding fund) 289,294,183 Total Assets 289,294,183

Sources of Funds Paid-up Capital 3,394,782 Reserves & Surplus * 124,905,298 Secured Loans 115,901,859 Unsecured Loans 10,476,673 Deferred Tax Liabilities (Net) 605,406 *Inclusive of revaluation Reserves 25,008 Application of Funds Net Fixed Assets 34,475,261 Investments 65,588,807 Net Current Assets 155,219,950 Misc. Expenditure Nil Accumulated Losses Nil

iv) Performance of Company (Amount in Rs. Thousands) Turnover and other income 32,204,315 Total Expenditure 22,773,447 Turnover 24,192,081 Other Income 8,012,234 Proﬁ t before Tax 9,430,868 Proﬁ t after tax 7,673,752 Earnings per shares in Rs. 4.51 Dividend Rate % 100%

v) Generic Names of Three principal products/ Not applicable, since the Company is neither engaged in services of the Company : manufacturing activities nor in service rendering.

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

New Delhi July 28, 2010

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Standalone_Pg 63-116_280810.indd 115 8/28/2010 11:48:14 AM Standalone_Pg 63-116_280810.indd 116 8/28/2010 11:48:14 AM Auditors’ Report

To 2. We did not audit the fi nancial statements of some consolidated entities, whose The Board of Directors of DLF Limited Financial Statements refl ect total assets of Rs. 819,788.95 lacs as at March 31, 2010, We have audited the attached consolidated total revenues of Rs. 40,639.72 lacs and Balance Sheet of DLF Limited, its subsidiaries, cash outfl ows of Rs. 10,282.99 lacs for the associates and joint ventures (as per list appearing year then ended. These fi nancial statements in Note 17 on Schedule 24 and hereinafter and other fi nancial information have been collectively referred to as the ‘Group’), as at audited by other auditors whose reports March 31, 2010 and also the consolidated Profi t have been furnished to us and our opinion in & Loss Account and the consolidated Cash Flow respect thereof is based solely on the reports Statement for the year ended on the date annexed of such other auditors. thereto (collectively referred as the ‘Consolidated Financial Statements’). These Consolidated 3. The Consolidated Financial Statements Financial Statements are the responsibility of include total assets of Rs. 176,684.45 lacs, the management and have been prepared by the revenues of Rs. 24,889.89 lacs and total management on the basis of separate Financial cash outfl ows of Rs. 437.14 lacs of Silverlink Statements and other fi nancial information Holdings Limited (“Silverlink”), a subsidiary of regarding components. Our responsibility is to the Company which has been consolidated express an opinion on these Consolidated Financial based on the audited consolidated fi nancial Statements based on our audit. statements of Silverlink as at December 31, We conducted our audit in accordance with 2009. No further adjustment is considered auditing standards generally accepted in India. necessary in the Consolidated Financial Those standards require that we plan and perform Statements as the management has the audit to obtain reasonable assurance whether confi rmed that no material event, affecting the Consolidated Financial Statements are free the fi nancial position of the subsidiary and its of material misstatement. An audit includes constituents, has occurred during the period examining, on a test basis, evidence supporting from January 1, 2010 to March 31, 2010. the amounts and disclosures in the Consolidated 4. Without qualifying our opinion, we draw Financial Statements. An audit also includes attention to note no. 16 of Schedule 24 to the assessing the accounting principles used and Consolidated Financial Statements, relating signifi cant estimates made by management, as to an observation of the auditors of Silverlink well as evaluating the overall Financial Statement on existing and previous shareholders of presentation. We believe that our audit provides a Silverlink having an ongoing claim against reasonable basis for our opinion. the Silverlink which include repurchase of We report that; shares held by the shareholders in exchange 1. The Consolidated Financial Statements for secured convertible notes to be issued have been prepared by the management by the Silverlink, the entitlement to appoint a in accordance with the requirements of Director on the board of Silverlink, injunction Accounting Standard 21 on ‘Consolidated to restrain from taking additional secured Financial Statements’, Accounting Standard loans above US$2 million (Rs. 90.28 Crores) 23 on ‘Accounting for Investments in and damages in relation to the above Associates in Consolidated Financial breaches. These claims originated in the Statements’ and Accounting Standard 27 years prior to acquisition of Silverlink by the on ‘Financial Reporting of Interests in Joint Company and based on the advice of the Venture’, notifi ed pursuant to the Companies legal counsel, the management is of the view (Accounting Standards) Rules, 2006. that the Company has reasonable chance to

117

Consolidated_Balance-Sheet.indd 117 8/26/2010 11:43:47 PM defend the claims and a settlement is being a) the consolidated Balance Sheet, of the explored. Based on current information, state of affairs of the Group as at March the management is not able to quantify the 31, 2010; potential fi nancial impact on the Company b) the consolidated Profi t & Loss Account, should the above shareholders succeed in of the profi t for the year ended on that their claims against the Silverlink. No impact date; and of the same has been considered in these fi nancial statements since the resulting c) the consolidated Cash Flow Statement, liability, if any, is considered contingent by of the cash fl ows for the year ended on management. that date. Based on our audit and consideration of reports of other auditors on the separate fi nancial statements of some consolidated entities and on the other for Walker, Chandiok & Co fi nancial information of the components, and to Chartered Accountants the best of our information and according to the Firm Registration No: 001076N explanations given to us, we are of the opinion that the attached Consolidated Financial Statements give a true and fair view in conformity with the per David Jones accounting principles generally accepted in India, New Delhi Partner in the case of: July 28, 2010 Membership No. 98113

118

Consolidated_Balance-Sheet.indd 118 8/26/2010 11:43:48 PM Consolidated Balance Sheet as at March 31, 2010

(Rs. in lacs) Schedule 2010 2009 SOURCES OF FUNDS Shareholders’ funds Share capital 1 625,933.99 173,541.94 Reserves and surplus 2 2,417,338.50 2,241,839.82 3,043,272.49 2,415,381.76

Minority interests 62,777.51 63,362.66

Loan funds Secured loans 3 1,930,158.61 1,326,231.02 Unsecured loans 4 237,506.38 305,782.28 2,167,664.99 1,632,013.30

Deferred tax liability (net) 5 25,149.11 - 5,298,864.10 4,110,757.72

APPLICATION OF FUNDS Goodwill 126,798.91 226,508.50

Fixed assets Gross block 6 1,788,445.59 848,668.83 Less: Accumulated depreciation and amortisation 132,645.83 57,429.53 Net block 1,655,799.76 791,239.30 Capital work-in-progress (including capital advances) 1,112,881.95 568,820.11

Deferred tax asset (net) 5 - 4,139.12

Investments 7 550,519.96 140,249.67

Current assets, loans and advances Stocks 8 1,248,059.10 1,092,824.24 Sundry debtors 9 161,896.41 216,482.15 Cash and bank balances 10 92,823.22 119,561.00 Loans and advances 11 759,330.10 971,199.46 Other current assets 12 468,467.44 762,173.69 2,730,576.27 3,162,240.54 Less: Current liabilities and provisions Current liabilities 13 463,696.91 414,034.39 Provisions 14 414,015.84 368,405.13 877,712.75 782,439.52 Net current assets 1,852,863.52 2,379,801.02 5,298,864.10 4,110,757.72 Signifi cant accounting policies 23 Notes to the consolidated fi nancial statements 24 The schedules referred to above form an integral part of the consolidated fi nancial statements

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C.Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Consolidated Balance Sheet referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants New Delhi per David Jones July 28, 2010 Partner

119

Consolidated_Balance-Sheet.indd 119 8/26/2010 11:43:48 PM Consolidated Proﬁ t & Loss Account for the year ended March 31, 2010

(Rs. in lacs) Schedule 2010 2009 INCOME Sales and other income 15 785,089.77 1,043,135.69 785,089.77 1,043,135.69 EXPENDITURE Cost of revenues 16 257,953.74 322,949.48 Establishment expenses 17 46,677.45 45,367.91 Finance charges 18 111,003.91 55,483.69 Other expenses 19 86,498.77 76,219.64 Depreciation, amortisation and impairment 20 32,493.28 23,896.40 534,627.15 523,917.12 Profi t before tax and minority interests / share of profi t(loss) in associates 250,462.62 519,218.57 Tax expense 21 70,224.92 67,535.89 Profi t before minority interests / share of profi t(loss) in associates 180,237.70 451,682.68 Share of profi t / (loss) in associates 81.83 (2,110.05) Minority interests 1,078.62 (2,754.13) Profi t after tax, minority interests and before prior period items 181,398.15 446,818.50 Prior period items Income tax (net) (1,601.59) (598.31) Deferred tax (6,269.73) - Other expenses (1,419.73) 720.34 Depreciation (124.07) 19.44 Net profi t after tax, minority interest and prior period items 171,983.03 446,959.97 Balance as per last balance sheet 1,107,993.38 876,600.23 Transfer to capital reserve - (153,852.37) Balance available for appropriation 1,279,976.41 1,169,707.83 APPROPRIATION Transfer to general reserve 16,668.21 15,477.70 Transfer to capital redemption reserve 35.00 741.75 Proposed dividend on equity / preference shares 36,168.53 34,220.38 Tax on dividend 5,509.43 2,938.21 Excess provision of previous year written back (0.06) (2,980.54) Transfer to debenture redemption reserve 25,001.16 11,316.95 Balance carried to reserves and surplus 1,196,594.14 1,107,993.38 1,279,976.41 1,169,707.83 EARNING PER SHARE 22 Basic earning per share (Rs.) 10.13 26.24 Diluted earning per share (Rs.) 10.11 26.24 Signifi cant accounting policies 23 Notes to the consolidated fi nancial statements 24 The schedules referred to above form an integral part of the consolidated fi nancial statements

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C.Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Consolidated Proﬁ t & Loss Account referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants New Delhi per David Jones July 28, 2010 Partner

120

Consolidated_Balance-Sheet.indd 120 8/26/2010 11:43:48 PM Consolidated Cash Flow Statement for the year ended March 31, 2010

(Rs. in lacs) 2010 2009 A. CASH FLOW FROM OPERATING ACTIVITIES Net profi t before taxation and minority interest 250,462.62 519,218.57 Adjustments for: Depreciation, amortisation and impairment 32,493.28 23,896.40 (Profi t) / loss on sale of fi xed assets, net (5,790.59) 446.99 Interest / guarantee charges 111,003.91 55,483.69 Provision for doubtful debts and advances 8,189.10 6,323.33 Advance / assets written off (including preliminary expenses) 5,847.56 553.50 Exchange gain (net) (1,012.47) (725.48) Prior period items (1,419.73) 720.34 Profi t on sale of investments, net (854.52) (7,512.51) Provision for diminution of current investment - 1,189.90 Unclaimed balances and provisions written back (2,416.19) (1,196.02) Amortisation of deferred employees compensation, net 4,147.20 3,786.35 Amount forfeited on properties (3,202.52) (738.27) Provision for employee benefi ts 2,207.95 2,800.00 Interest / dividend income (25,590.23) (23,531.16) Operating profi t before working capital changes 374,065.37 580,715.63 Movements in working capital : (Increase) / decrease in trade and other receivables 589,194.76 (334,057.05) (Increase) / decrease in inventories (91,253.39) (75,252.44) Increase / (decrease) in current liabilities and provisions 76,376.45 (42,819.86) Cash (used in) / generated from operations 948,383.19 128,586.28 Direct taxes paid (net of refunds) (85,601.73) (111,154.57) Net cash generated from operating activities (A) 862,781.46 17,431.71

B. CASH FLOWS FROM INVESTING ACTIVITIES Purchase of ﬁ xed assets (including Capital work-in-progress) (1,390,757.06) (337,831.49) Proceeds from sale of ﬁ xed assets 58,306.70 12,950.22 Interest / dividend received 12,742.17 10,220.15 Purchase of investments (1,823,417.22) (61,736.43) Proceeds from sale of investment 1,512,523.89 17,386.00 Net cash generated used in investing activities (B) (1,630,601.52) (359,011.55)

C. CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of debentures (net) 106,703.70 184,266.08 Proceeds from long-term borrowings 1,109,768.57 798,961.64 Repayment of long-term borrowings (614,018.81) (620,251.92) Proceeds from issuance of preference shares 452,387.97 44,640.00 Proceeds from short term borrowings (net) (64,346.67) 48,161.54 Proceeds from issue of capital including securities premium 4.81 94.55 Dividend paid (35,442.25) (34,333.83) Dividend tax paid (2,892.08) (2,862.92) Buy back of equity shares (77.80) (14,235.65) Interest / guarantee charges paid (210,341.67) (160,100.45)

121

Consolidated_Balance-Sheet.indd 121 8/26/2010 11:43:48 PM Consolidated Cash Flow Statement (Contd.)

(Rs. in lacs) 2010 2009 Net cash generated from fi nancing activities (C) 741,745.77 244,339.04 Net decrease in cash and cash equivalents (A + B + C) (26,074.29) (97,240.80) Cash and cash equivalents at the beginning of the year 109,615.12 206,855.92 Cash and cash equivalents at the end of the year 83,540.83 109,615.12 Net decrease in cash and cash equivalents (26,074.29) (97,240.80) Note: Cash and bank balance (as per Schedule 10 to the fi nancial statements) 92,823.22 119,561.00 Less: Fixed deposit (pledged / under lien / earmarked) 6,911.03 6,054.88 Margin money 2,048.94 3,055.48 Unclaimed dividend 160.38 110.04 Exchange gain / (loss) 162.04 725.48 83,540.83 109,615.12 Note : Figure in brackets indicate cash outfl ows.

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C. Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

This is the Consolidated Cash Flow Statement referred to in our report of even date

for Walker, Chandiok & Co Chartered Accountants New Delhi per David Jones July 28, 2010 Partner

122

Consolidated_Balance-Sheet.indd 122 8/26/2010 11:43:48 PM Schedules forming part of Consolidated Financial Statements for the year ended March 31, 2010 (Rs. in lacs) 2010 2009 SCHEDULE: 1 SHARE CAPITAL Authorised 2,497,500,000 (previous year 2,497,500,000) equity shares of Rs. 2 each 49,950.00 49,950.00 50,000 (previous year 50,000) cumulative redeemable preference shares of Rs.100 each 50.00 50.00 50,000.00 50,000.00 Issued 1,705,028,247 (previous year 1,704,832,680) equity shares of Rs. 2 each 34,100.56 34,096.65

Subscribed and paid 1,704,832,680 (previous year 1,704,832,680) equity shares of Rs. 2 each 34,096.65 34,096.65 Add : New issue under exercise of ESOP 2,40,457 (previous year nil) equity shares of Rs. 2 each 4.81 - Less : Call-in-arrears - 0.44 Less : Forfeited 43,680 (previous year nil) equity shares of Rs. 2 each 0.87 - Less : Buy back of 76,38,567 (previous year 7,623,567) equity shares of Rs. 2 each 152.77 152.47 Net Paid up 1,697,390,890 (previous year 1,697,209,113) equity shares of Rs. 2 each 33,947.82 33,943.74 Preference share capital issued by subsidiary companies 591,986.17 139,598.20 (Refer Note 22 of Schedule 24) 625,933.99 173,541.94

(Rs. in lacs) SCHEDULE : 2 RESERVES AND SURPLUS Reserves Capital reserve 283,466.48 167,832.37 Capital redemption reserve* 2,977.82 2,942.51 Amalgmation reserve 74.30 74.30 Securities premium 906,348.29 905,083.13 Forfeiture of shares 66.55 -

Statutory reserve fund As per last balance sheet 11,316.95 203.09 Transfer from proﬁ t & loss account 25,001.16 11,316.95 Transfer to general reserve - (203.09) 36,318.11 11,316.95 Revaluation reserve 1,899.18 1,591.96 Foreign currency translation reserve (5,055.96) (3,787.73)

General reserve As per last balance sheet 40,827.14 39,382.00 Transfer from proﬁ t & loss account 16,668.21 15,477.70 Transfer from statutory reserve fund 2.04 203.09 Buy back of equity shares (premium paid) (77.50) (14,083.18) Transfer to capital redemption reserve account* (0.30) (152.47) 57,419.59 40,827.14 Employees’ stock option scheme Employees’ stock options outstandings 29,489.44 23,795.94 Less: Deferred employees compensation (18,683.84) (15,830.13) 10,805.60 7,965.81 Surplus As per proﬁ t & loss account 1,196,594.14 1,107,993.38 Amalgamation adjustment (73,575.60) - 1,123,018.54 1,107,993.38 2,417,338.50 2,241,839.82 * Refer note 2 of Schedule 24

123

Consolidated_Balance-Sheet.indd 123 8/26/2010 11:43:48 PM Schedules forming part of Consolidated Financial Statements (Contd.)

(Rs. in lacs) 2010 2009 SCHEDULE: 3 SECURED LOANS From banks Term loans 1,253,374.44 888,292.97 Overdraft facilities 13,877.90 78,224.57 1,267,252.34 966,517.54 From others GE Capital Services India 3,528.07 5,150.26 Infrastructure Development Finance Company Limited 15,000.00 15,000.00 GE Money Financial Services Limited 4,424.93 - Housing Development Finance Corporation Limited 409,886.03 83,200.00 Axis Bank Limited -Trust Series 8,000.00 123,350.94 SREI Infrastructure Finance Limited - 562.20 TML Finance Service Limited - 318.90 Others 66.34 130.28 440,905.37 227,712.58 Debentures 90 (previous year 90), 10% non - cumulative non-redeemable debentures of Rs. 1,000 each 0.90 0.90 5,000 (previous year 5,000) 13.70% non-convertible redeemable debentures of Rs. 1,000,000 50,000.00 50,000.00 each redeemable on August 18, 2013 7,200 (previous year 7,200) 14% non-convertible redeemable debentures of Rs. 1,000,000 each 72,000.00 72,000.00 redeemable on February 24, 2014 Nil (previous year 1,000) 14% non-convertible redeemable debentures of Rs. 1,000,000 each - 10,000.00 redeemable on January 03, 2010 3,000 (previous year nil) 10% non-convertible redeemable debentures of Rs. 1,000,000 each 30,000.00 - redeemable on February 17, 2012 7,000 (previous year nil) 10.50% non-convertible redeemable debentures of Rs. 1,000,000 each 70,000.00 - redeemable on February 17, 2013 222,000.90 132,000.90 1,930,158.61 1,326,231.02 (Refer note 3 of Schedule 24)

(Rs. in lacs) SCHEDULE: 4 UNSECURED LOANS Fixed deposits 35.00 111.50 Interest accrued and due 1.07 0.72 36.07 112.22 Other term loans and advances Directors - subsidiary company 15.34 15.34 Banks Standard Chartered Bank 26,245.92 27,143.42 The Hong Kong Shanghai Banking Corporation Limited 3,880.61 4,380.09 Oriental Bank of Commerce 299.88 - Others Axis Bank Limited (“Trustees”) - 50,000.00 Commercial papers 100,000.00 77,500.00 ICICI Home Finance Company Limited - 27,500.00 Indian Loan Receivable Trust - 15,000.00 Other body corporate(s) 9,728.02 18,657.33 Interest accrued and due 242.97 2,698.40 Debentures 20,116 (previous year 20,116) 12.50% Compulsory convertible debentures of Rs. 225,000 each 45,261.00 45,261.00 22,972 (previous year 22,972) 12% Compulsory convertible debentures of Rs. 50,000 each 11,486.00 11,486.00

124

Consolidated_Balance-Sheet.indd 124 8/26/2010 11:43:48 PM (Rs. in lacs) 2010 2009 SCHEDULE: 4 UNSECURED LOANS (Contd.) 12,821 (previous year 12,821) 12.50% Compulsory convertible debentures of Rs. 75,000 each 9,615.75 9,615.75 17,433 (previous year 17,433) 12.50% Compulsory convertible debentures of Rs. 27,500 each 4,794.08 4,794.08 2,520 (previous year nil) Class B Compulsory convertible debentures of Rs. 100,000 each 2,520.00 - 14,18,370 (previous year nil) Series I Compulsory convertible debentures of Rs. 1,000 each 14,183.70 - From a share holder of a subsidiary company 9,197.04 11,618.65 237,506.38 305,782.28 (Refer note 4 of Schedule 24)

(Rs. in lacs) SCHEDULE : 5 DEFERRED TAX LIABILITY / (ASSET) Deferred tax liability arising on account of : Depreciation 42,460.33 7,847.22 Pre-construction period interest allowed in current year 8,051.49 4,381.26 Others 0.93 0.93 Gross deferred tax liability 50,512.75 12,229.41

Deferred tax asset arising on account of : Brought forward losses / unabsorbed depreciation 21,086.51 14,603.10 Expenditure debited to proﬁ t & loss account but allowable for tax purposes in subsequent years 502.86 601.75 Doubtful debts and advances 2,757.24 280.04 Dimunition in the value of investments 18.28 27.42 Employee beneﬁ ts 987.24 855.50 Others 11.51 0.72 Gross deferred tax asset 25,363.64 16,368.53 Net deferred tax liability / (asset) 25,149.11 (4,139.12) Aggregate of net deferred tax liabilities jurisdictions 39,242.73 9,186.27 Aggregate of net deferred tax assets jurisdictions (14,093.62) (13,325.39) Net liability / (asset) 25,149.11 (4,139.12)

(Rs. in lacs) SCHEDULE : 6 FIXED ASSETS Gross block 2009 Additions on Additions / Disposals / 2010 acquisition of adjustments adjustments subsidiaries during the during the year year Intangible assets Computer softwares 3,970.20 - 1,011.87 566.84 4,415.23 Patent, trademark and franchise rights - - 661.86 - 661.86 Tangible assets Land Lease hold 214,805.92 6,269.61 6,891.63 40,039.91 187,927.25 Free hold 99,777.82 85.59 54,312.91 8,881.27 145,295.05 Buildings and related equipments 288,441.32 668,844.84 191,549.07 28,892.15 1,119,943.08 Plant and machinery 199,883.72 20,497.10 19,763.55 1,233.27 238,911.10 Furniture, ﬁ xtures and equipments 22,108.66 14,784.15 24,268.60 3,223.81 57,937.60 Air conditioners and coolers 206.76 - 70.93 21.38 256.31 Vehicles 3,791.08 135.86 214.01 181.17 3,959.78

125

Consolidated_Balance-Sheet.indd 125 8/26/2010 11:43:48 PM Schedules forming part of Consolidated Financial Statements (Contd.)

(Rs. in lacs) SCHEDULE : 6 FIXED ASSETS Gross block 2009 Additions on Additions / Disposals / 2010 acquisition of adjustments adjustments subsidiaries during the during the year year Leasehold improvement 3,778.66 - 5,363.92 528.52 8,614.06 Aircraft and helicopter 11,895.80 - 8,628.47 - 20,524.27 Leased plant and machinery 8.89 - - 8.89 - Total - Current year 848,668.83 710,617.15 312,736.82 83,577.21 1,788,445.59 - Previous year 516,255.90 - 350,165.45 17,752.52 848,668.83

Depreciation and amortisation Intangible assets Computer softwares 511.41 - 794.24 138.26 1,167.39 Patent, trademark and franchise rights - - 22.06 - 22.06 Tangible assets Land-Lease hold 178.60 - 151.37 - 329.97 Buildings and related equipments 9,726.06 32,500.93 6,317.25 638.76 47,905.48 Plant and machinery 41,396.94 5,553.40 21,396.73 536.95 67,810.12 Furniture, ﬁ xtures and equipments 1,933.37 3,094.49 4,745.63 86.53 9,686.96 Air conditioners and coolers 76.75 - 12.53 8.16 81.12 Vehicles 1,103.39 44.54 391.70 152.11 1,387.52 Leasehold improvement 749.77 - 935.32 95.69 1,589.40 Aircraft and helicopter 1,750.77 - 915.04 - 2,665.81 Leased assets Leased plant and machinery 2.47 - - 2.47 - Total - Current year 57,429.53 41,193.36 35,681.87 1,658.93 132,645.83 - Previous year 34,349.11 - 27,435.73 4,355.31 57,429.53

Net block Intangible assets Computer softwares 3,458.79 3,247.84 Patent, trademark and franchise rights - 639.80 Tangible assets Land Lease hold 214,627.32 187,597.28 Free hold 99,777.82 145,295.05 Buildings and related equipments 278,715.26 1,072,037.60 Plant and machinery 158,486.78 171,100.98 Furniture, ﬁ xtures and equipments 20,175.29 48,250.64 Air conditioners and coolers 130.01 175.19 Vehicles 2,687.69 2,572.26 Leasehold improvement 3,028.89 7,024.66 Aircraft and helicopter 10,145.03 17,858.46 Leased assets Leased plant and machinery 6.42 - Total - Current year 791,239.30 1,655,799.76 - Previous year 481,906.79 791,239.30

126

Consolidated_Balance-Sheet.indd 126 8/26/2010 11:43:48 PM (Rs. in lacs) SCHEDULE : 7 INVESTMENTS Class* 2010 2009 2010 2009 Share (No.) Share (No.) Book value Book value Long Term In Shares (Quoted) (Trade) Ackruti City Limited Equity 430,621 430,621 2,267.51 2,267.81 Symphony International Holding Limited Equity 50,000,000 50,000,000 22,479.60 25,820.00 Aggregate Book value of Quoted Investments (Trade) 24,747.11 28,087.81 Aggregate Market value of Quoted Investments (Trade) 17,307.28 10,661.61 In shares / CCDs (Unquoted) (Trade) Abheek Real Estate Private Limited Equity 3,000 - 0.30 - Adeline Builders & Developers Private Limited Equity 2,000 - 0.20 - Alankrit Estates Limited Equity 3 3 -** -** Alvita Builders & Developers Private Limited Equity - 500 - 0.05 Anuroop Builders and Developers Private Limited Equity 10,000 10,000 1.00 1.00 Armand Builders & Constructions Private Limited Equity 2,000 - 0.20 - ASC Spring Creek LLC Equity 3,253,277 - 139.41 - Bansal Development Company Private Limited Equity 16,320 16,320 1.64 1.64 Bodrum Demirbuku Equity 125,000 125,000 130.42 149.51 Cadence Builders & Constructions Private Limited Equity - 2,000 - 0.20 D.E. Shaw Composite Fund Equity 4,000,000 4,000,000 1,798.37 2,065.60 Digital Talkies Private Limited Equity 8,850 8,850 88.50 88.50 Digital Talkies Private Limited Preference 80,680 80,680 80.68 80.68 Eigen Technical Services Limited Equity - 10,000 - 1.00 Elvira Builders & Constructions Private Limited Equity 2,000 - 0.20 - Fadey Builders & Developers Private Limited Equity - 2,000 - 0.20 Felicite Builders & Constructions Private Limited Equity 203,000 219,400 20.30 21.94 Flora Real Estate Private Limited Equity - 500 - 0.05 Garv Developers Private Limited Equity 10,000 10,000 1.00 1.00 Garv Promoters Private Limited Equity 10,000 10,000 1.00 1.00 Garv Realtors Private Limited Equity 10,000 10,000 1.00 1.00 Grism Builders and Developers Private Limited Equity 10,000 10,000 1.00 1.00 Hansel Builders & Developers Private Limited Equity 2,000 - 0.20 - Hemadri Real Estate Developers Private Limited Equity 3,000 - 0.30 - Ishayu Builders and Developers Private Limited Equity 4,000 4,000 0.40 0.40 Ivory Consultancy Limited Equity - 10,000 - 1,000.00 Jayanti Real Estate Developers Private Limited Equity 4,000 - 0.40 - Kirtimaan Builders Limited Equity 2 2 -** -** Lada Estates Private Limited Equity 2,000 - 0.20 - Lear Builders & Developers Private Limited Equity 2,000 - 0.20 - Luvkush Builders Private Limited Equity 10,000 10,000 1.00 1.00 Luxurious Bus Seats Company Private Limited Equity 98,250 98,250 550.20 550.20 Magna Real Estate Developers Private Limited Equity 10,000 10,000 1.01 1.01 Magna Real Estate Developers Private Limited Preference 4,000 4,000 4.03 4.03 Melosa Builders & Developers Private Limited Equity 2,000 - 0.20 - Milos Resort Holdings Limited Equity - 1,000 - 0.44 Mohak Real Estate Private Limited Equity 3,000 3,000 0.30 0.30 Nachiketa Real Estate Private Limited Preference 12,000 12,000 12.00 12.00 Nadish Real Estate Private Limited Equity 10,000 10,000 1.00 1.00 Nairne Builders and Developers Private Limited Equity 2,000 - 0.20 - Northern India Theaters Private Limited (Rs. 100 each) Equity 90 90 0.09 0.09 Pariksha Builders & Developers Private Limited Equity 3,000 - 0.30 - Peace Buildcon Private Limited Equity 10,000 10,000 1.00 1.00 Prudent Management Strategies Private Limited Equity 90,100 90,100 500.05 500.14 Pyrite Builders & Constructions Private Limited Equity 2,000 - 0.20 -

