Parsvnath Developers : Annual Report 2023-2024

About this update from Parsvnath Developers Limited

Across the pages Crafting tomorrow with a pioneering vision 1 From the Chairman's desk 2 Corporate Information 4 Board's Report 6 Management Discussion and Analysis 42 Corporate Governance Report 57 Standalone Financial Statements 93 Consolidated Financial Statements 201         Caution Regarding Forward Looking Statements Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. We have tried wherever possible to identify such statements by using words such as 'anticipate', 'estimate', 'expect', 'project', 'intend', 'plan', 'believe' and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward- looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, our actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 40 Years, 4 Decades, FY24 brings us to one big milestone in our journey of commitment to build better. Crafting Tomorrow Year 1984 laid the foundation of our exciting real estate journey and today we stand firm as one of country's leading real estate developers. The past four decades completely transformed the economy, the industry and the country as a whole. How we consume, conduct, collaborate and endure has gone through a paradigm shift. While this transformation presented with numerous challenges, it also created a horizon of new opportunities and possibilities. At Parsvnaths, we aligned with our brand promise of building a better world for our customers and create value for all stakeholders. Today, our deliveries encompass a formidable 80 projects, delivered in 37 cities across 13 states. At Parsvnaths, our quest to explore newer avenues of growth and sustainability continues unabated. We have developed one of the most diversified product portfolio spanning across residential, townships, retail, offices, IT Parks and SEZs. At Parsvnaths, we believe in consistently building a better and stronger tomorrow for ourselves and all our stakeholders. On these lines, we added some of the industry first initiatives and benchmarks. From industry first ISO integration to first mall in tier II city of Moradabad to being first industry player to be listed on stock exchanges, we believe in creating a better, everyday. During FY24, our focus remained on financial strengthening of the Company. We reported consolidated revenues Rs, 493.72 Crores, up from Rs.478.71 Crores in FY23 while reducing our net loss by substantial 25.85% on year-on-year basis. Along with this positive financial development, growing Indian economy and real estate sector, we believe that opportunities to craft a brighter tomorrow will be immense with a pioneering vision. Dear Shareholders, It is my honour and pleasure to share will you as Parsvnath Group complete its 40 years of glorious journey. Parsvnaths' journey of four decades has been that of resilience, excellence and fulfilling our commitment to build a better world for our customers. This journey has seen us withstand, sustain and thrive all the developments across economy, industry and business environment. This period, we witnessed our country opening to globalization, IT revolution, FDI inflows, de-monetization, implementation of RERA act the impact of Covid-19 pandemic, among many others. Your Company's inherent strength has made us sail through all the challenges and tide over all the opportunities. While there were a number of challenges, paradigm shift changes and bottlenecks, your Company has been setting newer milestones and greater benchmarks for ourselves and in the industry. Your Company became first in the industry to integrate ISO9001, ISO14001 and OHSAS18001 standards in the year 2006. Your Company was also the leading one to bring a metro city like mall to a tier II city of Moradabad in 1997. Parsvnaths had joined hands with Delhi Metro to provide one of its kind mall properties at Delhi Metro's prominent metro stations premises. With the visionary and foresight to grow, protect and nurture stakeholder value, your Company has built a truly diversified business operations across residential, townships, retail, offices, IT Parks and SEZs. Parsnvaths was also among the pioneers of taking metro city quality and scale of real estate development to tier II & III cities and towns of India. Your Company was among the first few players to have successfully implemented the strategy of project level institutional investments in its projects. As of today, your Company has delivered 80 projects, this includes residential projects, townships, Commercial Space etc. and its present across 37 cities in 13 states of India. As per up to 2023 estimates, the global economy is projected to be stabilizing from calendar year 2024 onwards with a 3.2% growth rate for CY24 and CY25, post a drop in