About Parsvnath Developers Limited
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Parsvnath Developers Limited Annual Report 2015-16 ACROSS THE PAGES Execution: Building Block of Delivering Dreams 01 From The Chairman’s Desk 04 About Parsvnath Developers Limited 06 Building Blocks of Sustainable Growth 08 Corporate Social Responsibility 12 Building Blocks of Trust and Recognition 13 Corporate Information 14 Board’s Report 15 Management Discussion & Analysis 45 Corporate Governance Report 58 Independent Auditors’ Report on Standalone Financial Statements 75 EXECUTION: Standalone Financial Statements 80 BUILDING BLOCK OF DELIVERING DREAMS Independent Auditors’ Report on Consolidated Financial Statements 126 Execution of projects is truly a building block in realising the dreams of our esteemed customers, Consolidated Financial Statements 130 ensuring their trust and sustaining our growth. We at Parsvnath Developers Limited couldn’t agree more with this thought. This commitment to timely execution of projects has ensured our successful journey of 26 years, delivering real estate projects under various business verticals and creating a presence, which spreads across 41 cities and 15 states. 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 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. ACROSS THE PAGES Execution: Building Block of Delivering Dreams 01 From The Chairman’s Desk 04 About Parsvnath Developers Limited 06 Building Blocks of Sustainable Growth 08 Corporate Social Responsibility 12 Building Blocks of Trust and Recognition 13 Corporate Information 14 Board’s Report 15 Management Discussion & Analysis 45 Corporate Governance Report 58 Independent Auditors’ Report on Standalone Financial Statements 75 EXECUTION: Standalone Financial Statements 80 BUILDING BLOCK OF DELIVERING DREAMS Independent Auditors’ Report on Consolidated Financial Statements 126 Execution of projects is truly a building block in realising the dreams of our esteemed customers, Consolidated Financial Statements 130 ensuring their trust and sustaining our growth. We at Parsvnath Developers Limited couldn’t agree more with this thought. This commitment to timely execution of projects has ensured our successful journey of 26 years, delivering real estate projects under various business verticals and creating a presence, which spreads across 41 cities and 15 states. 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 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. PARSVNATH DEVELOPERS LTD. | ANNUAL REPORT 2015-16 The Parsvnath 27 at 27 KG Marg, New Delhi (Perspective View - Tentative) EXECUTION: BUILDING BLOCK OF DELIVERING DREAMS. ‘Execution as a practice’, has been a mainstay of the Company, but in current year 'Focus on Execution' has been the main strategy. We believe that a major reason for the condition in which the real estate sector finds itself, is a general delay in the execution of projects across location and industry. This has resulted in a lack of trust among the customers and the stakeholders connected with the real estate sector. We believe that timely execution of projects is a platform from which the real estate sector can win back the lost trust and confidence of the customers and stakeholders. We believe that focus on execution is vital, particularly in view of the passing of the Real Estate (Regulation and Development) Act, 2016 (RERA) by the Government which brings many important changes in the functioning of the real estate sector. The RERA also lays immense emphasis on the duty of the real estate sector in terms of ensuring timely execution of their projects to protect the interest of the customers. Parsvnath Developers Limited (PDL / the Company) extensively focused on execution this year. Our relentless emphasis on execution is progressively reflected in the numbers too. During FY2014-15 we had offered 1029 housing units. However, during FY2015-16 we offered 1190 units, with a target to offer double of these units in FY2016-17. We are committed to timely execution and delivery of our 44 projects, under construction, covering 49,60,981 sq. mt. (53.40 mn.sq.ft.). The Company, in near future, is positioned well to tap the emerging opportunities and has great advantage of launching new projects on the strategic and premium land bank of about 94,38,870 sq. mt. (101.60 mn.sq.ft.). We at PDL, through our vision and total commitment to timely execution of projects, intend to ensure total customer trust and satisfaction. We believe that based on our customers' trust, we are set on the path of progress in the future as well. We firmly believe that execution is the building block of delivering dreams. 02 03 PARSVNATH DEVELOPERS LTD. | ANNUAL REPORT 2015-16 The Parsvnath 27 at 27 KG Marg, New Delhi (Perspective View - Tentative) EXECUTION: BUILDING BLOCK OF DELIVERING DREAMS. ‘Execution as a practice’, has been a mainstay of the Company, but in current year 'Focus on Execution' has been the main strategy. We believe that a major reason for the condition in which the real estate sector finds itself, is a general delay in the execution of projects across location and industry. This has resulted in a lack of trust among the customers and the stakeholders connected with the real estate sector. We believe that timely execution of projects is a platform from which the real estate sector can win back the lost trust and confidence of the customers and stakeholders. We believe that focus on execution is vital, particularly in view of the passing of the Real Estate (Regulation and Development) Act, 2016 (RERA) by the Government which brings many important changes in the functioning of the real estate sector. The RERA also lays immense emphasis on the duty of the real estate sector in terms of ensuring timely execution of their projects to protect the interest of the customers. Parsvnath Developers Limited (PDL / the Company) extensively focused on execution this year. Our relentless emphasis on execution is progressively reflected in the numbers too. During FY2014-15 we had offered 1029 housing units. However, during FY2015-16 we offered 1190 units, with a target to offer double of these units in FY2016-17. We are committed to timely execution and delivery of our 44 projects, under construction, covering 49,60,981 sq. mt. (53.40 mn.sq.ft.). The Company, in near future, is positioned well to tap the emerging opportunities and has great advantage of launching new projects on the strategic and premium land bank of about 94,38,870 sq. mt. (101.60 mn.sq.ft.). We at PDL, through our vision and total commitment to timely execution of projects, intend to ensure total customer trust and satisfaction. We believe that based on our customers' trust, we are set on the path of progress in the future as well. We firmly believe that execution is the building block of delivering dreams. 02 03 PARSVNATH DEVELOPERS LTD. | ANNUAL REPORT 2015-16 Growth strategy The real estate sector has been facing difficult times since the past few years because of issues ranging from delay in completion of projects, fund crunch, declining sales and high inventory pile up, drop in new project launches and resultant delay in handing over possession. The factors put together led to a lack of trust and confidence in customers towards real estate. The biggest challenge of the industry is to regain the lost faith and win the trust of the consumers. Keeping this in mind, we at Parsvnath have identified "execution of the projects" as the strategy for our growth. Our strategy for growth is to focus on timely execution of on-going projects and handing over possession to our esteemed customers in order to win back their trust and lay down the foundation of a more mature market. During the year 2015-16 we had set a target of offering the possession of 1200 units and we have successfully achieved the same. Looking forward, we are confident about our future growth and we will focus strongly on our execution capability to deliver more than double of what we have delivered in FY 2015-16. With faster delivery of projects, we are optimistic that our reliance on debt will reduce which in turn will help us to improve our liquidity to develop and launch more new projects.