127

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(Rs. in lacs) SCHEDULE : 7 INVESTMENTS Class* 2010 2009 2010 2009 Share (No.) Share (No.) Book value Book value Qabil Builders & Constructions Private Limited. Equity 2,400 2,000 0.24 0.20 Rachelle Builders & Constructions Private Limited Equity 2,000 - 0.20 - Radiant Sheet Metal Components Private Limited Equity 98,500 98,500 650.10 650.10 Realest Builders and Services Private Limited Equity 50,012 50,012 5.03 5.03 Ripple Infrastructure Private Limited Equity 90,100 90,100 500.05 500.14 Rochelle Builders & Constructions Private Limited Equity 2,000 - 0.20 - SKH Construct Well Private Limited Equity 92,550 92,550 499.77 499.77 SKH Infrastructure Developers Private Limited Equity 92,550 92,550 499.77 499.77 Skyrise Home Developers Private Limited Equity 10,000 10,000 1.00 1.00 Star Alubuild Private Limited CCD 24 - 239.89 - Super Mart One Property Management Services Private Equity 40,000 40,000 4.03 4.03 Limited Super Mart One Property Management Services Private Preference 3,000 3,000 3.02 3.02 Limited Thalia Infratech Private Limited Equity 36,000 36,000 3.60 3.60 Turan Infratech Private Limited Equity 36,000 36,000 3.60 3.60 Ujagar Estates Limited Equity 2 2 -** -** Urbana Limited Equity 1,000,000 1,000,000 622.93 380.64 Vibodh Developers Private Limited Equity 10,000 10,000 1.00 1.00 Vinesh Home Developers Private Limited Equity 10,000 10,000 1.00 1.00 Vismay Builders and Developers Private Limited Equity 10,000 10,000 1.00 1.00 Webcity Builders and Developers Private Limited Equity 3,000 3,000 0.30 0.30 YG Realty Private Limited Equity - 39,524 - 3.95 YG Realty Private Limited CCD 1,292,952 3,266,480 12,929.52 25,630.10 19,304.75 32,674.23 Less : Provision for diminution in value 169.18 169.18 19,135.57 32,505.05 In Associates (Trade unquoted) Australian Resort Limited Equity 9,000,002 9,000,002 -** -** DLF Pramerica Advisory Services Private Limited Equity - 5,850,000 - 585.00 Ferragamo Retail India Private Limited Equity 7,350,000 7,350,000 735.00 735.00 Giorgio Armani India Private Limited Equity 2,940,000 2,940,000 294.00 98.00 Islan Aviation Limited Equity 903,996 903,996 -** -** Joyous Housing Limited (Rs. 100 each) Equity 37,500 37,500 37.50 37.50 Kyoto Resorts YK Equity 333 333 727.37 835.46 Lillion Builders and Developers Private Limited Equity - 3,100 - 0.31 P.T. Jawa Express Amanda Indah Equity 9,161 9,161 -** -** Pamalican Island Holdings Inc. Equity 2,098 2,098 6.13 7.05 Regional D & R Limited Equity 6 6 -** -** Revlys SA Equity 159,999 159,999 977.72 1,123.00 Seven Seas Resorts and Leisure Inc. Equity 31,914,275 151,600,000 764.31 877.88 Seven Seas Resorts and Leisure Inc. Preference 39,567,424 188,256,000 947.29 1,088.05 Surin Bay Co. Limited Equity 449,998 449,998 4,130.01 4,743.71 Villajena Equity 50,000 50,000 290.13 333.25 Zeus Infrastructure Private Limited Equity 48,500 100,000 4.85 10.00 8,914.31 10,474.21 Add: Proﬁ t in associates (net) 4,490.30 6,794.34 13,404.61 17,268.55

In Investment properties 3,543.45 13,307.00

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Consolidated_Balance-Sheet.indd 128 8/26/2010 11:43:48 PM (Rs. in lacs) SCHEDULE : 7 INVESTMENTS Class* 2010 2009 2010 2009 Share (No.) Share (No.) Book value Book value In Trusts Belaire Receivables Trust 6,943.81 8,633.31 Zensi Real Estate Trust 59,514.02 9,381.58 66,457.83 18,014.89 In Government Securities GOI 06.05% 02FEB19 50,000,000 50,000,000 467.46 465.16 GOI 06.07% 15MAY14 6,500,000 - 62.34 - GOI 06.25% 02JAN18 3,200,000 - 29.19 - GOI 07.02% 17AUG16 4,320,000 - 41.96 - GOI 07.38% 03SEP15 1,000,000 1,000,000 9.67 9.64 GOI 07.40% 03MAY12 5,000,000 - 51.20 - GOI 07.56% 03NOV14 7,500,000 - 76.13 - GOI 07.59% 12APR16 50,000,000 - 520.36 - GOI 07.94% 24MAY21 50,000,000 - 528.69 - GOI 07.95% 18FEB26 50,000,000 - 527.79 - GOI 07.99% 09JUL17 100,000,000 50,000,000 1,064.44 539.73 GOI 10.25% 01JUN12 32,150,000 - 344.17 - GOI 11.83% 12NOV14 26,630,000 20,000,000 321.76 252.24 GOI 12.00% 21OCT11 100,000,000 200,000,000 1,067.99 2,212.71 GOI 12.25% 02JUL10 45,000,000 45,000,000 507.04 439.54 GOI 12.40% 20AUG13 3,000,000 - 34.99 - National Saving Certiﬁ cate 1.97 0.51 5,657.15 3,919.53 In Treasury Bills 91 DAYS T BILL(01MY09) - 20,000,000 - 199.23 91 DAYS T BILL(12JU09) - 20,000,000 - 198.24 91 DAYS T BILL (15MY09) - 70,000,000 - 696.24 91 DAYS T BILL(24AP09) - 45,000,000 - 448.72 - 1,542.43 In Infrastructure Bonds REC 07.60% 22JAN13 50,000,000 - 500.00 - IRFC 08.46% 15JAN14 50,000,000 50,000,000 495.38 494.51 POWER GRID CIL 09.20% 12MAR18 50,000,000 50,000,000 500.00 500.00 PFC 08.70% 09JUL10 20,000,000 20,000,000 200.00 200.00 PFC 08.90% 15MAR15 20,000,000 - 202.53 - IL&FS 09.25% 17AUG16 50,000,000 - 500.00 - PFC 10.75% 15JUL11 12,000,000 12,000,000 123.06 125.28 PFC 11.40% 28NOV13 38,000,000 38,000,000 409.38 415.97 2,930.35 1,735.76 In Fixed Deposits: AXIS Bank 267.00 - CITI Bank 210.00 201.00 HDFC Bank 44.00 22.00 521.00 223.00 In Partnership ﬁ rms DLF GK Residency - 100.00 - 100.00 Short Term In Shares (Quoted) (Non-trade) # ABB India Limited Equity 4,155 - 34.49 - Andhra Cements Limited Equity - 12 - -** Axis Bank Limited Equity 4,895 540 57.19 2.24

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(Rs. in lacs) SCHEDULE : 7 INVESTMENTS Class* 2010 2009 2010 2009 Share (No.) Share (No.) Book value Book value Bajaj Auto Limited Equity 4,281 520 86.10 3.22 Balarampur Chini Mills Limited Equity 3,496 715 3.23 0.38 Bharat Electronics Limited Equity - 385 - 3.40 Bharat Heavy Electricals Limited Equity 4,281 303 102.12 4.56 Bharat Petroleum Corporation Limited Equity - 333 - 1.25 Bharti Airtel Limited Equity 17,097 684 53.33 4.28 Bombay Dyeing and Manufacturing Company Limited Equity 1,296 - 7.14 - Cairn India Limited Equity 34,036 2,030 103.90 3.74 Century Textiles Limited Equity - 179 - 0.39 Cipla Limited Equity 15,332 1,230 51.68 2.70 Crompton Greaves Limited Equity 15,327 2,406 40.00 2.96 Dishman Pharma and Chemical Limited Equity 1,158 - 2.46 - EIH Limited Equity 177,681 177,681 215.16 153.69 Gail India Limited Equity 7,279 787 29.83 1.92 Glenmark Pharmaceutical Limited Equity - 213 - 0.33 Grasim Industries Limited Equity 644 181 18.12 2.85 Great Eastern Shipping Company Limited Equity 954 - 2.80 - HDFC Bank Limited Equity 5,788 288 111.84 2.79 Hero Honda Motors Limited Equity 249 598 4.84 6.40 Hindustan Unilever Limited Equity 21,699 1,354 51.80 3.23 Housing Development Finance Corporation Limited Equity 2,147 - 58.24 - ICICI Bank Limited Equity 12,022 840 114.51 2.80 Indian Oil Corporation Limited Equity - 311 - 1.20 Infosys Technologies Limited Equity 6,714 306 175.58 4.05 Infrastructure Development Finance Company Limited Equity 14,016 - 22.56 - Ispat Proﬁ les India Limited Equity - 250 - 0.03 ITC Limited Equity 39,942 2,611 105.07 4.83 IVRCL Infrastructures & Projects Limited Equity - 280 - 0.34 Jaiprakash Associates Limited Equity 10,498 - 15.70 - Jindal Steel & Power Limited Equity 5,565 - 39.08 - KEC International Limited Equity 266 262 1.55 0.40 Larsen & Toubro Limited Equity 6,893 426 112.10 2.86 Mahindra & Mahindra Limited Equity - 395 - 1.51 Maruti Suzuki India Limited Equity 437 374 6.19 2.90 Mphasis Limited Equity - 683 - 1.36 National Thermal Power Corporation Limited Equity 13,130 1,509 27.18 2.71 Nestle India Limited Equity - 220 - 3.42 Orient Abrasives Limited Equity - 62,000 - 4.38 Oil and Natural Gas Corporation Limited Equity 1,726 - 18.96 - Petron Engineering Construction Limited Equity - 5,000 - 2.16 Power Grid Corporation of India Limited Equity 5,430 1,391 5.82 1.33 Punjab National Bank Equity 473 781 4.79 3.21 Ranbaxy Laboratories Limited Equity 3,240 - 15.39 - Reliance Communications Limited Equity 82,157 80,902 140.23 141.45 Reliance Industries Limited Equity 17,002 494 182.64 7.52 Reliance Infrastructure Limited Equity 580 254 5.79 1.31 Reliance Media Works Limited (formerly Adlabs Films Equity 115,943 115,943 75.83 196.00 Limited) Reliance Media World Limited Equity 115,943 - - - Reliance Power Limited Equity 228,633 228,633 341.81 146.25 Siemens Limited Equity 5,779 543 42.77 1.46

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Consolidated_Balance-Sheet.indd 130 8/26/2010 11:43:48 PM (Rs. in lacs) SCHEDULE : 7 INVESTMENTS Class* 2010 2009 2010 2009 Share (No.) Share (No.) Book value Book value SPICEJET Limited Equity 65,674 - 38.29 - State Bank of India Equity 2,314 193 48.09 2.06 Steel Authority of India Limited Equity - 2,850 - 2.75 Sterlite Industries India Limited Equity 3,019 721 25.59 2.56 Sun Pharmaceutical Industries Limited Equity 1,225 275 21.92 3.06 TATA Chemicals Limited Equity 1,636 - 5.35 - TATA Consultancy Services Limited Equity 7,794 789 60.84 4.25 TATA Motors Limited Equity 3,589 749 27.12 1.35 TATA Power Company Limited Equity 5,555 387 76.24 2.96 TATA Steel Limited Equity 5,550 1,029 35.08 2.12 Union Bank of India Equity - 1,154 - 1.69 Unitech Limited Equity - 19,500 - 0.03 Voltas Limited Equity - 712 - 0.33 Wipro Limited Equity 3,743 - 26.46 - # Valued at lower of cost or market value 2852.80 756.97

In Mutual fund (Quoted) # # Axis Liquid Fund 7,500.72 - Axis Treasury Advantage Fund 35,365.26 - Birla Sun Life Cash Plus 12.36 120.88 Birla Sun Life Short Term Fund 62,835.17 - Birla Sun Life Savings Fund 7,384.15 5,071.93 DSP Black Rock Cash Flex Fund - 4,518.40 DSP Black Rock Floating Rate Fund 29,130.14 - DWS Insta Cash Plus Fund 171.04 - GFCD IDFC Money Manager Fund 77.71 - HDFC Liquid Fund-Growth 43.01 96.25 ICICI Prudential Liquid Plan-Growth 12.24 110.55 ICICI Prudential Ultra Short Term Plan Super Premium 65,137.20 - Fund JP Morgan India Treasury Fund 7,862.67 - Kotak Floater Long Term Fund 40,143.53 - Reliance Money Manager Fund 64,274.56 - Reliance Liquid Fund 1,284.65 111.14 SBI Magnum Insta Cash - 120.88 SBI Premier Liquid Fund - 1,561.86 Tata Liquid Super High Investment Plan Fund 170.69 - UTI Short Term Income Fund 50,065.88 - UTI Treasury Advantage Fund 28,581.66 - 400,052.64 11,711.89 # # Aggregate market value as on March 31, 2010 Rs. 4,00,118.75 lacs (previous year Rs. 11,717.91 lacs) In Mutual fund (Unquoted) Urban Infrastructure Opportunities Fund 11,069.60 11,069.60 Thai Farmers Bank - Open End Equity(Fixed Inc.) 6.51 7.19 11,076.11 11,076.79 In Funds Vkarma Capital Fund 5.10 - 5.10 - In Call Options 136.24 - 550,519.96 140,249.67 * Equity shares of Rs. 10 each , Preference shares of Rs. 100 each unless otherwise stated. ** Rounded off to ‘zero’

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(Rs. in lacs) 2010 2009 SCHEDULE: 8 STOCKS Land and plots including related development cost 640,154.03 549,409.06 Development rights: payments under agreement to purchase land / development rights / 586,689.74 525,997.32 constructed properties Rented buildings (including land and related equipments) On leasehold land 3,054.27 3,054.27 On freehold land 12,345.09 10,785.05 15,399.36 13,839.32 Less: Depreciation on buildings and related equipments 1,520.44 1,183.73 13,878.92 12,655.59 Food and beverages 2,315.86 2,218.39 Stores and spares 3,166.58 2,073.73 Stock-in-trade - Retail chain outlets 1,853.97 470.15 1,248,059.10 1,092,824.24

(Rs. in lacs) SCHEDULE : 9 SUNDRY DEBTORS (Considered good unless otherwise stated) Debts over six months Secured 1,668.43 188.97 Unsecured - considered good 113,306.12 83,645.29 - considered doubtful 15,181.59 13,805.38 130,156.14 97,639.64 Other debts Secured 4,288.66 2,824.27 Unsecured - considered good 42,633.20 129,823.62 177,078.00 230,287.53 Less: Doubtful and provided for 15,181.59 13,805.38 161,896.41 216,482.15

(Rs. in lacs) SCHEDULE : 10 CASH AND BANK BALANCES Cash in hand 498.31 372.77 Cheques in hand 256.20 966.30 Bank balances: With scheduled banks in Current accounts* 63,331.06 24,150.89 Pledged accounts 478.02 462.24 Fixed deposit accounts Pledged / under lien / earmarked 6,911.03 6,054.88 Margin money 2,048.94 3,055.48 Others 16,791.50 81,379.24 With non-scheduled banks in current account 2,508.16 3,119.20 92,823.22 119,561.00 * includes unutilised money from public issue Rs. nil (previous year Rs. 6.96 lacs)

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Consolidated_Balance-Sheet.indd 132 8/26/2010 11:43:48 PM (Rs. in lacs) SCHEDULE :11 LOANS AND ADVANCES (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Secured 6,191.06 2,655.58 Unsecured [including Rs. 7,423.50 lacs (previous year Rs. 435.61 lacs) doubtful] 329,215.93 532,685.32 335,406.99 535,340.90 Security deposits 42,082.45 39,367.08 Taxes paid 388,664.16 358,442.15 Share / debenture application money 600.00 38,484.94 766,753.60 971,635.07 Less: Doubtful and provided for 7,423.50 435.61 759,330.10 971,199.46

(Rs. in lacs) 2010 2009 SCHEDULE : 12 OTHER CURRENT ASSETS Investment in lease [net of unearned fi nance income Rs. 1,906.91 lacs (previous year 3,144.76 8,430.04 Rs. 4,048.80 lacs)] Assets held for leasing 4,767.32 - Interest accrued Customers 13,763.26 7,111.17 Banks / fi xed deposits 1,273.71 1,710.75 Loans and advances 8,784.24 6,918.55 Unbilled receivable* 436,734.15 738,003.18 * Refer accounting policy 10 of Schedule 23 of signifi cant accounting policies 468,467.44 762,173.69

(Rs. in lacs) SCHEDULE :13 CURRENT LIABILITIES Sundry creditors 152,492.90 232,489.58 Realisation under agreement to sell 116,872.19 15,366.66 Advance from recreational facility members 2,784.19 9,336.77 Security deposits 90,000.56 48,070.52 Uncashed dividend * 160.38 110.04 Interest accrued but not due on loans 23,699.66 28,765.95 Other liabilities 77,687.03 79,894.87 463,696.91 414,034.39 * Not due for credit to “Investor Education and Protection Fund”

(Rs. in lacs) SCHEDULE : 14 PROVISIONS Proposed dividend * 50,945.38 33,998.49 Tax on dividend* 5,518.65 2,901.30 Income-tax 349,992.31 326,153.79 Employee beneﬁ ts 7,559.50 5,351.55 414,015.84 368,405.13 * Includes Rs. 16,220.67 lacs (previous year Rs. Nil) proposed dividend / dividend tax there on of DLF Assets Private Limited, subsidiary company, declared before acquisition.

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(Rs. in lacs) 2010 2009 SCHEDULE : 15 SALES AND OTHER INCOME a) Sales and other receipts Sale of land and plots (including sale of development right) 11,466.91 36,368.35 Revenue from constructed properties 443,125.51 417,188.54 Income from development charges 100,656.61 394,465.94 Sale of fi touts under fi nance lease (including fi nance charges) 780.44 9,894.72 Rent 72,456.39 50,541.95 Service and maintenance income 44,270.26 31,775.24 Revenue from retail chain outlets 2,293.05 150.51 Revenue from food court / restaurant business 2,343.21 1,097.45 Revenue from hotel business 22,712.83 29,962.35 Revenue from power generation 26,191.35 25,732.53 Revenue from cinemas operations 5,214.81 1,380.85 Revenue from recreational facility 2,834.74 3,069.61 Revenue from insurance business 4,738.52 1,172.37 Amount forfeited on properties 3,202.52 738.27 742,287.15 1,003,538.68 b) Income from investments Current (other than trade) Dividend from mutual funds 3,177.17 868.28 Dividend - others 267.55 45.87 Long term (trade) Dividend 4.31 5.62 Interest on debentures 0.55 22.83 Income from investment in trust 358.54 - Profi t / (loss) from partnership fi rms - (1.49) 3,808.12 941.11 c) Other income Interest from: Bank deposits 1,490.13 2,578.70 Income-tax refunds 1,432.73 6.55 Customers 11,368.23 9,009.85 Loans and deposits 7,339.02 10,124.82 Others 510.54 870.13 22,140.65 22,590.05 Exchange gain (net) 1,012.47 725.48 Profi t on disposal of fi xed assets 7,026.91 55.14 Income from display of advertisements 33.68 519.77 Unclaimed balances and excess provisions written back 2,416.19 1,196.02 Profi t from sale of investment 1,727.93 8,504.33 Commission 176.21 247.45 Miscellaneous income 4,460.46 4,817.66 38,994.50 38,655.90 785,089.77 1,043,135.69

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Consolidated_Balance-Sheet.indd 134 8/26/2010 11:43:49 PM (Rs. in lacs) 2010 2009 SCHEDULE : 16 COST OF REVENUES Cost of land, plots and constructed properties (including cost of development right) 173,994.14 183,876.53 Cost of development charges 33,156.86 92,985.48 Cost of ﬁ touts under ﬁ nance lease - 9,069.57 Cost of power generation 7,156.33 2,416.92 Foods and beverages and facility management expenses - hotel business 6,734.93 8,540.43 Consumption of food and beverages - food court and restaurants 926.52 250.24 Cost of goods sold - retail chain outlets 1,362.04 99.85 Cost of service and maintenance 27,434.96 23,346.01 Cost of cinema operations 2,285.53 664.94 Cost of recreational facility 1,577.66 1,432.04 Cost of insurance business 3,324.77 267.47 257,953.74 322,949.48

(Rs. in lacs) SCHEDULE : 17 ESTABLISHMENT EXPENSES Salaries, wages and bonus 40,698.05 39,839.14 Contribution to provident and other funds 1,206.19 948.59 Amortisation of deferred employees compensation (net) 4,147.20 3,786.35 Staff welfare 626.01 793.83 46,677.45 45,367.91

(Rs. in lacs) SCHEDULE : 18 FINANCE CHARGES Interest Fixed periods loans Debentures 19,630.74 5,757.16 Other term loans 53,705.21 37,069.61 73,335.95 42,826.77 Others 24,093.12 2,506.80 97,429.07 45,333.57 Guarantee, ﬁ nance and bank charges 13,574.84 10,150.12 111,003.91 55,483.69

(Rs. in lacs) SCHEDULE : 19 OTHER EXPENSES Rent 4,952.29 4,236.52 Rates and taxes 2,111.54 1,553.04 Power, fuel and electricity 1,641.39 2,703.49 Repair and maintenance Building 760.53 472.58 Constructed properties / colonies 462.83 173.05 Machinery 1,022.78 1,394.20 Others 3,257.16 2,692.33 Operating and maintenance of windmill 2,037.84 78.68 Insurance 1,181.32 881.50 Commission and brokerage 9,397.02 12,152.58 Advertisement and publicity 11,338.45 8,191.19 Travelling and conveyance 2,631.49 2,913.64 Running and maintenance Vehicle 346.90 592.10 Aircraft & helicopter 1,222.73 2,956.44

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(Rs. in lacs) SCHEDULE : 19 OTHER EXPENSES (Contd.) 2010 2009 Printing and stationery 715.28 950.73 Director’s fee 530.46 447.03 Sales promotion 2,851.89 2,051.57 Communication 1,556.83 1,773.34 Legal and professional (including audit fees) 11,433.95 13,318.88 Charity and donations 3,484.10 313.73 Claims and compensation 1,379.92 530.31 Loss on disposal of ﬁ xed assets 1,236.32 502.13 Loss on sale of short term investments 4.69 991.82 Loss on sale of long term investments 868.72 - Advance / assets written off 5,700.19 389.58 Preliminary expenses written off 147.37 163.92 Provision for doubtful debts and advances 8,189.10 6,323.33 Provision for diminution of current investment - 1,189.90 Miscellaneous expenses 6,035.68 6,282.03 86,498.77 76,219.64

(Rs. in lacs)

SCHEDULE : 20 DEPRECIATION ,AMORTISATION AND IMPAIRMENT On ﬁ xed assets (net of capitalisation) 32,119.73 23,591.24 On current asset 336.71 268.32 On investment properties 36.84 36.84 32,493.28 23,896.40

(Rs. in lacs)

SCHEDULE : 21 PROVISION FOR TAX Income tax 77,616.65 74,086.78 Deferred tax (7,391.73) (7,446.27) Fringe beneﬁ t tax, (net of recovery) - 895.38 70,224.92 67,535.89

(Rs. in lacs) SCHEDULE : 22 EARNING PER SHARE Proﬁ t after tax, minority interest and before prior period items 181,398.15 446,818.50 Prior period items : Income-tax (net) (1,601.59) (598.31) Depreciation (124.07) 19.44 Deferred tax (6,269.73) - Other expenses (1,419.73) 720.34 171,983.03 446,959.97 Nominal value of equity share (Rs.) 2.00 2.00 Weighted average number of equity shares 1,697,243,145 1,703,074,486 Basic earning per share (Rs.) 10.13 26.24 Nominal value of equity share (Rs.) 2.00 2.00 Number of equity shares used to compute diluted earning per share 1,700,592,070 1,703,615,271 Diluted earning per share (Rs.) 10.11 26.24

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Consolidated_Balance-Sheet.indd 136 8/26/2010 11:43:49 PM SCHEDULE : 23 SIGNIFICANT ACCOUNTING POLICIES

1. Nature of operations i) Consolidated Financial Statements DLF Limited (‘DLF’ or the ‘Company’), a public normally include consolidated balance limited company, together with its subsidiaries, sheet, consolidated statement of profi t joint ventures and associates (collectively & loss, consolidated statement of cash referred to as the ‘Group’) is engaged primarily fl ows and notes to the Consolidated in the business of colonisation and real estate Financial Statements and explanatory development. The operations of the Group statements that form an integral part span all aspects of real estate development, thereof. The Consolidated Financial from the identifi cation and acquisition of Statements are presented, to the extent land, to planning, execution, construction possible, in the same format as that and marketing of projects. The Group is also adopted by the parent for standalone engaged in the business of generation of fi nancial statements. power, provision of maintenance services, ii) The Consolidated Financial Statements hospitality & recreational activities, life include the fi nancial statements of the insurance and retail chain outlets. Company and all its subsidiaries, which 2. Basis of accounting are more than 50 per cent owned or controlled and partnership fi rms where The Consolidated Financial Statements are the Company’s share in the profi t sharing prepared under historical cost convention ratio is more than 50 per cent during the on an accrual basis, in accordance with the year. Investments in entities that were generally accepted accounting principles not more than 50 per cent owned or in India and to comply with the Accounting controlled and partnership fi rms where Standards prescribed in the Companies the profi t sharing ratio was not more (Accounting Standards) Rules, 2006 issued than 50 per cent during the year have by the Central Government in exercise of the been accounted for in accordance with power conferred under sub-section (I) (a) of the provisions of Accounting Standard Section 642 and the relevant provisions of the 13 ‘Accounting for Investments’, or Companies Act, 1956 (the ‘Act’). Accounting Standard 23 ‘Accounting 3. Principles of consolidation for Investments in Associates in The Consolidated Financial Statements Consolidated Financial Statements’, include the fi nancial statements of DLF or Accounting Standard 27 ‘Financial Limited, its subsidiaries, joint ventures, Reporting of Interests in Joint Ventures’ partnership fi rms and associates. The (as applicable) notifi ed pursuant to the Consolidated Financial Statements of the Companies (Accounting Standards) Group have been prepared in accordance Rules, 2006. with Accounting Standard AS - 21 iii) The Consolidated Financial Statements ‘Consolidated Financial Statements’, AS - 23 have been combined on a line-by-line ‘Accounting for Investments in Associates basis by adding the book values of like in Consolidated Financial Statements’ and items of assets, liabilities, income and AS - 27 ‘Financial Reporting of Interests expenses after eliminating inter-group in Joint Ventures’, as applicable issued balances / transactions and resulting by the Institute of Chartered Accountants elimination of unrealised profi ts in of India (‘ICAI’) and notifi ed pursuant to full. The amounts shown in respect of the Companies (Accounting Standards) reserves comprise the amount of the Rules, 2006. The Consolidated Financial relevant reserves as per the balance Statements are prepared on the following sheet of the parent Company and its basis: share in the post-acquisition increase in

