(i) Contractual obligations

Refer note 49(i) for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(ii) Property, plant and equipment pledged as security

Refer note 19 and 23 for information on property, plant and equipment pledged as security for borrowings by the Company.

(iii) Assets given under operation and management agreement

Out of total assets, assets amounting to ? 7,771.54 lakhs (31 March 2023: ? 9,135.20 lakhs) are given to DLF Recreational Foundation Limited, a subsidiary company, under operation and management agreement [refer note 2.2(j), 55 and 56].

(iv) Capitalised borrowing cost

No borrowing cost are capitalised during the current year and previous year.

(v) Transition to Ind AS

On transition to Ind AS (i.e. 1 April 2015), the Company has elected to continue with the carrying value of all property, plant and equipment measured as per previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.

(vi) Assets not held in the name of Company

The title deeds of all immovable properties comprising of land and building are held in the name of the Company as at 31 March 2024. As at 31 March 2023, the title deeds of all immovable properties comprising of land and building were held in the name of the Company, except in case as stated below:

# There is no project under head capital work-in-progress whose completion is either overdue or has exceeded its cost compared to its original plan/ revised plan.

$ The Company undertakes several long-term duration projects at a time which range between 3 to 6 years. In some cases the projects may get temporarily suspended or their progress may be on the slower side. On such occasions, where there is no active development on the projects, direct cost attributable to the project continues to be reflected in CWIP as at 31 March 2024 and 31 March 2023, respectively. Due to the above, the Company is not able to furnish the tentative project timeline or plan even though the Company is confident of resuming the project in future.

(ii) Contractual obligations

Refer note 49(i) for disclosure of contractual commitments for the acquisition of investment properties.

(iii) Capitalised borrowing cost

No borrowing costs are capitalised during the current year and previous year.

(iv) Investment property pledged as security

Refer note 19 and 23 for information on property, plant and equipment pledged as security for borrowings by the

Company.

* It includes advertisement and publicity, sales promotion, fee and taxes, ground rent, repair and maintenance, legal and professional, commission and brokerage etc.

(v)(b) Fair value hierarchy and valuation technique

1) The Company's investment properties consist of two class of assets i.e. commercial properties and retail mall, which have been determined based on the nature, characteristics and risks of each property. As at 31 March 2024 and 31 March 2023, the fair values of the properties are f 399,751.29 lakhs and f 463,631.29 lakhs, respectively after accounting for any transfer/ sale/ disposal during the year. The fair

value of investment property has been determined by external, independent registered property valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued in conjunction with valuer assessment services undertaken by approved valuer, except (as stated in note 2) below:

The Company obtains independent valuation for its investment property at least annually and fair value measurements are categorized as level 3 [refer note 36] measurement in the fair value hierarchy. The valuation has been taken considering values arrived using the following methodologies:

(a) Discounted cash flow method, net present value is determined based on projected cash flows discounted at an appropriate rate; or

(b) Sales comparable method, which compares the price or price per unit area of similar properties being sold in the marketplace; or

(c) Average of the above.

Further, inputs used in the above valuation models are as under:

(i) Property details comprising of total leasable area, area actually leased, vacant area, parking slots etc.;

(ii) Revenue assumptions comprising of market rent, market parking rent, rent growth rate, parking income growth rate, market lease tenure, market escalations, common area maintenance income prevailing in the market etc.;

(iii) Cost assumptions comprising of brokerage cost, transaction cost on sale, cost escalations etc.;

(iv) Discounting assumptions comprising of terminal cap rate and discount rate; and

(v) Estimated cash flows from lease rentals, parking income, operation and maintenance income etc. for the future years.

2) In addition to 1) above, the Company ('Developer') has land parcels which is notified Special Economic Zone ('SEZ') and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Limited ('DAL or 'the Co-developer') and transferred completed bare shell buildings to DAL. Remaining portion of such land is under development. As per the co-developer agreement, the underneath the buildings has been given on long-term lease to DAL. The management has assessed that the fair value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on the sale of land in a SEZ as described under SEZ Rules 2006, the management has considered carrying value aggregating to f 11,554.66 lakhs (31 March 2023: f 11,554.66 lakhs) to be a reasonable estimate of its fair value. Further, certain properties are valued at last sale price, the total amount involved in such properties being immaterial.

(vi) Assets not held in the name of Company

The title deeds of all immovable properties of land and building are held in the name of the Company as at 31 March 2024 and 31 March 2023.

(vii) Leasing arrangements

Certain investment properties are leased to tenants under long-term operating leases with monthly rental payments. Refer note 48 for details on further minimum lease rentals.

1 All the investment in equity shares of subsidiaries (including partnership firms), associates and joint ventures are stated at cost as per Ind AS 27 'Separate Financial Statements'.

2 All equity shares of ? 10/- each and fully paid-up, unless otherwise stated.

3 These investments are on account of or includes stock options issued to employees of those subsidiaries and joint venture in earlier years.

4 The Company has subscribed to 0.01% unsecured Compulsorily Convertible Debentures (CCDs) of ? 10/-each. At the option of holder, these CCDs are convertible into fixed number of equity shares in one or more tranches within a period of 10 years from the date of allotment. The resulting shares upon conversion shall rank pari-passu in all respect with the existing equity shares.

5 Represent redeemable instruments, having face value of ? 100/- each, unless otherwise stated and are measured at amortised cost. These preference shares are redeemable at the option of the holder i.e. the Company, on or before expiry of 2027. These instruments carry cumulative dividend @ 6% per annum.

6 The bonus shares were issued by DLF Cyber City Developers Limited (DCCDL) (Class-B equity shares) as per below terms and conditions:

- Class-B equity shares shall not carry any voting rights;

- Holder of Class-B equity shares shall not receive any proceeds of any winding-up or liquidation of the Company;

- Holder of Class-B equity shares shall have the right to receive dividend only to the extent specifically approved/ recommended by the board in the relevant financial year; and

- These Class-B equity shares shall not stand pari-passu with the already existing equity shares issued by DCCDL. However these Class-B equity shares shall stand pari-passu to the Class-B equity shares to be issued, in future by DCCDL, if any, on account of conversion of existing 0.001% Class-B Compulsorily Convertible Preference Shares of ? 10/- each (‘Class-B CCPS’) in terms of Class-B CCPS issued and allotted on 26 December 2017 by DCCDL.

7 During the year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 15 June 2023, DLF Golf Resorts Limited has been merged with DLF Recreational Foundation Limited, pursuant to which the Company has received 28,240,000 equity shares of DLF Recreational Foundation Limited.

8 The Company has invested in Non-Convertible Debentures (NCDs) of face value ? 100,000/- each fully paid. The NCDs carried fixed rate of interest of 7.50% per annum and were redeemable on or before 2 February 2024 at the option of investee company. During the year the investee company has redeemed these NCDs on 2 August 2023.

9 The Company has subscribed to Optionally Convertible Redeemable Preference Shares (OCRPS) having a fixed non-cumulative dividend @ 5% p.a. At the option of the issuer, these OCRPS are convertible into 10 equity shares having face value of ? 10/- each for every OCRPS of ? 100/- each at any time on or before 10 years from the date of allotment or can be redeemed at par at the end of 10 years. The resulting shares upon conversion shall rank pari-passu in all respects with the existing equity shares.

10 These are equity portion of compound financial instruments.

11 During the year, the Finance Committee of the Board of Directors of the Company in its meeting held on 7 November 2023, on the recommendation of the Audit Committee, approved acquisition of shareholding of 3 land owning companies from their existing individual shareholders. Also refer note 44.

