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Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
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Name : |
DLF LIMITED |
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Registered Office : |
Shopping Mall 3rd Floor Arjun Marg, Phase I, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
04.07.1963 |
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Com. Reg. No.: |
002484 |
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CIN No.: [Company
Identification No.] |
L70101HR1963PLC002484 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELD00585E |
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PAN No.: [Permanent
Account No.] |
AAACD3494N |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange |
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Line of Business : |
Real Estate Developers |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 560000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a one of the largest reality developers in Thus, company is experiencing liquidity crunch and directing its
equity to ease the problem. It’s payments are reported as slow but correct. However the company can be considered normal for business dealing at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
LOCATIONS
|
Registered Office : |
Shopping Mall 3rd Floor Arjun Marg, Phase I, |
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Tel. No.: |
91-124-4334200 |
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Fax No.: |
91-124-2355581 |
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E-Mail : |
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Website : |
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Corporate Office : |
DLF Centre, Sansad Marg, |
DIRECTORS
|
Name : |
Mr. K.P Singh |
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Designation : |
Chairman |
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Date of Birth/Age : |
15.08.1931 |
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Qualification : |
Science Graduate; an alumni of IMA |
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Date of Appointment : |
14.11.1963 |
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Directorship in Other Company : |
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Name : |
Mr. T.C Goyal |
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Designation : |
Managing Director |
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Name : |
Mr. Rajiv Singh |
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Designation : |
Vice Chairman |
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Date of Birth/Age : |
08.05.1959 |
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Qualification : |
Graduate |
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Date of Appointment : |
16.11.1988 |
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Directorship in Other Company : |
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|
|
|
Name : |
Mr. Pia Singh |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
26.12.1970 |
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Qualification : |
Graduate |
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Date of Appointment : |
18.02.2003 |
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Directorship in Other Company : |
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Name : |
Mr. G S. Talwar |
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Designation : |
Director |
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Date of Birth/Age : |
22.03.1948 |
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Qualification : |
Graduate |
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Date of Appointment : |
21.04.2006 |
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Directorship in Other Company : |
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Name : |
Mr. M.M Sabharwal |
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Designation : |
Director |
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Name : |
Mr. K N Memani |
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Designation : |
Director |
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Date of Birth/Age : |
01.01.1939 |
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Qualification : |
Member of The |
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Date of Appointment : |
21.04.2006 |
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Directorship in Other Company : |
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|
|
Name : |
Mr. Ravinder Narain |
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Designation : |
Director |
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Date of Birth/Age : |
15.05.1937 |
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Qualification : |
Science and Law Graduate |
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Date of Appointment : |
21.04.2006 |
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Directorship in Other Company : |
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Name : |
Mr. Brijendra Bhushan |