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Consolidated_Balance-Sheet.indd 137 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) the relevant reserves of the entity to be in relation to the information contained in consolidated. Financial interest in joint the Consolidated Financial Statements. ventures has been accounted for under Further, additional statutory information the proportionate consolidation method. disclosed in separate fi nancial statements iv) Investments in associates are of the subsidiary and / or a parent having accounted for using the equity method. no bearing on the true and fair view of the The excess of cost of investment over Consolidated Financial Statements has the proportionate share in equity of the not been disclosed in the Consolidated Associate as at the date of acquisition Financial Statements. of stake is identifi ed as Goodwill and 4. Use of estimates included in the carrying value of the The preparation of Consolidated Financial investment in the Associate. The Statements in conformity with generally carrying amount of the investment accepted accounting principles requires is adjusted thereafter for the post management to make estimates and acquisition change in the share of net assumptions that affect the reported amounts assets of the Associate. However, the of assets and liabilities and disclosure of share of losses is accounted for only contingent liabilities on the date of the to the extent of the cost of investment. Consolidated Financial Statements and the Subsequent profi ts of such Associates results of operations for the reporting periods. are not accounted for unless the Although these estimates are based upon accumulated losses (not accounted for management’s knowledge of current events by the Group) are recouped. Where and actions, actual results could differ from the associate prepares and presents those estimates and revisions, if any, are Consolidated Financial Statements, recognised in the current and future periods. such Consolidated Financial Statements of the associate are used for the 5. Fixed assets, Capital work-in-progress purpose of equity accounting. In other and depreciation / amortisation cases, standalone fi nancial statements i) Fixed assets (gross block) are stated of associates are used for the purpose at historical cost less accumulated of consolidation. depreciation and impairment. Cost v) Minority interest represents the amount comprises the purchase price and any of equity attributable to minority attributable cost of bringing the asset shareholders / partners at the date to its working condition for its intended on which investment in a subsidiary / use. partnership fi rm is made and its share Building / specifi c identifi able portion of of movements in equity since that date. Building, including related equipments Any excess consideration received from are capitalised when the construction is minority shareholders of subsidiaries / substantially complete or upon receipt of minority partners of partnership fi rms the occupancy certifi cate, whichever is over the amount of equity attributable to earlier. the minority on the date of investment is ii) In respect of certain overseas hotel refl ected under Reserves and Surplus. properties that have commenced vi) Notes to the Consolidated Financial commercial operations, are stated in Statements represents notes involving the balance sheet at their revalued items which are considered material amounts, less any subsequent and are accordingly duly disclosed. accumulated depreciation and Materiality for the purpose is assessed subsequent accumulated impairment

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Consolidated_Balance-Sheet.indd 138 8/26/2010 11:43:49 PM losses. Revaluations are performed with accordance with the clarifi cation issued suffi cient regularity such that the carrying by the Central Electricity Authority as amount does not differ materially from per the accounting policy specifi ed that which would be determined using under the Electricity (Supply) Annual fair values at the balance sheet date. Accounts Rules, 1985. Any revaluation increase arising on Depreciation on revalued properties the revaluation of such hotel properties of certain overseas hotel properties is is credited to the property revaluation charged to profi t or loss. On subsequent reserve. sale or retirement of a revalued property, iii) Capital work-in-progress represents the attributable revaluation surplus expenditure incurred in respect of remaining in the property revaluation capital projects under development reserve is transferred directly to retained and is carried at cost. Cost includes earnings. land, related acquisition expenses, v) Leasehold land under, perpetual lease development / construction costs, are not being amortised. The leasehold borrowing costs capitalised and other lands, other than perpetual lease, are direct expenditure and advances to being amortised on a time proportion contractors and others. bases over their respective lease iv) Depreciation on fi xed assets (including periods. buildings and related equipment rented 6. Intangibles out and included under current assets as stocks) is provided on a straight Computer Softwares line method, at the rates and in the Softwares which are not integral part of the manner prescribed in Schedule XIV to hardware are classifi ed as intangibles and is the Companies Act, 1956, or based on stated at cost less accumulated amortisation. the estimated useful lives of assets, Softwares are being amortised over the whichever is higher, as applicable. estimated useful life of three to fi ve years, as The useful lives as estimated by the applicable. management is as follows: Goodwill

Description Estimated useful life The difference between the cost of (years) Investment to the Group in Subsidiaries and Leasehold land Over the effective life Joint Ventures and the proportionate share of the lease in the equity of the investee company as Buildings 25-62 at the date of acquisition of stake is Plant and machinery 4-20 Computers and software 2-6 recognised in the Consolidated Financial Furniture and fi xtures 10-15 Statements as Goodwill or Capital Reserve, Offi ce equipment 8 as the case may be. Vehicles 2-10 Other Intangible assets are stated at their cost of acquisition less accumulated Depreciation in respect of assets amortisation relating to the power generating division of one of the subsidiary 7. Investments companies is provided on the straight Investments are classifi ed as long term or line method in terms of the Electricity current, based on management’s intention (Supply) Act, 1948 on the basis of at the time of purchase. Investments that are Central Government Notifi cation No. readily realisable and intended to be held S.O 266 (E) dated March 29, 1994, for not more than a year are classifi ed as from the year immediately following the current investments. All other investments are year of commissioning of the assets in classifi ed as long-term investments.

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Consolidated_Balance-Sheet.indd 139 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) Trade investments are the investments made materials, and is valued at lower of cost / for or to enhance the company’s business estimated cost, and net realisable value. interests. iv) Development rights represent amount Current investments are stated at lower of paid under agreement to purchase land cost and fair value determined on an individual / development rights and borrowing cost investment basis. Long-term investments are incurred by the Company to acquire stated at cost and provision for diminution in irrevocable and exclusive licenses / their value, other than temporary, is made in development rights in identifi ed land and the fi nancial statements. constructed properties, the acquisition of Pro fi t / loss on sale of investments is computed which is at an advanced stage. with reference to the average cost of the v) Cost of construction / development investment. material is valued at lower of cost or net In respect of Life Insurance business, realisable value. investments are made in accordance with the vi) Rented buildings and related equipments Insurance Act, 1938 and Insurance Regulatory are valued at cost less accumulated and Development Authority (Investment) depreciation. Regulations, 2000. These Investments are recorded at cost on date of purchase including vii) In respect of the power generating brokerage & statutory levies. division of one of the subsidiary companies, materials & components 8. Stocks and stores & spares are valued at lower of cost or net realisable value. The cost Stocks are valued as under: is determined on the basis of moving i) Land and plots other than area weighted average. Loose tools are valued transferred to constructed properties at at depreciated value. Depreciation has the commencement of construction are been provided on a straight line method valued at lower of cost / approximate at the rate of ten percent per annum. average cost, as revalued on conversion to stock and net realisable value. Cost viii) Stocks for maintenance and recreational includes land (including development facilities (including stores and spares) rights) acquisition cost, borrowing cost, are valued at cost or net realisable value, estimated internal development costs whichever is lower. Cost of inventories and external development charges. is ascertained on a weighted average basis. ii) Constructed properties other than Special Economic Zone (SEZ) ix) Inventories at retail chain outlets are projects include the cost of land valued at lower of cost, computed on (including development rights and a moving weighted average basis and land under agreements to purchase), estimated net realisable value after internal development costs, external providing for cost of obsolescence development charges, construction costs, and other anticipated losses wherever overheads, borrowing cost, development considered necessary. / construction materials, and is valued at x) Stock of food and beverages is valued lower of cost / estimated cost and net at cost or net realisable value, whichever realisable value. is lower. Cost comprises of cost of iii) In case of SEZ projects, constructed material including freight and other properties include internal development related incidental expenses and is arrived costs, external development charges, at on fi rst in fi rst out basis. Slow moving construction costs, overheads, borrowing inventory is determined on management cost, development / construction estimates.

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Consolidated_Balance-Sheet.indd 140 8/26/2010 11:43:49 PM 9. Revenue recognition cost and overheads of such project. Revenue from lease of land pertaining i) Revenue from constructed properties to such projects is recognised in a) Revenue from constructed accordance with the terms of the properties, other than SEZ Co-developer Agreements / MOU on projects, is recognised on the accrual basis. percentage of completion method. ii) Sale of land and plots Total sale consideration as per the duly executed agreement to sell Sale of land and plots (including / application (containing salient development rights) is recognised terms of agreement to sell), is in the fi nancial year in which the recognised as revenue based on the agreement to sell / application containing percentage of actual project costs salient terms of agreement to sell is incurred thereon to total estimated executed. Where the Company has any project cost, subject to such actual remaining substantial obligations as per cost incurred being 30 per cent or agreements, revenue is recognised on more of the total estimated project ‘percentage of completion method’ as cost. Project cost includes cost of per (i)(a) above. land, cost of development rights, iii) Construction contracts estimated construction and a) Revenue from cost plus contracts development cost, borrowing cost is recognised with respect to the of such properties. The estimates recoverable costs incurred during the of the saleable area and costs are period plus the margin in accordance reviewed periodically and effect with the terms of the agreement. of any changes in such estimates b) Revenue from fi xed price contract is recognised in the period is recognised under percentage of such changes are determined. completion method. Percentage of However, when the total project completion method is determined as cost is estimated to exceed total a proportion of cost incurred up to the revenues from the project, the loss reporting date to the total estimated is recognised immediately. contract cost. b) For SEZ projects, revenue from iv) Rental Income development charges is recognised Rental income is recognised in the on the percentage of completion profi t & loss account on accrual basis method in accordance with the terms in accordance with the terms of the of the Co-developer Agreements respective lease agreements. / Memorandum of Understanding (‘MOU’), read with addendum, if (v) Power Supply any. The total development charges a. Revenue from power supply together is recognised as Revenue on the with claims made on customers percentage of actual project cost is recognised in terms of power incurred thereon to total estimated purchase agreements entered into project cost subject to such actual with the respective purchasers. cost incurred being 30% or more b. Revenue from energy system of the total estimated project cost. development contracts is recognised The estimated project cost includes on percentage of completion construction cost, development method and accounted for inclusive and construction material, internal of excise duty recovered, where development cost, external applicable. Accordingly, revenue development charges, borrowing is recognised when cost incurred

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Consolidated_Balance-Sheet.indd 141 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) (including appropriate portion of vii) Life Insurance allocable overheads) on the contract a. Premium is recognised as income is estimated at 30 per cent or more, when due. Unallocated premium on of the total cost to be incurred lapsed policies is not recognised as (including all foreseeable losses and income unless reinstated. an appropriate portion of allocable overheads) for the completion of b. For linked business, premium contract, wherever applicable. income is recognised when the associated units are allocated. Top c. Revenue from wind power generation up premium (i.e. premium paid in projects is recognised on the basis excess of annual target premium as of actual power sold (net of reactive per policy contract) are recognised energy consumed), as per the terms as single premium. Fees on linked of the relevant power purchase policies including fund charges etc. agreements with the purchasers. are recovered from the linked fund d. Sale of Certiﬁ ed Emission Reductions and recognised in accordance with (CERs) and Voluntary Emission terms and conditions of the policies. Reductions (VERs) is recognised as c. Premium ceded is accounted at the income on the delivery of the CERs / time of recognition of premium income VERs to the customer’s account and in accordance with treaty or in principle receipt of payment. agreement with the reinsurers.

vi) Hospitality services and Recreational viii) Retail Chain Outlets facility income Income from sales is recognised when signifi cant risks and rewards in a. Subscription and non-refundable respect of ownership of the goods are membership fee is recognised on transferred to the customers and is proportionate basis over the period stated net of trade discounts, value of the subscription / membership. added taxes and estimated sales b. Revenue from food and beverage return, wherever applicable. is recorded net of sales tax / value ix) Others added tax and discounts. a. Revenue from design and c. Sales of merchandise are stated net consultancy services is recognised of goods sold on consignment basis on percentage of completion as agents. method to the extent it is probable d. Revenue from hotel operations and that the economic benefi ts will fl ow related services is recognised net of to the group and the revenue can be discounts and sales related taxes in reliably measured. the period in which the services are b. Revenue in respect of maintenance rendered. services is recognised on an accrual e. Income from golf operations, basis, in accordance with the terms course capitation, sponsorship etc. of the respective contract. is fi xed and recognised as per the c. Dividend income is recorded when agreement with the parties, as and the right to receive the dividend is when services are rendered. established. f. Sale of cinema tickets is stated net of d. Service receipts and interest from discounts. customers under agreements to

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Consolidated_Balance-Sheet.indd 142 8/26/2010 11:43:49 PM sell is accounted for on an accrual made on completion of the applicable basis except in cases where ultimate project. collection is considered doubtful. ii) Cost of land and plots includes e. Interest income is accounted for land (including development rights), on time proportion basis taking into acquisition cost, estimated internal account the amount outstanding and development costs and external the applicable rate of interest. development charges, borrowing cost, f. Share of profi t / loss from fi rms in which is charged to the profi t & loss which the Company is a partner is account based on the percentage accounted for in the fi nancial year of land / plotted area in respect of ending on (or immediately before) which revenue is recognised as per the date of the balance sheet. accounting policy 9 (ii) above to the saleable total land / plotted area of 10. Unbilled receivables the scheme, in consonance with the Unbilled receivables disclosed under concept of matching cost and revenue. Schedule 11 - “Other Current Assets” Final adjustment is made on completion represents revenue recognised based on of the specifi c project. percentage of completion method (as per Para no. 9(i) and 9(ii) above), over and 12. Borrowing costs above the amount due as per the payment Borrowing costs that are attributable to plans agreed with the customers. the acquisition and / or construction of 11. Cost of revenues qualifying assets are capitalised as part of the cost of such assets, in accordance with i) Cost of constructed properties other Accounting Standard 16 “Borrowing Costs”. A than SEZ projects, includes cost of land qualifying asset is one that necessarily takes (including cost of development rights a substantial period of time to get ready for / land under agreements to purchase), its intended use. Capitalisation of borrowing estimated internal development costs, costs is suspended in the period during which external development charges, cost the active development is delayed due to, of development rights, construction other than temporary, interruption. All other and development cost, borrowing borrowing costs are charged to the profi t & cost, construction materials, which is loss account as incurred. charged to the profi t & loss account based on the percentage of revenue 13. Taxation recognised as per accounting policy 9 (i) Tax expense comprises current income above, in consonance with the concept tax and deferred tax and is determined of matching costs and revenue. Final and computed at the standalone entity adjustment is made on completion of the level. Current income-tax is measured applicable project. at the amount expected to be paid to the For SEZ projects, cost of constructed tax authorities in accordance with the properties includes estimated Indian Income Tax Act and in the overseas internal development costs, external branches / companies as per the respective development charges, construction tax laws. Deferred income-tax refl ects the and development cost, borrowing cost, impact of current year timing differences construction materials, which is charged between taxable income and accounting to the profi t & loss account based on income for the year and reversal of timing the percentage of revenue recognised differences of earlier years. Deferred tax is as per accounting policy 9(i) above, in measured based on the tax rates and tax consonance with the concept of matching laws enacted or substantively enacted at costs and revenue. Final adjustment is the balance sheet date. Deferred tax assets

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Consolidated_Balance-Sheet.indd 143 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) and deferred tax liabilities across various Leases, where the lessor effectively countries of operation are not set off against retains substantially all the risks and each other as the Company does not have benefi ts of ownership of the leased a legal right to do so. Deferred tax assets item, are classifi ed as operating are recognised only to the extent that there leases. Operating lease payments are is reasonable certainty that suffi cient future recognised as an expense in the profi t taxable income will be available against & loss account on straight line basis over which such deferred tax assets can be the lease term. realised. In situations where the Group entity has unabsorbed depreciation or carry b) Where a Group entity is the lessor forward tax losses, deferred tax assets are Leases which effectively transfer to the recognised only if there is virtual certainty lessee substantially all the risks and supported by convincing evidence that benefi ts incidental to ownership of the they can be realised against future taxable leased item are classifi ed and accounted profi ts. for as fi nance lease. At each balance sheet date, the Group Assets subject to operating leases are re-assesses unrecognised deferred tax included in fi xed assets / current assets assets. It recognises unrecognised deferred / investment properties. Lease income is tax assets to the extent that it has become recognised in the profi t & loss account reasonably certain, as the case may be, on a straight line basis over the lease that suffi cient future taxable income will be term. Costs, including depreciation are available against which such deferred tax recognised as an expense in the profi t assets can be realised. & loss account. Initial direct costs such as legal costs, brokerage costs etc are 14. Lease transactions recognised immediately in the profi t & a) Where a Group entity is the lessee loss account. Finance leases, which effectively 15. Foreign currency transactions transfer to the lessee substantially all the risks and benefi ts incidental a) Relating to Overseas entities to ownership of the leased item, are Indian Rupee is the reporting currency for capitalised at the lower of the fair value the Group. However, reporting currencies and present value of the minimum lease of certain non-integral overseas payments at the inception of the lease subsidiaries are different from the term and disclosed as leased assets. reporting currency of the Group. The Lease payments are apportioned translation of local currencies into Indian between the fi nance charges and Rupee is performed for assets and reduction of the lease liability based liabilities (excluding share capital, opening on the implicit rate of return. Finance reserves and surplus), using the exchange charges are charged directly against rate as at the balance sheet date. income. Lease management fees, legal Revenues, costs and expenses are charges and other initial direct costs translated using weighted average are capitalised. exchange rate during the reporting If there is no reasonable certainty that period. Share capital, opening reserves the Group entity will obtain the ownership and surplus are carried at historical by the end of lease term, capitalised cost. The resultant currency translation leased assets are depreciated over the exchange gain / loss is carried as foreign shorter of the estimated useful life of the currency translation reserve under asset or the lease term. reserves and surplus. Investments in

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Consolidated_Balance-Sheet.indd 144 8/26/2010 11:43:49 PM foreign entities are recorded at the the provident fund trust set up by the exchange rate prevailing on the date of Company is treated as a defi ned benefi t making the investment. plan since the Company has to meet Income and expenditure items of integral the interest shortfall, if any. Accordingly, foreign operations are translated at the the contribution paid or payable and the monthly average exchange rate of their interest shortfall, if any is recognised respective foreign currencies. Monetary as an expense in the period in which items at the balance sheet date are services are rendered by the employee. translated using the rates prevailing on Certain other entities of the Group, make the balance sheet date. Non - monetary contribution to the statutory provident assets are recorded at the rates prevailing fund in accordance with the Employees on the date of the transaction. Provident Fund and Miscellaneous b) Relating to Indian entities Provisions Act, 1952 which is a defi ned contribution plan and contribution paid or Transactions in foreign currency are payable is recognised as an expense in the accounted for at the exchange rate period in which the services are rendered. prevailing on the date of the transaction. All monetary items denominated in ii) Gratuity foreign currency are converted into Gratuity is a post employment benefi t and Indian Rupees at the year-end exchange is in the nature of a defi ned benefi t plan. rate. Income and expenditure of the The liability recognised in the balance overseas liaison offi ce is translated at sheet in respect of gratuity is the present the yearly average rate of exchange. value of the defi ned benefi t / obligation at The exchange differences arising on the balance sheet date less the fair value such conversion and on settlement of of plan assets, together with adjustments the transactions is recognised in the for unrecognised actuarial gains or profi t & loss account. losses and past service costs. The In terms of the clarifi cation provided by defi ned benefi t / obligation is calculated the Ministry of Corporate Affairs (“MCA”) at or near the balance sheet date by an vide a notifi cation number G.S.R. 225(E) independent actuary using the projected on Accounting Standard-11 “Changes in unit credit method. Foreign Exchange Rates”, the exchange Actuarial gains and losses arising differences on long term foreign currency from past experience and changes in monetary items are adjusted in the cost actuarial assumptions are credited or of depreciable capital assets. charged to the profi t & loss account 16. Employee benefi ts in the year in which such gains or Expenses and liabilities in respect of employee losses are determined. For certain benefi ts are recorded in accordance with the consolidated entities, contributions made notifi ed Accounting Standard 15 - “Employee to an approved gratuity fund (funded Benefi ts”. by contributions to LIC under its group gratuity scheme) are charged to revenue i) Provident fund on accrual basis. Certain entities of the group make iii) Compensated absences contribution to statutory provident fund trust set up in accordance with the Liability in respect of compensated Employees Provident Funds and absences becoming due or expected Miscellaneous Provisions Act, 1952. In to be availed within one year from the terms of the Guidance on implementing balance sheet date is recognised on the the revised AS – 15, issued by the basis of undiscounted value of estimated Accounting Standard Board of the ICAI, amount required to be paid or estimated

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Consolidated_Balance-Sheet.indd 145 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) value of benefi t expected to be availed an expense as they fall due. Payments by the employees. Liability in respect of made to state-managed retirement benefi t compensated absences becoming due or schemes, such as the Singapore Central expected to be availed more than one year Provident Fund, are dealt with as payments after the balance sheet date is estimated to defi ned contribution plans where the on the basis of an actuarial valuation Group’s obligations under the plans are performed by an independent actuary equivalent to those arising in a defi ned using the projected unit credit method. contribution retirement benefi t plan. Actuarial gains and losses arising from ● Defi ned benefi t liability past experience and changes in actuarial assumptions are credited or charged Management estimates the defi ned to the profi t & loss account in the year benefi t liability annually. The actual in which such gains or losses are outcome may vary due to estimation determined. uncertainties. The estimate of its defi ned benefi t liability is based on standard iv) Superannuation benefi t rates of infl ation, medical cost trends Superannuation is in the nature of a and mortality. It also takes into account defi ned benefi t plan. Certain entities make the Group’s specifi c anticipation of future contributions towards superannuation salary increases. Discount factors are fund (funded by payments to Life determined close to each year-end by Insurance Corporation of India under its reference to high quality corporate bonds Group Superannuation Scheme) which that are denominated in the currency in is charged to revenue on accrual basis. which the benefi ts will be paid and that have terms to maturity approximating to v) Cash Settled Options the terms of the related pension liability. Accounting value of Cash Settled Estimation uncertainties exist particularly Options granted to employees under the with regard to medical cost trends, Employee Shadow / Phantom Option which may vary signifi cantly in future Scheme is determined on the basis of appraisals of the Group’s defi ned benefi t intrinsic value representing the excess obligations. of the average market price, during the month before the reporting date, over the ● Employee Leave Entitlement exercise price of the shadow option. The Employee entitlements to annual leave same is charged as employee benefi ts are recognised when they accrue to over the vesting period, in accordance employees. A provision is made for the with Guidance Note 18 “Share Based estimated liability for annual leave as a Payments”, issued by the ICAI. result of services rendered by employees vi) Other short term benefi ts up to the balance sheet date. Expense in respect of other short term 17. Employee Stock Option Plan (ESOP) benefi ts is recognised on the basis of the amount paid or payable for the period The accounting value of stock options is during which services are rendered by determined on the basis of ‘intrinsic value’ the employee. representing the excess of the market price on the date of the grant over the vii) Overseas entities exercise price of the shares granted under the ‘Employee Stock Option Scheme’ of Post employment benefi ts the parent Company, and is amortised as ● Defi ned contribution ‘Deferred employees compensation’ on a Payments to defi ned contribution straight line basis over the vesting period in retirement benefi t plans are charged as accordance with the SEBI (Employee stock

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Consolidated_Balance-Sheet.indd 146 8/26/2010 11:43:49 PM option scheme and Employee stock purchase where the outfl ow of economic resources scheme) Guidelines, 1999 and Guidance is probable and a reliable estimate of the Note 18 ‘Share Based payments’ issued by amount of obligation can be made. Possible the “ICAI”. future obligations or present obligations that 18. Impairment of assets may but will probably not require outfl ow Goodwill of resources or where the same cannot be reliably estimated, is disclosed as contingent Goodwill is tested for impairment on an annual liabilities in the consolidated Financial basis. If on testing, any impairment exists, the Statements. carrying amount of Goodwill is reduced to the extent of any impairment loss and such loss is 20. Earning per share recognised in the profi t & loss account. Basic earning per share is calculated Other assets by dividing the net profi t or loss for the At each balance sheet date, the Group period attributable to equity shareholders assesses whether there is any indication (after deducting preference dividends and based on internal / external factors, that an attributable taxes) by the weighted average asset may be impaired. If any such indication number of equity shares outstanding during exists, the Group estimates the recoverable the period. The weighted average number amount of the asset. If such recoverable of equity shares outstanding during the amount of the asset or the recoverable amount period is adjusted for events including a of the cash generating unit to which the asset bonus issue, bonus element in a rights belongs is less than its carrying amount, the issue to existing shareholders, share split, carrying amount is reduced to its recoverable and reverse share split (consolidation of amount and the reduction is treated as an shares). impairment loss and is recognised in the For the purpose of calculating diluted profi t & loss account. If at the balance sheet earning per share, the net profi t or loss for date there is an indication that a previously the period attributable to equity shareholders assessed impairment loss no longer exists, and the weighted average number of shares the recoverable amount is reassessed and outstanding during the period are adjusted the asset is refl ected at the recoverable for the effects of all dilutive potential equity amount subject to a maximum of depreciated shares. The period during which, number historical cost and is accordingly reversed in of dilutive potential equity shares change the profi t & loss account. frequently, weighted average number of 19. Contingent liabilities and provisions shares are computed based on a mean date The Group makes a provision when there is a in the quarter as impact is immaterial on present obligation as a result of a past event earning per share.