12 During the previous year, a wholly-owned subsidiary company has invested in Compulsorily Convertible Debentures ('CCDs') of Alankrit Estates Limited, Kirtimaan Builders Limited and Ujagar Estates Limited resulting in making them subsidiary companies and gaining effective contol of these entities.

13 Subsequent to the year end, pursuant to the order dated 16 April 2024 of the Hon'ble National Company Law Tribunal (NCLT), Chandigarh, the companies have been merged with DLF Utilities Limited.

14 Pursuant to the order dated 3 February 2023 of the Hon'ble National Company Law Tribunal (NCLT), Chandigarh, Ariadne Builders & Developers Private Limited and others have been merged with Raeks Estates Developers Private Limited and accordingly the Company has recieved 372,990 equity shares of Raeks Estates Developers Private Limited.

15 During the year, Twenty Five Downtown Realty Limited (formerly known as Joyous Housing Limited), ceases to be joint venture of the Company. Also refer note 50(9)(i)(d).

(i) Deferred tax asset is recognized on unabsorbed depreciation and carry forward losses to the extent it is probable that future taxable profit will be available against which the deductible temporary differences, unabsorbed depreciation and carried forward tax losses can be utilised. The Company has tax losses of ? 557,550.35 lakhs [(31 March 2023: ? 792,899.51 lakhs) comprising business loss of ? 557,463.67 lakhs (31 March 2023: ? 651,606.09 lakhs), [also refer note 50(1)(b)], capital losses of ? 86.68 lakhs (31 March 2023: ? 141,293.42 lakhs) that are available for offsetting against future taxable profit for eight years. Majority of these losses will expire between financial year March 2026 to March 2029. Based upon margin from sale of existing projects, profit from launch of new projects in near future and planned reduction in interest cost and overheads in future, the Company believes there is reasonable certainty that deferred tax asset will be recovered.

(ii) The Company has not recognised deferred tax asset in respect of losses (including capital losses) of ? 107,842.42 lakhs (31 March 2023: ? 232,536.15 lakhs) as there is no reasonable certainty supported by convincing evidences of their recoverability in the near future. If the Company was also to recognise all unrecognised deferred tax assets, the profit would increase by ? 27,141.78 lakhs (31 March 2023: ? 55,879.69 lakhs).

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company and earns interest at the respective short-term deposit rates.

* Includes ? 24,463.59 lakhs (31 March 2023: ? 1,538.19 lakhs) held in escrow account for a project under Real Estate (Regulation and Development) Act, 2016 ('RERA'). The money can be utilised for payments of the specified projects only.

(i) ? Nil (31 March 2023: ? 300.00 lakhs) represents restricted deposits, as these are pledged in lieu of the on going legal case against the Company. During the year, deposit of ? Nil (31 March 2023: ? 2,385.35 lakhs) was released on account of alternative security provided to the bank.

(ii) The bank balances include the margin money amounting to ? 3,415.53 lakhs (31 March 2023: ? 3,663.20 lakhs) against the bank borrowings and guarantees.

$ Includes ? 39,795.06 lakhs (31 March 2023: ? 45,942.55 lakhs) held in escrow account for a project under Real Estate (Regulation and Development) Act, 2016 ('RERA'). The money can be utilised for payments of the specified projects.

b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of ? 2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

For dividend related disclosure, refer note 39.

e) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting dateShares issued under Employee Stock Option Plan (ESOP) during the financial year 2019-20 to 2023-24

The Company has issued Nil (31 March 2023: 408,084) equity shares of ? 2/- each during the period of five years immediately preceding 31 March 2024 on exercise of options granted under the Employee Stock Option Plan (ESOP).

* During the year, Dr. Kushal Pal Singh has disposed off his entire shareholding comprising 14,495,360 number of equity shares on 1 August 2023 in open market sale. Apart from the above, Beverly Builders LLP and Mallika Housing Company LLP, both forming part of the Promoter Group have also disposed off 1,099,120 and 6,000,000 number of equity shares of the Company, respectively in open market sale on 1 August 2023. Necessary filings have been made with the stock exchanges.

NATURE AND PURPOSE OF RESERVES Capital reserve

Capital reserve was created under the previous GAAP (Indian GAAP), out of the profit earned from a specific transaction of capital nature. Further, it includes excess of net assets taken over the respective investments carried in Transferor Companies/ Demerged Company is treated as capital reserve. Capital reserve is not available for the distribution to the shareholders.

Capital redemption reserve

The same has been created in accordance with the provisions of the Companies Act, 2013 with respect to buy-back of equity shares from the market in earlier years.

Securities premium

Securities premium includes premium on issue of shares. It will be utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that, if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of the Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of the Companies Act, 2013.

Forfeiture of shares

This reserve was created on forfeiture of shares by the Company. The reserve is not available for distribution to the shareholders.

Equity instruments through FVOCI (net of tax)

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the 'Equity instruments through FVOCI (net of tax)' within other equity.

Retained Earnings

Represents surplus/ (deficit) in the statement of profit and loss.

19.1. Repayment terms and security disclosure for the outstanding long-term borrowings (including current maturities) as at 31 March 2024 and 31 March 2023:

Rupee term loan from banks:

(a) Term loan of non-current ? Nil and current ? Nil (31 March 2023: non-current ? 32,220.18 lakhs and current ? 1,622.74 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at New Delhi, owned by the Company; and (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. However, the said loan was pre-paid during the year.

(b) Term loan of non-current ? 9,556.27 lakhs and current ? 2,351.84 lakhs (31 March 2023: non-current ? 11,908.11 lakhs and current ? 1,915.69 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by the Company; (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (including current maturities) is repayable in 28 monthly installments starting from April 2024.

(c) Term loan of non-current ? 19,520.63 lakhs and current ? 2,454.05 lakhs (31 March 2023: non-current ? 21,974.54 lakhs and current ? 2,057.21 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Kolkata, owned by the Company; and (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (including current maturities) is repayable in 44 monthly installments starting from April 2024.

(d) Term loan of non-current ? 31,332.67 lakhs and current ? 1,727.58 lakhs (31 March 2023: non-current ? 33,060.25 lakhs and current ? 1,429.75 lakhs) is secured by way of (i) pari-passu equitable mortgage of immovable properties situated at New Delhi and Gurugram and owned by the Company/ subsidiary companies; (ii) charge on escrow account pertaining to the properties situated at New Delhi owned by the Company/ subsidiary companies; and (iii) corporate guarantee provided by the subsidiary companies. The outstanding amount (including current maturities) is repayable in 113 monthly installments starting from April 2024.

(e) Term loan of non-current ? 90,000.00 lakhs and current ? Nil (31 March 2023: non-current ? Nil and current ? Nil) is secured by way of (i) equitable mortgage of immovable properties situated at New Delhi and Gurugram and owned by the Company/ subsidiary companies. The outstanding amount is repayable after completion of two years from the date of draw down i.e. January 2026 and February 2026. The Company is in the process of finalising the security documents with the bank for the facility obtained during the year. Consequently, the charge is yet to be created against such loan. Further, charge form will be filed as per statutory limits after execution of documents with the bank.

(f) Term loan of non-current ? 12,088.31 lakhs and current ? 311.69 lakhs (31 March 2023: non-current ? Nil and current ? Nil) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by the Company; (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The outstanding amount (including current maturities) is repayable in 120 monthly installments starting from April 2024. The Company is in the process of finalising the security documents with the bank for the facility obtained during the year. Consequently, the charge is yet to be created against such loan. Further, charge form will be filed as per statutory limits after execution of documents with the bank.