CY23 to 3.2% from 3.5% in CY22. As per these IMF estimates, the Emerging Markets & Developing Economies (EMDEs) are leading the global economy performance with India and China being at the front. On the other hand, the impressive rebound and growth story of Indian economy is in middle of almost all economic discussions. The impressive growth rate of Indian Economy for FY24, Indian real estate section is witnessing a major change and shift in its existing patterns. Some leading trends during FY24 have been heightened integration of new age technologies like AI, Big Data etc.; rise in demand of premium housing alongwith growth in affordable housing demand; increase in office space demand owing to coming back to 'work from office' approach; improving sentiments in view of increase in government spending on infrastructure development. In the perspective, your Company continued on its strategic agenda of improving financials, reducing debts burden, delivering on commitments, streamlining operations project portfolio, and monetizing assets to strengthen execution and financial position. In terms of financial performance your Company's consolidated revenues stood at Rs. 493.72 crores during FY24 as compared to Rs. 478.71 crores in FY23, a rise of 3.14%. Further, Your Company was able to reduce net loss after tax by 25.85% from Rs. 801.37 crores in FY23 to Rs. 594.38 crores in FY24. The earning per equity shares also improved as compare to previous year. As mentioned earlier, it will be our continued focus area to reduce the debt and the cost of debt. Our positive engagements with our lending partners will continue for amicable settlements of the debt facilities in our balance sheet. To achieve this, we will continue to engage with our lenders and arrive at a mutually beneficial settlement agreement. During FY24 we made total booking of 3.36 Lakhs Sq. Ft. across Residential, Commercial and Integrated Township Projects. In line with our philosophy and commitment, we stayed focus and committed to delivery of under construction projects. Looking ahead, with buoyancy in the economic growth of India coupled with some peaking performances of the real estate sector, we are optimistic of an opportune future of the Company. This, coupled with your Company's inherent strength and resilience, have likely to have a positive momentum for your Company. I would like to conclude with note of thanks to our stakeholders for their support and trust in our capabilities and strengths. On behalf of our Board, I would like to express my gratitude to our shareholders, financial institutions, bankers, investors, customers, associates and our employees for the unwavering support. We look forward to your blessings and togetherness in our journey, going forward as we continue to craft tomorrow with a pioneering vision. With warm regards Pradeep Kumar Jain Chairman Corporate Information BOARD OF DIRECTORS Executive Directors Shri Pradeep Kumar Jain Founder Chairman Shri Sanjeev Kumar Jain Managing Director & CEO Dr. Rajeev Jain Director (Marketing) Non-Executive Independent Directors Shri Ashok Kumar Ms. Deepa Gupta Shri Subhash Chander Setia Dr. Rakshita Shharma Shri Mahendra Nath Verma (Resigned w.e.f. November 20, 2023) COMPANY SECRETARY & COMPLIANCE OFFICER Shri Mandan Mishra AUDITORS M/s T R Chadha & Co. LLP Chartered Accountants, B-30, Connaught Place, Kuthiala Building, New Delhi-110001 REGISTRAR & SHARE TRANSFER AGENT Mas Services Limited T-34, 2 nd Floor, Okhla Industrial Area, Phase - II, New Delhi - 110 020 SHARES LISTED AT National Stock Exchange of India Limited (NSE) BSE Limited (BSE) REGISTERED AND CORPORATE OFFICE Parsvnath Tower, Near Shahdara Metro Station, Shahdara, Delhi - 110 032. CIN: L45201DL1990PLC040945 Phone No: 011-43010500,011-43050100 Fax No: 011-43050473 E-mail: [email protected] Website: www.parsvnath.com Statutory Report BOARD'S REPORT Dear Shareholders, Your Directors have pleasure in presenting the 33rd Annual Report, together with the Audited Financial Statements of the Company for the Financial Year (" FY ") ended March 31, 2024. 