SCHEDULE: 24 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Share capital (ii) 1,338,603,595 equity shares of (a) Issued, subscribed and paid up share Rs. 2 each fully paid issued as bonus capital includes: shares by way of capitalisation of free reserves and securities (i) 5,877,850 equity shares of premium account. Rs. 2 each (originally 1,175,570 shares of Rs. 10 each) fully paid (b) The calls in arrears have reduced during up allotted pursuant to a scheme of the year by Rs. 163.73 lacs (previous amalgamation of DLF United Limited year Rs. 94.55 lacs), comprising share with the Company, without payment capital of Rs. 0.44 lacs (previous year being received in cash. Rs. 0.26 lacs) and securities premium

147

Consolidated_Balance-Sheet.indd 147 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) of Rs. 163.29 lacs (previous year agreement to sell and / or against future Rs. 94.29 lacs), which includes forfeiture receivables of the Company / subsidiary of 43,680 partly paid equity shares of companies. Rs. 2 each having impact in share capital b) Loan from others comprise of term of Rs. 0.44 lacs and securities premium loans from ﬁ nancial institutions which of Rs. 228.45 lacs. are secured by equitable mortgages (c) In the previous year, Company had of certain lands / properties of some issued Public Announcement (PA) and subsidiary entities / associates / group Corrigendum to PA dated September 30, companies and the receivables and 2008 and October 15, 2008 respectively, / or against future receivables of the for buy back of its shares from the Company / subsidiary companies. open market at a price not exceeding c) Loans for aircraft, helicopter, wind mill Rs. 600 per share for an aggregate projects, plant and machinery and amount not exceeding Rs. 110,000 vehicles are secured by hypothecation of lacs. During the current ﬁ nancial year the respective assets, thus purchased. the Company completed the buyback d) i) 5,000 (previous year 5,000), 13.70% process and further bought back 15,000 Non-convertible Redeemable equity shares (previous year 76,23,567) Debentures of face value of Rs. under the said buyback programme. 10,00,000 each and 7,200 (previous (d) Upon exercise of options granted under year 7,200), 14% Non-convertible the Employee Stock Option Scheme Redeemable Debentures of face 2006 (ESOP), 240,457 (previous year value of Rs. 10,00,000 each, issued Nil) equity shares of Rs. 2 each were to the Life Insurance Corporation issued at par during the year. of India are secured by pari passu charge over certain lands / (e) Pursuant to the above transactions the properties of the Company / paid-up share capital of the Company subsidiary companies. increased by Rs. 4.08 lacs during the year (previous year : decrease by (ii) 3,000 (previous year nil), 10% Rs. 152.21 lacs). Non-Convertible Redeemable Debentures of Rs. 10,00,000 2. Reserves and Surplus each and 7,000 (previous year nil), 10.50% Non-Convertible Pursuant to the buyback programme referred Redeemable Debentures of to in note 1(c) above, Capital redemption Rs. 10,00,000 each, issued to reserve has been created out of General various investors are secured by reserve for Rs. 0.30 lacs (previous year Rs. pari passu / exclusive charge over 152.47 lacs) being the nominal value of shares certain lands / properties of the bought back under the buyback programme Company / subsidiary companies. in terms of Section 77AA of the Companies Act, 1956. 4. Unsecured Loans a) 12.50% compulsory convertible 3. Secured loans debentures of Rs. 225,000 each are a) Facilities with banks comprise, term convertible into equity shares of Rs. 10 loans and overdraft facilities which are each on the expiry of 7 years from the secured by equitable mortgages of date of their respective allotment. certain freehold and leasehold lands / b) 12% compulsory convertible debentures properties of the Company / subsidiary of Rs. 50,000 each are convertible into companies / sellers / lessors, land under equity shares of Rs. 10 each on the

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Consolidated_Balance-Sheet.indd 148 8/26/2010 11:43:49 PM expiry of 6 years from the date of their Standard Interpretation 3, issued by the respective allotment. ICAI. c) 12.50% compulsory convertible b) Profi ts from Special Economic Zone debentures of Rs. 75,000 each are (“SEZ”) business of the Company and convertible into equity shares of Rs. 10 three of subsidiary companies are each on the expiry of 7 years from the exempt under Section 80-IAB of the date of their respective allotment. Income Tax Act, 1961. The dividend d) 12.50% compulsory convertible declared out of such SEZ profi ts are also debentures of Rs. 27,500 each are exempt from Dividend Distribution Tax convertible into equity shares of Rs. 10 under the provisions of Section 115-O(6) each on the expiry of 7 years from the of the Income Tax Act, 1961. date of their respective allotment. In line with the above provisions, the e) Class B compulsory convertible Company has provided dividend tax debentures of Rs. 1,00,000 each shall only on the proportionate amount of be automatically and mandatorily be dividend declared out of non SEZ converted into two equity shares of profi ts and after adjustment of the Rs. 10 each in accordance with the dividend received from its wholly terms and conditions mentioned in owned subsidiary company in terms of the investment agreement dated provisions of Section 115-O(1A)(i) of July 4, 2009. the Income Tax Act, 1961 f) Compulsory convertible debentures – 7. Employee Benefi ts Series – I of Rs. 1,000 each, convertible a) Gratuity (Non Funded) into 1 Class B equity shares of Rs. 10 each at a premium of Rs. 990 each after Amount recognised in the Profi t & Loss Account is 17 years from the date of respective as under: allotment. Interest is payable at the ((Rs. in lacs) lower of (i) the rate of 15% per annum, Description 2010 2009 or (ii) the maximum rate of SBI PLR Current service cost 380.22 530.88 plus 300 basis point (on the date of Interest cost 184.29 107.35 board meeting in which CCDs were Actuarial (gain) / loss recognised (133.53) 104.45 issued) and shall start accruing from the during the year Past service cost (65.02) - 3rd anniversary of the date of issue. Total 365.96 742.68 5. A subsidiary of the company has purchased land with an obligation to provide built up Movement in the liability recognised in the balance area to third parties in consideration of sheet is as under: settlement of disputes, claims, rights and ((Rs. in lacs) entitlements of such parties. As the cost in Description 2010 2009 this respect is not currently ascertainable, Present value of defi ned benefi t 2,517.73 1,412.30 no accrual for these liabilities is considered obligation as at the start of the necessary at present. year * Prior period adjustment (0.66) 0.00 6. a) Wind mill projects of the Company and Current service cost 380.22 597.42 of one of the subsidiary company, are Interest cost 184.29 130.21 entitled for tax holiday under Section Actuarial (gain) / loss recognised (133.53) 114.30 80-IA of the Income Tax Act, 1961. during the year Accordingly, the computation of tax Benefi ts paid (171.17) (412.20) (current and deferred) has been done as Past service cost (65.02) - Present value of defi ned benefi t 2,711.86 1,842.03 per Accounting Standard 22 “Accounting obligation as at the end of the for taxes on Income” and Accounting year

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((Rs. in lacs) Amount recognised in the Profi t & Loss Changes in Defi ned Benefi t 2010 2009 Account is as under: Obligation ((Rs. in lacs) Present value obligation as at the 249.91 85.94 start of the year * Description 2010 2009 Interest cost 20.60 10.26 Current service cost 424.48 581.51 Past service cost - 0.00 Interest cost 151.11 77.27 Current service cost 94.16 54.73 Actuarial loss recognised during 4.63 222.71 the year Benefi ts paid (8.53) (10.69) Past service cost 27.08 (4.73) Actuarial (gains) / losses on (85.05) 16.70 Total 607.30 876.76 obligations Present value obligation as at the 271.09 156.94 end of the year Movement in the liability recognised in the Change in Fair Value of Plan Assets balance sheet is as under: Fair value of Plan assets as at 172.96 67.26 the start of the year * ((Rs. in lacs) Expected return on plan assets 24.52 7.55 Description 2010 2009 Actuarial gain (0.46) (6.20) Present value of defi ned benefi t 1,732.48 1,014.83 obligation as at the start of the Contribution 23.30 51.48 year * Benefi ts paid (7.95) (10.69) Past service cost 27.08 - Fair value of Plan assets as at 212.37 109.40 Current service cost 424.48 666.48 the end of the year Interest cost 151.11 94.65 Reconciliation of present value of defi ned benefi t Actuarial loss / (gain) recognised 4.63 209.72 obligation and the fair value of plan assets during the year Present value obligation as at the 271.09 156.94 Benefi ts paid (342.85) (439.38) end of the year Present value of defi ned benefi t 1,996.93 1,546.30 Fair value of plan assets as at the 185.34** 109.40 obligation as at the end of the end of the year year Net asset / (liability) recognised (85.75) (47.54) in balance sheet ** Excluding Rs. 27.03 lacs of plan assets not recognised in d) Compensated Absences (Funded) one of the subsidiary company. ((Rs. in lacs)

Amount recognised in the Profi t & Loss Account Changes in Defi ned Benefi t 2010 2009 Obligation Current service cost 94.16 35.67 Present value obligation as at the 298.72 105.74 Interest cost 20.60 7.93 start of the year * Interest cost 21.32 7.01 Expected return on plan assets (24.52) (7.11) Current service cost 165.26 129.07 Net actuarial (gain) / loss (85.05) 9.74 recognised in the year Benefi ts paid (96.56) (42.06) Total expenses recognised in the 5.19 46.23 Acturial (gains) / losses on (67.39) (4.36) Profi t & Loss Account obligations Present value obligation as at the 321.35 195.40 end of the year For determination of the gratuity liability of the Change in Fair Value of Plan Assets Company, the following actuarial assumptions Fair value of Plan assets as at - - the start of the year * were used: Expected return on plan assets - - Actuarial gain - - Description 2010 2009 Contribution - - Discount rate (per annum) 8.00% 8.00% Benefi ts paid 74.31 21.87 Rate of increase in compensation 7.50% 7.50% Fair value of Plan assets as at -- levels the end of the year

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Consolidated_Balance-Sheet.indd 150 8/26/2010 11:43:49 PM ((Rs. in lacs) 8. Related party disclosures Reconciliation of present value 2010 2009 of defi ned benefi t obligation (a) Relationship and the fair value of plan assets (i) Joint Ventures Present value obligation as at the 321.35 195.40 1 Banjara Hills Hyderabad Complex end of the year 2 Delanco Real Estates Private Limited Fair value of plan assets as at the - - end of the year 3 DLF Gayatri Home Developers Private Limited Net asset / (liability) recognised in (321.35) (195.40) 4 DLF Gurgaon Developers Limited balance sheet (formerly DLF SEZ Holdings Ltd) (till August 30, 2009) 5 DLF Limitless Developers Private Limited Amount recognised in the 2010 2009 6 DLF SBPL Developer Private Limited Profi t & Loss Account Current service cost 165.26 48.46 7 DT Projects Limited [formerly DLF Laing O’Rourke (India) Past service cost - 3.00 Limited] (till November 11, 2009) 8 GSG DRDL Consortium Interest cost 21.32 4.17 Expected return on plan assets - 0.00 9 Kujjal Builders Private Limited Net actuarial (gain) / loss (67.39) 13.02 10 Mount Mary Residential Project recognised in the year 11 Niharika Shopping Mall (till August 31, 2009) Total expenses recognised in the 119.19 68.65 12 Saket Courtyard Hospitality (w.e.f. October 20, 2009) Profi t & Loss Account * Opening liability includes liability in respect of entities acquired 13 Star Alubuild Private Limited (w.e.f June 15, 2009) during the year. 14 Y.G. Realty Private Limited (w.e.f July 02, 2009) 15 Domus Real Estate Private Limited (w.e.f March 02, 2010) For determination of the liability in respect of 16 Cleva Builders and Developers Private Limited (w.e.f. March 31, 2010) compensated absences, the following actuarial 17 Prowess Buildcon Private Limited (w.e.f. March 31, 2010) assumptions were used: 18 Saket Courtyard Hospitality Private Limited (till October 13, 2009) Description 2010 2009 (ii) Associates Discount rate (per annum) 8.00% 8.00% Rate of increase in compensation 7.50% 7.50% 1 Australian Resorts Limited levels 2 DLF Pramerica Asset Managers Private Limited (formerly DLF Pramerica Advisory Private Limited) (till March 09, 2010) e) Provident fund 3 DLF Pramerica Trustees Private Limited Contribution made by the group (till March 09, 2010) companies, to the Provident Fund 4 Ferragamo Retail India Private Limited Trust setup by the Company and to the 5 Giorgio Armani India Private Limited Employee Provident Fund Commissioner 6 Islan Aviation Limited during the year is Rs. 1,557.92 lacs 7 Joyous Housing Limited (previous year Rs. 1,318.26 lacs). 8 Kyoto Resorts YK 9 Lillion Builders and Developers Private Limited Relating to Provident Fund Trust, at (till September 23, 2009) the year end, no interest shortfall in 10 P.T Jawa Express Amanda Indah provident fund remains unprovided 11 Pamalican Island Holdings Inc for as there is surplus in the fund. In 12 Pandis (Thailand) Company Limited the absence of guidance on actuarial 13 Pansea Tourism Company Limited valuation of Fund liability, which is to 14 Regional D & R Limited be issued by the Actuarial Society of 15 Revlys SA India, the actuarial valuation liability towards provident fund is not feasible. 16 Seven Seas Resorts and Leisure Inc Accordingly , other related disclosures 17 Surin Bay Co. Limited in respect of provident fund have not 18 Villajena been furnished. 19 Zeus Infrastructure Private Limited

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(iii) Key Management Personnel (of the Parent Company) 28 Dinky Builders & Developers Private Limited Name Designation Relatives (Relation)* 29 DLF Building & Services Private Limited a) Mr. K.P. Singh Chairman Ms. Renuka Talwar 30 DLF Commercial Enterprises (Daughter) 31 DLF Foundation b) Mr. Rajiv Singh Vice Mrs. Kavita Singh 32 DLF Investments Private Limited Chairman (Wife) Ms. Savitri Devi Singh 33 DLF M.T.FBD Medical and Community Facility Charitable (Daughter) Trust Ms. Anushka Singh 34 DLF Q.E.C. Educational Charitable Trust (Daughter) 35 DLF Q.E.C. Medical Charitable Trust c) Mr. T.C. Goyal Managing Mrs. Sharda Goyal 36 DLF Raghvendra Temple Trust Director (Wife) 37 Elanor Builders & Developers Private Limited d) Ms. Pia Singh Whole Time Mr.Dhiraj Sarna Director (Husband) 38 Excel Housing Construction Private Limited e) Mr. K. Swarup Sr. Executive Mrs Veena Swarup 39 Exe. of The Estate of Lt. Ch. Raghvendra Singh Director (Wife) 40 Exe. of The Estate of Lt. Smt. Prem Mohini Mr Manish Swarup 41 Family Idol Shri Radha Krishan Ji (Son) 42 Family Idol Shri Shiv Ji * Relatives of key management personnel (other than key management personnel themselves) with whom there were 43 Galena Builders & Constructions Private Limited transactions during the year. 44 Gangrol Agricultural Farm & Orchard 45 General Marketing Corporation (iv) Other enterprises under the control of the key 46 Glaze Builders & Developers Private Limited management personnel (of the parent company) and their relatives : 47 Haryana Electrical Udyog Private Limited 1 A.S.G. Realcon Private Limited 48 Herminda Builders & Developers Private Limited 2 Adampur Agricultural Farm 49 Hitech Property Developers Private Limited 3 Adept Real Estate Developers Private Limited 50 Indira Trust 4 AGS Buildtech Private Limited 51 Ishtar Retail Private Limited 5 Altamount Real Estate Developers Private Limited 52 Jhandewalan Ancillaries and Investments Private Limited 6 Angus Builders & Developers Private Limited 53 K. P. Singh HUF 7 Antriksh Properties Private Limited 54 Kohinoor Real Estates Company * 8 Anubhav Apartments Private Limited 55 Krishna Public Charitable Trust 9 Aquarius Builders & Developers Private Limited 56 Lal Chand Public Charitable Trust 10 Arihant Housing Company* 57 Lion Brand Poultries 11 Atria Partners 58 Maaji Properties and Development Company * 12 Bansal Development Company Private Limited 59 Madhukar Housing and Development Company * 13 Belicia Builders & Developers Private Limited 60 Madhur Housing and Development Company * 14 Beryl Builders & Constructions Private Limited 61 Magna Real Estate Developers Private Limited 15 Beverly Park Operation and Maintenance Services 62 Mallika Housing Company * Private Limited 63 Megha Estates Private Limited 16 Buland Consultants & Investments Private Limited 64 Northern India Theatres Private Limited 17 Caraf Builders & Constructions Private Limited 65 Pace Financial Services (till March 18, 2010) 18 Centre Point Property Management Services Private 66 Panchsheel Investment Company * Limited 67 Panchvati Estates Private Limited 19 Ch.Lal Chand Memorial Charitable Trust 68 Parvati Estates Private Limited 20 Cian Builders & Developers Private Limited 69 Pia Pariwar Trust (Formerly DLF SEZ Parks Private Limited) 70 Plaza Partners 21 DLF Assets Private Limited (till March 18, 2010) 71 Power Overseas Private Limited 22 DLF Info City Developers (Chandigarh) Limited 72 Prem Traders & Investments Private Limited (till March 18, 2010) 23 DLF Info City Developers (Kolkata) Limited 73 Prem’s Will Trust (till March 18, 2010) 74 Pushpak Builders and Developers Private Limited 24 Desent Promoters & Developers Private Limited 75 R.R Family Trust 25 Diana Retail Private Limited 76 Raghvendra Public Charitable Trust 26 Digital Talkies Private Limited 77 Raisina Agencies & Investments Private Limited 27 Dilly Builders & Developers Private Limited 78 Rajdhani Investments & Agencies Private Limited

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Consolidated_Balance-Sheet.indd 152 8/26/2010 11:43:49 PM (iv) Other enterprises under the control of the key 95 Sukomal Builders & Developers Private Limited management personnel (of the parent company) 96 Sulekha Builders & Developers Private Limited and their relatives : (Contd.) 97 Super Mart One Property Management Services Private 79 Realest Builders and Services Private Limited Limited 80 Renkon Partners 98 Super Mart Two Property Management Services Private 81 Renuka Pariwar Trust Limited 82 Sabre Investment Advisor India Private Limited 99 Trinity Housing and Construction Company * 83 Sabre Investment Consultants LLP 100 Udyan Housing and Development Company * 84 Sagarika Real Estate Developers Private Limited 101 Ultima Real Estate Developers Private Limited 85 Sambhav Housing and Development Company * 102 Universal Management & Sales Private Limited 86 Sanidhya Constructions Private Limited 103 Upeksha Real Estate Developers Private Limited 87 Sidhant Housing and Development Company * 104 Uplift Real Estate Developers Private Limited 88 Singh Family Trust 105 Urva Real Estate Developers Private Limited 89 Sketch Investment Private Limited 106 Uttam Builders and Developers Private Limited 90 Smt.Savitri Devi Memorial Charitable Trust 107 Uttam Real Estates Company * 91 Solace Housing and Construction Private Limited 108 Vishal Foods and Investments Private Limited 92 Solange Retail Private Limited 109 Yashika Properties and Development Company * 93 Sudarshan Estates Private Limited 94 Sukh Sansar Housing Private Limited * Private companies with unlimited liability.

(b) The following transactions were carried out with related parties in the ordinary course of business (net of Service-tax, if any) (Rs. in lacs) Description #Joint ventures and Key Management Personnel Enterprises over which Associates (KMP) and their relatives KMP is able to exercise signiﬁ cant inﬂ uence 2010 2009 2010 2009 2010 2009 Sale of assets 7,500.00 - - - - - Interest received 456.08 1,528.85 - - - 10.54 Rent and licence fee received - 84.62 - - 586.38 100.18 Directors remuneration - - 2,625.10 1,721.95 - - Expenses recovered 288.45 2,080.33 - - 49.43 110.51 Expenses paid 166.75 141.46 - - 984.24 336.52 Technical fess and professional - 157.06 - - - - charges paid Payment for construction work 6,250.71 30,082.73 - - - - Rent paid - 15.11 21.63 21.63 208.22 41.97 Loan taken 10,261.14 320.30 - - - - Loan refunded 10,037.00 46.75 - - - - Interest paid 1,096.72 198.76 - - - 16,045.88 Miscellaneous receipts (Income) 2.60 21.40 - - 260.37 6.68 Loans and advances given 773.78 2,332.39 - - - 300.00 Loans refunded back 249.50 868.00 - - - 300.00 Advances given 3,731.00 517.00 - - - - Share application money paid - 196.00 --- Advance received under agreement 10,800.00 17,600.00 1,181.73 976.54 - 22,900.00 to sell Guarantees given 7,050.05 - - - - 80,000.00 Sale of constructed properties - - - - 100,656.74 394,465.95 Purchase of land and material - - - - 34.34 10.94 Purchase of development rights - - - - 40,575.10 - Purchase of Investment - - - - 159,700.00 - Issue of CCPS - - - - 159,700.00 -

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Consolidated_Balance-Sheet.indd 153 8/26/2010 11:43:49 PM Schedules forming part of Consolidated Financial Statements (Contd.) c) Balance at the end of the year (Rs. in lacs) Description #Joint ventures and Key Management Personnel Enterprises over which Associates (KMP) and their relatives KMP is able to exercise signiﬁ cant inﬂ uence 2010 2009 2010 2009 2010 2009 Investments 8,914.31* 10,474.21* - - 174.30 174.30 Share application money - 196.00 - - - - Earnest money and part payments - - - - 235.44 303.58 under agreement to purchase of land / constructed properties Advance received under agreement - - 3,201.07 2,019.34 - - to sell Creditors / payables 11,485.98 5,967.34 175.00 94.94 5.02 3,500.76 Managerial commission payable - - 1,322.35 825.00 - - Loans (liability)-Unsecured loan 2,206.08 1,765.79 - - - - Security deposit given - - - - 0.06 5.17 Advances / Amount recoverable 17,660.08 9,162.78 - - - 64,897.12 Guarantees given 7,050.05 - - - - 80,000.00 Loans and interest receivable 3,090.26 1,830.63 - - - - Sundry debtors - - - - - 266,215.34 Unbilled receivables - - - - - 219,986.43

# Complete transactions have been reported before inter group elimination. * Excluding proﬁ t. (Rs. in lacs) Description Joint Ventures / Associates Transactions during the year Name of the entity 2010 2009 Sale of ﬁ xed assets Saket Courtyard Hospitality 7,500.00 - Interest received Thalia Infratech Private Limited - 1,028.06 Turan Infratech Private Limited - 257.46 Delanco Real Estate Private Limited 165.40 103.02 Kujjal Builders Private Limited 83.70 43.87 Joyous Housing Limited 91.37 - Ferragamo Retail India Private Limited 111.11 94.64 Rent and licence fee received WSP Engineering Services Private Limited - 84.62 Expenses recovered DLF New Gurgaon Homes Developers Private Limited - 2,011.47 DLF Limitless Developers Private Limited 244.99 - DT Projects Limited [formerly DLF Laing O’Rourke (India) Limited.] 26.18 42.53 Expenses paid Delanco Real Estate Private Limited 165.00 122.80 Technical fees & professional WSP Engineering Services Private Limited - 157.06 charges paid Payment for Construction Work DT Projects Limited [formerly DLF Laing O’Rourke (India) Limited.] 4,755.43 30,082.73 Star Alubuild Private Limited 1,495.28 - Rent paid DT Projects Limited [formerly DLF Laing O’Rourke (India) Limited.] - 15.11 Loan taken Delanco Real Estate Private Limited 261.14 320.30 DLF Limitless Developers Private Limited 10,000.00 - Loan refunded Delanco Real Estate Private Limited 37.00 46.75 DLF Limitless Developers Private Limited 10,000.00 - Interest paid Delanco Real Estate Private Limited 286.44 198.76 DLF Limitless Developers Private Limited 810.28 - Miscellaneous receipts (Income) WSP Engineering Services Private Limited - 18.65 DLF Limitless Developers Private Limited 2.10 2.50

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Consolidated_Balance-Sheet.indd 154 8/26/2010 11:43:49 PM (Rs. in lacs) Description Joint Ventures / Associates Transactions during the year Name of the entity 2010 2009 Loans and advances given Delanco Real Estate Private Limited 316.50 501.50 Kujjal Builders Private Limited 253.50 427.39 DLF Gayatri Home Developers Private Limited 203.50 - Ferragamo Retail India Private Limited - 1,250.00 Loans refunded back Ferragamo Retail India Private Limited - 525.00 Thalia Infrastech Private Limited - 317.00 Delanco Real Estate Private Limited 249.50 - Advances given Joyous Housing Limited 3,731.00 517.00 Share application money paid Ferragamo Retail India Private Limited - 196.00 Advance received under DLF New Gurgaon Homes Developers Private Limited - 17,600.00 agreement to sell DLF Limitless Developers Private Limited 10,800.00 - Guarantees given Kujjal Builders Private Limited 5,950.00 - Giorgio Armani India Private Limited 1,100.05 - 0 (Rs. in lacs) Description Joint Ventures / Associates Balance at the end of the year Name of the entity 2010 2009 Investments Surin Bay Co. Limited 4,130.01 4,743.71 Revlys SA 977.72 1,123.00 Seven Seas Resort & Leisure Inc 1,711.60 1,965.93 Share application money Ferragamo Retail India Private Limited - 196.00 Creditors / payables DT Projects Limited [formerly DLF Laing O’Rourke (India) Limited] - 5,965.62 DLF Limitless Developers Private Limited 10,800.00 - Loans (liability)-Unsecured Loan Delanco Real Estate Private Limited 2,206.08 1,767.79 Advances / amount recoverable Joyous Housing Limited 11,022.24 7,291.24 Saket Courtyard Hospitality 6,041.60 - Guarantees given Kujjal Builders Private Limited 5,950.00 - Giorgio Armani India Private Limited 1,100.05 - Loans and interest receivable Delanco Real Estate Private Limited 1,323.69 1,107.84 Kujjal Builders Private Limited 825.40 496.57 Ferragamo Retail India Private Limited 854.18 - (Rs. in lacs) Description Enterprises over which KMP is able to exercise signiﬁ cant inﬂ uence Transactions during the year Name of the entity 2010 2009 Interest received DLF Q.E.C. Medical Charitable Trust - 10.54 Rent and licence fee received DLF Assets Private Limited 586.38 100.18 Expenses recovered DLF Assets Private Limited 0.08 96.99 Caraf Builders & Constructions Private Limited 43.18 - Expenses paid DLF Assets Private Limited 190.78 145.32 DLF Q.E.C. Educational Charitable Trust - 108.71 Pace Financial Services 4.56 35.24 DLF Foundation 787.49 - Rent paid DLF Q.E.C. Medical Charitable Trust 14.20 17.51 DLF Q.E.C. Educational Charitable Trust 18.93 13.13 Realest Builders and Services Private Limited 5.39 9.67 DLF Info City Developers (Chandigarh) Limited 168.81 - Interest paid DLF Assets Private Limited - 16,045.88 Miscellaneous receipts (Income) DLF Building & Services Private Limited - 6.68 DLF Assets Private Limited 227.78 - Caraf Builders & Constructions Private Limited 31.08 -

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(Rs. in lacs) Description Enterprises over which KMP is able to exercise signiﬁ cant inﬂ uence Transactions during the year Name of the entity 2010 2009 Loans and advances given DLF Q.E.C. Medical Charitable Trust - 300.00 Loans refunded back DLF Q.E.C. Medical Charitable Trust - 300.00 Advance received under DLF Assets Private Limited - 22,900.00 agreement to sell Guarantees given DLF Assets Private Limited - 80,000.00 Sale of constructed properties DLF Assets Private Limited 100,656.74 394,465.95 Purchase of land and material DLF Building & Services Private Limited 34.34 10.94 Purchase of development rights DLF Assets Private Limited 40,575.10 -

(Rs. in lacs) Description Enterprises over which KMP is able to exercise signiﬁ cant inﬂ uence Balance at the end of the year Name of the entity 2010 2009 Investments Digital Talkies Private Limited 169.18 169.18 Earnest money and part payments DLF Building & Services Private Limited 201.17 269.31 under agreement to purchase land / constructed properties Creditors / payables DLF Assets Private Limited - 3,374.98 DLF Q.E.C. Educational Charitable Trust 0.77 - DLF Building & Services Private Limited 0.94 - Plaza Partners 2.84 - Security deposit given DLF Q.E.C. Educational Charitable Trust - 3.86 DLF Q.E.C. Medical Charitable Trust - 1.25 Advances / amount recoverable Caraf Builders & Constructions Private Limited - 64,760.95 Guarantees given DLF Assets Private Limited - 80,000.00 Sundry debtors DLF Assets Private Limited - 266,215.34 Unbilled receivables DLF Assets Private Limited - 219,986.43

(Rs. in lacs) Description Key Management Personnel (KMP) and their relatives Transactions during the year Name of the KMP and their relatives 2010 2009 Remuneration paid Mr. K.P. Singh 500.66 306.52 Mr. Rajiv Singh 543.17 332.30 Mr. K Swarup 393.19 181.14 Mr. T.C. Goyal 831.70 559.42 Ms. Pia Singh 322.54 284.48 Rent paid Mrs. Veena Swarup 21.63 21.63 Advance received under agreement to sell Mr. T. C. Goyal 302.76 - Mrs. Sharda Goyal 437.08 - Mr. Dhiraj Sarna 244.17 976.54 Mr. K. Swarup 144.47 -

(Rs. in lacs) Description Key Management Personnel (KMP) and their relatives Balance at the end of the year Name of the KMP and their relatives 2010 2009 Creditors / amounts payable Mr. K.P. Singh - 7.22 Mr. Rajiv Singh - 10.73 Ms. Pia Singh - 1.99 Mr. K. Swarup 175.00 75.00

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Consolidated_Balance-Sheet.indd 156 8/26/2010 11:43:50 PM (Rs. in lacs) Description Key Management Personnel (KMP) and their relatives Transactions during the year Name of the KMP and their relatives 2010 2009 Managerial commission payable Mr. K.P. Singh 398.59 250.00 Mr. Rajiv Singh 398.76 250.00 Mr. T.C. Goyal 400.00 225.00 Ms. Pia Singh 125.00 100.00 Advance received under agreement to sell Mr. T.C. Goyal 302.76 - Mrs. Sharda Goyal 437.08 - Mr. Dhiraj Sarna 2,184.21 1,940.04 9. The Group is primarily engaged in the business of colonisation and real estate development, which as per Accounting Standard 17 on ‘Segment Reporting’ is considered to be the only reportable business segment. The Group is primarily operating in India which is considered as a single geographical segment. 10. Information to be disclosed in accordance with AS 19 ‘Leases’, as issued by the ICAI. A. Assets given on lease* (Rs. in lacs) Class of Assets Gross Block Depreciation Cumulative As on March for the year Depreciation as on 31, 2010 2009-10 March 31, 2010 i) Fixed assets Land & Building including interiors 978,490.94 24,422.56 47,332.78

ii) Current assets (Constructed buildings including land and related equipments) Lease hold 3,054.27 52.12 949.84 Free hold 12,345.09 284.59 570.60 *(includes partly self occupied) i) Operating Lease The company has leased facilities under non- cancelable operating leases. The future minimum lease payment receivables in respect of these leases as at March 31, 2010 are: (Rs. in lacs) Minimum lease payments receivables 2010 2009 (i) Upto one year 96,871.96 56,962.27 (ii) Two to fi ve years 86,159.57 63,823.50 (iii) More than 5 years 3,693.07 3,668.82 186,724.60 124,454.59 ii) Finance Lease The minimum fi nance lease payments for the initial lease period are as under: (Rs. in lacs) Particulars 2010 2009 Principal Not later than one year 274.88 960.56 Later than one year but not later than fi ve years 2,197.55 5,518.86 Later than fi ve years 672.33 1,950.62 Interest Not later than one year 442.70 1,029.51 Later than one year but not later than fi ve years 1,409.65 2,612.91 Later than fi ve years 54.56 406.38

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Consolidated_Balance-Sheet.indd 157 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) B) Assets taken on Lease

i) Operating Lease

The minimum operating lease payments for the initial lease period are as under: (Rs. in lacs) Particulars 2010 2009 Not later than one year 5,393.13 5,003.21 Later than one year but not later than fi ve years 10,093.43 11,277.36 Later than fi ve years 8,709.90 3,625.13 Lease payment made during the year recognised in the statement of 6,591.72 2,481.84 profi t & loss account Sub-lease payment received recognised in the statement of profi t & loss account 682.53 399.19

In respect of DT Cinemas Limited, a subsidiary of DLF Limited, the buildings for ‘Multiplex Theatres’ are taken on lease with the initial lease terms ranging from 3 to 4.5 years. These leases are further renewable subject to enhancement of rent by 10% on the expiry of the lease period. There are no restrictions imposed for sub–leasing as per the lease arrangement. The Company sub leases the areas in the multiplexes for food courts.

ii) Finance Lease

The minimum fi nance lease payments for the initial lease period are as under: (Rs. in lacs) Particulars 2010 2009 Principal Not later than one year 26.89 10.19 Later than one year but not later than fi ve years 18.87 12.54 Later than fi ve years - - Interest Not later than one year 5.05 1.99 Later than one year but not later than fi ve years 0.35 1.36 Later than fi ve years - -

11. Employee Stock Option Scheme, 2006 (ESOP)

a) During the year ended March 31, 2007, the Company had announced an Employee Stock Option Scheme (the “Scheme”) for all eligible employees of the Company, its subsidiaries, joint ventures and associates. Under the Scheme, 17,000,000 equity shares have been earmarked to be granted under the Scheme and the same will vest as follows:

Block I Block II Block III Year 2 Year 4 Year 6 10% of the total grant 30% of the total grant 60% of the total grant

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.