(g) Term loan of non-current ? 21,600.00 lakhs and current ? Nil (31 March 2023: non-current ? Nil and current ? Nil) is secured by way of equitable mortgage of immovable properties situated at Gurugram and owned by the subsidiary companies.The outstanding amount is repayable in 6 equal quarterly installments starting from December 2025. The Company is in the process of finalising the security documents with the bank for the facility obtained during the year. Consequently, the charge is yet to be created against such loan. Further, charge form will be filed as per statutory limits after execution of documents with the bank.

Rupee term loan from others:

(a) Term loan of non-current ? Nil and current ? Nil (31 March 2023: non-current ? 5,802.83 lakhs and current ? 330.62 lakhs) is secured by way of (i) equitable mortgage of immovable properties situated at Gurugram, owned by the Company; (ii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company. The said loan has been pre-paid during the year.

Rate of interest:

The Company's total borrowings from banks and others have a effective weighted-average contractual rate of 8.32% (31 March 2023: 8.18%) per annum calculated using the interest rate effective as on 31 March 2024.

Loan Covenants:

Borrowings contain certain debt covenants relating to security cover, net debt to tangible net worth ratio and debt service coverage ratio. The Company has satisfied all debt covenants prescribed as per terms of respective term loan documents.

The Company has not defaulted on any loans payable.

23.1. Security disclosure for the outstanding short-term borrowings as at 31 March 2024 and 31 March 2023: Overdraft facility from Banks:

(a) Overdraft of ? Nil (31 March 2023: ? 12,493.89 lakhs) is secured by way of (i) pari-passu equitable mortgage of immovable properties situated at New Delhi and Gurugram and owned by the Company/ subsidiary companies; (ii) charge on escrow account pertaining to the properties situated at New Delhi owned by the Company/ subsidiary companies and (iii) corporate guarantee provided by the subsidiary companies.

(b) Overdraft of ? Nil (31 March 2023: ?72.93 lakhs) is secured by way of (i) equitable mortgage of properties situated at Gurugram and New Delhi owned by the Company and subsidiary companies; (ii) corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties; and (iii) charge on receivables pertaining to the aforesaid immovable properties owned by the Company and subsidiary companies.

Short-term loans from Banks:

(a) Short-term loan (working capital loan) of ? 32,036.87 lakhs (31 March 2023: ? 41,083.12 lakhs) is secured by way of equitable mortgage of properties situated at Gurugram owned by Company.

(b) Short-term loan (working capital loan) of ? 71,919.28 lakhs (31 March 2023: ? 83,740.42 lakhs) is secured by way of (i) equitable mortgage of properties situated at Gurugram and New Delhi owned by the Company and subsidiary companies; (ii) corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties; and (iii) charge on receivables pertaining to the immovable properties situated at Gurugram and New Delhi owned by the Company and subsidiary companies.

(c) Short-term loan (working capital loan) of ? Nil (31 March 2023: ? 7,100.00 lakhs) is secured by way of equitable mortgage of properties situated at Gurugram owned by the Company.

(d) Short-term loan (working capital loan) of ? 12,000.00 lakhs (31 March 2023: ? 24,000.00 lakhs) is secured by way of pari-passu charge on immovable property situated at New Delhi owned by subsidiary company.

(e) Short-term loan (working capital loan) of ? 25,000.00 lakhs (31 March 2023: ? 25,000.00 lakhs) is secured by way of equitable mortgage of properties situated at Gurugram owned by the Company.

Rate of Interest:

Refer note 19 for effective weighted-average rate of interest on borrowings.

Loan covenants:

Borrowings contain certain debt covenants relating to security cover, net debt to tangible net worth ratio and minimum tangible net worth ratio. The Company has satisfied all debt covenants prescribed as per terms of respective loan documents.

The Company has not defaulted on any loans payable.

Contract assets are initially recognised for revenue earned on account of contracts where revenue is recognised over the period of time as receipt of consideration is conditional on successful completion of performance obligations as per contract. Once the performance obligation is fulfilled and milestones for invoicing are achieved, contract assets are classified to trade receivables.

Contract liabilities include amount received from customers as per the installments stipulated in the buyer agreement to deliver properties once the properties are completed and control is transferred to customers.

Performance obligation

Information about the Company's performance obligations for material contracts are summarised below:

The performance obligation of the Company in case of sale of residential plots and apartments and commercial office space is satisfied once the project is completed and control is transferred to the customers.

The customer makes the payment for contracted price as per the installment stipulated in the respective Buyer's Agreement.

Revenue from co-development projects

Co-development projects where the Company is acting as contractor, revenue is recognised in accordance with the terms of the co-developer agreements. Under such contracts, assets created does not have an alternative use and Company has an enforceable right to payment. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project.

The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately.

The transaction price of the remaining performance obligations

The transaction price of the remaining performance obligations (unsatisfied or partially unsatisfied) as at 31 March 2024 is ? 1,243,095.62 lakhs (31 March 2023: ? 628,528.70 lakhs). The same is expected to be recognised within 1 to 5 years.

35. EARNINGS PER EQUITY SHARE

Earnings per Share ('EPS') is determined based on the net profit attributable to the shareholders of the Company. Basic earnings per share is computed using the weighted-average number of shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders (after adjusting for interest on the compulsorily convertible debentures) by the weighted-average number of equity shares outstanding during the year plus the weighted number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. However, there are no dilutive potential equity shares.

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three Levels of fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: unobservable inputs for the asset or liability.

Specific valuation techniques used to value financial instruments include:

(a) the use of net asset value for mutual funds on the basis of the statement received from investee party.

(b) the use of adjusted net asset value method for certain equity investment and discounted cash flow method (income approach) for remaining equity instruments.

Investments in equity shares of subsidiaries, associates and joint ventures are measured at cost as per Ind AS 27, 'Separate

Financial Statements' and are not required to be disclosed here.

37. FINANCIAL RISK MANAGEMENT

The Company's principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, derivative assets and cash and cash equivalents that derive directly from its operations.

i) Risk management objectives and policies

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management is supported by a Finance Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance Committee provides assurance to the Company's senior management that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company under a financial instrument or customer contract leading to a financial loss. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables including contract assets and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and other credit risk related to other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

a) Credit risk management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk

B: Moderate credit risk

C: High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written-off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written-off and attempts to enforce repayment. Recoveries made are recognised in the statement of profit and loss.

Expected credit loss for trade receivables under simplified approach

The Company's trade receivables in respect of projects does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made ? Nil (31 March 2023: ? Nil) provision towards interest receivable from customers. In respect of other trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company's trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further, historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

C) Market riska) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of the change in foreign currency exchange rates.The Company's exposure to foreign currency changes for unhedged transactions are not material, therefore not disclosed.

b) Interest rate risk(i) Liabilities

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings keeping in view of current market scenario.

(ii) Assets

The Company's fixed deposits, interest bearing security deposits and loans are carried at fixed rate. Therefore, the said assets are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

c) Price risk

The Company's exposure to price risk arises from investments held and classified as FVTPL and FVOCI. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

d) Legal, taxation and accounting risk

The Company is presently involved into various judicial, administrative, regulatory and litigation proceedings concerning matters arising in the ordinary course of business operations including but not limited to personal injury claims, landlord-tenant disputes, commercials disputes, tax disputes, employment disputes and other contractual disputes. Many of these proceedings seek an indeterminate amount of damages. In situations where management believes that a loss arising from a proceeding is probable and can reasonably be estimated, the Company records the amount of the probable loss. As additional information becomes available, any potential liability related to these proceedings is assessed and the estimates are revised, if necessary.

