a. Right of use assets

Right of use assets is lease liability measured at cost, which comprises initial amount of lease liability adjusted for lease payments made at or before the commencement date of 01 April, 2019 (see note 2.4)

b. During the year ended 31 March, 2022, Amortisation of Right of use assets under development is capitalised in 'Intangible assets under development'/Asset held for sale [refer note 52(b)].

i) Fair Value of the Company's investment properties

The investment properties consist of 67 No's commercial properties in India.

As at 31 March, 2023 and 31 March, 2022 the fair values of the properties are Rs. 3,371.70 lakhs and Rs. 3,411.25 lakhs respectively as estimated by the Management based on sale comparable method which compares the price or price per unit of similar properties being sold in the market place and adjusted to discounts as estimted by the Management.

the Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

iii) Investment Properties not held in the name of the Company :

the tittle deeds of all immovable properties of Land and buildings are held in the name of the company as at 31 March, 2023 and 31 March, 2022, except as stated below:

Significant intangible assets

a. Assets on Build-operate-transfer (BOT) basis

Intangible assets comprises buildings constructed on 'Build-operate-Transfer' (BOT) basis. The company has unconditional right to use/lease such assets during the specified period. After expiry of specified period, these assets will get transferred to licensor without any consideration. Since, the Company has no ownership rights over these assets and has limited right of use during the specified period, these assets are classified as intangible assets.

b. Intangible assets under development

Intangible assets (BOT) which are not ready for intended use as on the date of Balance Sheet are disclosed as 'Intangible assets under development'

b. ^Projects temporarily suspended

The Company has entered into concession agreements with Delhi Metro Rail Corporation Limited (DMRC) for various projects on Build-Operate-Transfer (BOT) basis. In case of one project, viz. Welcome Mall, construction activities had to be suspended as the property development area allotted to the Company was infringing the proposed line of Metro Station to be constructed by DMRC under phase III. Consequently, the construction activities could not be restarted due to DMRC's inability to provide necessary clarifications regarding FAR availability on the property development area and final approved revised layout plan from MCD. the Company has invoked the Arbitration clause under the concession agreement. Hence, construction activities of this project classified as 'Intangible assets under development' have been temporarily suspended. As a result, the estimated expenses to be incurred on the project amounting to Rs. 6,821.88 lakhs (previous year Rs. 6822.03 lakhs) shall also remain suspended till conclusion of arbitration proceedings. Therefore, the disclosure in the required format as per Schedule III is not ascertainable and is not disclosed.

* Investment in these shares are subject to non disposal undertakings furnished in favour of Investors for investments made in the respective companies.

# Parsvnath Rail Land project Private limited is considered as a Subsidiary on the basis of voting Power in the said Company.

% Vardaan Buildtech Private limited is a subsidiary as per Ind AS 110.

@ 49% of the Equity Shares are pledged with non-banking financial companies / debenture trustees towards securities against

loans taken / debentures issued.

€ 71,916 shares out of 1,20,000 are pledged as a security for Term loan from NBFC.

$ the securities have been pledged with non-banking financial companies / debenture trustees towards securities against loans taken / debentures issued.

# Parsvnath Promoters And Developers Private Limited is a subsidiary in terms of Section 2(87)(ii) of the Companies Act, 2013, since 51% of the equity capital is held by Parsvnath Developers limited together with Parsvnath Rail land Project Private limited, a subsidiary of Parsvnath Developers limited, which is holding 46.14% shares w.e.f. 03 March, 2020.

* Parsvnath Rail land Project Private limited is considered as a subsidiary on the basis of voting power in the said company.

% Vardaan Buildtech Private limited is a subsidiary as per Ind AS 110.

2 On a prudence basis the company has not recognised deferred tax assets amounting to Rs. 7,378.65 lakhs (31 March, 2022 -Rs. 5,190.89 lakhs) on current year losses and other items.

3 The Company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed flat / plot sale agreements with the customers against which the Company has also received advances, as disclosed in Note 25 of the financial statements. Revenue in respect of such sale agreements will get recognised in future years on completion of projects. Based on these sale agreements, the Company has certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realise such assets in the near future. Accordingly, the Company has created deferred tax assets on its carried forward unabsorbed depreciation and business losses. the company is also planning to sell some of its identified assets.