158

Consolidated_Balance-Sheet.indd 158 8/26/2010 11:43:50 PM b) As per the scheme, the Remuneration Committee has granted options as per details below: Grant Date of grant Number of options Outstanding options as on No. granted March 31, 2010 (Net of options exercised / forfeited) I June 27, 2007 3,734,057 2,461,680 (3,734,057) (3,184,900) II October 10, 2007 308,077 129,883 (308,077) (291,177) III July 01, 2008 1,645,520 1,321,860 (1,645,520) (1,514,040) IV October 10, 2008 160,059 87,620 (160,059) (157,659) V July 01, 2009 3,355,404 3,300,441 (-) (-) VI October 10, 2009 588,819 520,860 (-) (-) According to the Guidance Note 18 on “Share Based Payments” issued by ICAI, Rs. 4,167.92 lacs have been provided during the year as proportionate cost of ESOPs. c) Outstanding stock options for equity shares of the Company under the “Employee Stock Option Scheme”: Particulars 2010 Grant Date of grant Exercise price Numbers Number of options Total No. Rs. outstanding committed to be granted in the future I July 1, 2007 2 2,461,680 - 2,461,680 (3,184,900) (293,300) (3,478,200) II October 10, 2007 2 129,883 - 129,883 (291,177) (88,259) (379,436) III July 01, 2008 2 1,321,860 - 1,321,860 (1,514,040) (-) (1,514,040) IV October 10, 2008 2 87,620 - 87,620 (157,659) (-) (157,659) V July 01, 2009 2 3,300,441 - 3,300,441 (-) (-) (-) VI October 10, 2009 2 520,860 - 520,860 (-) (-) (-) (d) In accordance with the Guidance Note - 18 “Share based payments” issued by ICAI the following information relates to the stock options granted by the Company. 2010 Particulars Stock options Range of Weighted-average Weighted-average (numbers) exercise prices exercise prices remaining contractual (Rs.) (Rs.) life (years) Outstanding, beginning of 5,529,335 2 - - the year (4,962,810) (2) (-) (-) Add: Granted during the year 3,944,223 2 2 - (1,276,929) (2) (2) (-) Less: Forfeited during the 1,311,546 2 2 - year (710,404) (2) (2) (-) Less: Exercised during the 270,637 2 2 - year (-) (-) (-) (-) Less: Lapsed during the year - - - - (-) (-) (-) (-) Outstanding, end of the year 7,822,344 2 2 5.05 (5,529,335) (2) (2) (5.22) Exercisable at the end of the 69,031 2 2 - year (-) (-) (-) (-)

159

Consolidated_Balance-Sheet.indd 159 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) e) The following table summarises information about stock options outstanding as at March 31, 2010:

Options outstanding Options exercisable Range of Numbers Weighted average Weighted average Numbers Weighted average exercise price remaining exercise price exercise price (Rs.) contractual life (Rs.) (Rs.) 2 7,822,344 5.05 2 69,031 2 (2) (5,529,335) (5.22) (2) (-) (-)

(Figures in brackets pertain to previous year.)

The Company has calculated the employee compensation cost using the intrinsic value of the stock Options measured by a difference between the fair value of the underline equity shares at the grant date and the exercise price. Had compensation cost been determined in a manner consistent with the fair value method, based on Black – Scholes model, the employees compensation cost would have been lower by Rs. 348.09 lacs and proforma proﬁ t after tax would have been Rs. 172,212.80 lacs (higher by Rs. 229.77 lacs). On a proforma basis, the basic and diluted earnings per share would have been Rs. 10.15 and Rs. 10.13 respectively.

The fair value of the options granted is determined on the date of the grant using the “Black- Scholes option pricing model” with the following assumptions:

12. Cash Settled Options

a) Under the Employee Shadow Option / Employee Phantom Options Scheme, employees are entitled to get cash compensation based on the average market price of Equity Share of the Company, upon exercise of Shadow option on a future date. As per the scheme, Shadow options / phantom options will vest as follows :

Trench Date of Grant Vesting at the end Vesting at the end Vesting at the end of year 2 of year 3 of year 4 Employee Shadow option scheme I July 1, 2007* 50% - 50% II September 1, 2007* 50% - 50% III July 01, 2008 50% 50% - IV October 10,2008 50% 50% - V July 01, 2009 100% - - Employee phantom option scheme 2008-09 50% - 50%

160

Consolidated_Balance-Sheet.indd 160 8/26/2010 11:43:50 PM b) Details of outstanding options and the expenses recognised under the Employee Shadow Option Scheme / Employee Phantom Options Scheme is as under:-

No. of Shadow Exercise Average Fair value Total expenses charged Liability as on March options price market price of shadow to Profi t & Loss Account 31, 2010 (Included in outstanding as on option (Included in Schedule-17 – Schedule 14-Provision March 31, 2010 Employee benefi ts) – Employee Benefi ts) (No.) Rs. / Rs. / Option Rs. / Rs. in lacs Rs. in lacs Option Option 1,460,740 2 307.15 305.15 2,290.29 2,443.61 (1,531,493) (2) (160.30) (158.30) (1,106.25) (1,112.76)

(Figures in brackets pertain to previous year) * For trench I & II 50% options have already been vested in the current ﬁ nancial year 2009-10, hence remaining 50% are disclosed above.

13. Investment in Joint Ventures The interest of the Group in major Joint Ventures is listed below:

S. Joint venture Location Principal activities Ownership No. interest 1. Niharika Shopping Mall Joint venture Mumbai Development and construction of shopping mall 50% (till August 31, 2009) 2. DT Projects Limited Gurgaon Construction 50% [formerly DLF Laing O’ Rourke (India) Limited] (till November 11, 2009) 3. Kujjal Builders Private Limited New Delhi Construction and development of hotels 50% 4. Delanco Real Estate Private Limited New Delhi Real estate consulting and brokerage 50% 5. Mount Mary Residential Projects Mumbai Development and construction of residential 50% projects 6. DLF Limitless Developers Private New Delhi Construction and development of townships 50% Limited 7. GSG DRDL Consortium Hyderabad Development and construction of shopping Malls 50% 8. DLF Gurgaon Developers Limited New Delhi Construction and Development of townships 50% (formerly DLF SEZ Holdings Limited) (till August 30, 2009) 9. DLF Gayatri Home Developers Private Hyderabad Development and construction of residential 50% Limited (formerly Arsh Real Estates projects Private Limited) 10. DLF SBPL Developers Private Limited New Delhi Construction and development of townships 50% 11. Saket Courtyard Hospitality Private Gurgaon Hotel business 50% Limited (till October 13, 2009) 12. Banjara Hills Hyderabad Complex Hyderabad Development and construction of shopping mall 50% 13. Star Alubuild Private Limited Gurgaon Construction and manufacturer of construction 31.46% (w.e.f. June 15, 2009) material 14. Y.G. Realty Private Limited Gurgaon Development and construction of commercial 50% (w.e.f. July 2, 2009) projects 15. Domus Real Estate Private Limited New Delhi Development and construction of residential 50% (w.e.f. March, 2 2010) projects 16. Cleva Builders and Developers Private New Delhi Real estate business 50% Limited (w.e.f. March 31, 2010) 17. Prowess Buildcon Private Limited New Delhi Development and construction of residential 50% (w.e.f. March 31, 2010) projects 18. Saket Courtyard Hospitality Gurgaon Hotel operations 50% (w.e.f. October 20, 2009)

161

Consolidated_Balance-Sheet.indd 161 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) 14. Contingent liabilities not provided for:

(Rs. in lacs) Particulars 2010 2009 a) Guarantees on behalf of third parties 14,527.08 13,180.23 b) Claims against the group (including unasserted claims) not acknowledged as 19,534.15 16,347.37 debts * c) Demand in excess of provisions (pending in appeals): Income-tax 58,924.54 61,123.49 Other taxes 25,723.82 6,216.90 d) Liabilities under export obligations in EPCG scheme 1,097.61 1,029.44

*Interest on certain claims may be payable as and when the outcome of the related claim is determined and has not been included above.

(Rs. in Lacs) 15. 2010 2009 Capital expenditure commitments 584,006.14 131,278.45

16. Certain existing and previous shareholders of Silverlink Holding Limited, (“Silverlink”), having ongoing claims against Silverlink which include repurchase of shares held by the shareholders in exchange for secured convertible notes to be issued by Silverlink. These claims originated in the years prior to acquisition of Silverlink by the Company and based on the advice of the legal counsel, the Management has a reasonable chance to defend the claims. The Court in Singapore has passed an interim order on April 28, 2010 wherein they have held that Silverlink was in breach of its contract. However it has not quantifi ed any amount and parties are in the process of fi ling their response with the court. Since the liability is contingent in nature based on the uncertainty with regard to the issuance of notes, the terms and conditions thereof and their subsequent redemption, a reliable estimate of the amount of the obligation cannot be made as the fi nal terms and conditions related to the notes are subject to court decision and further appeals.

17. Consolidated ﬁ nancial statements comprise the ﬁ nancial statements of DLF Limited and its subsidiaries, joint ventures and associates during the year ended March 31, 2010 listed below: A) Subsidiaries (i) Subsidiaries having accounting year ended March 31, 2010 with the percentage of ownership of DLF Group. S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 1 Aadarshini Real Estate Developers Private Limited India 100.00 2 Abhiraj Real Estate Private Limited India 100.00 3 Adelie Builders & Developers Private Limited India 100.00 4 Adrienne Builders & Constructions Private Limited India 100.00 5 Alastair Builders & Developers Private Limited India 100.00 6 Alta Builders & Developers Private Limited India 100.00 7 Alvernia Limited * Cyprus 100.00 8 Alvita Builders and Developers Private Limited (w.e.f. June 30, 2009) India 100.00 9 Americus Real Estate Private Limited India 100.00 10 Amishi Builders & Developers Private Limited India 100.00 11 Amoda Builders & Developers Private Limited India 100.00 12 Anjuli Builders & Developers Private Limited India 100.00 13 Annabel Builders & Developers Private Limited India 100.00

162

Consolidated_Balance-Sheet.indd 162 8/26/2010 11:43:50 PM S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 14 Argent Holdings Limited British Virgin 100.00 Islands 15 Bedelia Builders & Constructions Private Limited India 100.00 16 Berenice Real Estate Private Limited India 100.00 17 Beverly Park Maintenance Services Limited India 100.00 18 Bhamini Real Estate Developers Private Limited India 90.00 19 Bhoruka Financial Services Limited India 99.68 20 Breeze Constructions Private Limited India 100.00 21 Calantha Builders & Developers Private Limited India 100.00 22 Callista Builders & Constructions Private Limited India 100.00 23 Caraf Builders & Constructions Private Limited (w.e.f. March 19, 2010) India 100.00 24 Caressa Builders and Constructions Private Limited India 100.00 25 Carreen Builders & Developers Private Limited (w.e.f. February 1, 2010) India 100.00 26 Catriona Builders & Constructions Private Limited India 100.00 27 Cee Pee Maintenance Services Limited India 100.00 28 Chaitra Realty Limited (till July 3, 2009) India 63.82 29 Chandrajyoti Estate Developers Private Limited India 100.00 30 City Icon Limited* Cyprus 100.00 31 Comfort Buildcon Private Limited India 100.00 32 Cyrilla Builders & Constructions Limited India 100.00 33 DLF Housing and Construction Limited India 100.00 34 Dalmia Promoters and Developers Private Limited India 100.00 35 Dankuni World City Limited India 100.00 36 Delanco Home & Resorts Private Limited India 90.00 37 Delanco Realtors Private Limited India 80.00 38 Deltaland Buildcon Private Limited India 80.00 39 DHDL Wind Power Private Limited (formerly Var Infratech Private Limited) India 100.00 40 Dhoomketu Builders & Developers Private Limited India 100.00 41 Diwakar Estates Limited India 100.00 42 DLF Ackruti Info Parks (Pune) Limited India 67.00 [formerly DLF Akruti Info Parks (Pune) Limited] 43 DLF Airport Hotels Private Limited (till October 16, 2009) India 100.00 44 DLF Aspinwal Hotels Private Limited India 90.00 45 DLF Assets Private Limited (w.e.f. March 19, 2010) India 100.00 46 DLF Brands Limited (formerly DLF Retail Brands Private Limited) India 100.00 47 DLF Budget Venture Hotels Private Limited (till October 16, 2009) India 100.00 48 DLF Business Hotels Venture Private Limited India 100.00 49 DLF City Centre Limited India 100.00 50 DLF City Centre Limited* Cyprus 100.00 51 DLF Cochin Hotels Private Limited India 100.00 52 DLF Comfort Hotels Private Limited India 100.00 53 DLF Commercial Complexes Limited India 100.00 54 DLF Commercial Developers Limited India 100.00 55 DLF Conventions and Hotels Private Limited (till October 16, 2009) India 100.00 56 DLF Cyber City Developers Limited India 100.00 57 DLF Delux Hotels Private Limited (till October 16, 2009) India 100.00 58 DLF Developers Limited India 100.00 59 DLF Emporio Restaurants Limited India 100.00 60 DLF Estate Developers Limited India 100.00 61 DLF Exhibition Centre Private Limited (till October 16, 2009) India 100.00 62 DLF Exotica Hotels Private Limited* India 100.00 63 DLF Financial Services Limited India 100.00

163

Consolidated_Balance-Sheet.indd 163 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.)

S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 64 DLF Finvest Limited India 100.00 65 DLF Food Courts Private Limited India 100.00 66 DLF Garden City Indore Private Limited India 51.00 67 DLF Global Hospitality Limited Cyprus 100.00 68 DLF Golf Resort Limited India 100.00 69 DLF Gurgaon Developers Limited India 100.00 (formerly DLF SEZ Holdings Limited) (w.e.f. August 31, 2009) 70 DLF Haryana SEZ (Ambala) Limited India 100.00 71 DLF Haryana SEZ (Gurgaon) Limited India 100.00 72 DLF Hilton Hotels Limited India 74.00 73 DLF Hilton Hotels (Mysore) Private Limited India 74.00 74 DLF Home Developers Limited India 100.00 75 DLF Homes Ambala Private Limited India 100.00 76 DLF Homes Durgapur Private Limited India 100.00 77 DLF Homes Goa Private Limited India 100.00 78 DLF Homes Kokapet Private Limited India 100.00 79 DLF Homes Panchkula Private Limited India 51.00 80 DLF Homes Pune Private Limited India 100.00 81 DLF Homes Rajapura Private Limited India 51.00 82 DLF Homes Services Private Limited India 100.00 83 DLF Hospitality and Recreational Limited India 100.00 84 DLF Hotel Holdings Limited India 100.00 85 DLF Hotel Venture Private Limited (till October 16, 2009) India 100.00 86 DLF Hotels & Apartments Private Limited India 100.00 87 DLF Info City Developers (Chandigarh) Limited (w.e.f. March 19, 2010) India 100.00 88 DLF Info City Developers (Chennai) Limited India 100.00 89 DLF Info City Developers (Kolkata) Limited (w.e.f. March 19, 2010) India 100.00 90 DLF Info Park Developers (Chennai) Limited India 100.00 91 DLF Infra Holdings Limited India 100.00 92 DLF Inns Limited India 100.00 93 DLF International Holdings Pte Limited Singapore 100.00 94 DLF International Hospitality Corp British Virgin 100.00 Islands 95 DLF Jaipur Convention Center Private Limited India 100.00 96 DLF Jaipur Hotels Private Limited (till October 16, 2009) India 100.00 97 DLF Land Limited India 100.00 98 DLF Leisure and Entertainment Private Limited (till October 16, 2009) India 100.00 99 DLF Luxury Hotels Limited India 100.00 100 DLF Metro Limited India 100.00 101 DLF Minor Restaurants Private Limited (till October 16, 2009) India 100.00 102 DLF Mumbai Hotels Private Limited (till October 16, 2009) India 100.00 103 DLF New Delhi Convention Center Limited India 100.00 104 DLF New Gurgaon Homes Developers Private Limited India 82.73 105 DLF New Gurgaon Ofﬁ ces Developers Private Limited India 100.00 106 DLF New Gurgaon Retail Developers Private Limited India 100.00 107 DLF Phase-IV Commercial Developers Limited India 100.00 108 DLF Pleasure Hotels Private Limited India 100.00 109 DLF Pramerica Life Insurance Company Limited India 74.00 110 DLF Premium Homes Private Limited India 100.00 111 DLF Projects Limited India 100.00 112 DLF Property Developers Limited India 100.00 113 DLF Real Estates Builders Limited India 100.00

164

Consolidated_Balance-Sheet.indd 164 8/26/2010 11:43:50 PM S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 114 DLF Recreational Foundation Limited India 85.00 115 DLF Residential Builders Limited India 100.00 116 DLF Residential Developers Limited India 100.00 117 DLF Residential Partners Limited India 100.00 118 DLF Retail Developers Limited India 100.00 119 DLF Retail Services Limited India 100.00 120 DLF Rohini Hotels Private Limited (till October 16, 2009) India 100.00 121 DLF Service Apartments Limited India 100.00 122 DLF Services Limited India 100.00 123 DLF SEZ Developers Limited India 100.00 124 DLF Sikkim Hotels Private Limited (till October 16, 2009) India 100.00 125 DLF Southcourt Hotels Private Limited India 100.00 126 DLF Southern Homes Private Limited India 51.00 127 DLF Southern Towns Private Limited India 51.00 128 DLF Telecom. Limited India 100.00 129 DLF Trust Management Pte Limited Singapore 100.00 130 DLF Universal Limited India 100.00 131 DLF Utilities Limited India 99.77 132 DLF Wind Power Private Limited India 100.00 (formerly Bestvalue Housing and Construction Private Limited) 133 Domus Real Estate Private Limited (till March 1, 2010) India 100.00 134 DT Cinemas Limited India 100.00 135 DT Projects Limited (formerly DLF Laing O’Rourke (India) Limited) India 100.00 (w.e.f. November 11, 2009) 136 Eastern India Powertech Limited India 100.00 137 Edward Keventer (Successors) Private Limited India 100.00 138 Eila Builders & Developers Private Limited India 100.00 139 Enki Retail Private Limited India 100.00 140 Eros Retail Private Limited India 100.00 141 Falguni Builders Private Limited India 100.00 142 Fonton Limited British Virgin 100.00 Islands 143 Foregiant Agents Limited (till May 18, 2009) British Virgin 89.93 Islands 144 G.G.R. Properties Private Limited (till June 24, 2009) India 100.00 145 G.S.R. Properties Private Limited (till June 24, 2009) India 100.00 146 G.V.R. Properties Private Limited (till June 24, 2009) India 100.00 147 Gajjala Constructions Private Limited (till June 24, 2009) India 100.00 148 Gajjala Ram Reddy Properties Private Limited (till June 24, 2009) India 100.00 149 Galaxy Mercantiles Limited India 71.00 150 Galleria Property Management Services Private Limited India 72.24 151 Ganesar Ginning Company Private Limited (till July 31, 2009) India 100.00 152 Ganika Builders Private Limited India 100.00 153 Gavin Builders & Developers Private Limited India 100.00 154 Geocities Airport Infrastructures Private Limited India 100.00 155 GMR Constructions Private Limited (till June 24, 2009) India 100.00 156 Gulika Home Developers Private Limited India 100.00 157 Gyan Real Estate Developers Private Limited India 100.00 158 Harini Resorts and Properties Private Limited (till June 24, 2009) India 100.00 159 Hiemo Builders & Developers Private Limited (w.e.f. February 2, 2010) India 100.00 160 Highvalue Builders Private Limited India 100.00 161 Isabel Builders & Developers Private Limited India 80.00

165

Consolidated_Balance-Sheet.indd 165 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.)

S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 162 Jai Luxmi Real Estate Private Limited India 92.50 163 Janya Estates Developers Private Limited India 100.00 164 Jawala Real Estate Private Limited India 100.00 165 Juno Retail Private Limited (w.e.f June 19, 2009) India 100.00 166 K G Infrastructure Private Limited India 100.00 167 Kairav Real Estate Private Limited India 100.00 168 Kapo Retail Private Limited India 70.00 169 Khem Buildcon Private Limited (w.e.f. February 2, 2010) India 100.00 170 Laman Real Estates Private Limited India 100.00 171 Lawanda Builders & Developers Private Limited India 100.00 172 Leandra Builders & Developers Private Limited India 100.00 173 Life Style Homes Private Limited (till June 24, 2009) India 100.00 174 Mens Buildcon Private Limited India 100.00 175 Mhaya Buildcon Private Limited India 100.00 176 Monroe Builders & Developers Private Limited India 100.00 177 Mouna Constructions Private Limited (till June 24, 2009) India 100.00 178 Mouna Estates Private Limited (till June 24, 2009) India 100.00 179 Mouna Properties Private Limited (till June 24, 2009) India 100.00 180 Nambi Buildwell Private Limited India 100.00 181 Necia Builders & Developers Private Limited India 100.00 182 Nellis Builders & Developers Private Limited India 100.00 183 NewGen MedWorld Hospitals Limited India 100.00 184 Nilayam Builders and Developers Limited India 100.00 185 Overseas Hotels Limited British Virgin 100.00 Islands 186 Paliwal Developers Limited India 100.00 187 Paliwal Real Estate Private Limited India 100.00 188 Pat Infrastructures Private Limited India 100.00 189 Pee Tee Property Management Services Limited India 100.00 190 Prompt Real Estate Private Limited India 100.00 191 Rati Infratech Private Limited India 100.00 192 Red Acres Development Limited British Virgin 100.00 Islands 193 Regency Park Property Management Services Private Limited India 62.21 194 Rhea Retail Private Limited (w.e.f. June 19, 2009) India 70.00 195 Richmond Park Property Management Services Limited India 100.00 196 Riveria Commercial Developers Limited India 100.00 197 Rod Retail Private Limited India 100.00 198 Saket Courtyard Hospitality Private Limited (w.e.f. October 14, 2009) India 100.00 199 Samali Builders & Developers Private Limited India 100.00 200 Sandesh Constructions Private Limited (till June 24, 2009) India 100.00 201 Sandesh Estates Private Limited (till June 24, 2009) India 100.00 202 Shivajimarg Properties Limited India 100.00 203 Silver Oaks Property Management Services Limited India 100.00 204 Sinonet Holding Limited British Virgin 100.00 Islands 205 Solid Buildcon Private Limited India 100.00 206 Springhills Infratech Private Limited India 100.00 207 Sunlight Promoters Private Limited India 100.00 208 Universal Hospitality Limited British Virgin 100.00 Islands 209 Urvasi Infratech Private Limited India 100.00

166

Consolidated_Balance-Sheet.indd 166 8/26/2010 11:43:50 PM S. Name of Entity Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 210 Valini Builders & Developers Private Limited India 65.00 211 Vkarma Capital Investment Management Company Private Limited India 100.00 212 Vkarma Capital Trustee Company Private Limited India 100.00 213 VSK Investment and Finance Limited India 100.00 214 Zola Real Estates Private Limited India 100.00 215 Zoria Infratech Private Limited India 100.00 * Relevant documents ﬁ led with Registrar of Companies for striking of names under Section 560 of Companies Act, 1956.

ii) The accounting year for the below entities being the calendar year, their ﬁ nancial statements as at December 31, 2009 have been considered for consolidation in these Consolidated Financial Statements. Further, no adjustment is considered necessary in the Consolidated Financial Statements for the period from January 1 to March 31, 2010, as the management believes that no material event, affecting the ﬁ nancial position of the subsidiary and its constituents, has occurred during this period.

S. Name of Entity Country of Proportion of No. Incorporation ownership as at March 31, 2010 1 Amanresorts Limited British Virgin Islands 89.93 2 Aman Gocek Insatt Taahhut Turizm Sanayive Ticaret AS Turkey 89.93 3 Amancruises (2006) Company Limited Thailand 89.93 4 Amancruises Company Limited Thailand 89.93 5 Amankila Resorts Limited British Virgin Islands 89.93 6 Amanproducts Limited British Virgin Islands 89.93 7 Amanresorts B.V. Netherlands 89.93 8 Amanresorts International Pte Limited Singapore 89.93 9 Amanresorts IPR B.V. Netherlands 89.93 10 Amanresorts Limited Hong Kong 89.93 11 Amanresorts Management B.V. Netherlands 89.93 12 Amanresorts Services Limited British Virgin Islands 89.93 13 Amanresorts Technical Services B.V. Netherlands 89.93 14 Anbest Holdings Limited British Virgin Islands 89.93 15 Andaman Development Company Limited Thailand 89.93 16 Andaman Holdings Limited British Virgin Islands 89.93 17 Andaman Resorts Co Limited Thailand 89.93 18 Andaman Thai Holding Company Limited Thailand 89.93 19 Andes Resort Limited SAC Peru 89.93 20 Aradal Company N.V. Netherlands Antilles 89.93 21 ARL Marketing Inc. USA 89.93 22 ARL Marketing Limited British Virgin Islands 89.93 23 ASL Management (Palau) Limited Palau 89.93 24 Balina Pansea Company Limited British Virgin Islands 89.93 25 Barbados Holdings Limited British Virgin Islands 89.93 26 Bhosphorus Investments Limited British Virgin Islands 89.93 27 Bhutan Hotels Limited British Virgin Islands 89.93 28 Bhutan Resorts Private Limited (Amankora) Bhutan 53.96 29 Bodrum Development Limited British Virgin Islands 89.93

167

Consolidated_Balance-Sheet.indd 167 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.)