To mitigate these risks, the Company employs in-house counsel and uses third party tax & legal experts to assist in structuring significant transactions and contracts. The Company also has systems and controls that ensure the timely delivery of financial information in order to meet contractual and regulatory requirements and has implemented disclosure controls and internal controls over financial reporting which are tested for effectiveness on an ongoing basis.

Change to any of the above laws, rules, regulations related to the Company business could have a material impact on its financial results. Compliance with any proposed changes could also result in significant cost for the Company. Failure to fully comply with various laws, rules and regulations may expose the Company to proceedings which may materially affect its performance.

38. CAPITAL MANAGEMENT

The purpose of the Company's capital management is:

- Maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital on the basis of the carrying amount of equity and net debt (adjusted for cash and cash equivalents) as presented on the face of balance sheet.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders or issue new shares.

During the year, the Company has paid final dividend for the year ended 31 March 2023, amounting to ? 99,012.47 lakhs (proposed in the previous year ? 99,012.47 lakhs) @ ? 4/- per equity share to its shareholders. The Company has received dividend of ? 58,258.76 lakhs from one of its joint venture company and subsidiary companies during the year.

During the previous year, the Company had paid final dividend for the year ended 31 March 2022, amounting to ? 74,259.35 lakhs (proposed in the previous year ? 74,259.35 lakhs) @ ? 3/- per equity share to its shareholders. The Company has received dividend of ? 96,917.76 lakhs from one of its joint venture company and subsidiary companies during the year.

41. OTHER STATUTORY INFORMATION FOR THE YEAR ENDED 31 MARCH 2024 AND 31 MARCH 2023:

(i) The Company do not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iii) The Company is in the process of finalising the security documents with the bank for certain new facilities obtained during the year. Consequently, the charge is yet to be created against such loans. Further, charge form will be filed as per statutory limits after execution of documents with the bank (also refer note 19).

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(ix) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.

42. The Company has entered into business development agreements with certain entities for acquisition of sole irrevocable development rights in identified land which are acquired/ or in the advanced stages of being acquired by these entities.

In terms of accounting policy stated in Note 2.2(h), the amount paid to these entities pursuant to the above agreements for acquiring development rights are classified under inventory as development rights.

43. EMPLOYEE BENEFIT OBLIGATIONSa) Provident fund

The Company offers its employees, benefits under defined benefit plans in the form of provident fund scheme which covers all its group employees. The provident fund trust set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfalls, if any. Both the employees and the Company pay predetermined contributions in the trust. Contribution made by the Company to the provident fund trust during the year is ? 904.32 lakhs (31 March 2023: ? 958.61 lakhs). In this regard, actuarial valuation as on 31 March 2024 and 31 March 2023 was carried out to measure the obligation using projected unit credit method arising due to interest rate guarantee by the Company towards provident fund. In terms of said valuation, the Company has no liability towards interest rate guarantee as on 31 March 2024.

b) Gratuity plan (non-funded)

The Company has a defined benefit gratuity plan, which is unfunded. The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employee's last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The weighted-average duration of the defined benefit obligation is 9.55 years (31 March 2023: 10.15 years).

Risks associated with plan provisions

The Company is exposed to number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and management's estimation of the impact of these risks are as follows:

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

Interest rate risk

A decrease in interest rate in future years will increase the plan liability.

Life expectancy risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Withdrawals Risk

Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact the plan liability.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss:

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience.

Sensitivities due to discount rate, mortality and salary increase are not material and hence impact of change not calculated.

As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.

d) Superannuation fund

During the year, Company has made contribution to Defined Contribution Plan i.e. Superannuation Fund amounting to ? 46.93 lakhs (31 March 2023: ? 53.72 lakhs) and recognised as expense for the year.

a) During the year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 15 June 2023, the said companies have been merged with DLF Recreational Foundation Limited.

b) During the year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 25 August 2023, the said companies have been merged with DLF Homes Panchkula Private Limited.

c) During the year, the Company has purchased shareholding in three land owning companies (LOC's) from its individual shareholders, which resulting in obtain control over these LOC's and its six affiliates. The control was acquired w.e.f. 16 November 2023.

d) Subsequent to the year, the Hon'ble National Company Law Tribunal (NCLT), Chandigarh has approved the Scheme of Amalgamation between Alankrit Estates Limited, DLF Estate Developers Limited, Kirtimaan Builders Limited, Tiberias Developers Limited, Ujagar Estates Limited (Transferor Companies) with DLF Utilities Limited (Transferee Company) vide order dated 16 April 2024 under the provisions of Sections 230-232 and other relevant provisions of the Companies Act, 2013 read with the Rules made thereunder.

e) During the year, one of the step down subsidiary company i.e. 'Pegeen Builders & Developers Private Limited' (Pegeen) has issued additional share capital to Trident Buildtech Private Limited (Trident) equivalent to

49% stake of the company. Pursuant to this change in shareholding of Pegeen and agreement between the shareholders, the same has been classified as joint venture w.e.f. 10 August 2023.

f) During the year, Twenty Five Downtown Realty Limited (formerly Joyous Housing Limited) has ceased to be Joint Venture of the Company [Refer note 46(b)(v) and 50(9)(i)(d)].

g) During the year, the Company has entered into a definitive agreement(s) with Global Health Limited to construct, operate and manage super specialty hospitals in Delhi and has subscribed 50% stake in GHL Hospital Limited. As per terms of the agreement between the shareholders the same has been classified as associate company.

h) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 27 May 2022, the said companies have been merged with DLF Residential Partners Limited.

i) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 30 June 2022, the said companies have been merged with DLF Home Developers Limited.

j) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 21 October 2022, the said companies have been merged with Naja Estates Developers Private Limited.

k) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 20 January 2023, the said companies have been merged with Skyrise Home Developers Private Limited.

l) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 23 January 2023, the said companies have been merged with Garv Developers Private Limited.

m) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 30 January 2023, the said company has been merged with Unicorn Real Estate Developers Private Limited.

n) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 3 February 2023, the said companies have been merged with Raeks Estates Developers Private Limited.

o) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 6 March 2023, the said companies have been merged with Nadish Real Estate Private Limited.

p) During the previous year, pursuant to the order passed by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide order dated 9 March 2023, the said companies have been merged with Milda Buildwell Private Limited.

q) During the previous year, one of the wholly-owned subsidiary company has invested via 0.01% Compulsorily convertible debentures (CCDs), resulting in acquiring majority control over these companies w.e.f. 21 October 2022.

r) DLF Home Developers Limited, one of the wholly-owned subsidiary company of the Company holds Compulsorily Convertible Preference Shares (CCPS) in Arizona Globalservices Private Limited (Arizona). These are convertible at the option of the investor. If these are converted (also considering the terms and conditions of the agreement), it will assure significant influence over Arizona by the wholly-owned subsidiary company. Hence, Arizona has been classified as an associate company.

Terms and conditions of transactions with related parties:

1. The transactions with related parties are made on the terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured, interest free and settlement occurs by Cheque/ RTGS.