4 the recognition of deferred tax assets on unabsorbed depreciation and tax losses is based on detailed budgets prepared by the Company based on different stages of completion of the projects.

1. The average credit period is 30 to 45 days. For payments, beyond credit period, interest is charged as per the terms of Agreement with Buyers.

2. the real estate invoicing are made on the basis of cash down payment or construction linked payment plans. In case of construction linked payment plans, invoice is raised on the customer in accordance with milestones achieved as per the flat buyer agreement. the final possession of the property is offered to the customer subject to payment of full value of consideration. the possession of the property remains with the Company till full payment is realised. Accordingly, the Company does not expect any credit losses. Further, in case of trade receivables related to leased premises, it is secured against securtiy deposit received from tenants. therefore, expected credit loss was not considered in such cases.

3. trade receivables have been pledged as security for borrowings by the company (refer note 21 & 26)

4. Refer note 67 for amounts due from related parties.

5. Ageing of trade Receivables:

(i) Rights, preferences and restrictions attached to equity shares:

The Company has issued only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share held. the dividend, if any, proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the

Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. Securities premium - The amount received in excess of the face value of the equity shares issued by the Company is recognised in securities premium.

c. Debenture redemption reserve - the company has recognised debenture redemption reserve from its retained earnings. the amount of reserve is more than 25% of the value of outstanding redeemable debentures.

d. Retained earnings - Retained earnings are profits/(losses) of the Company earned till date less transferred to general reserve and debenture redemption reserve.

* It is not possible for the Company to estimate cash outflows. The extent to which an outflow of funds will be required is dependent on the pending resolution of the respective proceedings/legal cases and it is determinable on receipt of judgment/ decision pending with various forums/authorities/court.

39 the Company did not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

40 there were no amounts which were required to be transferred to the Investor Education and Protection Fund, during the year.

41 a. the Company has entered into concession agreements with Delhi Metro Rail Corporation Limited (DMRC) for various projects

on Build-Operate-transfer (BOT) basis. In case of tis Hazari project, the Company was unable to commercially utilise the properties due to lack of clarity between DMRC and Municipal Corporation of Delhi (MCD) with respect to authority for sanction of building plans. In view of the delay, the Company has sought concessions from DMRC and has invoked the Arbitration clause under the concession agreement in case of this project. the Arbitral tribunal has announced its award in

favour of DMRC. The Company has now filed an appeal in the Delhi High Court against this award and the proceedings are going on. Arguments have been heard at length and further parties are directed to file written submission. the matter is now listed again for arguments on 02 November, 2023. Pending final decision, the company has not provided for license fees amounting to Rs. 189.79 lakhs (previous year Rs. 189.79 lakhs) and has shown the same under contingent liabilities.

b. In case of another project, viz. Welcome Mall, construction activities had to be suspended as the property development area allotted to the Company was infringing the proposed line of Metro Station to be constructed by DMRC under phase III. Consequently, the construction activities could not be restarted due to DMRC's inability to provide necessary clarifications regarding FAR availability on the property development area and final approved revised layout plan from MCD. the Company has invoked the Arbitration clause under the concession agreement. DMRC vide letter dated 04.03.2022 issued a termination notice thereby terminating the Concession agreement with effect from 12.03.2022. the tribunal vide order dated 13.04.2022 directed DMRC to maintain status quo till conclusion of arbitration proceedings. Arguments have been concluded and the matter is reserved for award.

Pending arbitration award / necessary clarifications and documents, the Company has not provided for recurring license fees amounting to Rs. 5,036.31 lakhs (previous year Rs. 4,341.40 lakhs) and has shown the same under contingent liabilities. However, the Company has continued to carry forward the advances / costs incurred on these projects after charging for amortisation / depreciation on periodical basis. On the basis of legal opinion received, the management is of the view that the Company has favourable case and has considered the Intangible asset under developement of Rs. 14,032.51 lakhs as on 31 March, 2023 (previous year Rs. 13,851.02 lakhs) as fully realisable from future operations.

