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DLF Directors Report | DLF Ltd Directors Report

Your Company recorded consolidated revenues of Rs. 10,224 Crores in FY”12 as compared to Rs. 10,144 Crores in FY”11, an increase of 1%. The gross operating profit, on consolidated basis, improved to Rs. 4,498.79 Crores from Rs. 4,336.54 Crores, an increase of 4%. The profit after tax, minority interest and prior period items was Rs. 1,200.82 Crores as compared to Rs. 1,639.61 Crores for the previous year, a decline of 27%. Your Company”s profits were adversely impacted due to higher input cost with higher constructions costs due to continuing high inflation. Review of Operations. Your Company booked gross sales of approximately 13.5 msf of residential and commercial offices/ complexes valued at Rs. 5,278 Crores. The average realisation declined to Rs. 3,900 psf on account of plotted launches with lower unit sales value in Lucknow and Hyderabad. The Company”s launches in the residential segment comprised a well balanced product mix of premium homes and plotted development and received a very good response. In the rental business, your Company contracted additional leasing of 1.41 msf of property during the year, taking the total leased out space to approximately 22.66 msf across commercial offices and retail malls. Your Company unlocked Rs. 1,774 Crores during the year by divesting certain non-core assets. Your Company met all stakeholders commitments in time during the year, including those to the lending institutions despite tight liquidity conditions. The performance of the Company on a standalone basis for the year ended 31st March, 2012 is as under: Standalone Financial Results. (Rs. in Crores) 2011-12 2010-11. Turnover 4,582.67 4,158.76. Gross Operating Profit 3,201.33 2,971.68. Less: Finance Charges 1,553.78 1,286.70. Less: Depreciation 139.84 129.77. Profit before Tax 1,507.71 1,555.21. Less: Provision for Tax 458.77 309.05. Profit after Tax 1,048.94 1,246.16. Prior period items (7.15) 23.42. Net Profit 1,041.79 1,269.58. Future Outlook. Your Company expects the current economic and business environment to stay challenging over the next few quarters. The Company shall continue to focus on plotted development, luxury/premium housing, to improve the cash cycle, timely execution and delivery of its projects, divestment of non-core assets and cash conservation. The development side of the business is expected to have planned launches and sales of 10-12 msf. The rental business will target leasing of 2 msf in the current fiscal. Your Company has targeted divestment of non-core assets to the extent of Rs. 5,000 – Rs. 6,000 Crores and achieve reduction in net debt by a similar amount in the current fiscal. Dividend. Your Directors are pleased to recommend a dividend of Rs. 2 per equity share (100%) (previous year – Rs. 2 per equity share) for the FY”12 amounting to Rs. 339.67 Crores (previous year – Rs. 339.51 Crores) for approval of the Members. Corporate Sustainability. Your Company”s social sustainability initiatives encompassing skill development, education and health are targeted at the weaker sections of society with your Company making contributions to inclusive growth. In addition, your Company right from the design and through construction stages, strives for the most environment friendly technologies. Credit Rating. During the year under review- CARE had assigned a short-term rating to DLF with a symbol PR1 for an amount of Rs. 1,500 Crores. As there were no short-term instruments outstanding, the Company requested CARE to withdraw the rating vide its letter dated 11.02.2012 and the same was withdrawn by CARE vide its letter dated 31.3.2012. The Company has not accepted/renewed any public deposits during the year under review. Subsidiary Companies and Consolidated Financial Statements. The Consolidated Financial Statements of the Company and its subsidiaries, prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India, form part of the Annual Report. In terms of the Circular No.2/ 2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Board of Directors has, at its meeting held on 30th May, 2012 passed a resolution giving consent for not attaching the Balance Sheet, Statement of Profit and Loss and other documents of the subsidiry companies. The required information on subsidiary companies is given in this Annual Report. The said documents/details shall be made available, upon request, to any Member of the Company and will also be made available for inspection by any Member of the Company at the registered office of the Company during working hours on business days. The Company has appointed Independent Directors in its material non-listed subsidiaries in compliance with the provisions of Listing Agreement with stock exchanges. The particulars required to be disclosed under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988 are given at Annexure-A hereto and form part of this Report. Particulars of Employees. In terms of the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended, the names and other particulars of the employees are set out in the annexure to the Directors” Report. However, as per the provisions of Section 219(1)(b)(iv) of the said Act, the Directors” Report and the Accounts are being sent to all the Members of the Company and others entitled thereto excluding the statement of particulars of employees. Any member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company. Employees Stock Option Scheme (ESOS) During the year under review, your Company has allotted 8,13,925 equity shares of Rs. 2 each fully paid upon exercise of stock options by the eligible employees under the Employees Stock Options Scheme, 2006 thereby increasing the paid-up share capital by Rs. 16,27,850. The certificate, as required under Clause 14 of the said Guidelines, and as