2. The Company has given loan to related parties which are repayable on demand. These loans are provided at interest rate of 8.75% (31 March 2023: 7.50%-8.50%) p.a. to subsidiary companies and at 14.15%-16.75% (except certain interest free loan) (31 March 2023: 14.15%-16.75%) interest as per agreement with joint ventures. The loans have been utilized by the related parties for business purposes.

3. The Company has given corporate guarantees/ bank guarantees to the banks/ debenture trustee in respect of loan/ NCD taken by the subsidiaries/ associate companies and joint ventures from that bank and financial institution and vice-versa. There are no benefits on account of such corporate guarantees/ bank guarantees derived by such subsidiary/ associate/ joint venture companies. The bank guarantees/ corporate guarantees have been given to comply with the requirements of banks and other regulatory agencies. The management has assessed that liability arising is this regard is remote.

4. The Company provides business and financial support to certain subsidiaries/ associate companies, which are in losses and are dependent on the Company for meeting out their cash requirements.

5. During the year, the Company purchased privately placed, Listed, Secured, Non-convertible, Redeemable Bonds of face value of ? 60,000.00 lakhs ('Bonds'), on which the bond issuer had defaulted in repayment of the said Bonds including accrued interest thereon. The said Bonds are secured in favour of Axis Trustee Services Limited ('Bond Trustee'), against certain land parcel(s) situated in Gurugram, Haryana ('Mortgaged Land'), owned by the bond issuer and its affiliates. In view of the default committed by the bond issuer, the Bond Trustee, had initiated proceedings for recovery of its dues under the SARFAESI and conducted auctions of the Mortgaged Land. Considering the development potential of the part of the Mortgaged Land, DLF Home Developers Limited ('DHDL), a wholly-owned subsidiary of the Company, had participated in the process to acquire a part of the Mortgaged Land by bidding for the same, however DHDLs bid was not accepted. As a strategic investment of the Group, the Company purchased the said Bonds at a negotiated consideration of ? 82,500.00 lakhs from the erstwhile bond holders, assuming the rights of the bond holders. As a part of the settlement, inter-alia between the Company, Axis Trustee, DHDL and the bond issuer including its affiliates, DHDL acquired part of the Mortgaged Land admeasuring 18.5375 acres approx. under the provisions of the SARFAESI Act for ? 82,878.93 lakhs, out of which ? 77,500.00 lakhs were paid to the Company towards partial redemption of Bonds. The balance i.e. ? 5,000.01 lakhs, is expected to be redeemed within one year of the investment.

• There are no transactions of loans and advances to subsidiaries/ associates/ firms/ others in which Directors are interested other than as disclosed above.

• There are no loans and advances in the nature of loans where there is no repayment schedule or repayment beyond seven years or no interest or interest under Section 186 of the Companies Act, 2013. Further the above do not include interest bearing adjustable advances.

• Does not include investment in Non-Convertible Debentures of ? 20,000.00 lakhs (refer note 6A).

b) i) The Company has provided Security in favour of Vistra ITCL (India) Limited, for the benefits of NCD holder and Axis Bank Limited and their assignees by way of mortgage of its immovable property situated at Gurugram in respect of the Non-Convertible Debentures and term loan facilities of ? Nil (31 March 2023: ? 109,554.46 lakhs) availed by DLF Cyber City Developers Limited, a joint venture company. The Non-convertible debentures and Term Loan facilities are prepaid during the year.

ii) The Company has provided Security in favour of Axis Trustee Services Limited, for the benefit of Standard Chartered Bank by way of mortgage of its immovable property situated at Gurugram in respect of the term loan facilities of ? Nil (31 March 2023: ? 40,544.35 lakhs) availed by DLF Cyber City Developers Limited, a joint venture company. The loan is prepaid during the year.

iii) The Company has provided security in favour of Axis Trustee Services Limited, for the benefits of NCD holder, by way of mortgage of its immovable property situated at Gurugram in respect of the Non-convertible debentures of ? 115,000.00 lakhs (31 March 2023: ? 115,000.00 lakhs) availed by DLF Cyber City Developers Limited, a joint venture company. The underlying land has been transferred to DLF Cyber City Developers Limited, however legal title is in the name of the Company which is yet to be transferred. The Company has given security to comply with the requirements of the bank/ debenture trustee.

iv) The Company has provided security in favour of Vistra ITCL (India) Limited, for the benefits of NCD holder by way of mortgage of its immovable property situated at Gurugram in respect of the Non-convertible debentures of ? 110,000.00 lakhs (31 March 2023: ? Nil) availed by DLF Cyber City Developers Limited, a joint venture company. The underlying land has been transferred to DLF Cyber City Developers Limited, however, legal title is in the name of the Company which is yet to be transferred. The Company has given security to comply with the requirements of the bank/ debenture trustee.

v) The Company has provided security by creating a charge against the land held by a subsidiary company in New Delhi, in favour of Axis Trustee Services Limited, for the benefit of NCD holders and their assignees of ? 60,000.00 lakhs (31 March 2023: ? Nil) against NCDs issued by DLF Home Developers Limited, a wholly-owned subsidiary company.

vi) The Company had executed a Share Pledge Agreement dated 26 December 2017, for providing security by way of creating pledge on 37,500 Equity Shares (equivalent to 37.50%) of ? 100/- each held by the Company in Twenty Five Downtown Realty Limited (formerly Joyous Housing Limited) ('Joyous'), a joint venture company, in favour of PNB Housing Finance Limited ('PNBHFL) to secure the credit facility up to ? 80,000.00 lakhs ['Credit Facility'] availed by Joyous. During the year, PNBHFL has invoked pledged of shares. Accordingly, the Company is not shareholder of the Twenty Five Downtown Realty Limited w.e.f. 20 August 2023 and PNBHFL vide letter dated 18 August 2023 absolved the Company against any liability towards credit facility obtained by the Joyous.

48. COMPANY AS A LESSEE

i) The Company's leased assets primarily consists of lease for office space, building and equipment for running Golf course operations and SEZ land parcels having lease terms of 3 to 30 years.

The Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date of transition and has measured right-of-use asset at an amount equal to lease liability adjusted for previously recognised prepaid or accrued lease payments.

Further, lease arrangements where the Company is lessor, lease rentals are recognized on straight-line basis over the non-cancellable period.

iv) The Company's total cash outflows for leases during the year is ? 4,031.37 lakhs (31 March 2023: ? 3,511.85 lakhs).

v) The Company has several lease contracts that include extension and termination options. These options are negotiated by the management to provide flexibility in managing and aligning with the Company's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. The right-of-use has been recognized on complete lease terms [see note 2.2(t)].

vi) The maturity analysis of lease liabilities is disclosed in note 37B.

vii) The effective interest rate for lease liabilities is 10% per annum (31 March 2023: 10% per annum) with maturity between 2025-2047 (31 March 2023: 2024-2047).

Company as a lessor

The Company has leased out office and mall premises under non-cancellable operating leases. These leases have terms of between 3-30 years. All leases include a clause to enable upward revision of the rental charges on an annual basis according to prevailing market conditions. The total lease rentals recognised as income during the year is ? 20,166.76 lakhs (31 March 2023: ? 17,757.95 lakhs).

