AUDITORS
To The Members of DLF Limited
1. We have audited the attached Balance Sheet of DLF Limited (‘the Company’),
as at March 31, 2012, and also the Statement of Profit and Loss and the Cash Flow
Statement for the year ended on that date anneFixed thereto (collectively referred as the
‘ financial statements’). These financial statements are the responsibility of
the Company’s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted
in India. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principlesusedandsigni cantestimatesmade by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (‘the
Order’) (as amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (‘the Act’) , we
enclose in the Annexure a statement on the matters speci ed in paragraphs 4 and 5 of the
Order.
4. Without qualifying our opinion, we draw attention to note number 49 of the financial
statements in respect Officertain income tax and other matters. There exists uncertainty
in respect of the nal resolution of these material matters, and the resultant financial
adjustments if any, will be recorded in the periods in which these matters are resolved.
5. Further to our comments in the Annexure referred to above, we report that: a) We
have obtained all the information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit; b) In our opinion, proper books of
account as required by law have been kept by the Company so far as appears from our
examination of those books; c) The financial statements dealt with by this report are in
agreement with the books of account; d) On the basis of written representations received
from the directors, as on March 31, 2012 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2012 from being appointed as a
director in terms of clause (g) of subsection (1) of Section 274 of the Act; e) In our
opinion and to the best of our information and according to the explanations given to us,
the financial statements dealt with by this report comply with the accounting standards
referred to in sub-section (3C) of Section 211 of the Act and give the information
required by the Act, in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, in the case of: i) the Balance
Sheet, of the state of affairs of the Company as at March 31, 2012; ii) the Statement of
Profit and Loss, of the profit for the year ended on that date; and iii) the Cash Flow
Statement, of the cash A ows for the year ended on that date.
|
For Walker, Chandiok & Co |
|
Chartered Accountants |
|
Firm Registration No: 001076N |
|
Per David Jones |
| New Delhi |
Partner |
| May 30, 2012 |
Membership No. 98113 |
Annexure to the Auditors’ Report of even date to the members of DLF Limited, on
the financial statements for the year ended March 31, 2012
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
i. a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Fixed assets. b) A major portion of the Fixed assets
has been physically veri ed by the management during the year and no material
discrepancies were noticed on such veri cation. In our opinion, the frequency of veri
cation of the Fixed assets is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such veri cation. c) In
our opinion, a substantial part of Fixed assets has not been disposed off during the year.
ii. a) The inventory includes land, completed buildings, construction work-in-progress,
construction and development material and development rights in identi ed land. Physical
veri cation of inventory (except stocks represented by development rights, con rmations
for which have been obtained) have been conducted at reasonable intervals by the
management. b) The procedures of physical veri cation of inventory followed by the
management are reasonable and adequate in relation to the size of the Company and the
nature of its business. c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical veri cation. iii. a) The Company has
granted unsecured loans to eight parties covered in the register maintained under Section
301 of the Act. The maximum amount outstanding during the year is Rs 627,127.10 lacs and
the year-end balance is Rs 527,741.48 lacs. b) In our opinion, the rate of interest and
other terms and conditions of such loans are not, prima facie, prejudicial to the interest
of the Company. c) In respect of loans granted, the principal amounts are repayable on
demand in accordance with such terms and conditions, the payment of interest has been
regular in accordance with such terms and conditions. d) There is no overdue amount in
respect of loans granted to such companies, firms or other parties listed in register
maintained under Section 301 of the Act. e) The Company has taken unsecured loans from
three parties covered in the register maintained under Section 301 of the Act.
The maximum amount outstanding during the year is Rs 9,700 lacs and the year-end
balance is Rs Nil. f) In our opinion, the rate of interest and other terms and conditions
for such loans are not, prima facie prejudicial to the interest of the Company. g) In
respect of loans taken, the principal amount is repayable on demand in accordance with the
terms and conditions, and the payment of interest has been regular in accordance with such
terms and conditions.
iv. In our opinion, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business for the purchase of inventory and Fixed
assets and for the sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of these areas. v. a)
In our opinion, the particulars of all contracts or arrangements that need to be entered
into the register maintained under Section 301 of the Act have been so entered. b) In our
opinion, the transactions made in pursuance of such contracts or arrangements and
exceeding the value of rupees ve lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market prices at the
relevant time.
vi. Based on an independent legal opinion obtained by the Company and relied upon by
the auditors, the debentures issued by the Company to a private Company are exempt under
Section 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975.
Accordingly, the provisions of clause 4(vi) of the Order are not applicable.
vii. In our opinion, the Company has an internal audit system commensurate with its
size and the nature of its business.
viii. According to the information and explanations provided to us, the Companies (Cost
AccountingRecords)Rules,2011havebecome applicable to the Company for its real estate
operations during the current year; however, no specific formats for the maintainance of
the cost records in respect of the real estate projects have been prescribed under the
said rules. In terms of the clari cation issued by the Ministry of Corporate Affairs vide
notification No. F. No. 52/1/CAB/-2012, dated May 25, 2012, the management believes that
the cost records currently maintained by the Company provide the information required
under the said rules. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for maintainance of cost
records under clause (d) of sub-section (1) of Section 209 of the Act in respect of
generation and sale of electricity from the Company’s wind power operations and also
in respect of real estate operations, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. However, we have not made a
detailed examination of the cost records with a view to determine whether they are
accurate or complete.
ix. a) The Company is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund, employees’ state
insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues, as applicable, with the appropriate authorities.