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Designation : |
Director |
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Name : |
Mr. Narendra Pal Singh |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Subhash C Setia |
|
Designation : |
Secretary |
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|
|
Name : |
Mr. Kameshwar Swarup |
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Designation : |
Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and Promoter group |
1503043120 |
88.164 |
|
Directors and their Relatives |
700313 |
0.041 |
|
Foreign Institutional Investors |
128841616 |
7.557 |
|
NRIs and Foreign Nationals |
1423988 |
0.083 |
|
Mutual Funds and UTI |
7276156 |
0.427 |
|
Bank, Fls and Insurance Companies |
3744704 |
0.220 |
|
Bodies Corporate |
9882408 |
0.580 |
|
Public |
49920375 |
2.928 |
|
Total |
1704832680 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Real Estate Developers |
GENERAL INFORMATION
|
Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Walker Chandiok and Company Chartered Accountant |
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Joint Venture : |
|
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|
|
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Subsidiaries : |
100
DLF Infocity Developers (Chennai) Limited 101
DLF Infocity Developers ( 102
DLF Infocity Developers (Gandhinagar) Limited 103
DLF Infocity Developers ( 104
DLF Infocity Developers ( 105
DLF Infocity Developers (Mumbai) Limited 106
DLF Infocity Developers (Noida) Limited 107
DLF Infocity Developers (Vadodara) Limited 108
DLF Infra Holdings Limited 109
DLF Inns Limited 110
DLF International Hospitality Corp. 111
DLF Jaipur Convention Center Private Limited 112
DLF Land Limited 113
DLF Limitless Developers Private Limited (till
March 17,2008) 114
DLF Luxury Hotels Limited 115
DLF Metro Limited 116
DLF New Gurgaon Offi ces Developers Private
Limited (Formerly
|
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Associates : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2497500000 |
Equity Share |
Rs.2/- Each |
Rs.4995.000 millions |
|
|
|
|
|
Issued,Subscribed & Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1704832680 |
Equity Share |
Rs.2/- Each |
Rs.3409.665
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2008 |
31.03.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
3409.595 |
3058.842 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
109281.868 |
3469.200 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
112691.463 |
6528.042 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
49459.144 |
62428.149 |
|
|
2] Unsecured Loans |
|
34404.931 |
5264.777 |
|
|
TOTAL BORROWING |
|
83864.075 |
67692.926 |
|
|
DEFERRED TAX LIABILITIES |
|
289.499 |
202.501 |
|
|
|
|
|
|
|
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TOTAL |
|
196845.037 |
74423.469 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
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|
|
FIXED ASSETS [Net Block] |
|
14743.720 |
3285.709 |
|
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Capital work-in-progress |
|
17817.872 |
6650.315 |
|
|
|
|
|
|
|
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INVESTMENT |
|
18398.300 |
7691.735 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
59281.326 |
42810.668 |
|
|
Sundry Debtors |
|
14632.763 |
1737.912 |
|
|
Cash & Bank Balances |
|
9948.237 |
1794.934 |
|
|
Other Current Assets |
|
65.632 |
49.255 |
|
|
Loans & Advances |
|
99487.854 |
47991.725 |
|
Total
Current Assets |
|
183415.812 |
94384.494 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
24979.028 |
30356.258 |
|
|
Provisions |
|
12551.639 |
7232.526 |
|
Total
Current Liabilities |
|
37530.667 |
37588.784 |
|
|
Net Current Assets |
|
145885.145 |
56795.710 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
196845.037 |
74423.469 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
|
|
|
|
|
|
|
Sales and Other Income |
|
60584.595 |
14294.854 |
|
|
Total Income |
|
60584.595 |
14294.854 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
31179.223 |
6203.312 |
|
|
Provision for Taxation |
|
5435.218 |
2145.588 |
|
|
Profit/(Loss) After Tax |
|
25744.005 |
4057.724 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
21473.436 |
2464.699 |
|
|
Establishment Expenses |
|
1441.757 |
448.205 |
|
|
Finance Charge |
|
4476.471 |
3562.510 |
|
|
Depreciation |
|
256.845 |
94.395 |
|
|
Other Expenditure |
|
1756.863 |
1521.733 |
|
Total Expenditure |
|
29405.372 |
8091.542 |
|
|
|
|
|
|
|
|
Earnings Per Share (Rs.) |
|
15.48 |
2.68 |
|
QUARTERLY /
RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
31.12.2008 |
31.03.2009 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4rdQuarter |
|
Sales Turnover |
12786.100 |
10749.500 |
4244.100 |
555.300 |
|
Other Income |
2152.500 |
2879.100 |
2589.800 |
2454.800 |
|
Total Income |
14938.600 |
13628.600 |
6833.900 |
3010.100 |
|
Total Expenditure |
4652.000 |
3749.100 |
2714.900 |
30.000 |
|
Operating Profit |
10286.600 |
9879.500 |
4119.000 |
2980.100 |
|
Interest |
1816.800 |
1872.600 |
2101.900 |
2257.400 |
|
Gross Profit |
8469.800 |
8006.900 |
2017.100 |
722.700 |
|
Depreciation |
285.000 |
290.100 |