S. Name of Entity Country of Proportion of No. Incorporation ownership as at March 31, 2010 30 Ceylon Holdings B.V. Netherlands 89.93 31 Colombo Resorts Holdings N.V. Netherlands Antilles 89.93 32 Current Finance Limited British Virgin Islands 89.93 33 Ecotech Ventures Limited (till October 31, 2009) Kenya 53.96 34 Forerun Group Limited British Virgin Islands 89.93 35 Gainway Group Limited (till October 31, 2009) British Virgin Islands 89.93 36 Goyo Services Limited British Virgin Islands 53.96 37 Guardian International Private Limited India 89.93 38 Gulliver Enterprises Limited British Virgin Islands 89.93 39 Heritage Resorts Private Limited India 45.86 40 Hospitality Trading Limited British Virgin Islands 89.93 41 Hotel Finance International Limited British Virgin Islands 89.93 42 Hotel Sales Services Limited British Virgin Islands 89.93 43 Hotel Sales Services Private Limited Sri Lanka 89.93 44 Incan Valley Holdings Limited British Virgin Islands 89.93 45 Jackson Hole Holdings Limited British Virgin Islands 89.93 46 Jalisco Holdings Pte Limited Singapore 89.93 47 Lao Holdings Limited British Virgin Islands 89.93 48 Le Savoy Limited British Virgin Islands 72.84 49 Lodhi Property Company Limited India 89.93 50 LP Hospitality Company Limited Laos 89.93 51 Marrakech Investments Limited British Virgin Islands 89.93 52 Mulvey B.V. Netherlands 89.93 53 Mulvey Venice S.R.L Italy 89.93 54 Naman Consultants Limited British Virgin Islands 45.86 55 New Montana Limited (till October 31, 2009) British Virgin Islands 53.96 56 NOH (Hotel) Private Limited (Amangalla) Sri Lanka 45.86 57 Nusantara Island Resorts Limited British Virgin Islands 53.96 58 Otemachi Tower Resorts Co. Limited Japan 89.93 59 P.T. Amanresorts Indonesia (Amanusa) Indonesia 89.93 60 P.T. Amanusa Resort Indonesia Indonesia 53.96 61 P.T. Indrakila Villatama Development Indonesia 53.96 62 P.T. Moyo Safari Abadi Indonesia 47.66 63 P.T. Nusantara Island Resorts Indonesia 53.96 64 P.T. Tirta Villa Ayu Indonesia 89.93 65 P.T. Villa Ayu Indonesia 53.96 66 Palawan Holdings Limited British Virgin Islands 89.93 67 Phraya Riverside (Bangkok) Company Limited Thailand 89.93 68 Princiere Resorts Limited Cambodia 89.93 69 Puri Limited British Virgin Islands 89.93 70 Queensdale Management Limited British Virgin Islands 45.86 71 Regent Asset Finance Limited British Virgin Islands 89.93 72 Regent Land Limited Cambodia 89.93 73 Regional Design & Research B.V. Netherlands 53.96 74 Regional Design & Research N.V. Netherlands Antilles 53.96

168

Consolidated_Balance-Sheet.indd 168 8/26/2010 11:43:50 PM S. Name of Entity Country of Proportion of No. Incorporation ownership as at March 31, 2010 75 Serendib Holdings B.V. Netherlands 89.93 76 Silverlink (Mauritius) Limited Mauritius 89.93 77 Silverlink (Thailand) Company Limited Thailand 89.93 78 Silverlink Holdings Limited British Virgin Islands 89.93 79 Silver-Two (Bangkok) Company Limited Thailand 89.93 80 Societe Nouvelle de L’Hotel Bora Bora French Polynesia 89.93 81 Tahitian Resorts Limited British Virgin Islands 89.93 82 Tangalle Property (Private) Limited Sri Lanka 45.86 83 Toscano Holding Limited British Virgin Islands 89.93 84 Villajena Development Company Limited British Virgin Islands 89.93 85 Yucatan Holdings Pte Limited (w.e.f. May19, 2009) Singapore 89.93 86 Zeugma Limited British Virgin Islands 71.94

B) Partnership Firms

S. Name of Partnership ﬁ rm Country of Proportion of No. Incorporation ownership(%) as at March 31,2010 1 DLF Commercial Projects Corporation India 100.00 2 DLF Ofﬁ ce Developers India 85.00 3 DLF South Point India 100.00 4 Kavicon Partners India 100.00 5 Rational Builders and Developers India 90.00 6 DLF GK Residency India 100.00 7 Saket Courtyard Hospitality (w.e.f.October 20,2009) India 50.00

C) Joint Ventures

S. Name of Joint Venture Country of Proportion of ownership No. Incorporation (%) as at March 31, 2010 1 Delanco Real Estates Private Limited India 50.00 2 DT Projects Limited (formerly DLF Laing O’ Rourke (India) Limited) India 50.00 (till November 11, 2009) 3 DLF Limitless Developers Private Limited India 50.00 4 DLF SBPL Developers Private Limited India 50.00 5 Kujjal Builders Private Limited India 50.00 6 Niharika Shopping Mall joint venture (till August 31, 2009) India 50.00 7 Star Alubuild Private Limited (w.e.f. June 15, 2009) India 31.46 8 Mount Mary Residential Projects India 50.00 9 GSG DRDL Consortium India 50.00 10 DLF Gurgaon Developers Limited (formerly DLF SEZ Holdings Limited) India 50.00 (till August 30, 2009) 11 DLF Gayatri Home Developers Private Limited India 50.00 12 Saket Courtyard Hospitality Private Limited India 50.00 13 Banjara Hills Hyderabad Complex India 50.00 14 Y.G. Realty Private Limited (w.e.f. July 2, 2009) India 50.00 15 Domus Real Estate Private Limited (w.e.f. March 2, 2010) India 50.00 16 Cleva Builders and developers Private Limited (w.e.f. March 31, 2010) India 50.00 17 Prowess Buildcon Private Limited (w.e.f. March 31, 2010) India 50.00 18 Saket Courtyard Hospitality (w.e.f. October 20, 2009) India 50.00

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Consolidated_Balance-Sheet.indd 169 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) D) Associates

S. Name of Associates Country of Proportion of No. Incorporation ownership (%) as at March 31, 2010 1 Joyous Housing Limited India 37.50 2 Ferragamo Retail India Private Limited India 49.00 3 Giorgio Armani India Private Limited India 49.00 4 DLF Pramerica Asset Managers Private Limited India 39.00 (formerly DLF Pramerica Advisory Private Limited) (till March 9, 2010) 5 Regional D & R Limited U.K 50.00 6 Seven Seas Resorts and Leisure Inc Phillippines 21.00 7 Islan Aviation Limited Phillippines 21.00 8 Revlys SA Moracco 50.00 9 Villajena Moracco 50.00 10 Surin Bay Co. Limited Thailand 25.00 11 P.T Jawa Express Amanda Indah Indonesia 50.00 12 Lillion Builders and Developers Private Limited India 19.28 (till September 23, 2009) 13 Zeus Infrastructure Private Limited India 33.33 14 DLF Pramerica Trustees Private Limited (till March 9, 2010) India 39.00 15 Australian Resort Limited British Virgin Islands 50.00 16 Kyoto Resorts YK Japan 33.30 17 Pamalican Island Holdings Inc Philippines 21.00 18 Pandis (Thailand) Co. Limited Thailand 50.00 19 Pansea Tourism Co. Limited Thailand 50.00

18. Amalgamation / Merger of subsidiaries

a) During the year, petitions for Amalgamation were fi led before the Hon’ble High Court of Delhi by various subsidiary companies as details given below. As mentioned against each, the Hon’ble High Court has approved / sanctioned the scheme of amalgamation, which has been fi led with Registrar of Company (“ROC”), NCT of Delhi & Haryana thereby making the scheme of amalgamation effective from the appointed date. Accordingly, fi nancial statements of these companies are merged to give effect of the merger. All transferor companies and transferee companies are subsidiaries of the Company. (Rs. in lacs) S. Name of Transferee Company Name of Transferor Companies Date of fi ling of Order with ROC No. i.e. effective date 1. DLF Residential Partners Limited Chakrita Real Estate Developers Private Merger Order fi led with ROC on (indirect wholly–owned subsidiary Limited March 04, 2010 of DLF Limited) 2. DLF Home Developers Limited 1. DLF Estates (Delhi) Private Limited Order fi led with ROC on February (wholly–owned subsidiary of DLF 2. Irama Estates Private Limited 23, 2010 Limited) 3. DLF Commercial Developers 1. DLF Info City Developers (Hyderabad) Merger order fi led with ROC on Limited Limited March 03, 2010 (wholly–owned subsidiary of DLF 2. DLF Info City Developers (Banglore) Limited) Limited 3. Sunbreeze Estate Developers Limited 4. Grandbay Estate Developers Limited 5. Venezia Estate Developers Limited 6. Belmount Estate Developers Limited 7. DLF Green Power Private Limited

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Consolidated_Balance-Sheet.indd 170 8/26/2010 11:43:50 PM b) During the year, petitions for Amalgamation were ﬁ led before the Hon’ble High Court of Delhi by various subsidiary companies as details given below. Subsequent to the balance sheet date, the Hon’ble High Court has approved the scheme of amalgamation of all these subsidiary companies. Since the order of Hon’ble High Court of Delhi was received subsequent to the year end, no effect of the amalgamation has been given in these ﬁ nancial statements in accordance with Accounting Standard-14 of Companies (Accounting Standard) Rules, 2006 on accounting for amalgamation. All transferor companies and transferee companies are subsidiaries of DLF Limited.

S. Name of Transferee Company Name of Transferor Companies Date of fi ling of Order with No. ROC i.e. effective date 1. DLF Retail Developers Limited 1. Necia Builders & Developers Private Limited Delhi High Court Order fi led (wholly–owned subsidiary of DLF 2. Pat Infrastructures Private Limited with ROC on May 19, 2010 Limited) 3. Adrienne Builders and Constructions Private Limited to make amalgamation 4. DLF Food Courts Private Limited effective. 5. DLF Retail Services Limited 6. DLF Commercial Complexes Limited 7. Callista Builders and Construction Private Limited 8. Gavin Builders and Developers Private Limited 9. Alastair Builders and Developers Private Limited 10. Leandra Builders and Developers Private Limited 11. Amoda Builders and Developers Private Limited 2. DLF Real Estate Builders Limited VSK Investment & Finance Limited Merger Order fi led with ROC (indirect wholly owned subsidiary on May 11, 2010 to make of DLF Limited) amalgamation effective.

c) In addition to above, the following subsidiary companies have also ﬁ led amalgamation petitions as per details below before the Hon’ble High Court of Delhi at New Delhi and Hon’ble High Court of Punjab and Haryana at Chandigarh as per the respective jurisdictions. The order for sanction from the respective High Courts are awaited and hence, no effect thereto has been given in the consolidated ﬁ nancial statements:

S. Name of Transferee Company Name of Transferor Companies Date of Board Appointed / No. meeting Transfer Date approving the as per the Scheme of Scheme of Amalgamation Amalgamation 1. DLF Home Developers Limited Before the Punjab and Haryana High Court August 11, April 1, 2008 (wholly–owned subsidiary of 1. DLF Housing and Construction Limited 2009 DLF Limited) 2. DLF Infra Holdings Limited 3. DLF Land Limited Before the Delhi High Court 4. Caressa Builders & Constructions Private Limited 5. DLF Homes Durgapur Private Limited 6. Anjuli Builders and Developers Private Limited 7. Calantha Builders and Developer Private Limited 8. DLF Premium Homes Private Limited 9. DLF SEZ Developers Limited 10. Janya Estate Developers Private Limited 11. Kairav Real Estate Private Limited 12. Samali Builders and Developers Private Limited 13. Solid Buildcon Private Limited 14. DLF Commercial Developers Limited (Non-SEZ)- Demerger 2. DLF Utilities Limited (indirect Before the Punjab and Haryana High Court October 22, April 1, 2009 subsidiary of DLF Limited) 1. DLF Services Limited 2009 2. DT Cinemas Limited (In view of the above-mentioned proposed mergers, as per the approval granted by Board of Directors of respective companies, the interest on inter-company loans between transferor and transferee company, if any, has not been charged w.e.f. Appointed / Transfer Date, in accordance with the Scheme of Amalgamation as given above.)

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Consolidated_Balance-Sheet.indd 171 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) 19. Based on the recommendations of the Special Committee of the Board of Directors of DLF Limited, the Board of DLF Limited, at its meeting held on December 15, 2009, approved in-principle integration of Caraf Builders and Constructions Private Limited (alongwith its subsidiaries) with DLF Cyber City Developers Limited (a wholly-owned subsidiary). Pursuant to this, on March 19, 2010, DLF Cyber City Developers Limited, acquired 100% equity shares of Caraf Builders and Constructions Private Limited. Consequently, Caraf Builders and Constructions Private Limited and its subsidiary companies, namely – DLF Assets Private Limited, DLF Info City Developers (Chandigarh) Limited and DLF Info City Developers (Kolkata) Limited, have been consolidated as subsidiaries in the consolidated fi nancial statements with effect from the said date. 20. During the year, Solid Buildcon Private Limited, a wholly-owned subsidiary company, acquired the balance 50 percent shareholding of Laing ‘O’ Rourke India (Holdings) Limited in the existing 50:50 JV Company – DLF Laing ‘O’ Rourke (India) Limited “(DLOR)”. With effect from November 12, 2009, DLOR has become a wholly-owned subsidiary of Solid Buildcon Private Limited. Consequently, the transactions of DLOR after November 11, 2009 has been consolidated as a subsidiary in the consolidated fi nancial statements. 21. During the year, the Company received an assessment order for the AY 2006-07, from the Income Tax Authorities creating an additional tax demand amounting to Rs. 48,274.34 lacs on the Company. The Company has fi led an appeal against the order and based on advice from experts, is confi dent that the additional tax demanded will not be sustained by the appellate authorities. Pending the order of the appellate authorities, no provision has been made in the current year for the additional tax so demanded and the same has been disclosed as a contingent liability. 22. Details of preference shares issued by subsidiary companies:

(Rs. in lacs) S. Name of subsidiary company 2010 2009 No. 1 Shivaji Marg Properties Limited (See Note 1) 48,000.00 48,000.00 4,80,00,000 (previous year 4,80,00,000) 0.01% Non Convertible Non Cumulative Redeemable Preference Shares of Rs.100 each fully paid up (Redeemable at a premium of Rs. 44.67 per share, due for redemption) 2 Galaxy Mercantiles Limited (See Note 2) 1,200.00 1,200.00 12,00,000 (previous year 12,00,000) 0.50% Cumulative Redeemable Preference shares of Rs. 100 each fully paid up * *Preference shares shall be redeemed at a premium of Rs. 450 per preference share out of the proﬁ ts of the company from the end of the 3rd year of the development completion date. 3 Regency Park Property Management Services Limited 100 (previous year 100) 12% Non Cumulative Redeemable Preference shares 0.10 0.10 of Rs. 100 each fully paid up (Redeemable on or before December 11, 2022) 4,000 (previous year 4,000) 9% Non Cumulative Redeemable Preference shares of 4.00 4.00 Rs. 100 each fully paid up (Redeemable on or before January 22, 2023) 4 Galleria Property Management Services Limited 100 (previous year 100) 12% Non Cumulative Redeemable Preference shares of 0.10 0.10 Rs. 100 each fully paid (Redeemable on or before December 11, 2022) 4,000 (previous year 4,000) 9% Non Cumulative Redeemable Preference shares of 4.00 4.00 Rs. 100 each fully paid (Redeemable on or before January 22, 2023) 5 DLF Southern Homes Private Limited (formerly Carmen Builders and Construction Private Limited) (see note 3 below) 4,57,50,000 (previous year 4,57,50,000) 0.01% Non Convertible Non Cumulative 45,750.00 45,750.00 Redeemable Preference Shares of Rs. 100 each fully paid up (Redeemable at a premium of Rs. 46.57 per share, due for redemption)

172

Consolidated_Balance-Sheet.indd 172 8/26/2010 11:43:50 PM (Rs. in lacs) S. Name of subsidiary company 2010 2009 No. 6 DLF New Gurgaon Home Developers Private Limited (See Note 4 below) 2,232,000 (previous year 2,232,000) 0.05% Cumulative Redeemable ‘A’ Preference 2,232.00 2,232.00 shares of Rs. 100 each fully paid (Redeemable at a premium of Rs. 36.89 per share, due for redemption) 42,408,000 (previous year 42,408,000) 0.50% Cumulative Redeemable ‘B’ 42,408.00 42,408.00 Preference shares of Rs.100 each fully paid (Redeemable at a premium of Rs. 36.89 per share, due for redemption) 7 DLF Cyber City Developers Limited (See note 5 below) 159,699,999 (previous year Nil) 9% Compulsory Convertible Preference Share of 159,700.00 - Rs. 100 each fully paid up. 8 DLF Assets Private Limited (See note 6 below) 20,208,743 (previous year Nil) 9 % Cumulative Compulsorily Convertible Preference 20,208.74 - Shares – Series I of Rs. 100 each fully paid up - (Each CCPS convertible into 10 equity shares of Rs. 10 each on December 23, 2019) 272,479,230 (previous year Nil) 14.75 % Cumulative Compulsorily Convertible Preference Shares of Rs. 100 each fully paid up 272,479.23 (Each CCPS convertible into 9.71 equity shares of Rs. 10 each on April 22, 2012) 591,986.17 139,598.20

Note: 1) Subsequent to the balance sheet date, Shivaji Marg Properties Limited (“Shivaji Marg”) entered into a Redemption and Share Purchase Agreement on June 29, 2010 with LB India Holdings Mauritius II Limited, the subscriber of 4,80,00,000 non-convertible non-cumulative redeemable preference shares of Shivaji Marg (“RPS”). Pursuant to the terms and conditions of the agreement, the redemption of the RPS shall happen during the period July 1, 2010 and September 1, 2010 at Rs. 586,50,00,000. Note: 2) Galaxy Mercantiles Limited had issued 1,200,000 0.5% Cumulative Redeemable Preference Shares of Rs. 100 each amounting to Rs. 12 Crores on which cumulative dividend of Rs. 47.79 lacs (previous year Rs. 43.55 lacs) is provided as at March 31, 2010. Note: 3) Subsequent to the balance sheet date, DLF Southern Homes Private Limited (“ DLF Southern Homes”) entered into a Redemption and Share Purchase Agreement on June 29, 2010 with LB India Holdings Mauritius II Limited, the subscriber of 4,57,50,000 non-convertible non-cumulative redeemable preference shares of DLF Southern Homes (“RPS”). Pursuant to the terms and conditions of the agreement, the redemption of the RPS shall happen during the period July 1, 2010 and September 1, 2010 at Rs. 558,90,00,000. Note: 4) Contractually 2,232,000 Cumulative Redeemable ‘A’ Preference shares of Rs. 100 each and 42,408,000 Cumulative Redeemable ‘B’ Preference shares of Rs. 100 each were redeemable on December 12, 2009 and December 14, 2009 respectively. Subsequent to the balance sheet date, DLF New Gurgaon Home Developers Private Limited issued 44,640,000 Cumulative Redeemable Preference shares of Rs. 100 each at a premium of Rs. 47 each to DLF Home Developers Limited on May 5, 2010. The preference shares mentioned above has been redeemed out of the proceeds from the fresh issue of preference shares. Note: 5) During the year, the Company has issued 9% Cumulative Compulsorily Convertible Preference Shares (CCPS) of Rs. 100 each. Each CCPS shall be compulsorily convertible into Equity shares of face value of Rs. 10 (Rupees Ten) each at a premium of Rs. 5.97 per share in one or more tranches on or after April 1, 2011 but not later than 5 years from the date of allotment, at the option of the registered holder(s). Note: 6) As explained in note no. 19 of the schedule, DLF Assets Private Limited (“DLF Assets”) accounts were consolidated w.e.f. March 19, 2010. These Cumulative Compulsorily Convertible Preference Shares (CCPS) were issued prior to this date. Hence previous year ﬁ gures have been shown as Nil.

173

Consolidated_Balance-Sheet.indd 173 8/26/2010 11:43:50 PM Schedules forming part of Consolidated Financial Statements (Contd.) 23. Utilisation of funds received through Initial Public Offer (IPO) uptil March 31, 2010 (Rs. in lacs) S.No. Nature of expenditure 2010 2009 1 Acquisition of land and development rights 566,955 566,955 2 Development and construction costs for existing projects 63,625 63,625 3 Prepayment of loans 2,57,802 2,57,795 4 Issue related expenses 30,298 30,298 Total 918,680 918,673

The Company has fully utilised the IPO proceeds for the purposes as stated in the “Objects of the Issue” clause of the Prospectus dated June 18, 2007. 24. a) The Group uses forward contracts and swaps to hedge its risks associated with ﬂ uctuations in foreign currency and interest rates. The use of forward contracts and swaps is covered by Group’s overall strategy. The Group does not use forward covers and swaps for speculative purposes. As per the strategy of the Group, foreign currency loans are covered by comprehensive hedge, considering the risks associated with the hedging of such loans, which effectively ﬁ xes the principle and interest liability of such loans and further there is no additional risk involved post hedging of these loans. The following are the outstanding Forward Contracts and Swaps as at March 31, 2010: (Amount in lacs) For hedging any risks 2010 2009 Secured Loans* 353,123.93 108,167.61 Interest on secured loans 1,452.16 191.70 Unsecured Loans* 1,240.35 18,653.83 Interest on unsecured loans 39.12 305.57 Creditors for Goods Number of Contracts Five – Type Buy – Foreign Currency EURO 7.00 – GBP 10.25 – INR Equivalent 1,007.69 – Current Liabilities and Provisions 35.73 –

* Stated at forward rates b) The detail of foreign currency exposure that are not hedged by derivative instrument or other wise included in the creditors is as mentioned below:- (Amount in lacs) 2010 2009 Foreign Foreign INR INR Currency Currency Secured Loan USD 359.16 16,212.39 196.54 10,013.75 Interest on Secured Loan USD 1.34 60.58 0.82 41.93 Unsecured Loan USD 281.43 12,703.56 38.47 1,960.05

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Consolidated_Balance-Sheet.indd 174 8/26/2010 11:43:51 PM (Amount in lacs) 2010 2009 Foreign Foreign INR INR Currency Currency EURO 39.36 2,383.43 -- JPY 29,320.96 14,203.07 6,745.50 3,503.48 Interest on Unsecured Loan USD 1.30 58.72 0.35 17.83 EURO 1.31 79.18 -- JPY 487.88 236.33 80.40 41.64 Creditors for goods USD 1.19 53.58 - - EURO 3.60 218.03 - - GBP 0.90 60.98 - - Creditors for expenses EURO 0.22 13.28 - - GBP 0.45 30.45 - - Other advances USD 0.03 1.53 - - EURO 0.29 17.51 - - Current Liabilities & Provisions USD 95.00 4288.30 --

Conversion rate applied 1 USD = Rs. 45.14, 1 EURO = Rs. 60.56, 1 JPY = Rs. 0.4844 , 1 GBP = Rs. 68.032 (previous year 1 USD = Rs.50.95, 1 JPY = Rs. 0.5187)

25. Events after the Balance Sheet date Subject to the approval of shareholders and other requisite approvals, the Board of Directors approved in their meeting held on July 28, 2010, the proposal for further issue of Equity Shares by its wholly owned subsidiary – DLF Brands Limited (DBL) under the Unlisted Public Companies (Preferential Allotment) Rules, 2003 to M/s. Ishtar Retail Private Limited, a promoter group company. Upon further issue of equity shares, DBL will cease to be subsidiary of DLF Limited. Pending further approvals no effect has been given to proposal in the ﬁ nancial statements. 26. Previous year ﬁ gures have been regrouped / recast wherever considered necessary to make them comparable with those for the current year.

On behalf of the Board of Directors

Ashok Kumar Tyagi Subhash Setia T.C.Goyal Rajiv Singh Group Chief Financial Ofﬁ cer Company Secretary Managing Director Vice Chairman

New Delhi July 28, 2010

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Consolidated_Balance-Sheet.indd 175 8/26/2010 11:43:51 PM 176

Consolidated_Balance-Sheet.indd 176 8/26/2010 11:43:51 PM Details of Subsidiary Companies (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL (0.86) NIL (0.86) NIL NIL (0.45) NIL (0.45) NIL NILNIL (0.71) (0.14) (0.22) NIL (0.49) (0.14) NIL NIL NIL (0.52) NIL (0.52) NIL NIL (51.44) NIL (51.44) NIL NIL (75.47) (23.32) (52.15) NIL NIL (77.61) NIL (77.61) NIL NILNIL (8.37)NIL (1.69) (2.84) (0.45) (0.57) (5.52) NIL (1.12) NIL (0.45) NIL NIL NIL (65.78) (20.33) (45.45) NIL NIL (564.17) NIL (564.17) NIL NIL (38.32) NIL (38.32) NIL NILNIL (6.89) (1.08) NIL 0.01 (6.89) (1.09) NIL NIL 0.03 (0.13) (0.04) (0.08) NIL 10.83 (2.37) NIL (2.37) NIL 22.03 10.00 5.35 4.65 NIL 21.72 9.71 4.56 5.14 NIL 35.00 (166.21) (12.95) (153.26) NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 2,938.27 (3,434.70) (1,227.82) (2,206.87) NIL NIL NIL NIL NIL NIL NIL 6,950.59 6,759.78 1,441.50 5,318.28 NIL NIL NIL (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 3.43 0.53 0.20 0.16 1.18 1.28 0.20 0.16 5.95 1.10 7.70 74.99 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 0.37 5,606.43 5,605.06 t & (2.10) (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 5.005.00 (31.64) 882.64 256.01 2,416.21 282.66 1,528.57 1.00 (1.29) 4,545.29 4,545.58 5.00 (140.97) 694.84 830.81 5.00 1.00 (52.65) 75,024.75 75,076.39 1.00 (0.96) 1.005.00 (1.10) (318.70) 947.09 1,260.79 5.001.00 887.23 (265.83) 2,422.57 802.95 1,530.34 1,067.78 1.00 1.005.00 (3,129.14) (0.96) 63,336.74 66,460.88 1.00 (67.51) 2,568.73 2,635.24 5.00 (1,529.21) 7,723.36 9,247.58 5.00 903.86 2,544.33 1,635.47 6.001.50 (1.15) (38.56) 33.65 70.71 7.00 (74.30) (a) Capital Reserves on Financial 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 461,072.02 (21,083.51) 535,269.70 95,281.19 77.71 31-3-2010 26.00 959.14 1,000.15 15.01 31-3-2010 year ended Name of the Company Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Ltd. Pvt. Ltd. Pvt. Ltd. Ltd. Developers Pvt. Ltd. Pvt. Ltd. Services Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Constructions Pvt. Ltd. Private Limited Pvt Ltd. Pvt. Ltd. Ltd. 4 Adrienne Builders & Constructions 5 Alastair Builders & Developers 3 Adelie Builders & Developers 2 Abhiraj Real Estate Pvt. Ltd. 31-3-2010 7 Alvita Builders and Developers 6 Alta Builders & Developers Pvt. 8 Americus Real Estate Pvt. Ltd.9 Amishi Builders & Developers 31-3-2010 1 Aadarshini Real Estate 11 Anjuli Builders & Developers Pvt. 10 Amoda Builders & Developers 12 Annabel Builders & Developers 13 Berenice Real Estate Pvt. Ltd.14 Beverly Park Maintenance 31-3-2010 15 Bhamini Real Estate Developers 16 Bhoruka Financial Services Ltd.17 Calantha Builders & Developers 31-3-2010 20.14 6,199.02 8,296.12 2,076.95 18 Callista Builders & Constructions 20 Caressa Builders and 21 Carreen Builders & Developers 19 Caraf Builders & Constructions 22 Catriona Builders & Constructions 23 Cee Pee Maintenance Services Sl No.