c. In case of another project, viz. Seelampur plot, the sanction of building plans by MCD got delayed for want of No Objection Certificate (NOC) from Government agencies. Accordingly, DMRC was approached to waive the recurring payment liability for the disputed period. Since an amicable resolution could not be reached out between the Company and DMRC, the Company invoked "Arbitration Clause" under the concession agreement for settlement of the matter .the Arbitral tribunal has announced its award in favour of DMRC and directed the company to make payment of recurring fee amounting to Rs. 861 lakhs alongwith interest of Rs. 656 lakhs upto 27 January, 2017. the Arbitral tribunal has also granted pendent-lite and future interest at the rate of 8.30% p.a. till 30 days from the date of award i.e. 22 March, 2021 and at 10.30% p.a. thereafter. the Company has filed an appeal in the Delhi High Court against this award and the proceedings are going on. Further, DMRC has filed a Petiton before High Court under Section 36 of the Arbitration and Conciliation Act, seeking enforcement of the Award. On 04.03.2022 the Court directed PDL to deposit the awarded amount. PDL has challenged the imlpugned order dated 04.03.2022 passed by the High Court before the Supreme Court. the Supreme Court dismissed the SLP. the Objections are pending consideration before the High Court of Delhi wherein Company has raised issues with respect to independency of the Arbitral tribunal. On the basis of legal advice received, the management is of the opinion that the company has a favourable case before Delhi High Court and has considered the Asstes held for sale of Rs. 2,499.07 lakhs as on 31 March, 2023 (previous year Rs. 2,499.07 lakhs) as fully recoverable.

d. the Company is developing a project situated at Azadpur Metro Station as per the terms of concession agreement with DMRC. Due to delays in payments to DMRC, DMRC has issued a letted dated 28 February, 2022 for termination of contract with the Company. the Company has invoked clause 12.2.2 of the concession agreement for conveying amicable meeting with DMRC for amicable settlement of the dispute, however the same was denied by DMRC. Subsequently, a notice dated 30 June, 2023 invoking arbitration in terms of Clause 12.3 of the Concession Agreement has been sent to DMRC. In the opinion of the management, the amount of Rs. 22,156.22 lakhs appearing as Assets held for sale (previous year Rs. 22,156.22 lakhs) is fully realisable from future operations and the matter will be decided in favour of the company as the company has a strong case against DMRC due to various defaults on the part of DMRC.

42 The Company had entered into an 'Assignment of Development Rights Agreement' dated 28 December, 2010 with Parsvnath Buildwell Private Limited (subsidiary company) and Collaborators (land owners) in terms of which the Company had assigned Development Rights of one of its project to subsidiary company on terms and conditions contained therein.

the project has been delayed owing to hindrances created by the collaborators (land owners) leading to non-receipt of approvals for the revised building plans. As a result, certain disputes arose with the collaborators (land owers) who sought cancellation of the Development Agreement and other related agreements and have taken legal steps in this regard. Subsidary company invoked the arbitration clause and as a consequence of the land owners not appointing their nominee Arbitrator, subsidary company approached the High Court at Allahabad for appointment of Arbitrator under section 11 of the Arbitration and Conciliation Act. During the pendency of section 11 petition at Allahabad High Court, the Hon'ble Supreme Court, while hearing a Civil Appeal filed by subsidary company and the company in another matter, stayed the appointment of arbitrator by the Allahabad High Court vide its Order dated 9 April, 2018 and further directed the land-owners to co-operate with subsidary company for getting the building plans approved by the Ghaziabad Development Authority. Subsequently, vide Order dated 29 November, 2019, the Hon'ble Supreme Court of India appointed a sole arbitrator to adjudicate the disputes between subsidary company and the collaborators (land owners). the Ld. Sole Arbitrator pronounced the Arbitral Award on 18 April, 2023 and has partly allowed the claims of subsidary company and also counter-claims of the land owners. the Ld. Sole Arbitrator also restored the physical possession of the Project land in favour of the land owners subject to payment of all amounts awarded under the Award to the subsidary company.

Subsidary company has filed the appeal with Commercial Court challenging the Award by filing objections under Section 34 of the Arbitration and Conciliation Act, 1996 on 18 August, 2023. Based on legal opinion obtained, the management is of the view that termination of the agreement will be set aside and project will be restated. Accordingly, the investment of Rs. 21,076.46 lakhs (previous year Rs. 21,076.46 lakhs) and loans & advances of Rs. 2,631.93 lakhs (previous year Rs. 1,783.98 lakhs) given to subsidary company is considered as good and recoverable.

