DLF LIMITED

AUDITOR'S REPORT
TO THE MEMBERS OF DLF LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements
of DLF Limited ('the Company'), which comprise the Balance Sheet
as at March 31, 2021, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial
Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ('the Act') with
respect to the preparation of these standalone financial statements,
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act; safeguarding the
assets of the Company; preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the fi nancial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to
be included in the audit report under the provisions of the Act and the
Rules made there under.
5. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures  in the financial statements.
The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal fi nancial controls relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation of the
financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2022 and its profit and its cash
flows for the year ended on that date.
Emphasis of Matter
9. We draw attention to note 48 to the standalone financial statements
which describes the uncertainty relating to the outcome of certain
matters pending in litigation with Courts/Appellate Authorities,
pending the final outcome of the aforesaid matters, which is presently
unascertainable, no adjustments have been made in the standalone fi
nancial statements. Our opinion is not qualified in respect of these
matters.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order, ('the
Order') issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143(3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination
of those books;
c. the standalone financial statements dealt with by this report are in
agreement with the books of account;
d. in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
(as amended);
e. the matter described in paragraph 9 under the Emphasis of Matter
paragraph, in case of an unfavorable decision against the Company, in
our opinion, may have an adverse effect on the functioning of the
Company;
f. on the basis of the written representations received from the
Directors and taken on record by the Board of Directors, none of the
Directors is disqualified as on March 31, 2021 from being
appointed as a Director in terms of Section 164(2) of the Act;
g. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules,
2014, in our opinion and to the best of our information and according
to the explanations given to us:
i) as detailed in note 39(I)(b), 39(I)(c), 48, 49, 50 and 51 to the
standalone financial statements, the Company has disclosed the
impact of pending litigations on its standalone financial position;
ii) the Company did not have any long–term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditor's Report of even date to the
members of DLF Limited on the standalone financial statements
for the year ended March 31, 2021
Based on the audit procedures performed for the purpose of reporting
a true and fair view on the standalone financial statements of the
Company and taking into consideration the information and
explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of
its fixed assets under which fixed assets are verified in a phased
manner over a period of three years, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year, except for inventory
represented by development rights. For inventory represented by
development rights at the year–end, written confi rmations have been
obtained by the management.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies between physical inventory and book records
were noticed on physical verification.
iii) The Company has granted unsecured loans to companies covered
in the register maintained under Section 189 of the Act; and with
respect to the same:
(a) the principal amounts are repayable on demand in accordance with
such terms and conditions, the receipt of principal amount and interest
is regular in accordance with such terms and conditions; and
(b) there is no overdue amount in respect of loans granted to such
companies.
iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
v) The Company has not accepted any deposits within the meaning of
Sections 73 to 76 of the Act and the Companies (Acceptance of
Deposits) Rules, 2014 (as amended). Accordingly, the provisions of
clause 3(v) of the Order are not applicable.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under sub–section (1) of Section 148
of the Act in respect of Company's products/services and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
vii) (a) The Company is generally regular in depositing undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty of
excise, value added tax, cess and other material statutory dues, as
applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year–end
for a period of more than six months from the date they become
payable.
(b) The dues outstanding in respect of income tax, sales tax, wealth
tax, service tax, duty of customs, duty of excise, value added tax and
cess on account of any dispute, are as follows:
(c) The Company has transferred the amount required to be
transferred to the Investor Education and Protection Fund in
accordance with the relevant provisions of the Companies Act, 1956
(1 of 1956) and rules made thereunder within the specified time.
viii) In our opinion, the Company has no accumulated losses at the
end of the financial year and it has not incurred cash losses in the
current and the immediately preceding financial year.
ix) In our opinion, the Company has not defaulted in repayment of
dues to any financial institution or a bank or to debenture–holders
during the year.
x) In our opinion, the terms and conditions on which the Company
has given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
Company.
xi) In our opinion, the term loans were applied for the purpose, for
which the loans were obtained, though idle funds which were not
required for immediate utilization have been invested in liquid
investments, payable on demand.
xii) No fraud on or by the Company has been noticed or reported
during the period covered by our audit.