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Subsidary Pg 177-190.indd 177 8/28/2010 11:57:04 AM Details of Subsidiary Companies (Contd...) (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL (0.48) NIL (0.48) NIL NIL (0.48) NIL (0.48) NIL NIL (70.31) NIL (70.31) NIL NILNIL (14.03) (0.75)NIL (4.17) (0.23) (0.95) (9.87) (0.52) NIL NIL NIL (0.95) NIL NIL (0.62) NIL (0.62) NIL 0.72 (129.83) NIL (129.83) NIL 0.13 (0.83) (0.01) (0.82) NIL 0.08 (16.55) 9.69 (26.24) NIL 5.86 4.80 1.49 3.30 NIL 9.49 (3.12) 2.04 (5.16) NIL 91.63 26.87 8.30 18.57 NIL 16.29 (35.99) 0.06 (36.04) NIL 12.21 0.27 0.04 0.23 NIL 42.78 (571.83) NIL (571.83) NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NILNILNIL 598.99 1,756.68 (304.74) (409.77) (111.34) NIL (298.44) (304.74) NIL NIL NIL NIL NIL NIL NIL NIL NIL NILNILNIL 2,293.20 (1,501.25) 554.73 173.12 (283.81) (1,674.38) (1.43) NIL (282.38) NIL NIL 1,721.16 169.04 (210.16) 379.19 NIL NIL 69,165.02NIL (3,991.90) 63,997.79 (1,313.43) (2,678.47) 37,149.41 7,398.48 NIL 29,750.93 NIL NIL (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 4.10 0.28 0.73 1.52 3.49 0.13 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments t & (b) (608.17) 1,551.20 2,154.37 where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 5.00 5.00 (73.92) 17.92 86.84 5.00 99.10 2,726.36 2,622.26 1,079.26 501.30 15.75 21.06 (5.31) NIL 5.00 (1.18) 5.002.68 (435.36) 6,864.42 2,717.96 15,661.38 3,148.32 8,794.27 1.00 (367.29) 9,497.37 9,863.65 1.00 (20.39) 1,716.71 1,736.10 1.00 (119.81) 48.56 167.37 5.00 (5.79) 1.00 (1.81)5.00 607.00 129.15 607.81 136.14 1.99 13.73 5.005.01 (1,890.15) (828.28) 4,624.66 1,638.10 6,509.81 2,461.37 5.00 (1.64) 5.00 37,723.90 257,934.18 220,205.28 (a) Capital Reserves on Financial 31-3-2010 31-3-2010 31-3-2010 31-3-2010 40.00 118.73 9,537.67 9,378.95 31-3-2010 10.00 (925.10) 1,281.35 2,196.45 31-3-2010 31-3-201031-3-2010 99.00 (95.78) 17.04 13.82 31-3-2010 31-3-2010 31-3-2010 200.00 5,663.46 54,317.05 48,453.59 3,252.38 8,725.69 2,714.91 (199.64) 2,914.55 NIL 31-3-2010 583,993.70 (683.22) 1,188,458.45 605,147.97 31-3-2010 300.00 (15.41) 290.59 6.00 31-3-2010 800.00 (2,428.99) 11,051.34 12,680.33 1,029.00 1,873.14 (1,643.50) 42.95 (1,686.45) NIL 31-3-2010 31-3-2010 50.00 (1,004.45) 9,381.06 10,335.51 year ended 31-3-2010 Name of the Company Ltd. Ltd. Pvt. Ltd. (formerly Var Infratech Pvt. Ltd.) (formerly Var Pvt. Ltd. Limited (formerly DLF Akruti Info Limited (formerly DLF Parks (Pune) Ltd.) Brands Pvt. Ltd.) Pvt. Ltd. 25 Comfort Buildcon Pvt. Ltd. 27 D.L.F Housing and Construction 26 Cyrilla Builders & Constructions 30 Delanco Home & Resorts Pvt. Ltd. 31-3-2010 28 Dalmia Promoters and Developers 31 Delanco Realtors Pvt. Ltd. 32 Deltaland Buildcon Pvt. Ltd.33 Wind Power Pvt. Ltd. DHDL 34 31-3-2010 Dhoomketu Builders & Developers 50 DLF Golf Resort Ltd. 29 City Ltd. Dankuni World 35 Diwakar Estates Ltd. 36Ackruti Info Parks (Pune) DLF 49 DLF Garden City Indore Pvt. Ltd. 48 DLF Food Courts Pvt. Ltd. 49 DLF Garden City Indore Pvt. Ltd. 31-3-2010 37Assets Private Ltd DLF 44 DLF Emporio Restaurants Ltd.45 DLF Estate Developers Ltd.46 31-3-2010 DLF Financial Services Ltd.47 DLF Finvest Limited 31-3-2010 31-3-2010 24.00 27.13 51.34 0.21 41 DLF Commercial Developers Ltd.42 DLF Cyber City Developers Ltd. 31-3-201043 DLF Developers Limited 31-3-2010 2,055.00 309,750.00 207,612.87 31-3-2010 162,338.81 293,766.89 809,016.45 84,099.03 336,927.64 1,186.14 39,020.18 17,046.90 8,038.46 9,008.44 NIL 38 DLF Brands Ltd. (formerly 24 Chandrajyoti Estate Developers 40 DLF Commercial Complexes Ltd. 31-3-2010 39 DLF City Centre Limited Sl No.

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Subsidary Pg 177-190.indd 178 8/28/2010 11:57:05 AM NIL (j) Dividend Proposed (Rs. in lacs) (i) 104.33) NIL t (Loss) Pro fi After Taxation 66 1,431.33 NIL (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL (0.69) NIL (0.69) NIL NIL (10.86) NIL (10.86) NIL (0.12) (0.04) (0.08) NIL NILNIL (0.16) (0.67) NILNIL (0.21) (1,117.07) (0.16) (0.46) 2.01 NIL (1,119.08) NIL NIL NILNIL (3.27) (0.16) NIL NIL (3.27) (0.16) NIL NIL NIL (6.70) NIL (6.70) NIL NILNIL (21.53)NIL (0.16) NIL (0.06) (7.11) (21.53) (0.45) (0.11) NIL (6.66) NIL NIL NIL (167.97) NIL (167.97) NIL NIL (1.70) (0.58) (1.12) NIL 5.71 (217.71) (67.45) (150.26) NIL 3.53 2.76 0.85 1.91 NIL 6.98 (73.52) (14.27) (59.25) NIL (f) Income) Turnover Turnover (including Other NIL 1,273.09 (96.07) 8.25 ( NIL NIL NIL 20,972.19 2,013.98 582. NIL NIL NIL NIL NIL NIL NIL NIL NIL 46,832.40 29,834.36 3,429.01 26,405.35 NIL NIL NIL NIL NIL NIL NIL 708.35 (1,191.71) (399.99) (791.72) NIL NIL 15,741.85 1,963.52 674.66 1,288.86 NIL NIL 14,439.06 1,488.94 506.09 982.85 NIL NIL 2.24 (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 0.25 1.13 1.65 8.61 4.18 0.16 4.17 0.16 0.69 18.10 0.96 3.88 9.84 4.29 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 4.72 45.99 1.28 0.55 t & (7.73) 61.91 64.64 (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 1.00 (79.79) 861.61 940.40 1.00 (1.88) 2.70 12,183.34 29,055.95 16,869.91 3.01 10,010.71 55,020.38 45,006.66 1.00 (151.54) 5,239.65 5,390.19 1.00 (1,125.81) 27,314.89 28,439.71 1.00 (1.93) 1,295.69 1,296.62 1.00 (7.96) 5.00 (0.98) 5.00 5.00 (0.99) 5.00 (300.31) 4,599.50 4,894.81 5.00 (22.41) 5.00 (7.92) 5.005.00 (651.07) 894.71 1,540.78 1.00 (22.46) 1,176.96 1,198.41 5.00 883.56 28,169.09 27,280.53 (a) Capital Reserves on Financial 31-3-2010 31-3-2010 4,000.00 (1,272.49) 28,424.61 25,697.09 41.68 178.76 19.71 4.13 15.58 NIL 31-3-201031-3-2010 3,936.30 298,682.68 25.00 340,473.18 37,854.20 3,471.72 59,670.51 56,173.78 1,499.26 452.24 58.86 25.39 33.47 NIL 31-3-2010 72,805.00 (233.92) 72,898.43 327.35 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 40.00 31-3-2010 44,641.00 7,927.14 115,046.40 62,478.26 31-3-2010 22,130.41 (13,774.79) 14,688.24 6,332.62 8,518.73 635.99 (9,328.88) NIL (9,328.88) NIL 31-3-2010 year ended ces fi Name of the Company (Chandigarh) Ltd. (Chennai) Ltd. (Kolkata) Ltd. (Chennai) Limited Developers Pvt. Ltd. Developers Pvt. Ltd. (formerly DLF SEZ Holdings Limited) Developers Ltd. Developers Pvt. Ltd. Company Ltd. 57 DLF Homes Goa Pvt. Ltd. 62 DLF Homes Services Pvt. Ltd. 31-3-2010 54 DLF Home Developers Ltd.55Ambala Pvt. Ltd. DLF Homes 56 DLF Homes Durgapur Private Ltd. 31-3-2010 31-3-2010 31-3-2010 58 DLF Homes Kokapet Pvt. Ltd. 90,292.9259 DLF Homes 157,044.46 Panchkula Pvt. Ltd. 31-3-2010 31-3-2010 816,726.32 569,388.94 42,120.94 246,978.10 121,332.92 41,251.77 80,081.15 NIL 63 DLF Info City Developers 61 DLF Homes Rajapura Pvt. Ltd. 31-3-2010 53 DLF Haryana SEZ (Gurgaon) Ltd. 31-3-2010 60 DLF Homes Pune Pvt. Ltd. 31-3-2010 64 DLF Info City Developers 65 DLF Info City Developers 52 DLF Haryana SEZ (Ambala) Ltd. 31-3-2010 66 DLF Info Park Developers 72 DLF New Gurgaon Retail 67 DLF Infra Holdings Ltd. 68 DLF Land Limited 51 DLF Gurgaon Developers Limited 69 DLF Metro Ltd. 73 DLF Phase-IV Commercial 70 DLF New Gurgaon Homes 71 DLF New Gurgaon Of 74 DLF Pramerica Life Insurance 76 DLF Projects Limited 77 DLF Property Developers Limited 31-3-2010 50.00 1,694.55 4,833.07 3,088.52 75 DLF Premium Homes Pvt. Ltd. 31-3-2010 Sl No.

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Subsidary Pg 177-190.indd 179 8/28/2010 11:57:05 AM Details of Subsidiary Companies (Contd...) (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for (g) t (Loss) before (2,303.20) (777.06) (1,526.14) NIL Taxation Pro fi NIL (0.11) NILNIL (0.11) (0.65) NIL NIL (0.65) NIL NIL (72.05) NIL (72.05) NIL NIL (0.70) NIL (0.70) NIL NIL (0.66) NIL (0.66) NIL NIL (33.10) (5.21) (27.89) NIL NIL (0.70) NIL (0.70) NIL NIL (0.86) NIL (0.86) NIL NIL (168.34) NIL (168.34) NIL NIL (0.87) NIL (0.87) NIL 2.09 (35.25) NIL (35.25) NIL 0.36 (330.87) NIL (330.87) NIL 0.09 (10.27) 120.01 (130.28) NIL 77.22 76.00 23.90 52.10 NIL 12.60 0.57 1.74 (1.17) NIL (4.90) (537.36) (134.42) (402.94) NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NILNIL 42,034.95 4,372.44 1,532.28 2,840.16 NIL NIL NIL NIL NILNIL 39,848.33 2,771.12 10,152.77 1,034.15 1,497.48 1,736.97 255.40 1,242.08 NIL NIL NIL NIL NIL NIL 8,248.00 (2,412.63) (722.21)NIL (1,690.42) NIL NIL NIL 264.38 1.60 (32.55) 34.16 NIL NIL NIL NIL 3,341.55 1,747.51 682.10 1,065.41 NIL NIL (49.24) (87.14) (12.85) (74.29) NIL 1.68 0.73 356.34 (580.71) (181.37) (399.34) NIL (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 4.51 0.22 1.59 0.04 3.43 0.36 1.39 162.84 0.07 0.60 3.44 0.36 3.43 0.53 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 2.74 1,550.14 1,542.40 t & (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 2.70 37,595.69 98,403.75 60,805.36 7,298.72 10,853.58 1,573. 68 533.20 1,040.49 NIL 5.00 2,914.20 18,231.26 15,312.06 5.00 (471.64) 67.77 534.41 5.00 (0.72) 5.00 (3.45) 5.00 (765.24) 1,991.48 2,751.72 5.00 (166.45) 5.00 880.43 2,408.55 1,523.12 5.00 2,401.46 7,044.10 4,637.65 5.00 (1.93) 1.00 (1.52) 5.00 (1.93) 5.00 5.00 (2.10) (a) Capital Reserves on Financial 31-3-2010 31-3-201031-3-2010 2,016.00 99.00 451.93 138,661.47 (72.99) 136,193.54 2,473.51 659.14 2,447.51 9,568.64 (311.28) (1,636.25) 1,324.97 NIL 31-3-2010 1,115.00 149.68 1,335.13 70.46 31-3-2010 4,000.00 8,874.42 44,951.70 32,077.28 31-3-2010 31-3-2010 31-3-2010 31-3-2010 50.00 827.56 3,538.21 2,660.65 31-3-2010 31-3-2010 31-3-2010 7,440.36 3,238.9031-3-2010 21,494.64 96.15 10,815.38 2,529.97 5,416.53 2,790.41 950.13 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 50.00 (3.17) 1,552.82 1,505.99 year ended 31-3-2010 6,932.00 10,072.26 63,265.91 46,261.65 Name of the Company (formerly Bestvalue Housing & Cons. Pvt.Ltd.) Laing O’Rourke (India) Limited) Pvt. Ltd. Limited Pvt. Ltd. Pvt. Ltd. Services Pvt. Ltd. DLF Residential Builders Limited Pvt. Ltd. 84 DLF Services Limited 85 DLF SEZ Developers Limited 31-3-2010 90 DLF Utilities Ltd. 91 DLF Wind Power Pvt. Ltd. 86 DLF Southern Homes Pvt. 87 Ltd. DLF Southern Towns Pvt. 31-3-2010 Ltd. 88 Ltd. DLF Telecom. 31-3-2010 49,559.58 27,857.56 103,441.55 26,024.41 8,892.14 9,883.72 89 DLF Universal Ltd. 93 Projects Limited (formerly DLF DT 92 Cinemas Limited DT 82 DLF Retail Developers Ltd.83 DLF Retail Services Ltd. 31-3-2010 4,400.00 15,015.25 434,530.18 415,114.94 2,679.47 150,188.85 1,065.39 751.73 313.66 NIL 80 DLF Residential Developers 96 Enki Retail Pvt. Ltd. 81 DLF Residential Partners Limited 31-3-2010 50.00 708.98 10,214.72 9,455.74 94 Eastern India Powertech Limited 95 Edward Keventer (Successors) 99 Galaxy Mercantiles Limited 31-3-2010 9,603.66 2,376.89 35,760.93 23,780.38 97 Eros Retail Pvt. Ltd. 98 Falguni Builders Pvt. Ltd. 78 DLF Real Estates Builders Limited79 31-3-2010 50.00 474.30 3,673.35 3,149.05 105 Gyan Real Estate Developers 102 Gavin Builders & Developers 100 Galleria Property Management 104 Gulika Home Developers Pvt. Ltd. 31-3-2010 103 Geocities Airport Infrastructures 101 Ganika Builders Pvt. Ltd. Sl No.

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Subsidary Pg 177-190.indd 180 8/28/2010 11:57:05 AM (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation - (1.03) NIL (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL (1.04) NIL (1.04) NIL NIL (0.66) NIL (0.66) NIL NIL (6.94) NIL (6.94) NIL NILNIL (0.84) (0.32) NIL (0.11) (0.84) (0.21) NIL NIL NIL (1.04) NIL (1.04)NIL NIL NIL (0.13) (2.39) NIL 0.02 (0.13) (2.40) NIL NIL NIL (1.04)NIL NIL (1.38) (1.04) NIL NIL (1.38) NIL NIL (1.04) NIL (1.04) NIL NIL (0.17) NIL (0.17) NIL NIL (0.07) NIL (0.07) NIL NIL (10.50) (3.21) (7.29) NIL NIL (5.84) NIL (5.84) NIL NIL (13.02) NIL (13.02) NIL NIL (1.03) 1.26 (7.57) NIL (7.57) NIL 0.15 (1,559.56) (530.09) (1,029.47) NIL 2.68 (54.17) NIL (54.17) NIL 6.09 4.95 (0.19) 5.14 NIL 8.19 6.85 2.36 4.50 NIL 30.69 30.06 9.48 20.57 NIL 30.63 30.00 9.47 20.54 NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NIL NIL 7,266.55 1,605.02 93.87 1,511.15 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 296.78 (85.66) NIL (85.66) NIL NIL NIL NIL 490.01 (315.94) NIL (315.94) NIL NIL NIL NIL NIL 121.54 (332.51) (114.86) (217.65) NIL (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 5.09 6.48 0.14 0.60 1.35 10.56 2.78 0.28 6.42 55.90 5.09 6.48 5.15 6.54 5.15 6.54 0.50 51.01 475.24 9.57 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 9.67 8.94 474.49 9.55 t & (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 5.00 2,051.72 46,810.53 44,753.80 1.00 (2.39) 5.00 (748.79) 610.39 1,354.18 5.00 27,705.56 44,477.79 16,767.23 1.00 (42.46) 700.16 741.61 1.00 (1.46) 1.005.00 (54.44) (115.92) 505.88 4,880.88 559.32 4,991.80 5.00 (1.73)5.00 2,040.04 (89.71) 2,036.78 65.91 150.62 1.00 (10.21) 5.00 51.89 58.88 1.99 40.70 1.00 31.80 631.56 598.76 5.00 (2.50) 1.00 (14.09) 2,382.79 2,395.88 1.00 (2.39) 1.00 (2.39) 1.00 (2.39) 5.00 (74.72) 18.70 88.43 5.00 (55.51) 5.00 3,398.17 5,728.46 2,325.29 456.00 (a) Capital Reserves on Financial 31-3-2010 32.40 273.81 318.99 12.78 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-201031-3-2010 700.00 456.00 (401.20) 1,062.44 763.64 31-3-2010 31-3-2010 27.00 (76.48) 31-3-2010 31-3-2010 year ended Name of the Company Management Services Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Limited Pvt. Ltd. Private Ltd. Ltd. Pvt. Ltd. Services Ltd. Pvt. Ltd. 111 Jawala Real Estate Pvt. Ltd. 31-3-2010 500.00 2,010.74 154,118.21 151,607.47 119 Leandra Builders & Developers 110 Janya Estates Developers Private 118 Lawanda Builders & Developers 112 Juno Retail Pvt. Ltd. 113 K G Infrastructure Pvt. Ltd. 114 Kairav Real Estate Pvt. Ltd. 31-3-2010 117 Laman Real Estates Pvt. Ltd. 31-3-2010 115 Kapo Retail Pvt. Ltd. 116 Khem Buildcon Pvt. Ltd. 133 Regency Park Property 123 Necia Builders & Developers 132 Rati Infratech Pvt. Ltd. 122 Nambi Buildwell Private Ltd.124 31-3-2010 Nellis Builders & Developers 126 Nilayam Builders & Developers 121 Mhaya Buildcon Private Ltd. 31-3-2010 120 Mens Buildcon Private Ltd. 109 Jai Luxmi Real Estate Pvt. Ltd. 31-3-2010 107 Highvalue Builders Pvt. Ltd.108 Isabel Builders & Developers 31-3-2010 129 Pat Infrastructures Pvt. Ltd.130 Property Management Tee Pee 131 Prompt Real Estate Pvt. Ltd. 31-3-2010 31-3-2010 127 Paliwal Developers Limited128 Paliwal Real Estate Pvt. Ltd. 31-3-2010 31-3-2010 126.00 11.70 140.92 3.22 125 Hospitals Ltd. NewGen MedWorld 31-3-2010 106 Hiemo Builders & Developers Sl No.

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Subsidary Pg 177-190.indd 181 8/28/2010 11:57:05 AM Details of Subsidiary Companies (Contd...) (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL (0.87) NIL (0.87) NIL NIL (0.68) NIL (0.68) NIL NIL (0.95) NIL (0.95) NIL NIL (0.87) NIL (0.87) NIL NIL (0.86) NIL (0.86) NIL NIL (0.52) NIL (0.52) NIL NIL (0.12)NIL (0.04) (1.22)NIL (0.08) NIL (1.08) NIL (1.22) 0.01 NIL (1.10) NIL NIL (285.60)NIL (24.76) NIL (285.60) NIL NIL (24.76) NIL NIL (165.00) NIL (165.00) NIL NIL (131.78) NIL (131.78) NIL NILNIL (0.49) (0.49) NIL NIL (0.49) (0.49) NIL NIL 0.78 0.09 0.03 0.06 NIL 26.22 25.46 7.87 17.59 NIL 86.36 85.8586.35 17.78 80.60 68.07 17.78 NIL 62.82 NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NIL NIL 107.80 (34.13) 0.43 (34.56) NIL NILNIL 293.93NIL (141.24) NILNIL (141.24) NIL NIL NIL NIL 182.65 (0.22) NIL (0.22) NIL NIL NIL 9,243.21 1,415.24 524.57 890.67 NIL NIL 394.24 (207.74) NIL (207.74) NIL NILNIL 1,428.03 (1,238.83) (6.77) (1,232.06) NIL NIL NIL NIL NILNIL 167.40 73.03 22.64 50.39 NIL 7.201.00 1,488.24 (57.90) NIL (57.90) NIL 1.00 (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) 0.41 0.86 0.50 1.12 3.39 0.39 1.18 1.28 5.57 2.69 7.15 77.95 6.77 76.32 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 4.914.91 10.07 10.07 0.15 0.15 t & (2.00) (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 5.00 5.00 (78.95) 13,952.81 14,026.76 5.00 (1,144.08) 1,038.05 2,177.13 1.00 (1.45) 1.00 (1.62) 1.00 (184.18) 619.78 802.96 1.00 (111.60) 22,100.12 22,210.72 1.001.00 (1.10) 25.43 239.39 212.96 5.00 (2.12) 7.00 (77.80) 5.00 (74.55) 1.00 (287.02) 4,267.32 4,553.34 5.00 (768.01) 6,645.33 7,408.34 1.00 (3.29) 4,553.52 4,555.81 1.001.00 (125.96)5.00 (36.09) 2,032.98 230.59 2,157.95 370.26 4,119.74 405.35 3,884.15 5.00 5.00 5.00 73.42 96.36 17.93 (a) Capital Reserves on Financial 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 8,601.0031-3-2010 (69.51) 8,635.54 104.06 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 1,400.00 (208.01) 1,558.57 366.58 31-3-2010 31-3-2010 31-3-2010 31-3-2010 4,450.00 (443.90) 5,698.57 1,692.48 31-3-2010 31-3-2010 15.00 110.73 168.98 43.25 year ended Name of the Company Management Services Ltd. Management Company Pvt. Ltd. Ltd. Ltd. Pvt. Ltd. Richmond Park Property Pvt. Ltd. Services Ltd. Pvt. Limited Limited Limited Pvt. Limited 146 Vkarma Capital Investment 145 Builders & Developers Pvt. Valini 137 Rod Retail Pvt. Ltd 136 Riveria Commercial Developers 138 Samali Builders & Developers 149 Zola Real Estates Pvt.Ltd. 148 VSK Investment & Finance Ltd. 31-3-2010 151 DLF Hotel Holdings Limited152Aspinwal Hotels Pvt Limited DLF 31-3-2010 31-3-2010 125,968.00 (2,351.88) 146,707.72 23,091.38 147 Company Trustee Vkarma Capital 139 Shivajimarg Properties Ltd.140 Silver Oaks Property Management 31-3-2010 48,375.00144 Urvasi Infratech Pvt. Ltd. 1,222.61 53,627.94 4,030.33 143 Sunlight Promoters Pvt. Ltd. 31-3-2010 150 Zoria Infratech Pvt. Ltd. 153 DLF Cochin Hotels Pvt. Limited 31-3-2010 141 Solid Buildcon Pvt. Ltd. 142 Springhills Infratech Pvt. Ltd. 31-3-2010 134 Rhea Retail Pvt. Ltd. 135 154 Bedelia Builders & Constructions 155 DLF Hospitality and Recreational 156Apartments Limited DLF Service 31-3-2010 157 DLF Inns Limited 158 DLF Luxury Hotels Limited 159 Eila Builders & Developers Private 160 Monroe Builders & Developers Sl No.

182

Subsidary Pg 177-190.indd 182 8/28/2010 11:57:05 AM (j) Dividend Proposed (Rs. in lacs) - NIL NIL NIL (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for NIL NIL NIL NIL (g) t (Loss) before Taxation Pro fi NIL (0.22) NIL (0.22) NIL NIL (0.21) NIL (0.21) NIL NIL (2.57) NIL (2.57) NIL NIL (0.60) NIL (0.60) NIL NIL (89.38) NIL (89.38) NIL NIL NIL (2.51) NIL (2.51) NIL NIL (0.17) NIL (0.17) NIL NIL (60.60) NIL (60.60) NIL NIL (8.96) NIL (8.96) NIL NILNIL (0.24)NIL NIL (2.56) (0.24) NIL NIL (2.56) NIL NIL (53.74) NIL (53.74) NIL NIL (51.65) NIL (51.65) NIL 1.92 1.79 NIL 1.79 NIL 2.47 2.34 NIL 2.34 NIL 0.02 (5.22) NIL (5.22) NIL 6.52 (2,658.97) NIL (2,658.97) NIL 15.63 15.58 NIL 15.58 NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 470.02 101.45 22.35 79.10 NIL NIL 1,459.26 404.89 139.82 265.07 NIL NILNIL 3,586.62NIL 3,144.04 935.35 NIL 795.42 3,144.04 NIL NIL 795.42 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 2,151.58NIL 2,134.21 749.06 1,385.15 NIL 0.47 1,215.31 (758.31) 1.72 (760.03) NIL (e) (except Details of in case of Investments subsidiaries) investments in NIL NIL NIL NIL NIL 0.11 0.11 0.11 (d) Total Total Current (Loans + Liabilities Liabilities) NIL NIL 41.32 NIL NIL NIL NIL 0.52 0.52 4.66 6.46 0.27 66.23 0.60 64.62 6.30 4.64 6.57 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments t & (b) (855.97) 14,200.05 15,055.00 where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 9.11 (9.11) 1.00 1.00 (0.59) 1.00 (128.81) 1,329.82 1,457.64 1.00 (0.59) 1.00 (60.88) 316.54 476.64 100.00 1.27 (1.27) 3.84 (3.84) 1.00 (1.00) 5.00 (2.04) 3,200.93 3,197.99 3.53 (5.33) 1.00 (66.96) 1.00 (1.00) 1.00 (65.03) 3.53 (5.46) 7.00 (0.81) (a) Capital Reserves on Financial 31-3-2010 31-3-2010 31-3-2010 19.62 (60.94) 31-3-2010 31-3-2010 11,073.10 368.74 15,364.18 3,922.35 31-3-2010 22,398.09 97,238.0231-3-2010 124,471.28 11.93 4,835.17 33,131.42 33,228.70 85.34 31-3-2010 31-3-2010 50.00 593.98 7,760.61 7,116.64 31-3-2010 6,391.69 (6,468.64) 284.72 361.68 31-3-2010 31-3-2010 0.00* 17,729.74 22,674.50 4,944.77 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 31-3-2010 53,453.35 2,574.98 56,066.89 38.54 31-3-2010 year ended Name of the Company Limited Pvt Limited Limited Limited Limited Limited Limited { formerly DLF Saket Hotels Private Limited } Limited Limited Limited Limited 165 DLF Global Hospitality Limited 166 City Icon Limited 31-3-2010168 DLF International Hospitality Corp 15,331.02 31-3-2010 37,120.84171 2,240.90 131,668.62 Sinonet Holding Limited 103,494.72 8,931.92 24,277.97 11,176.36 243.97 3.54 (4,855.69) NIL (4,855.69) NIL 164 Pvt DLF Business Hotels Venture 167 Overseas Hotels Limited 170 Argent Holdings Limited 163 DLF Comfort Hotels Pvt Limited 31-3-2010 169 Fonton Limited 162 DLF Jaipur Convention Center 172 DLF International Holdings Pte 161 Breeze Constructions Private 182 Alvernia Limited 183 DLF City Centre Limited 184 DLF Recreational Foundation 173 Management Pte Trust DLF 185 Saket Courtyard Hospitality Pvt 181 Universal Hospitality Limited 31-3-2010 186 DLF Exotica Hotels Private 175 DLF Hilton Hotels (Mysore) Pvt. 187 Heritage Resorts Private Limited 31-12-2009 6,079.18 (7,725.10) 7,412.79 9,059.19 174 DLF Hilton Hotels Limited 176 DLF Pleasure Hotels Pvt Limited 31-3-2010 180Acres Development Limited Red 31-3-2010 177Apartments Pvt DLF Hotels & 179 DLF Southcourt Hotels Pvt Limited 31-3-2010 178 DLF New Delhi Convention Center Sl No.