1. Financial HIGHLIGHTS (Rs. in Lakhs) Item Total Revenue Total Expenses Profit/ (loss) before Exceptional Items and tax Exceptional Items Less: Tax Expenses/(Benefit) Profit/ (loss) after tax Share of Profit/(loss) in Associates Profit/ (loss) for the year Other comprehensive income Total comprehensive income for the year Net profit/(loss) attributable to: Shareholders of the Company Non-controlling interest Paid up Equity Shares of the Company Other Equity STAND-ALONE FY 2023-24 FY 2022-23 31,889.24 31,939.18 52,826.21 60,587.08 (20,936.97)   (28,647.90)       (13,532.28)   (8,056.87) 7,771.82   8,486.00 (42,241.07)   (45,190.77) -   - (42,241.07)   (45,190.77) (23.21)   (9.41) (42,264.28)   (45,200.18)       (42,264.28) (45,200.18) -   - 21,759.06   21,759.06 (6,888.21) 35,376.07 CONSOLIDATED FY 2023-24 FY 2022-23 49,372.18 47,870.97 1,06,229.65 1,00,658.57 (56,857.47)   (52,787.60)       6,126.45   (12,437.87) 8,684.18   14,696.50 (59,415.20) (79,921.97) 1.33 (206.33) (59,413.87) (80,128.30) (24.69) (9.41) (59,438.56) (80,137.71) (59,349.87)   (80,027.51) (88.59)   (110.20) 21,759.06   21,759.06 (1,91,389.79) (1,32,042.48) 2. Review of Operations AND STATE OF COMPANY'S AFFAIRS During the year under review, on stand-alone basis , the Company has earned total revenue of Rs. 31,889.24 Lakhs as against Rs. 31,939.18 Lakhs in 2022-2023 and incurred a net loss of Rs. 42,241.07 Lakhs as against a net loss of Rs. 45,190.77 Lakhs incurred during 2022-2023. During the year under review, on consolidated basis , the Company has earned total revenue of Rs. 49,372.18 Lakhs as against Rs. 47,870.97 Lakhs in 2022-2023 and incurred a net loss of Rs. 59,413.87 Lakhs as against a net loss of Rs. 80,128.30 Lakhs incurred during 2022-2023. Earnings per Share (" EPS ") of the Company stood at Rs. (9.71) on stand-alone basis and Rs. (13.63) on consolidated basis in 2023-2024. There has been no change in the nature of business of your Company. A detailed businesswise review of the operations of the Company is included in the Management Discussion and Analysis section of this Annual Report. 3. MATERIAL CHANGES AND/OR COMMITMENTS AFFECTING THE FINANCIAL POSITION OF YOUR COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF SIGNING OF THIS REPORT No material changes and/or commitments affecting the financial position of your Company have occurred between the end of the Financial Year and the date of signing of this Report. 6 Annual Report 2023-24 SHARE CAPITAL The Authorized Share Capital of the Company is Rs. 350,00,00,000/- divided into 60,00,00,000 Equity Shares of Rs. 5/-eachand5,00,00,000PreferenceSharesofRs.10/-each.TheIssued,SubscribedandPaid-upShareCapitaloftheCompanyis Rs. 217,59,05,850/- divided into 43,51,81,170 Equity Shares of Rs. 5/- each. There was no change in the Share Capital of the Company during the year under review. Dividend In view of loss incurred during the FinancialYear ended March 31, 2024 coupled with constrained liquidity position of the Company, your Directors have considered it appropriate not to recommend any dividend. Pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (" SEBI Listing Regulations "), as amended, the Company has a 'Dividend Distribution Policy', which is available on the Company's website and can be accessed at the link: http://www. parsvnath.com/investors/iulr/dividend-distribution-policy/. TRANSFER TO RESERVES The Company has not transferred any amount to General Reserve during the Financial Year 2023-24. In terms of the provisions of Section 71 of the Companies Act, 2013 ("the Act" ) read with the Companies (Share Capital and Debentures) Rules, 2014, as amended, Debenture Redemption Reserve is not required to be created for Privately Placed Debentures. Debentures During the year under review, the Company has not redeemed any secured and unsecured Debentures. However, as per the agreement with debenture holder who is holding Series XIV NCDs, the debenture holders had permitted to extend the time for redemption till December 31, 2024. Fixed Deposits During the year under review, the Company has not accepted fixed deposits from the public. Listing at Stock Exchanges The Equity Shares of the Company are listed on National Stock Exchange of India Limited (" NSE ") and BSE Limited (" BSE" ). The Listing Fee for the Financial Year 2024-25 has been paid by the Company to both NSE and BSE. ANNUAL RETURN The Annual Return of the Company, in Form MGT-7, may be accessed on the Company's website at the link: https://www . parsvnath.com/investors/iulr/annual-returns/ as per the provisions of Section 92 of the Act. Subsidiaries, Joint Ventures and Associate Companies and CONSOLIDATED FINANCIAL STATEMENTS As on March 31, 2024, the Company had 20 Subsidiaries (including a foreign subsidiary), 2 Associate Companies and 1 Joint Venture, in terms of the provisions of the Act. The project-specific or sector-specific Subsidiary Companies ensure maximum utilization of available resources through focused attention on specific activities. Pursuant to the provisions of Section 129(3) of the Act, a statement containing brief financial details of the Company's Subsidiaries and Associate Companies for the Financial Year ended March 31, 2024 in Form AOC-1 is attached to the Financial Statements of the Company. The details as required under Rule 8 of the Companies (Accounts) Rules, 2014 regarding the performance and financial position of each of the Subsidiaries and Associate Companies