49. COMMITMENTS

i) Estimated amount of contracts remaining to be executed on capital account and not provided for: at 31 March 2024, the Company had commitments of ? 828.41 lakhs (31 March 2023: ? 9,631.53 lakhs) relating to completion of various projects.

ii) The Company is committed to provide business and financial support to certain subsidiary companies, which are in losses and are dependent on parent company for meeting out their cash requirements. Further, the Company has given letter of support in favour of certain joint ventures/ associate companies for their bank borrowings.

iii) The Company has commitment regarding payments under development agreements with certain partnership firms amounting to ? 139,924.86 lakhs (31 March 2023: ? 139,215.97 lakhs), where the Company or its subsidiaries are partner and certain third-party entities with whom development agreements are in place.

iv) The Company has given corporate guarantee of ? 60,000.00 lakhs (31 March 2023: ? Nil) and bank guarantee of ? 48,002.00 lakhs (31 March 2023: ? 44,958.00 lakhs) in respect of certain subsidiaries, joint ventures and associates to comply with the requirements of bank and other regulatory agencies (refer note 45 above).

1) a) The Income Tax Authorities had made disallowances of SEZ profits u/s 80IAB of the Income-tax Act,

1961 during tax assessment of the Company raising demands amounting to ? 109.00 lakhs for the assessment year 2015-16; ? 1,056.00 lakhs for the assessment year 2014-15; ? 6,834.00 lakhs for the assessment year 2013-14; ? 7,308.99 lakhs for the assessment year 2011-12; ? 7,284.99 lakhs for the assessment year 2010-11; ? 35,523.71 lakhs for the assessment year 2009-10 and ? 48,723.00 lakhs for the assessment year 2008-09, respectively.

The Company had filed appeals before the appropriate appellate authorities against these demands for the said assessment years and have got full relief of ? 106,840.45 lakhs from the Hon'ble Income Tax Appellate Tribunal. For the AY 2008-09, the Company has received intimation of appeal filed by the department before the Hon'ble Delhi High Court, however, for the AY 2009-10 to 2015-16, the Company has not received any intimation of the department having filed appeal before the Hon'ble Delhi High Court.

Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.

b) The Income tax Authorities have disallowed one-time losses claimed by the company in assessment year 2017-18 and 2019-20 on account of mandatory adoption of erstwhile Ind AS 18 'Revenue' read with Guidance Note for Real Estate Transactions for Ind-As compliant entities and Ind AS 115 'Revenue from contract with customers' respectively. The one-time losses were adjusted in the retained earnings of the respective financial years in accordance with the relevant accounting standards. Consequent to above, a demand of ? 42,774.31 lakhs was raised for the assessment year 2021-22. During the year, the Company has received favourable orders in above matters from CIT(A), however, department may/ has preferred appeal against such favorable order.

Based on legal opinion obtained from tax experts, management is confident that it has a strong likelihood of succeeding in the matter and therefore, no adjustments are required in the standalone financial statements of the Company.

2) Other than matters mentioned at point no. 1 above, the Income Tax Authorities have raised demands on account of various disallowances pertaining to different assessment years. The Company is contesting these demands, which are pending at various appellate levels.

Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded as mentioned in point 1) and 2) above will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.

3) There are various disputes pending with the authorities of excise, customs, service tax, GST, sales tax, VAT, property tax etc. The Company is contesting these demands raised by authorities and are pending at various appellate authorities.

Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

4) There are various litigations going on against the Company primarily by Competition Commission of India [also refer note 50(9)(i)(a) below] and in Consumer Redressal Forum, which have been contested by the Company.

Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the various authorities. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

5) Interest and claims by customers/ suppliers may be payable as and when the outcome of the related matters are finally determined and hence not been included above.

Management based on legal advice and historical trends, believes that no material liability will devolve on the Company in respect of these matters.

6) During the earlier years, DLF Utilities Limited ('DUL) (Real estate undertaking of DUL, now merged with DLF Limited) had received a notice from the Dakshin Haryana Bijli Vitran Nigam ('DHBVN') wherein it had claimed cross subsidy surcharge of ? 3,328.00 lakhs on electricity being supplied by DUL to other companies for the period from 1 April 2011 to 30 September 2012 and had questioned the legality of such electricity supply. DUL filed an appeal to Haryana Electricity Regulatory Commission ('HERC'), wherein HERC vide order dated 11 August 2011 held that the supply of electricity by DUL was legal, however, DUL was liable to pay cross subsidy surcharge. Aggrieved by the said order, DUL filed an appeal before Appellate Tribunal of Electricity ('APTEL) against the levy of cross subsidy surcharge. APTEL held that the supply of electricity for commercial establishments from the main receiving panel was not in accordance with law and must be discontinued.

Further, APTEL also held that the DUL was liable to pay the cross subsidy surcharge and accordingly, a demand of ? 3,328.00 lakhs was received by DUL from DHBVN against the same. Aggrieved by the order of APTEL, DUL filed an appeal before the Hon'ble Supreme Court of India which had stayed the execution of the said order and asked DUL to deposit an amount of ? 284.36 lakhs to DHBVN which was duly deposited.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

7) During the previous year, New Okhla Industrial Development Authority (NOIDA) demanded ? 23,421.31 lakhs against the Company on account of payment of enhanced compensation to farmers regarding land acquired by it. As per NOIDA, land which was acquired by it, falls under the plot taken by the Company through auction. While passing judgment dated 5 May 2022, the Hon'ble Supreme Court directed that, 'Since the acquisition of land in question was made by NOIDA which was purchased by DLF through a public auction, therefore the liability to pay compensation would be of NOIDA'. NOIDA filed a review petition with the Hon'ble Supreme Court, which was dismissed vide Order dated 10 August 2022. Even after this, NOIDA issued a Demand Notice on 23 December 2022 demanding a sum of ? 23,421.31 lakhs. The Company challenged the said demand through filing writ petition before Hon'ble High Court at Allahabad. The Hon'ble High Court vide order dated 24 January 2023 directed that no coercive measures shall be taken by NOIDA pursuant to the demand notice dated 23 December 2022.

Based on the advice of the independent legal counsel, management has assessed that there is a strong likelihood of succeeding before Hon'ble High Court of Allahabad. Pending the final outcome on the above matter, no adjustment has been made in these standalone financial statements. Also refer note 50(8)(iii) below.

8) Indemnification of DCCDL

As per the terms of the SPSHA, the Company has undertaken to indemnify, defend and hold harmless

the Investor against all losses incurred or suffered by DCCDL arising out of following matters up to or

prior to 25 December 2017 (i.e. Closing Date):

i) Income tax demands, indirect tax demands including service tax and entry tax related to various matters and assessments year up to the closing date of ? 124,669.21 lakhs (31 March 2023: ? 139,415.25 lakhs);

Based on the advice from independent tax experts and development on the appeals, the management is confident that additional tax so demand will not be sustained and accordingly, pending the decision by the authorities, no provision has been made in these consolidated financial statements.

ii) Liability arising out of matter discussed in note 50(6) and 50(7) above.

iii) The land parcel admeasuring 19.5 acres was acquired by the Company from Government of Haryana ('GoH') in August 2006 for development of Cyber City Project, which was earlier acquired by GoH from Gram Panchayat, Nathupur in February 2004 through proceedings of compulsory acquisition. DCCDL had constructed certain portions of its two IT/ IT SEZ buildings of the Cyber City Project as well as entered into third party rights vide lease/ sale of office space in the said buildings. Subsequently, the Hon'ble High Court of Punjab and Haryana, pursuant to a public interest litigation, vide order dated 1 October 2010, quashed the land acquisition proceedings and conveyance deed by GoH and directed the GoH to refund the amount, which was earlier paid by the Company and also directed the Company to remove any construction on the said land. Against the said order, the Company filed a Special Leave Petition in November 2010 before the Hon'ble Supreme Court of India, who vide order dated 3 January 2012, stayed the order of the High Court and the matter is pending disposal before the Hon'ble Supreme Court of India.