43 the Company had entered into a Memorandum of understanding (MOu) dated 22 December, 2010 with a wholly owned subsidiary company, Parsvnath Realcon Private limited (subsidiary company) [earlier, a wholly owned subsidiary of its subsidiary Parsvnath Buildwell Private limited (another subsidiary company)] in terms of which the Company had assigned development rights of one of its project to the subsidiary company. the Company has also entered into 'Project Management Agreement' with subsidiary company and another subsidiary company for overall management and coordination of project development. Further, the Company has given the following undertakings to subsidiary company:

a. It shall complete the project within the completion schedule and construction cost as set out in the Agreement.

b. the project revenues from the sold area shall be at least the amount set out in the Agreement.

c In the event of construction cost overrun or revenue shortfall, the Company shall contribute such excess/shortfall amount against allotment of equity shares or other instruments at such premium as may be mutually determined by the parties.

the progress of the project has been hampered due to delay in receipt of sanction for revised building plans from South Delhi Municipal Corporation (SDMC) which was ultimately received in November, 2019.

Since the delay in completion of the project has been caused mainly due to certain acts of commission / omission by DMRC, the Company has invoked arbitration proceedings against DMRC and the Statement of Claim has been filed before the Arbitral tribunal. Arbitration proceedings are in progress. Pleadings are complete. Issues have been framed and Cross Examination has been concluded. the matter is now reserved for Award. Based on legal opinion obtained, the management is of the view that loan of Rs. 4,751.30 lakhs (previous year Rs. 4,917.65 lakhs) given to the subsidiary company, investment of Rs. 1.00 lakh (previous year

Rs. 1.00 lakh) in the subsidiary company and debtors of Rs. 300.00 lakhs (previous year Rs. 300.00 lakhs) are good and recoverable.

44 The Company had entered into a Development Agreement (DA) with Chandigarh Housing Board (CHB) for the development of an integrated project ('the project') at Chandigarh. Owing to various factors, disputes had arisen between the Company and CHB. Consequently, the Company had invoked the arbitration clause in the DA. Hon'ble Sole Arbitrator had pronounced the award in January, 2015 which was accepted by the Company and the CHB. Pursuant to the arbitration award, the project was discontinued and surrendered to CHB.

Subsequent to the acceptance and implementation of the award, it was noticed that due to a computational error in the award, the awarded amount was deficient by approximately Rs. 14,602.00 lakhs. Consequently, the Company made an application to the Hon'ble Sole Arbitrator for correction of the computational error. However, the Sole Arbitrator in his findings, while admitting the error, stated that after acceptance and implementation of the award by both the parties he had become non-functionary and therefore rejected the claims made by the Company. The Company has since filed its objections under section 34 of the Arbitration and Conciliation Act, 1996 read with section 151 of Code of Civil Procedure (CPC) before the Additional District Judge cum MACT, Chandigarh and the Court had issued notice to CHB for filing its reply and also called for the Arbitral Record from the Sole Arbitrator. The Additional District Judge, Chandigarh dismissed our application on 30 May, 2018. Aggrieved by the said order, the Company preferred an appeal under section 37 of the Arbitration and Conciliation Act, 1996 before the Hon'ble Punjab & Haryana High Court at Chandigarh and the proceedings are going on. The matter is now listed on 11 September, 2023 for final hearing. Pending decision of the Hon'ble Punjab & Haryana High Court, based on the legal advice received, the management is hopeful for recovery and the amount of Rs. 14,046.91 lakhs (net of tax deducted at source) has been shown as recoverable and included under 'other non-current financial assets' in note 11.

45 The Company had given an advance of Rs. 4,852.40 lakhs to one of its subsidiaries viz., Parsvnath Film City Limited (PFCL) for execution of Multimedia-cum-Film-City Project at Chandigarh. PFCL had deposited Rs. 4,775.00 lakhs with 'Chandigarh Administration' (CA) for acquiring development rights in respect of a plot of land admeasuring 30 acres from CA, under Development Agreement dated 2 March, 2007 for development of a "Multimedia-cum-Film City" Complex. Since CA could not handover the possession of the said land to PFCL, PFCL invoked the arbitration clause for seeking refund of the allotment money paid along with compensation, cost incurred and interest thereon.