forms part of the Consolidated Financial Statements of the Company for the Financial Year ended March 31, 2024. Pursuant to the provisions of Section 136 of the Act, the Financial Statements of the Company (including Consolidated Financial Statements) alongwith relevant documents and separate audited accounts in respect of its Subsidiary Companies are available on the website of the Company at www.parsvnath.com . The annual accounts of these Subsidiaries and the related detailed information will also be made available electronically to any shareholder of the Company / its Subsidiary Companies, on request. Annual Report 2023-24 7 Material Subsidiary Companies As at March 31, 2024, Two (2) subsidiary Companies have become 'Material Subsidiary Companies', as per the provisions of the SEBI Listing Regulations and in terms of the Company's Policy for determining Material Subsidiaries. The said Policy can be accessed on the Company's website at the link: http://www.parsvnath.com/investors/iulr/policy-for- determining-material-subsidiaries/. ConsolidatedFinancialStatements In accordance with the provisions of the Act, implementation requirements of Indian Accounting Standards (" Ind-AS ") Rules on accounting and disclosure requirements and the SEBI Listing Regulations, the Audited Consolidated Financial Statements are provided in the Annual Report of the Company for the Financial Year 2023-24. 12. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES website at the link :http://www.parsvnath.com/investors/ iulr/related-party-transaction-policy/. LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE ACT As your Company is engaged in the business of real estate development, included in the term 'Infrastructural projects/ facilities' under Schedule VI to the Act, the provisions of Section 186 of the Act related to loans made, guarantees given or securities provided are not applicable to the Company. However, the details of the same are provided in the Financial Statements. Management Discussion and Analysis REPORT The Management Discussion and Analysis Report for the year under review, forming part of the Board's Report, as stipulated under Regulation 34 (2)(e) read with Schedule V to the SEBI Listing Regulations, is attached. Corporate Governance During the Financial Year under review, all contracts / arrangements / transactions entered by the Company with related parties were in the ordinary course of business and on an arm's length basis, with specific approvals obtained, wherever necessary. Also, the Company has obtained prior omnibus approval for related party transactions occurred during the year for transactions which are of repetitive nature and / or entered in the ordinary course of business, at arm's length. Contract / Arrangement with Related Party under Section 188 of the Act During the year under review, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material under Section 188 of the Act. In view of the above, the requirement of giving particulars of contracts / arrangements made with related parties in Form AOC-2 is not applicable for the year under review. The related party transactions undertaken during the Financial Year 2023-24 are detailed in the Notes to Accounts of the Financial Statements. The Policy for determination of materiality of related party transactions and dealing with related party transactions, as approved by the Board, can be accessed on the Company's The Company is committed to benchmarking itself with best practices of Corporate Governance. It has put in place an effective Corporate Governance system which ensures that provisions of the Act and SEBI Listing Regulations are duly complied with, not only in letter but also in spirit. The Board has also evolved and adopted a Code of Conduct based on the principles of good Corporate Governance and best management practices. The said Code is available on the website of the Company at https://www.parsvnath.com/ investors/iulr/code-of-conduct-2/ . The Company is in compliance with the Corporate Governance guidelines as stipulated under SEBI Listing Regulations. A report on the matters mentioned in the said Regulations and the practices followed by the Company are detailed in Corporate Governance Report which forms part of this report. A certificate of a Practising Company Secretary confirming compliance with the conditions of Corporate Governance is attached thereto. 16. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT Your Company was not under the list of Top 1000 Companies (based on Market Capitalization) as on March 31, 2022, 31 st March 2023 and 31 st March 2024. Therefore, as per the amended Regulation 34(2)(f) of the SEBI Listing Regulations, 8 Annual Report 2023-24

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