Parsvnath Developers : Annual Report 2022-2023

Inside this Report

Focusing on Strategics Growth	1
From the Chairman's desk	2
Corporate Information	4
Board's Report	8
Management Discussion and Analysis	46
Corporate Governance Report	59
Business Responsibility Report	87
Standalone Financial Statements	96
Consolidated Financial Statements	212

Building Trust and Reeliability

Successful, sustainable and rewarding relationships are built on trust and reliability and when relationships are formed for shaping dreams, the trust and reliability are crucial for success.

At Parsvnaths its' our privilege to be part of the journey to realize dreams of numerous people. We had the opportunity to co-realize the dreams of thousands of people to have their own home; their dream work place; and have a happening retail spaces for a splurging lifestyle.

Over the last thirty-nine years; across 80 projects; across 37cities in 13 states; on 74.75 Mn Sq. Ft. of developed area, Parsvnaths Group has truly built a legacy of unique suc- cess. A success built on the hard work, commitment, vision and perseverance. All this was not possible without the trust and reliability which Parsvnaths Group has earned of last thirty-nine years.

We are committed to build a better world and shape numerous dreams in Indian real estate with trust and reliability that we earned over the decades. Parsvnath's Group journey of trust and reliability will continue in future.

FY23 added a beautiful feather in our story of consistently building relationships on trust and reliability. During FY23, Parsvnaths was conferred with "India's Top Builders - North" award at the "Construction World Architect and Builders Awards (CWAB Awards 2023)". With this, the trust and reliability saga got further affirmed and reinforced our 'commitment of build a better world.'

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From The

Chairman's

Desk

We are glad to share that the broader industry also expressed this confidence in Parsvnath Developers, as evidenced from recognition we received as India's Top Builder - North at the Construction World Architect and Builders (CWAB) Awards 2023.

It was my honour to receive this prestigious award on 25th August 2023 on behalf of the Company.

Dear Shareholders,

In the coming year, your Company will celebrate 40 years of Parsvnath Group's successful existence as a real estate company of repute. Over the past four decades, we have been instrumental in supporting thousands of people find their dream homes and hundreds of businesses achieve success. We have built a reputation for providing excellent customer service and delivering on our promises. We are proud of what we have accomplished, but we are also aware of the challenges that we are facing. Despite these challenges, we are committed to continuing to provide

our customers with the best possible service and work with our stakeholders to generate good returns. Given the broader business environment has turned positive, we are confident that we can overcome these challenges and continue to be a successful real estate company for many years to come. We are glad to share that the broader industry also expressed this confidence in Parsvnath Developers, as evidenced from recognition we received as India's Top Builder - North at the Construction World Architect and Builders (CWAB) Awards 2023. It was my honour to receive this prestigious award on 25th August 2023 on behalf of the Company.

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The real estate market has been changing rapidly in recent years trying to overcome its struggles over more than a decade. The two years of COVID-19 pandemic were an even greater chal- lenge. But the sector can now see a bright light at the end of a very long tunnel after the recently concluded financial year. The sector has shown resilience and is now poised for continued growth. There are some concerns about the broader macroeconomic situation, such as the slump in global GDP growth. Howev- er, the Indian economy's growth engines remain resilient, despite continued supply chain disruptions and inflationary pressures. This creates a conducive environment for the real estate sector to continue its journey to recovery. The sector is expected to benefit from several factors, including the government's focus on infrastructure development, rising disposable incomes, and the increasing demand for housing. The sector is also becoming more organized and professional, which is helping to improve investor confidence.

The performance of the sector improved during FY22-23 across segments. Residential segment, which has been under a dark cloud for years, not only crossed the pre-pandemic levels, in terms of sales and new supply, the YOY growth during the year was unprecedented with 31% and 44% jump respectively, in the 8 major markets of the country. This helped the sector bring down its quarters to sell number to a record low of 7.2 at the end of the year. The trend towards premiumisation and the shift from rent to buy among the key demographic indicate that the future demand will remain robust. Similarly, in the office segment, the industry was able to close sale/leasing transactions for 30% more space during the year. The reversal of trend in favour of Work From Home during the pandemic is helping drive the demand as most corporates implement Return To Office policies. The Hybrid model is, however, here to stay as it offers the companies a tool to offer value to group of employees who need such support to balance their work and personal lives. This dynamic essentially favours more flexible and technologically integrated workplac- es. The return of shoppers to retail stores led to a major uptick in absorption of available Retail space offered by the Real Estate sector during the year. There were other emerging and growing segments such as Industrial, Logistics, Data Centres, Co-living, Hospitality, etc. that did well during the reported financial year and are likely to contribute significantly to the sector's growth in

the near future. Outlook for the Real Estate sector in the coming year, built on the performance in FY 2022-23, is buoyant and this momentum is likely to sustain in the near term.

In this context, the performance of your Company also saw a significant improvement considering the challenges we have had to face in the last few years. We booked a total of 11,37,893 square feet of transaction across Residential, Commercial and Integrated Township Projects as compared to 1,59,971 square feet in FY 2021-22, which translated to a YOY growth of 611%. During the difficult times as well, we have consistently prioritised delivery of under construction projects to avoid delays. We stayed true to our ethos and in our 80 projects we able to complete space around 75.74 million Sq. Ft.

From a financial reporting perspective, the year under review saw our consolidated revenues fall by 51.02% from ₹ 898.93 crores to

• 440.33 crores and consolidated net loss increased by 62.22% from 493.86 Crores to 801.28 Crores. This is going to be our continued focus, to reduce the debt and the cost of debt on our books to bring financial leverage to a sustainable level. To achieve this, we will continue to engage with our lenders and arrive at a mutually beneficial settlement. The changing prospects of the sector are likely to help us realise our objective of achieving fi- nancial viability soon as we plan to launch new commercial and residential projects to capitalise on the opportunities.

To conclude, with our resolute approach and support from stake- holders, the Company will realise its potential. On behalf of the Board, I would like to take this opportunity to express our gratitude to all our shareholders, financial institutions, bankers, inves- tors, esteemed customers and associates for their constant trust and continued support. I would also like to thank all our employ- ees, who have performed with great dedication and devotion for the organization to the best of their skills and capabilities. We hope to see continued support from you and wish you the best of the new financial year.

With warm regards,

Pradeep Kumar Jain

Founder Chairman

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