Further, no undisputed amounts payable in respect thereof were outstanding at the year-end
for a period of more than six months from the date they became payable.
b) There are no amounts in respect of sales tax, income tax, custom duty, wealth tax,
service tax, excise duty and cess that have not been deposited with the appropriate
authorities on account of any dispute except for the amounts mentioned below:
| Name of the statute |
Nature of dues |
Demand amount (Rs) in lacs |
Amount paid (Rs) in lacs* |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Demand under Section 143(3) |
529.73 |
475.84 |
Assessment year 1997-98 |
Income Tax Appellate Tribunal (ITAT) |
| Income Tax Act, 1961 |
Demand under Section 143(3) |
473.07 |
379.85 |
Assessment year 1999-2000 |
ITAT |
| Income Tax Act, 1961 |
Demand under Section 143(3) |
1,177.10 |
1,061.90 |
Assessment year 2000-01 |
ITAT |
| Income Tax Act, 1961 |
Demand under Section 144 |
66,729.06 |
53,429.57 |
Assessment year 2006-07 |
Appeal before CIT(A), Order received with a relief of Rs 40,910.47 lacs, effect of
which is pending |
| Income Tax Act, 1961 |
Demand made under Section 143(3)/142(2A) |
27,137.33 |
19,122.74 |
Assessment year 2007-08 |
CIT (Appeals) |
| Income Tax Act, 1961 |
Demand made under Section 143(3)/142(2A) |
106,421.25 |
53,270.97 |
Assessment year 2008-09 |
CIT(Appeals) |
| Income Tax Act, 1961 |
Demand made under Section 143(3)/142(2A) |
68,186.55 |
24,085.73 |
Assessment year 2009-10 |
CIT(Appeals) |
| Income Tax Act, 1961 |
Demand made under Section 201 (1)/194 J |
84.20 |
20.00 |
Assessment year 2009-10 |
CIT(Appeals) |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on import of service |
17.13 |
- |
April 2003 to June 2005 |
Additional Commissioner Service tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on property transfer charges received from customers |
143.18 |
- |
2003-04 to December 2008 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Denial of service tax input credit |
168.87 |
- |
April 2007 to September 2009 |
Commissioner Service Tax |
| Act, 2004 and Service tax rules |
Denial of service tax input credit |
1,592.08 |
- |
2007-08 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Denial of service tax input credit |
323.95 |
- |
April 2009 to September 2009 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Denial of service tax input credit |
1,523.93 |
- |
2008-09 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on sponsorship fee paid |
988.85 |
- |
2008-09 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on property transfer charges received from customers |
15.74 |
- |
January 2009 to September 2009 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on sponsorship fees paid |
824.05 |
- |
2009-10 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on property transfer charges received from customers |
10.58 |
- |
October 2009 to September 2010 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on property transfer charges received from customers |
10.54 |
- |
October 2010 to September 2011 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Denial of service tax input credit |
550.88 |
- |
October 2009 to September 2010 |
Commissioner Service Tax |
| The Finance Act, 2004 and Service tax rules |
Demand of service tax on sponsorship fees paid |
824.05 |
- |
2010-11 |
Commissioner Service Tax |
* Amounts paid under protest x. In our opinion, the Company has no accumulated losses
at the end of the financial year and it has not incurred cash losses in the current and
the immediately preceding financial year.
xi. In our opinion, the Company has not defaulted in repayment of dues to a financial
institution or a bank or debenture-holders during the year.
xii. The Company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities. Accordingly, the provisions of
clause 4(xii) of the Order are not applicable.
xiii. In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Accordingly, the provisions of clause 4(xiii) of the Order are not
applicable.
xiv. In our opinion, the Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Order are not applicable.
xv. In our opinion, the terms and conditions on which the Company has given guarantee
for loans taken by others from banks or financial institutions are not, prima facie,
prejudicial to the interest of the Company.
xvi. In our opinion, the term loans were applied for the purpose for which the loans
were obtained, though idle/surplus funds which were not required for immediate utilization
have been invested in liquid investments, payable on demand. xvii. In our opinion, no
funds raised on short-term basis have been used for long-term investment.
xviii. During the year, the Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under Section 301 of the Act.
Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.
xix. The Company had created security in respect of debentures outstanding during the
year.
xx. The Company has not raised any money by public issues during the year. Accordingly,
the provisions of clause 4(xx) of the Order are not applicable.
xxi. No fraud on or by the Company has been noticed or reported during the period
covered by our audit.
|
For Walker, Chandiok & Co |
|
Chartered Accountants |
|
Firm Registration No: 001076N |
|
Per David Jones |
| New Delhi |
Partner |
| May 30, 2012 |
Membership No. 98113 |