obtained from the Statutory Auditors with respect to the implementation of the Company”s Employees Stock Option Scheme, 2006 shall be placed at the forthcoming Annual General Meeting. Listing at Stock Exchanges. The equity shares of your Company are listed on NSE and BSE. The non-convertible debentures issued by your Company are also listed on the Wholesale Debt Market (WDM) segment of NSE. The listing and custodial fee for the financial year 2012-13 have been paid to the stock exchanges, NSDL / CDSL, respectively. Pursuant to Clause 5A of the Listing Agreement, the Company has opened demat suspense accounts for shares issued in dematerialised and physical form, which remain unclaimed. As on 31st March, 2012, 5,330 equity shares in dematerialised form and 4,58,093 equity shares in physical form were lying unclaimed. Management Discussion & Analysis Report. The Management Discussion and Analysis Report as required under Clause 49 of the listing agreement with the stock exchanges forms part of this Report. Corporate Governance Report. The Corporate Governance Report, as stipulated under Clause 49 of the listing agreement with stock exchanges, forms part of this Report. The requisite certificate from the Statutory Auditors of the Company, M/s. Walker, Chandiok & Co, Chartered Accountants, confirming compliance with the conditions of corporate governance as stipulated under the aforesaid Clause 49, is attached to Corporate Governance Report. a) followed, in the preparation of the Annual Accounts, the applicable accounting standards and there are no material departures; b) selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company at the end of the financial year and of the profits of your Company for the period; c) taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe
guarding the assets of your Company and for preventing and detecting fraud and other irregularities; and. d) prepared the Annual Accounts on a going concern basis. Auditors. The Auditors, M/s. Walker, Chandiok & Co, Chartered Accountants, hold office until the conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment. Certificate from the Auditors has been received to the effect that their re-appointment, if made, would be within the limits prescribed under Section 224(1 B) of the Companies Act, 1956 and they are not disqualified for re-appointment within the meaning of Section 226 of the said Act. Auditors” Report. (i) The observation given in point no. 4 of the Auditors” Report on Standalone Financials read with Note No. 49 is self-explanatory and do not call for any further comments. (ii) The observation given in point nos. 4 and 5 of the Auditors” Report on Consolidated Financials read with Note Nos. 38 and 39 are self-explanatory and do not call for any further comments. Cost Auditors. The Company has appointed Cost Auditors – M/s. Vandana Bansal & Associates, Cost Accountants in compliance with Cost Accounting Records (Electricity Industry) Rules, 2011 for its Wind Power Generation division. The Cost Audit Report shall be filed by the Cost Auditors in due course for the FY 2011-12. Directors. Pursuant to Section 256 of the Companies Act, 1956 read with the Clause 102 of the Articles of Association of the Company, Dr. D. V. Kapur and Mr. Rajiv Singh Directors retire by rotation at the ensuing Annual General Meeting and being eligible, have offered themselves for re-appointment. Mr. M. M. Sabharwal, a Director of the Company who retires by rotation at the ensuing Annual General Meeting has conveyed his desire not to offer himself for re-appointment. The Directors place on record their appreciation for the contribution made by Mr. Sabharwal and Mr. Swarup during their tenure as Directors of the Company. Brief resume of the Directors proposed to be re- appointed and other details as stipulated under Clause 49 of the Listing Agreement, are provided in the Notice for convening the Annual General Meeting. Corporate Social Responsibility. The Company has made significant investments in community welfare initiatives including to the underprivileged sections of society through education, training, health, environment, capacity building and rural-centric interventions as detailed at Annexure-C. The employees of the Company also participated in many of such initiatives. Acknowledgements. Your Directors wish to place on record their sincere appreciation to all the employees for their dedication and commitment. The hard work and unstinting efforts of the employees have enabled the Company to sustain and further consolidate its position in the industry. Your Company continues to occupy a place of respect among stakeholders, most of all our valuable customers. Your Directors would like to express their sincere appreciation for assistance and co-operation received from the vendors and stakeholders including financial institutions, banks, Central and State Government authorities, customers and other business associates, who have extended their valuable sustained support and encouragement during the year under review. It will be the Company”s endeavour to build and nurture these strong links with its stakeholders. Rental values remained largely stable across most micro-markets of Delhi in Q4 2013, over the previous quarter. Some rental appreciation was witnessed in Gurgaon?s DLF Cyber City, due to sustained demand: CBRE. More from markets. Date Sources: Live BSE and NSE Quotes Service: TickerPlant | Corporate Data, F&O Data & Historical price volume data: Dion Global Solutions Ltd. BSE Quotes and Sensex are real-time and licensed from the Bombay Stock Exchange. NSE Quotes and Nifty are also real time and licenced from National Stock Exchange. All times stamps are reflecting IST (Indian Standard Time). By using this site, you agree to the Terms of Service and Privacy Policy.
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