287.100 |
261.400 |
|
Tax |
1112.000 |
1277.900 |
(107.700) |
74.100 |
|
Reported PAT |
7009.900 |
6390.100 |
1780.600 |
298.600 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2008 |
31.03.2007 |
|
PAT / Total Income |
(%) |
|
42.49 |
28.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
51.56 |
43.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
15.73 |
15.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.28 |
0.95 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.33 |
5.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
7.89 |
2.51 |
LOCAL AGENCY FURTHER INFORMATION
Financial Result
The gross operating profit on consolidated basis was Rs.99614.900
millions against Rs.29055.900 millions in the previous year (2006-07) an
increase of 243% and the net profit after tax for the year was Rs.78223.400
millions as against Rs.19350.100 millions for the previous year (2006-07),
representing an increase of about 3040%
Review of
Operations
Over the past few years, the real estate sector has
transformed from a nascent and unorganized sector to an emerging,
professionally organised industry, which is contributing significantly to the
GDP of the nation. Being the leader in the industry in terms of revenues,
earnings and market capitalization, your Company has been able to capitalize
the opportunities in an efficient manner. With its high quality land bank and
62 years track record of delivering quality real estate developments, your
Company continues to lead the real estate industry in
There has been a substantial increase in your Company's land resource from 574 msf
at the beginning of the year to 751 msf at the end of the year. 85% of the land
resource is located in the top seven cities of the country. The operations
extended to 32 cities across the country. The area of projects under
construction increased significantly from 44 msf to 62 msf, with work spanning
across 14 cities. Your Company's various JV's added much needed momentum to the
execution of the projects.
Your Company's development of MITES SEZs has acquired further momentum. 7 SEZs
have been notified and are under various stages of development. 4 SEZs are
awaiting final approval and another 4 have been applied for.
During the year , the Company bagged the prestigious 9,168 acres Bidadi
township project in association with Limitless Holdings, part of Dubai World
Group. Now rechristened as New Bangalore, it will be the single largest
township development by a private developer in the country.
During the year, several premium homes segment targeting mid-income earners
were launched. The encouraging response of 4,850 apartments being booked in the
first four months of 2008 is a vindication of your Company's strategy to drive
home sales of high quality products at reasonable prices.
During the year, the Company has also entered into a JV with Prudential
Financial Inc.,
The JV with Hilton Hotels recorded significant progress with acquisition of 16
sites during the year. All the projects in these sites are at various stages of
construction and development. Many more sites are expected to be acquired in
the current year.
The momentum in Hospitality business was further enhanced by your Company's
first acquisition in International arena - Aman Resorts - the most innovative
and marquee name in luxury hotel groups across the globe. This Company operates
18 boutique resorts across the world and has several new projects in key exotic
locations under development. Aman Lodhi, a super luxury hotel in
The performance of the Company on stand-alone basis for the year ended on
31st March, 2008 is as under:
Future Outlook:
With the economy growing at 7-7.5% p.a., the demand for premium real estate
continues to be buoyant. While we expect a cautious outlook for the year ahead,
our strong execution capabilities will help us in meeting the timelines and
delivering the targeted double-digit growth in all facets of our business.
Despite some macro economic concerns about slowdown in the sector, our long
term outlook remains unchanged. Accordingly, we will continue to invest in
creating distinctive products to satisfy the increasing demand arising from the
growth of the Indian economy across various sectors.
All the Business Units (BUs) - offices, retail and homes, have now reached the
steady platform for execution and delivery. While launching of new projects
across verticals would be part of the usual business, management focus would
increase on project execution and delivery within timelines.
Some of DLF's key projects have ambitious timelines,
including the prestigious Dwarka Convention and Exhibition Centre at
The Company's JV, DLF Pramerica Life Insurance will commence its operations
during the year 2008-09.
With multiple opportunities for growth and diversification in the real
estate sector, DLF is well poised to achieve its growth plans across all lines
of business.
Dividend:
The Company paid an interim dividend of 100% in October, 2007. The Board of
Directors has recommended a final Dividend of 100%, making the aggregate
dividend at Rs.4 per share (200%) of a par value of Rs.2 each. (2006-07 - total
dividend was Rs.2 per share).