The Arbitral Panel vide its order dated 10 March, 2012, had decided the matter in favour of PFCL and awarded refund of Rs. 4,919.00 lakhs towards the earnest money paid and other expenses incurred by PFCL along with interest @ 12 % per annum. Subsequently, the CA filed a petition before the Additional District Judge at Chandigarh for setting aside the award under section 34 of The Arbitration and Conciliation Act, 1996. The said petition was dismissed by the Hon'ble Additional District Judge (ADJ) vide his order dated 07 May, 2015.

An Execution Petition was filed before Additional District Judge (ADJ), Chandigarh by PFCL for the execution of the Arbitral Award. In the meantime, CA filed an appeal under section 37 of the Arbitration and Conciliation Act, 1996 before the Punjab and Haryana High Court at Chandigarh against the orders of the ADJ, Chandigarh pertaining to the Award of Arbitral Tribunal. The Hon'ble High Court allowed the appeal filed by CA and set aside the arbitral award vide its orders dated 17 March, 2016. The Hon'ble High Court also decided that CA is entitled to cumulatively claim/recover an amount of Rs. 8,746.60 lakhs from PFCL due to failure to develop the site and adhere to the terms of the agreements. PFCL has filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India which has since been admitted and notice has been issued to the Opposite Party. CA has also filed a Special Leave Petition before the Hon'ble Supreme Court for allowing the counter claims made by them and both the matters have been tagged together and the matters are listed before the Ld. Registrar for completion of pleadings. The next date of hearing is not fixed. As the Arbitral Award has been passed in favour of the Company which has already been upheld by Additional District Judge in Section 34 proceedings, the Company has good case before the Hon'ble Supreme Court of India and

there is likelihood that the Company will succeed before the Hon'ble Supreme Court of India. Based on legal advice received, the management is hopeful for recovery and the amount of Rs. 4,817.40 lakhs (previous year Rs. 4,851.83 lakhs) has been shown as recoverable and included under Non-current financial assets - loans' in note 10.

46 The Company was declared as the "Selected Bidder" for grant of lease for development of project on a plot of land at Sarai Rohilla, Kishanganj, Delhi by 'Rail Land Development Authority' (RLDA) vide its 'Letter of Acceptance' (LOA) dated 26 November, 2010. Parsvnath Promoters and Developers Private Limited (PPDPL) was identified as a Special Purpose Vehicle (SPV) company for implementation of the project. Subsequently, in terms of the requirements of RLDA, another Company in the name of Parsvnath Rail Land Project Private Limited (PRLPPL) was incorporated as the SPV to implement the project in place of PPDPL. RLDA accepted PRLPPL as the SPV vide its letter dated 3 August, 2012.

The Company entered into agreements with PRLPPL and overseas investors during 2012 and 2013 for financing the project.

Due to multifarious reasons, including delay in the statutory approvals, PRLPPL was not able to achieve 'Financial Closure' as per Article 7 of the Agreement which resulted in deemed termination of the agreement. The Company and PRLPPL invoked the arbitration clause in the development agreement for recovery of amount paid to RLDA together with interest thereon on deemed termination of the agreement and related matters and instituted three Arbitral proceedings namely Arbitration I, III & IV.

In case of Arbitration I (with respect to RLDA's liability for payment of interest to PRLPPL on installments received in excess of and prior to RLDA's entitlement), the Arbitral Tribunal by award dated 1 June, 2018 rejected the claim filed by the Company and PRLPPL. The Company and PRLPPL have filed an appeal before the Hon'ble Delhi High Court against the said award and the proceedings are going on.

The Company and PRLPPL have further initiated two other Arbitration proceedings (Arbitration III and IV) seeking inter-alia refund of the amounts retained as alleged losses by RLDA, losses incurred on account of RLDA's breach of its representations and warranties in respect of the land sought to be leased and delay in return of Performance Bank Guarantee. In Arbitration III, the arbitral award was pronounced on 21 April, 2023. In terms of the arbitral award, Rs. 14,619.11 lakhs along with interest @ 6.50 % from 15 March, 2017 till realization has been awarded in favour of the Claimants. Since there were certain discrepancies in the awarded amount, the claimants have preferred an application under Section 33 of the Arbitration and Conciliation Act, 1996 (as amended), seeking the requisite rectification thereof. The Arbitral Tribunal is yet to convene a hearing on the said application.

