DLF : STANDALONE RESULTS Q1Q1Q1

DLF Limited

Regd. Office: Shopping Mall, 3rd Floor, Arjun Marg, DLF City, Phase I, Gurugram - 122 022 (Haryana), India.

CIN - L70101HR1963PLC002484, Website : www.dlf.in

Tel.: [phone],Fax:[phone]

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2023

				(₹ in crores unless otherwise stated)
SL	PARTICULARS	QUARTER ENDED	YEAR ENDED
NO.		30.06.2023	31.03.2023	30.06.2022	31.03.2023
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
			[refer note 2]

1 Income

	a) Revenue from operations	841.14	1,260.18	969.45	3,979.18
	b) Other income	59.02	572.93	37.65	1,194.17
	Total income	900.16	1,833.11	1,007.10	5,173.35
2	Expenses
	a)	Cost of land, plots, development rights, constructed properties and others	378.37	300.93	394.80	1,217.18
	b)	Employee benefits expense	115.89	97.25	89.83	380.37
	c)	Finance costs	73.98	71.64	76.09	320.56
	d)	Depreciation and amortisation expense	17.86	18.22	18.96	75.66
	e)	Other expenses	79.72	120.94	101.40	440.54
	Total expenses	665.82	608.98	681.08	2,434.31
3	Profit before tax (1-2)	234.34	1,224.13	326.02	2,739.04

4 Tax expenses for the period / year

	a) Current tax	8.90	8.94	9.90	34.58
	b) Tax relating to earlier years	-	(33.97)	-	(33.97)
	c) Deferred tax	50.03	204.12	71.96	427.61
	Total tax expenses for the period / year	58.93	179.09	81.86	428.22
5	Net profit for the period / year (3-4)	175.41	1,045.04	244.16	2,310.82

6 Other comprehensive income

	a)	Items that will not be reclassified to profit and loss	0.37	0.62	0.48	7.52
	b)	Income tax relating to items that will not be reclassified to profit and loss	(0.09)	(0.16)	(0.12)	(1.78)
	Total other comprehensive income	0.28	0.46	0.36	5.74
7	Total comprehensive income for the period / year (5+6)	175.69	1,045.50	244.52	2,316.56
8	Paid-up equity share capital (face value of ₹ 2 per share)	495.06	495.06	495.06	495.06
9	Other equity				28,308.55

10 Earnings per equity share (face value of ₹ 2 per share) (not annualised)

Basic (₹)	0.71	4.22	0.99	9.34
Diluted (₹)	0.71	4.22	0.99	9.34

Notes to the Standalone Financial Results

1. The above standalone financial results of DLF Limited ('the Company') have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 21 July 2023. The statutory auditors have carried out Limited Review of above standalone financial results of the Company.
2. The figures for the quarter ended 31 March 2023 are the derived figures between audited figures in respect of year ended 31 March 2023 and the unaudited figures for the nine months ended 31 December 2022.
3. These standalone financial results have been prepared in accordance with the recognition and measurement principles of Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
4. The Company's business activities which are primarily real estate development and related activities falls within a single reportable segment as the management of the Company views the entire business activities as real estate development. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement of Ind AS 108 - Operating Segments with respect to single reportable segment. Further, the operations of the Company is domiciled in India and therefore there are no reportable geographical segment.
5. Key litigations:
6. 1. In a complaint filed by Belaire/Magnolia/Park Place owners association against the Company alleging unfair conditions on its buyers, the Competition Commission of India (CCI) had imposed penalty of ₹ 630.00 crores, which is also upheld by the Competition Appellate Tribunal (COMPAT). The Company had filed an appeal before Hon'ble Supreme Court of India (Hon'ble Court) against the said order which the Hon'ble Court admitted vide its order dated 27 August 2014 and the Company deposited ₹ 630.00 crores on Hon'ble Court's direction, shown the same as recoverable in the books. The Company has filed an application seeking refund including interest, which is to be listed along-with main appeal in due course.
   2. In a matter, the Hon'ble High Court of Punjab and Haryana passed order against the Company, one of its subsidiaries and a joint venture company cancelling the sale deeds of land/removal of construction relating to two IT SEZ/ IT Park Projects in Gurugram admeasuring 56.08 acres. The said order was challenged by the Company before Hon'ble Supreme Court of India and the matter is stayed till further orders.

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Notes to the Standalone Financial Results

1. In a matter alleging the Company for non-disclosure of material information at the time of filing Red Herring Prospectus in 2007, the Securities and Exchange Board of India (SEBI) restrained the Company and its Officers/certain directors from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for a period of three years. The Securities Appellate Tribunal (SAT) vide its order dated 13 March 2015 quashed and set aside the order passed by SEBI. Against SAT's order, SEBI filed an appeal with the Hon'ble Supreme Court of India (Hon'ble Court), which stood admitted vide order dated 24 April 2015 without granting any interim stay in favour of SEBI. In October 2015, SEBI filed applications before the Hon'ble Court seeking, restraint on the Company, its promoters and/or directors from proceeding with the sale of 159,699,999 Cumulative Compulsorily Convertible Preference Shares of DLF Cyber City Developers Limited held by the promoter group companies to third party institutional investors. The said applications came up for hearing before the Hon'ble Court on 4 November 2015 and the Hon'ble Court did not pass any orders restraining the transaction and simply directed that the said applications be listed along with the appeal. The matters are pending for final outcome.

Based on the grounds of the appeals and advice of the independent legal counsels, management believes that there is strong likelihood of succeeding in respect of above matters. Pending the final decisions on the above matters, no adjustment has been made in these standalone financial results.

1. In earlier years, one of the joint venture company, Joyous Housing Limited (JHL) had defaulted in meeting its debt obligation to a housing finance company (HFC or lender). The lender amongst various actions to recover its dues, initiated e-auction of the project, served notices to initiate legal proceedings for alleged contravention related to the loan agreement against JHL, its directors, and shareholders. Further, the lender has also initiated the process to take control of the board of JHL and offered the pledged shares to all three shareholders. In this regard, the Company has submitted a formal expression of interest to purchase 100% shares of JHL for a consideration above the reserve price at which the lender has offered the shares to ensure repayment of the dues to the lender and other financial creditors of JHL.
   However, one of the shareholders has filed a petition opposing the actions taken by the other shareholders at the instructions of the lender before National Company Law Tribunal, Mumbai (NCLT). Subsequently, NCLT has passed a status quo order with regard to such actions. Further, the Company has also initiated arbitration proceedings.
   Based on the legal advice, management believes it has a strong likelihood of successful outcome in its favour. Still, due to ongoing dispute and uncertainties involved w.r.t. outcome of litigation/arbitration and consequential impact on recoverability of the Company's investment/loan, the provision recognised against such investment/loan in earlier years is considered to be adequate and the net carrying value amounting to ₹ 180.36 crores is considered good for recovery as the project has adequate inherent value, once it is litigation free.

The above litigations as mentioned in point 5 (a), (b), (c) and (d) are subject matter of 'Emphasis of Matter' in Independent Auditor's Review Report.

Notes to the Standalone Financial Results

6. The figures for the corresponding previous period/year have been regrouped/reclassified, wherever necessary.

On behalf of the Board of Directors

Place: New Delhi	Devinder Singh	Ashok Kumar Tyagi
Date: 21 July 2023	CEO & Whole-time-Director	CEO & Whole-time Director