Awards and Accreditions
The Directors report that the Company has excelled in various dimension
of Corporate achievement, recognized through peer and public evaluation. The
details of awards and recognitions to the Company are as under:
‘Honorary
Degree of Doctorate in Science’
by the prestigious G.B. Pant University of
Agriculture and Technology, Pant Nagar in
recognition of his ‘invaluable contribution
in
the field of Business Administration’;
Shree’ by Government of
Business Man of
the Year’;
by CNBC Awaz-Crisil Real Estate Awards
2007;
Indian Property Awards- 2007; and
Developer (Residential)- 2007.
Management
Discussion and Analysis Report
I. BUSINESS HIGHLIGHTS
Superior Business Model
Low risk business model with independent
verticals delivering growth
DLF has a low risk, robust model with a mix of development
and rental earnings. Multi business, multi-segment within business and operations
across geographies mitigates risk due to cycles in the business. DLF’s
successful business model is based on independent business verticals – homes,
offices, retail and hotels – organized and operating on an independent basis.
The organisation structure flows down to the regional/local levels as well.
Playing the role of an aggregator at the corporate level, DLF aligns the
interests of all its business units, gearing each of them to contribute to the
growth of the Company. Inter-business traction,
whether project-linked or performance-linked, drives performance of each
business vertical, as well as of the Company as a whole.
Scaling Up Project Execution
Enablers in place to deliver sustainable
Growth
Land Resource
DLF has high
quality land resource, concentrated in top Indian cities as it believes that
economic activity in these cities would result in a better absorption potential
for its real estate development. Top seven Indian cities -
with others. The land resource as represented here constitutes only of
DLF’s share in respect of land resource which is jointly owned.
Best-in-class alliances
DLF has built world-class organization to deliver across the value chain – from design and engineering to construction to operations. DLF has set up an organisation to manage projects across verticals to ensure delivery par excellence. This helps strategic business units (SBUs) to exclusively focus on commercial aspects of the business, leaving project execution to a specially dedicated team. This endeavour has helped DLF in improving the quality of its real estate development and reducing the time to market, thereby improving the economic viability of the projects.
DLF has leveraged best-in-class alliances to strengthen its current businesses and develop new opportunities. These include JVs with Hilton for hotels, Laing O’Rourke for construction, WSP Group for design and engineering, Nakheel for mega-township developments, Prudential Insurance of America for life insurance products, Prudential Financial Inc. for Asset Management and MoU with Fraport for airport development, among others.
The area of projects under construction by DLF grew from 44 msf last
year to 62 msf at the end of fiscal 08.
Robust Financial Performance
Strengthening leadership position
Revenue and Profitability
Growth
During the financial year 2007-08, DLF validated its
business strategy of leading a multi-business, multi-segment across
geographies, with mitigating cycles in the business, by exhibiting enhanced
financial performance. DLF recorded consolidated 262% from Rs.40.533 millions
in 2006-07. EBIDTA improved to Rs.99.615 millions, posting a 243% increase over
Rs.29.056 millions recorded in 2006- 07. Net profit surged 304% to Rs.78.120
millions from Rs.19.336 millions in the previous fiscal. This has helped DLF in
further consolidating its leadership position as
Strong Balance Sheet
With a net worth of Rs.196.883 millions, net gearing of 51% and cash reserves of Rs.21.421 millions, DLF has a strong balance sheet to withstand any downtimes, as well as leverage opportunities in the market. DLF has been assigned AA rating, denoting high safety, by CRISIL. DLF has a philosophy to maintain the gearing at 51%, to ensure that balance sheet can easily tide over any down cycles in the business. The management expects that DLF would be free cash positive by FY 2011. To ensure adequate replenishment of its land resources, DLF has carved out a land replenishment fund, wherein 15% of the sale value of its real estate development is credited.
Fixed Assets
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.19 |
|
|
1 |
Rs.74.93 |
|
Euro |
1 |
Rs.65.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.