In the earlier year, 7 residents of Village Nathupur filed applications for impleadment, which were dismissed vide Order dated 15 March 2022. Further, in previous year the impleadment application filed by 5 residents of Village Nathupur which are pending and to be listed in due course.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Also refer note 50(9)(i)(b) below.

iv) The Company along with one of its subsidiary companies had acquired a land parcel admeasuring approximately 30 acres and 7 acres respectively from EIH Limited ('EIH') for development of IT/ ITES project at Silokhera, Gurugram, which EIH acquired from GoH. The Company constructed 2 IT/ ITES SEZ Buildings on the said land, which was sold to one of the subsidiary companies of the DCCDL. The Company is constructing another block of buildings on DCCDLs behalf. The net block and capital work-in-progress against Silokhera project appearing in DCCDLs books as at 31 March 2024 amounts to ? 145,141.08 lakhs (31 March 2023: ? 148,818.33 lakhs) and ? 89,111.66 lakhs (31 March 2023: ? 89,111.66 lakhs), respectively.

Subsequently, the Hon'ble High Court of Punjab and Haryana, pursuant to a public interest litigation and vide its order dated 3 February 2011 directed the GoH to carry out the acquisition proceedings again from the notification stage under the Land Acquisition Act, 1894 and directed the Company and its subsidiaries to remove all constructions made on the said land. The Company filed a Special Leave Petition before the Hon'ble Supreme Court of India and the Hon'ble Supreme Court of India vide order dated 20 September 2011 stayed the order of the Hon'ble High Court and the matter is currently pending before the Hon'ble Supreme Court of India and the next date of hearing is yet to be notified by the registry.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decision on the above matter, no adjustment has been made in these standalone financial statements. Also refer note 50(9)(i)(b) below.

9) Matters pending in litigation with Courts/ Appellate Authorities

i) a) The Competition Commission of India (CCI) on a complaint filed by the Belaire/ Magnolias/ Park Place owners association had passed orders dated 12 August 2011 and 29 August 2011 wherein the CCI had imposed a penalty of ? 63,000.00 lakhs on DLF Limited ('DLF' or 'the

Company') or, restraining DLF from formulating and imposing allegedly unfair conditions with buyers in Gurugram and further ordered to suitably modify the alleged unfair conditions on its buyers.

The said orders of CCI were challenged by DLF on several grounds by filing appeals before the Competition Appellate Tribunal (COMPAt).

COMPAT vide its order dated 19 May 2014 upheld the penalty imposed by CCI.

The Company had filed an appeal in the Hon'ble Supreme Court of India against the order dated 19 May 2014 passed by the COMPAT. The Hon'ble Supreme Court of India vide order dated 27 August 2014 admitted the Appeal and directed the Company to deposit penalty of ? 63,000.00 lakhs in the Court. In compliance of the order, the Company had deposited ? 63,000.00 lakhs with the Hon'ble Supreme Court of India and is continued to be shown as recoverable. The Company has filed a application seeking refund including interest there on, which is to be listed along with the main application in due course.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements. Also refer point 50(4) above.

b) During the year ended 31 March 2011, the Company, one of its subsidiary companies and a joint venture company received judgments from the Hon'ble High Court of Punjab and Haryana cancelling the sale deeds of land/ removal of construction relating to two IT SEZ/ IT Park Projects in Gurugram admeasuring 56.48 acres. The Company and the subsidiary company filed Special Leave Petitions (SLPs) challenging the orders in the Hon'ble Supreme Court of India.

The Hon'ble Supreme Court of India had admitted the matters and stayed the operation of the impugned judgments till further orders in both the cases. Also refer point 50(8)(iv) and 50(8)(v) above.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

c) i) The Securities and Exchange Board of India ('SEBI') vide order dated 10 October 2014

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. This Order was passed pursuant to a Show Cause Notice (SCN) dated 25 June 2013 which inter alia alleged that the Offer Documents issued by the Company at the time of its initial public offer in the year 2007 suffered from material non-disclosures and misstatements.

The Company and the said Directors filed appeals before the SEBI Appellate Tribunal ('SAT'). SAT, by majority order dated 13 March 2015, allowed the appeals on the ground that there was nothing that suggested that the investors were prejudiced due to non-disclosure of information by DLF in its offer document, or that such non-disclosure resulted in any benefit to DLF or its Directors in violation of the Erstwhile DIP Guidelines.

SEBI filed an appeal with the Hon'ble Supreme Court of India, which stand admitted vide order dated 24 April 2015 without granting any interim stay in favour of SEBI.

In February 2015, SEBI, in similar matters, imposed penalties upon Company, some of its directors/ officers and its three subsdiaries and their directors. The Company approached the SAT which held that the SEBI order cannot be sustained. In October 2015, SEBI filed applications before the Hon'ble Supreme 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 Supreme Court on 4 November 2015 and the Supreme Court did not pass any orders restraining the Transaction and simply directed that the said applications be listed along with the appeal. The matter is pending and to be listed in due course.

ii) SEBI issued a SCN dated 28 August 2013 under Sections 15HA and 15HB of the SEBI Act and under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules,1995 ('Adjudication Rules') making allegations similar to the SCN dated 25 June 2013. The Company filed its Reply to the same opposing the allegations made against it. Similar SCNs were also issued to three subsidiaries, their directors and certain other entities.

By way of order dated 26 February 2015, the Adjudicating Officer, SEBI imposed monetary penalties upon Company, some of its Directors, its erstwhile CFO, its three subsidiaries and their Directors under Section 15HA and under Section 15HB of the SEBI Act.

The Company and other parties aggrieved by the aforesaid order filed appeals before the Hon'ble SAT against the aforesaid order dated 26 February 2015. When these appeals were listed before Hon'ble SAT on 15 April 2015, SEBI's counsel under instructions stated that during the pendency of the said appeals, the Order dated 26 February 2015 would not be enforced. The Hon'ble SAT vide its order passed on 25 April 2018 held that in view of Hon'ble SAT's majority decision dated 13 March 2015, the SEBI Order dated 26 February 2015 cannot be sustained.

Accordingly, the Hon'ble SAT disposed off the appeals with a direction that these appeals, shall stand automatically revived once the Hon'ble Supreme Court of India disposes of the civil appeals filed by SEBI against the Hon'ble SAT's judgment dated 13 March 2015.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

d) During the earlier years, one of the joint venture company, Twenty Five Downtown Realty Limited [formerly Joyous Housing Limited (JHL)] defaulted in meeting its debt obligation to a Housing Finance Company (HFC or Lender). Disputes arose between the shareholders of JHL, and an arbitration for repayment of the Company's entire outstanding dues, inclusive of interest, from JHL is ongoing between the shareholders.

Meanwhile, the Lender assigned the loan to Omkara Asset Reconstruction Company Limited (ARC) and also invoked the pledge of shares, despite the Company's acceptance of Lender's offer to purchase 100% shares of JHL (at a price higher than the reserve price) and repay the outstanding dues of the Lender. The ARC thereafter sold 75% shares of JHL (including 37.50% shares of the Company) to a third party.