183

Subsidary Pg 177-190.indd 183 8/28/2010 11:57:05 AM Details of Subsidiary Companies (Contd...) (j) Dividend Proposed (Rs. in lacs) (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for (g) t (Loss) before Taxation Pro fi NIL 0.43 NIL 0.43 NIL NIL (0.29) NIL (0.29) NIL NIL (6.17) NIL (6.17)NIL NIL (353.35)NIL NIL (1.82) (353.35) (6.54) NIL (8.35) NIL NILNIL (1.78) (4.13) NIL NIL (1.78) (4.13) NIL NIL NIL (0.43)NIL NIL 13.94 (0.43) NIL NIL 13.94 NIL NIL (0.29) NIL (0.29) NIL 0.14 46.59 NIL1.59 (43.83) 46.59 NIL NIL (43.83) NIL 2.35 (7.27) NIL (7.27) NIL 69.11 (34.29) NIL (34.29) NIL 74.55 12.44 2.77 9.67 NIL 13.39 (3.42) NIL (3.42) NIL 12.29 (25.33) NIL (25.33) NIL (f) Income) Turnover Turnover (including Other NIL 424.41 26.82NIL NIL 26.82 NIL NILNIL 314.70NIL 72.09NIL 451.64NIL 28.40NIL (1,253.65)NIL 43.69 1,364.19 2.93 1,828.01 (1,256.58) 446.58 NIL NIL 434.04 NIL (9.03) 118.57 1,440.43 455.61 (253.77) 315.46 NIL (33.39) NIL (220.38) NIL NIL NIL NIL NIL NIL 174.90 174.90 NIL 174.90 NIL NIL 1,008.87 89.50 (37.95) 127.45 NIL NIL NIL 329.90 118.56 NIL 118.56 NIL NIL NIL NIL NIL NIL NIL NIL 579.06 (6.49) NIL (6.49) NIL NIL 432.86 (96.13) NIL (96.13) NIL NIL NIL 140.84 (82.20) NIL (82.20) NIL (e) (except Details of in case of Investments subsidiaries) investments in (d) Total Total Current (Loans + Liabilities Liabilities) NIL 2.47 NIL 6.48 NIL 0.41 0.01 5.80 7.14 10.17 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments 3.17 96.18 84.02 t & (b) where (1,238.63) 578.06 1,724.99 in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 8.99 0.97 (3.44) 2.70 2,660.81 7,349.91 4,686.40 2.70 (44.88) 964.03 1,006.21 6.60 (36.38) 728.08 757.86 0.14 (7.18)0.29 122.27 (46.99)0.31 129.32 1,132.40 (3.34) 1,179.10 0.04 (5.84) 0.040.04 (162.05) (87.12) 767.02 177.07 929.03 264.15 91.70 (a) Capital Reserves on Financial 31-12-2009 31-12-200931-12-2009 241.98 (1,755.93) 993.16 2,507.12 31-12-200931-12-2009 10.4031-12-2009 10.40 (286.83) 10.40 (36.93) 1,234.71 (1,061.97) 1,511.15 6,426.9931-12-2009 60.55 7,478.56 95.86 87.08 642.81 1,624.37 885.71 31-12-2009 11.97 (374.94) 742.49 1,105.46 31-12-2009 0.00* (6.49) 31-12-2009 31-12-2009 0.00* 153.92 1,460.78 1,306.85 31-12-2009 27.52 1,033.28 2,109.93 1,049.13 31-12-2009 31-12-2009 31-12-2009 0.00* 318.49 1,485.69 1,894.58 727.37 31-12-2009 0.00* (0.41) 31-12-2009 0.00* 25.67 332.82 307.15 31-12-2009 year ended Name of the Company Limited B.V. Limited Limited Limited 211 Amanresorts IPR B.V. 207 Amanresorts Management B.V.208 Amanresorts Indonesia P.T. 209 31-12-2009 Hotel Sales Services Private 31-12-2009 10.54 (601.98) 26.69213Abadi Moyo Safari P.T. 214 (83.40)Amanusa Resort Indonesia 435.72 P.T. 215Ayu Villa Tirta P.T. 31-12-2009 1,027.16 377.80 117.72 434.52 (655.13) 2,428.83 2,966.24 210 Services Amanresorts Technical 212 Amanresorts B.V. 216 Regional Design & Research N.V.217 31-12-2009 Regional Design & Research B.V.218Ayu Villa 31-12-2009 P.T. 10.54 1,745.00 6,917.13 5,161.59 205 Aradal Company N.V. 206 Current Finance Limited 202 Mulvey B.V. 196 Holdings Limited Incan Valley 31-12-2009 0.00* (19.56)203 S.R.L Mulvey Venice 128.53 148.09 197 Development Company Villajena 198 Andes Resort Limited SAC199 Anbest Holdings Limited 31-12-2009 204 Holdings Pte Limited Yucatan 31-12-2009 195 Zeugma Limited 200 Amanresorts International Pte 201 Jalisco Holdings Pte Limited 31-12-2009 194 Puri Limited 193 Hotel Sales Services Limited 31-12-2009 192 Limited Hospitality Trading 31-12-2009 189 Lodhi Property Company Limited190 Silverlink Holdings Limited 31-12-2009191 Amanproducts Limited 371.90 31-12-2009 8,217.84 22,803.72 (21,938.54) 4,8719.60 80,392.14 40,514.15 79,639.37 384.29 112.40 1,497.51 (2,855.17) 626.83 (12,793.78) (124.35) (2,730.82) 8.28 (12,802.06) NIL NIL 188 Guardian International Private Sl No.

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Subsidary Pg 177-190.indd 184 8/28/2010 11:57:05 AM (j) Dividend Proposed (Rs. in lacs) NIL NIL (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for NIL NIL (g) t (Loss) before Taxation Pro fi NIL (7.52) NIL (7.52) NIL NIL (0.32) NIL (0.32) NIL NILNILNIL (0.29) (179.63) (0.47) NIL NIL NIL (179.63) (0.29) (0.47) NIL NIL NIL NIL NIL (0.31) NIL (0.31) NIL NIL (6.15) NIL (6.15) NIL 0.880.07 0.050.13 (0.81) NIL (0.85) NIL 0.05 NIL (0.81) NIL (0.85) NIL NIL 5.67 45.50 (248.44) 293.94 NIL 11.91 (87.75) (13.58) (74.17) NIL 21.34 16.78 NIL 16.78 NIL 16.73 (3.84) (2.31) (1.53) NIL 83.91 83.62 NIL 83.62 NIL 75.87 75.07 10.6223.96 64.45 79.79 NIL NIL 79.79 NIL (f) Income) Turnover Turnover (including Other NIL 2,331.10 273.99 80.78 193.21 NIL NIL NIL NIL 209.76 63.05 0.38 62.67 NIL NIL NIL NIL NILNIL 149.86 149.57 NIL 149.57 NIL NIL NIL NIL 340.67 340.38 34.07 306.31NIL NIL NIL NIL NIL NIL NIL NIL 691.67 691.38 NIL 691.38 NIL NIL 3,918.12NIL 662.90 65.56 597.35 NIL NIL 1,941.39 96.71 18.46 78.25 NIL NIL 472.76 (150.73) (33.09)NIL (117.64) NIL 0.00 469.57 376.00 8.10 367.90 NIL 6.80 4,974.12 (362.61) (106.58) (256.02) NIL (e) (except Details of in case of Investments subsidiaries) investments in NIL NIL (d) Total Total Current (Loans + Liabilities Liabilities) NIL 263.04 NIL 0.30 NIL 401.72 617.85 7.01 4.07 2.570.95 2.28 1.17 3.26 4.24 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments NIL 85.42 1.85 t & (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account 6.05 (239.71) 141.33 374.99 1.14 26,100.01 26,295.05 193.90 0.01 (7,052.17)0.02 350.40 25.95 7,402.56 29.705.72 3.73 21.28 680.19 1,605.93 952.74 753.58 737.18 10.10 727.08 NIL 4.50 (267.53) 1.09 4.50 259.44 357.93 93.99 0.550.55 (0.26) 0.55 (2.85) (3.61) 0.00* 619.22 664.71 45.49 (a) Capital Reserves on Financial 31-12-2009 31-12-2009 31-12-2009 31-12-2009 3,858.42 (1,116.02) 7,178.28 4,435.88 31-12-2009 31-12-2009 31-12-2009 31-12-2009 0.00*31-12-2009 (5.62) 0.00* 51.08 292.13 56.70 292.6831-12-2009 0.55 31-12-2009 0.00* (0.31) 31-12-2009 0.00* 291.98 799.00 507.02 31-12-200931-12-2009 85.42 0.00*31-12-2009 468.40 8,478.00 8,009.61 31-12-2009 449.59 (750.50) 3,485.43 3,786.33 31-12-2009 31-12-2009 31-12-2009 year ended Name of the Company Development Amankila Resorts Limited Limited Bora Limited Limited Limited Limited Company Limited 221 Nusantara Island Resorts P.T. 222 Indrakila Villatama P.T. 31-12-2009 129.58 346.09 1,397.23 921.56 223 Nusantara Island Resorts Limited224 Balina Pansea Company Limited 31-12-2009 31-12-2009 0.00* 147.82 534.15 386.33 225 Amanresorts Limited 232 Silverlink (Thailand) Company 220 244 Bora Societe Nouvelle de L’Hotel 226 Marketing Limited ARL 227 Marketing Inc. ARL 228 Amanresorts Services Limited229 Forerun Group Limited 31-12-2009231 Andaman Holdings Limited 0.00*233 Andaman Development Company 31-12-2009 8,326.06 12,381.54 0.00* 4,055.48 1,482.50 7,174.90 5,692.41 230 Amanresorts Limited 219 Goyo Services Limited 242 Regent Land Limited 243 Resorts Limited Tahitian 245 Le Savoy Limited 241 Princiere Resorts Limited 246 Marrakech Investments Limited247 Jackson Hole Holdings Limited 31-12-2009 31-12-2009 0.00* 0.00* 1,304.41 216.14 2,483.50 2,446.94 1,267.85 234 Andaman Resorts Co. Limited 31-12-2009 1,055.88 618.26 16,739.70 15,072.36 235 Amancruises Company Limited236 Amancruises (2006) Company 31-12-2009 114.34 (643.91) 167.12 696.69 237Thai Holding Company Andaman 238 (Bangkok) Company Silver-Two 239 Phraya Riverside (Bangkok) 240Asset Finance Limited Regent 31-12-2009 44.28 4,368.85 4,413.14 Sl No.

185

Subsidary Pg 177-190.indd 185 8/28/2010 11:57:06 AM Details of Subsidiary Companies (Contd...) (j) Dividend Proposed (Rs. in lacs) ce/Corporate fi NIL NIL (i) t (Loss) Pro fi After Taxation (h) Taxation Provision for NIL NIL (g) t (Loss) before Taxation Pro fi NIL (0.29) NIL (0.29) NIL NIL (180.54) NIL (180.54) NIL NIL (5.99) NIL (5.99) NIL NIL (68.05) NIL (68.05) NIL NIL (0.39) NIL (0.39) NIL NIL (19.61) NIL (19.61) NIL NILNIL (4.75) NIL (4.75) NIL NILNIL (3.19) (5.29) NIL NIL (3.19)NILNIL (1,250.43) (5.29)NIL NIL (0.29) (155.90) NIL NIL (1,250.43) NIL NIL NIL (155.90) (0.29) NIL NIL NIL (0.91) NIL (0.91) NIL NIL (2.41) NIL (2.41) NIL 6.89 6.02 NIL 6.02 NIL (f) Income) Turnover Turnover (including Other NIL NIL NIL NIL NIL NIL 249.68 (842.39) 2.50 (844.89) NIL NIL NIL NIL NIL NILNILNIL 469.30NIL 401.91NIL 3,721.09 469.29NIL 95.88 553.77 NIL NIL NIL 469.29 553.77 95.88 NIL NIL NIL NIL NILNIL 327.54 (562.68) 440.39 (754.62) NIL (562.68) NIL (754.62) NIL NIL (e) (except Details of in case of Investments subsidiaries) investments in NIL NIL (d) Total Total Current (Loans + Liabilities Liabilities) August, 2010 has granted exemption u/s 212(8) of the Companies Act, 1956 from attaching the Balance August, 2010 has granted exemption u/s 212(8) of the Companies th NIL 62.92 NIL 221.00 130.17 NIL 10,109.32 NIL NIL NIL 1,766.61 1,717.51 6.62 11.98 (c) Assets) +Current Total Assets Total (Fixed Assets + Investments NIL t & (b) where in Pro fi applicable) and Surplus (adjusted for debit balance Loss Account ces of the subsidiary companies concerned. 2.19 (65.11) 7.61 (36.35) 2,002.12 2,030.86 7.61 (33.14) 2,653.97 2,679.49 4.50 (4.50) 2.70 (18.92) 4,705.93 4,722.15 0.04 (49.15) fi (a) Capital Reserves on Financial 31-12-2009 0.00* (5.36) 31-12-2009 16.38 (571.30) 185.74 740.66 31-12-2009 31-12-2009 0.00* (1.08) 4,804.71 4,805.79 31-12-2009 0.00* (46.78) 463.79 1,133.50 622.93 31-12-2009 31-12-2009 31-12-2009 0.00* 600.54 7,139.75 6,539.21 31-12-2009 year ended . 31-12-2009 Name of the Company t & Loss Account and other documents of the subsidiary companies with the Balance Sheet of the Company. The annual accounts of the subsidiary companies and related detailed information will Account and other documents of the subsidiary companies with Balance Sheet Company. t & Loss Limited Turizm Sanayi ve Ticaret AS Ticaret Sanayi ve Turizm Company Limited Colombo Resorts Holdings N.V The Ministry of Corporate Affairs, Government of India, vide its letter No. 47/609/2010-CL-III dated 20 Affairs, The Ministry of Corporate Sheet, Pro fi These documents will be available for inspection by any investors at the Registered/Corporate Of be made available upon request by the investors of Company and its subsidiary companies. Department of the Company and also at Registered Of Affairs 264 Hospitality Company Limited LP 265 Hotel Finance International 31-12-2009 1,079.02 311.05 7,960.60 6,570.52 260 Bodrum Development Limited 262 31-12-2009 Taahhut Aman Gocek Insatt 263 Lao Holdings Limited 0.00* (90.84) 261 Bhosphorus Investments Limited 31-12-2009 0.00* (23.07) 852.11 875.18 266 Holding Limited Toscano 255 Gulliver Enterprises Limited256 Bhutan Resorts Private Limited257 Naman Consultants Limited 31-12-2009258 31-12-2009 Barbados Holdings Limited259 Silverlink (Mauritius) Limited 2,326.44 31-12-2009 0.00* 31-12-2009 (3,976.79) 31-12-2009 449.59 103.69 8,785.03 (10,558.91) 0.00* 0.00* 10,435.37 167.12 (2.54) (761.86) 63.43 20,785.31 654.42 21,547.17 656.97 269 Queensdale Management Limited 31-12-2009 0.00* 267 Resorts Otemachi Tower 250 Ceylon Holdings B.V. 251 NOH (Hotel) Private Limited252 Serendib Holdings B.V. 253 Property (Private) Limited Tangalle 31-12-2009254 31-12-2009 Bhutan Hotels Limited 1,300.94 603.47 (3,301.38) (3,762.22) 2,453.39 3,876.70 4,453.83 7,035.45 268 Management (Palau) Limited ASL 31-12-2009 249 248 Palawan Holdings Limited Sl No. * “rounded off to zero” * “rounded off Note : 1. 2. Accounts of Companies under Serial No 187-269 have been prepared and Consolidated only till 31.12.2009. The

186

Subsidary Pg 177-190.indd 186 8/28/2010 11:57:06 AM 3. List of Foreign Subsidiaries,name of foreign currency in which Accounts were prepared and Exchange Rate used for converting the ﬁ gures in Indian Rupees in the Statement :

Sl. No. Name of Foreign Subsidiary Company Accounts Name of Foreign Currency in Conversion Rate as per Consolidated up to which accounts were Statement prepared 165 DLF Global Hospitality Ltd (formely Gunbarrel 31-3-2010 USD 1 USD = 44.9592 Indian Rupees Investments Ltd) 166 City Icon Limited 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 167 Overseas Hotels Limited 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 168 DLF International Hospitality Corp 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 169 Fonton Limited 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 170 Argent Holdings Limited 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 171 Sinonet Holding Limited 31-3-2010 Hong Kong Dollar 1 HKD = 5.79595 Indian Rupees 172 DLF International Holdings Pte Ltd {formerly 31-3-2010 Singapore Dollar 1 SGD = 33.1646 Indian Rupees DLF Trust Holdings Pte Ltd} 173 DLF Trust Management Pte Ltd 31-3-2010 Singapore Dollar 1 SGD = 33.1646 Indian Rupees 180 Red Acres Development Ltd 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 181 Universal Hospitality Limited 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 182 Alvernia Limited 31-3-2010 Euro 1 Euro = 60.5439 Indian Rupees 183 DLF City Centre Ltd. 31-3-2010 USD 1 USD = 44.9592 Indian Rupees 190 Silverlink Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 191 Amanproducts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 192 Hospitality Trading Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 193 Hotel Sales Services Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 194 Puri Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 195 Zeugma Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 196 Incan Valley Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 197 Villajena Development Company Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 198 Andes Resort Limited SAC 31-12-2009 Peruvian Nuevo Sol 1 PEN = 0.3423 USD; 1 USD = 44.9592 Indian Rupees 199 Anbest Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 200 Amanresorts International Pte Limited 31-12-2009 Singapore Dollar 1 SGD = 0.7115 USD; 1 USD = 44.9592 Indian Rupees 201 Jalisco Holdings Pte Limited 31-12-2009 Singapore Dollar 1 SGD = 0.7115 USD; 1 USD = 44.9592 Indian Rupees 202 Mulvey B.V. 31-12-2009 Euro 1 EURO = 1.4333 USD; 1 USD = 44.9592 Indian Rupees 203 Mulvey Venice S.R.L 31-12-2009 Euro 1 EURO = 1.4333 USD; 1 USD = 44.9592 Indian Rupees 204 Yucatan Holdings Pte Limited 31-12-2009 Singapore Dollar 1 SGD = 0.7115 USD; 1 USD = 44.9592 Indian Rupees 205 Aradal Company N.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 206 Current Finance Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 207 Amanresorts Management B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 208 P.T. Amanresorts Indonesia 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 209 Hotel Sales Services Private Limited 31-12-2009 Sri Lanka Rupees 210 Amanresorts Technical Services B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 211 Amanresorts IPR B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 212 Amanresorts B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 213 P.T. Moyo Safari Abadi 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 214 P.T. Amanusa Resort Indonesia 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 215 P.T. Tirta Villa Ayu 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 216 Regional Design & Research N.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees

187

Subsidary Pg 177-190.indd 187 8/28/2010 11:57:06 AM List of Foreign Subsidiaries (Contd...)

Sl. No. Name of Foreign Subsidiary Company Accounts Name of Foreign Currency in Conversion Rate as per Consolidated up to which accounts were Statement prepared 217 Regional Design & Research B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 218 P.T. Villa Ayu 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 219 Goyo Services Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 220 Amankila Resorts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 221 P.T. Nusantara Island Resorts 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 222 P.T. Indrakila Villatama Development 31-12-2009 Indonesia Rupiah 1 IDR = 0.0001 USD; 1 USD = 44.9592 Indian Rupees 223 Nusantara Island Resorts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 224 Balina Pansea Company Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 225 Amanresorts Limited 31-12-2009 Hong Kong Dollar 1 HKD = 0.1289 USD; 1 USD = 44.9592 Indian Rupees 226 ARL Marketing Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 227 ARL Marketing Inc. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 228 Amanresorts Services Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 229 Forerun Group Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 230 Amanresorts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 231 Andaman Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 232 Silverlink (Thailand) Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 233 Andaman Development Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 234 Andaman Resorts Co Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 235 Amancruises Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 236 Amancruises (2006) Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 237 Andaman Thai Holding Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 238 Silver-Two (Bangkok) Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 239 Phraya Riverside (Bangkok) Company Limited 31-12-2009 Thai Baht 1 BHT = 0.0301 USD; 1 USD = 44.9592 Indian Rupees 240 Regent Asset Finance Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 241 Princiere Resorts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 242 Regent Land Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 243 Tahitian Resorts Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 244 Societe Nouvelle de L’Hotel Bora Bora 31-12-2009 French Polynesia Francs 1 CFP = 0.0120 USD; 1 USD = 44.9592 Indian Rupees 245 Le Savoy Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 246 Marrakech Investments Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 247 Jackson Hole Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 248 Palawan Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 249 Colombo Resorts Holdings N.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 250 Ceylon Holdings B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 251 NOH (Hotel) Private Limited 31-12-2009 Sri Lankan Rupees 1 LKR = 0.0088 USD; 1 USD = 44.9592 Indian Rupees 252 Serendib Holdings B.V. 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 253 Tangalle Property (Private) Limited 31-12-2009 Sri Lankan Rupees 1 LKR = 0.0088 USD; 1 USD = 44.9592 Indian Rupees 254 Bhutan Hotels Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 255 Gulliver Enterprises Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 256 Bhutan Resorts Private Limited 31-12-2009 Bhutan Ngultrum 1 BTN = 0.0212 USD; 1 USD = 44.9592 Indian Rupees 257 Naman Consultants Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees

188

Subsidary Pg 177-190.indd 188 8/28/2010 11:57:06 AM Sl. No. Name of Foreign Subsidiary Company Accounts Name of Foreign Currency in Conversion Rate as per Consolidated up to which accounts were Statement prepared 258 Barbados Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 259 Silverlink (Mauritius) Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 260 Bodrum Development Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 261 Bhosphorus Investments Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 262 Aman Gocek Insatt Taahhut Turizm Sanayi ve 31-12-2009 Turkish Lira 1 TRY = 0.6609 USD; Ticaret AS 1 USD = 44.9592 Indian Rupees 263 Lao Holdings Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 264 LP Hospitality Company Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 265 Hotel Finance International Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 266 Toscano Holding Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 267 Otemachi Tower Resorts Co. Limited. 31-12-2009 Japanese Yen 1 JYP = 0.0108 USD; 1 USD = 44.9592 Indian Rupees 268 ASL Management (Palau) Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees 269 Queensdale Management Limited 31-12-2009 USD 1 USD = 44.9592 Indian Rupees

189

Subsidary Pg 177-190.indd 189 8/28/2010 11:57:06 AM ABSTRACT AND MEMORANDUM OF INTEREST [PURSUANT TO SECTION 302 OF THE COMPANIES ACT, 1956]

The Board of Directors, in exercise of the empowerment granted by the Members’ vide Resolutions dated 29th September, 2007 and 30th September, 2009 passed at 42nd and 44th Annual General Meetings of the Company, respectively, read with the policy of the Company and on the recommendation of the Remuneration Committee, has approved on 23rd August, 2010 the revision in the terms of appointment including increase in remuneration of the following managerial personnel for their remaining tenure w.e.f. 1st April, 2010, as under:

Mr. T.C. Goyal Ms. Pia Singh Mr. Kameshwar Swarup Managing Director Whole-time Director Group Executive Director - Legal a) Basic Salary: From Rs.12,00,000 to a) Basic Salary: From Rs.7,00,000 to a) Designation: From ‘Senior Executive Rs.13,72,500 per month; Rs.7,81,075 per month; Director – Legal’ to ‘Group Executive b) Personal Allowance: From b) Commission: In addition to the salary Director – Legal’; Rs.2,35,250 to Rs.3,50,000 per and perquisites, Ms. Singh shall b) Basic Salary: From Rs.2,57,475 to month; also be entitled to a commission, as Rs.3,17,250 per month; c) Commission: In addition to the may be determined by the Board of c) Performance Award: Ranging between salary and perquisites, Mr. Goyal shall Directors, based on the net profi ts of Rs.58.86 lac (increased from Rs.25 lac) also be entitled to a commission, as the Company, provided that the total (minimum guaranteed) and Rs.211.07 may be determined by the Board of remuneration inclusive of commission lac per annum (increased from Rs.200 Directors, based on the net profi ts of in any fi nancial year shall not exceed lac) (maximum achievable), as per the the Company, provided that the total such percentage of net profi ts of the policy of the Company; Company in accordance with the remuneration inclusive of commission d) All allowances, perquisites and benefi ts in any fi nancial year shall not exceed ceilings laid down in Section 198 and 309 of the Companies Act, 1956; payable to Mr. Swarup shall be revised such percentage of net profi ts of the and calculated on the above increased Company in accordance with the c) All allowances, perquisites and Basic Salary; ceilings laid down in Section 198 and benefi ts payable to Ms. Singh shall 309 of the Companies Act, 1956; be revised and calculated on the e) In addition to salary, Mr. Swarup shall above increased Basic Salary; and also be entitled to a benefi t equivalent d) All allowances, perquisites and to the value of 58,467 equity shares benefi ts payable to Mr. Goyal shall be d) All other terms and conditions shall of the Company, to be paid on 1st July, revised and calculated on the above remain unchanged. 2011 or the date of his superannuation, increased Basic Salary; and whichever is earlier; and e) All other terms and conditions shall f) All other terms and conditions shall remain unchanged. remain unchanged. MEMORANDUM OF CONCERN OR INTEREST None of the Directors, except Mr. T.C. None of the Directors, except Ms. Pia None of the Directors, except Goyal, the appointee, is in any way, Singh, the appointee and Dr. K.P. Singh, Mr. Kameshwar Swarup, the appointee, is concerned or interested in the above Mr. Rajiv Singh & Mr. G.S. Talwar being in any way, concerned or interested in the increase/revision. her relatives, is in any way, concerned above increase/revision. or interested in the above increase/ revision.

Copies of all documents mentioned hereinabove are available for inspection at the Registered Ofﬁ ce of the Company on all working days between 14.00 to 16.00 hrs.

Registered Ofﬁ ce By Order of the Board Shopping Mall, 3rd Floor for DLF LIMITED Arjun Marg, Phase-I, DLF City Gurgaon (Haryana) – 122 002 Subhash Setia August 23, 2010 Company Secretary

190

Abstract_302-(F) Final - 260810.indd 190 8/26/2010 11:35:25 PM DLF LIMITED Regd. Off.: Shopping Mall, 3rd Floor, Arjun Marg, Phase-I, DLF City, Gurgaon-122 002 (Haryana) ATTENDANCE CARD 45th ANNUAL GENERAL MEETING - TUESDAY, 28th SEPTEMBER, 2010 AT 10.30 A.M.

DP - Client Id*/Folio No. No. of Shares held

I/We certify that I/We am/are a registered shareholder/proxy of the Company. I/We hereby record my/our presence at 45th Annual General Meeting of the Company on Tuesday, September 28, 2010 at Epicentre, Apparel House, Sector 44, Gurgaon - 122 003 (Haryana).

Name of the Shareholder/Proxy ...... ………………………………………………………………………..…...……………......

Address of the Shareholder/Proxy …………………………………………………………………………………………………………………..……

Signature of the Shareholder/Proxy...... ……………………………………………………………………………………......

NOTE: Shareholders/Proxies are requested to bring copy of Annual Report & Attendance Card duly ﬁ lled-in and hand over the card at the entrance of meeting venue. * Applicable for shares held in dematerialised form.

Note : No Gift/Gift Coupons/ Refreshment Coupons will be distributed at the Meeting

...... DLF LIMITED Regd. Off.: Shopping Mall, 3rd Floor, Arjun Marg, Phase-I, DLF City, Gurgaon-122 002 (Haryana) FORM OF PROXY 45th ANNUAL GENERAL MEETING - TUESDAY, 28th SEPTEMBER, 2010 AT 10.30 A.M.

DP - Client Id*/Folio No. No. of Shares held

I/We...... …………...... of ...... ………………………………………………………………… in the district of ...... being a member/ members of DLF LIMITED hereby appoint ...... of ...... in the district of ...... …………...... or falling him/her, ...... of ...... in the district of ...... as my/our proxy to attend & vote for me/us on my/our behalf at the 45th Annual General Meeting of the Company to be held on Tuesday, September 28, 2010 at 10.30 A.M. at Epicentre, Apparel House, Sector 44, Gurgaon - 122 003 (Haryana), or at any adjournment thereof. Affi x Signed this ...... day of September, 2010. SIGNATURE Re.0.30 @ in favour of Revenue This form is to be used the resolution. Unless otherwise instructed, the proxy will act as he/she thinks fi t. @ against Stamp * Applicable for investors holding shares in electronic form. @ Strike out whichever is not desired. NOTES 1. The proxy in order to be effective should be duly stamped, completed & signed and must be deposited at the Registered Offi ce of the Company not less than 48 hours before the commencement of the meeting. The Proxy need not be a member of the Company. 2. The form should be signed across the stamp as per specimen signature registered with the Company.

Proxy Form_(F) Final_ 260810.indd 1 8/26/2010 11:42:16 PM