The aforesaid assignment of loan as well as the sale of shares has been challenged by the Company before the Hon'ble High Court of Delhi and the Hon'ble High Court of Delhi has referred the said disputes between all parties involved to arbitration before a sole arbitrator i.e. Justice (Retd.) V. Ramasubramanian, Former Judge, Supreme Court of India, which arbitration is currently ongoing.

Owing to the ongoing actions and circumstances, which are challenged by the Company, JHL at present is not a joint venture of the Company, only in accordance with Ind AS 111 'Joint Arrangement' read with Ind AS 110 'Consolidated Financial Statements'.

The Company has also filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against JHL before the National Company Law Tribunal, Mumbai for initiation of corporate insolvency proceedings against JHL on basis of admission of liability in its audited balance sheets.

At present the total loan and investments of the Company in JHL are ? 56,248.71 lakhs. Further, based on the legal advice, management believes that 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 is considered to be adequate.

9 ii) a) The petitions were filed before the Hon'ble Punjab and Haryana High Court challenging the action of the Haryana Government to acquire the land belonging to Gram Panchayat of village Wazirabad, District Gurugram for public purpose and thereafter selling the same to the Company, seeking directions from the court for quashing of the acquisition proceedings under Sections 4 and 6 dated 8 August 2003 and 20 January 2004.

The petitioners therein also sought quashing of the award dated 19 January 2006 and the Regular letter of allotment (RLA) dated 9 February 2010 issued in favour of the Company for 350.715 acres of land. The Company has paid ? 99,969.26 lakhs to Government towards purchase of this land out of total consideration of ? 182,437.49 lakhs.

The Hon'ble Punjab and Haryana High Court, vide its final order dated 3 September 2014, while upholding the acquisition of land has however disapproved the allotment in favour of the Company. The Hon'ble High Court passed an order to keep the RLA dated 9 February 2010 issued in favour of the Company in abeyance and further directed the Haryana State Industrial and Infrastructure Development Corporation ('HSIIDC') to initiate fresh allotment process for higher returns in respect of the land in question with an option to State to revive the RLA in case no better bid is quoted by the public at large.

The Company has filed a Special Leave Petition before the Hon'ble Supreme Court of India challenging the judgment dated 3 September 2014 passed by the Hon'ble Punjab and Haryana High Court. The Hon'ble Supreme Court of India issued notice to the respondents and directed status quo to be maintained by the parties.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

b) The Company has filed a Special Leave Petition (SLP) against the order dated 2 December 2016 passed by the Hon'ble Punjab and Haryana High Court in Writ Petition No.12210 of 2013 challenging the findings and directions passed by the Hon'ble High Court requiring DLF to allocate additional land measuring 10.6 Acres for DLF Park Place complex. DLF has taken the ground that after having rejected the contentions of the association on the claim of extra land based on FAR and PPA norms, the Hon'ble High Court could not have passed the order for allocation of additional land based on the representations made in the Brochure. The Company has further raised the ground that Hon'ble High Court has given a complete go by to the terms and conditions of the binding agreement where it was specifically provided the area of Park Place as 12.67 acres, granted leave in the Special Leave Petition.

Against the same order, DLF Park Place Residents Welfare Association has also filed an SLP before the Hon'ble Supreme Court of India on the grounds that the Hon'ble High Court has misinterpreted the statutory provisions of the applicable law to hold that GH Park Place is not a separate and independent Company Housing Complex but is part of DLF Phase-V, constructed over 476.42 Acres, having 15 Company Housing Complexes. In accordance with the FAR ratio of 1:1.75, the association was entitled to additional land of 46.20 Acres on the total constructed area which has not been considered by the Hon'ble High Court.

The Court after hearing, granted leave in the SLPs. The appeals will be listed for arguments before the Hon'ble Supreme Court of India in due course.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that there is a strong likelihood of succeeding before the Hon'ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

c) In the earlier year, Company has initiated the arbitration proceedings against Haryana Urban Development Authority (HUDA) in respect to outstanding amount of ? 6,002.90 lakhs recoverable under a joint development agreement entered with HUDA for construction of certain roads and underpass in Gurugram, Haryana on 50:50 cost sharing basis.

During the current year, the arbitrator has adjudicated the matter in favor of the Company vide order dated 26 July 2023. HUDA has challenged the order of arbitrator and filed an application under section 34 of the Arbitration and Canciliation Act, 1996 before the district judge, Panchkula.

Based on the advice of the independent legal counsels and grounds of appeal, the management has assessed that claims by the Company are as per terms of agreement entered with HUDA and based on merits of the case, there is a strong likelihood of a favorable outcome for the Company in aforesaid case.

d) During the year, the Company has received a demand of property tax amounting to ? 10,806.52 lakhs vide assessment order issued by New Delhi Municipal Corporation ('NDMC)' with respect to a property under the 'Build, operate and transfer' model operated by the Company. The Company has filed a Writ petition against the order before Hon'ble High Court, Delhi which has granted stay in this matter.

Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding. Pending the final decision on the above matter, no adjustment has been made in these standalone financial statements.

52. SEGMENT REPORTING

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 are domiciled in India and therefore there are no reportable geographical segment.

The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company.

54. The investments made in related parties are long-term and strategic in nature. Further, all loans, guarantees and securities given are for meeting business and working capital requirements.

55. Political contribution represents contribution made to M/s Prudent Electoral Trust of ? 10,000.00 lakhs (31 March 2023: ? Nil).

56(I). The Company had entered into an operation and management agreement with DLF Golf Resorts Limited ('DGRL) (merged with DLF Recreational Foundation Limited), a wholly-owned subsidiary of the Company. As per the agreement, DGRL transfers 97% revenue generated and expenses incurred during the year to the Company and the remaining 3% is retained by DGRL for operation and management services provided to the Company. Accordingly, revenues of ? 12,162.23 lakhs (31 March 2023: ? 10,830.29 lakhs) and expenses of ? 10,077.76 lakhs (31 March 2023: ? 8,617.42 lakhs) [including ? 9,015.74 lakhs (31 March 2023: ? 7,676.89 lakhs) transferred from DGRL] pertaining to golf course operations, further depreciation of ? 1,200.88 lakhs (31 March 2023: ? 1,185.02 lakhs) in respect of assets taken on lease and depreciation of ? 2,141.96 lakhs (31 March 2023: ? 2,108.51 lakhs) on assets purchased for golf operations has been recognized in these standalone financial statements.

57. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of the Code came into effect on 3 May 2023. However, the final rules/ interpretation have not yet been issued. Based on a preliminary assessment, the Group believes the impact of the change will not be significant.

58. Rule 11(g) of Companies (Audit and Auditors) Rule, 2014 ('Rule') stipulates that where the Company has used accounting software for maintaining its books of account whether it has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software among other requirements, as prescribed in the aforesaid Rule. The Company has used an accounting software which is operated by a third-party software service provider, for maintaining its books

of account. Management is not in possession of Service Organisation Controls report (SOC1 type 2 report) to determine whether the requirements of above Rule has been met.

59. During the previous year, the Company received various notices from Goods and Services Tax ('GST') Authorities for the submission of documents related to corporate guarantees given by the Company and its group entities and GST payment thereon. Thus, the management obtained an arm's length assessment report from an external expert only for the sole purpose of discharging payment of GST Accordingly, the Company had deposited GST on the said CGs given w.e.f. 1 July 2017, along with interest of ? 292.20 lakhs during the previous year. As the said payment arose out of departmental proceedings, the Company believes that the payment of interest shall not be construed as an irregularity in the deposit of GST on the part of the Company.

60. The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.