In Arbitration IV, the rejoinder arguments have been concluded, and the arbitral award was pronounced on 31 July, 2023. In terms of the arbitral award, a total of Rs. 330.14 lakhs has been awarded in favour of the claimants, which includes expenses for maintaining Performance Bank Guarantee of Rs. 172.27 lakhs plus Interest amount of Rs. 88.11 lakhs plus cost of arbitration amounting to Rs. 69.75 lakhs to the Claimant within a period of 6 weeks from the date of receipt of the Award. In the event the Responent fails to make such payment, interest at the rate of 9% per annum shall be levied from the date of this Award, until the date of full payment. Accordingly, the investment in PRLPPL of Rs. 1,145.00 lakhs (previous year 1,145.00 lakhs) and loan of Rs. 11.50 lakhs (previous year Rs. 2.03 lakhs) given to PRLPPL has been considered as good and recoverable.

47 the Company has incurred cash losses during the current and previous years. Due to recession in the past in real estate sector owing to slowdown in demand, the company faced lack of adequate sources of finance to fund execution and completion of its ongoing projects resulting in delayed realisation from its customers. The company is facing tight liquidity situation as a result of which there have been delays/defaults in payment to lenders, statutory liabilities, salaries to employees and other dues. However, considering substantial improvement in real estate sector recently, the Management is of the opinion that all such issues will be resolved in due course by required finance through alternate sources, including sale of non-core assets.

48 a. Trade receivables:

Due to recession in the past in the real estate sector, there have been delays in collections from customers. In view of industry practice and terms of agreement with customers, all these debts are considered good for recovery and hence no provision is considered necessary.

49 In respect of loan taken by the company from two lenders, the company along with its subsidiary companies have entered into settlement agreement with the lenders. As per the terms of settlement the Company has paid the amount/instalment to the lenders and interest/principal reversal of Rs. 25,811.07 lakhs has been credited as Exceptional items in the statement of Profit and Loss and Rs. 4,244.63 lakhs towards interest accrued has been adjusted with project's work in progress.

50 In respect of debentures refer note no. 21(i)(a) and borrowings refer note nos. 21(i)(a), (d), (f), note 26(II)(a)(i) along with Interest due of one of the lender group, had approved the settlement proposal, subject to payment of negotiated dues by the company till 31 March, 2023. the Company could make only partial payments to these negotiated dues. the company is in the process of renegotiating fresh settlement at Group level but formal approval is pending due to internal reassignment between the lenders on closing of Financial. the company is confident of achieving this settlement / renegotiation by payment of settled dues and Investment in Debenture/bonds refer Note. No. with Note 9(E)(I)(s).

Pending formalisation of such settlement/renegotiation, the company has recognised interest expense of Rs. 12,567.94 lakhs (including Rs. 5,585.75 lakhs for the year ended 31 March, 2023) and impairment loss of Rs. 21,300.00 lakhs in the value of investment in OCDs as exceptional items.

51 Greater noida Authority has cancelled the allotment of two housing plots situated at Greater noida on which the Company was constructing the Projects vide letter dated 23 november, 2022 on account of non-payment of premium and interest thereon amounting to Rs. 28,128 lakhs. the Company has filed two separate Revision Petitions under Section 41(3) of the uttar Pradesh urban Planning and Development Act, 1976 challenging the cancellation order dated 23 november, 2022 which were listed on 13 July, 2023 before Additional Chief Secretary, Infrastructure and Industrial Department for arguments and the same was reserved for Order. Further, vide Order dated 3 April, 2023, the High Court of Judicature at Allahabad, lucknow Bench has restrained the Authority from creating any third party rights in the said plots. In the opinion of management, the Company would be able to restore the allotment of plots from Greater noida Authority and the cancellation of the plots will not have an impact on the value

of inventory of Rs. 16,142.93 lakhs and Rs. 57,275.37 lakhs for the said plots respectively as on 31 March, 2023.

52 a. The Company has entered into Memorandum of understandings with its wholly owned subsidiaries for the purpose of transfer

of all rights under the concession agreement in respect of its four projects situated at Akshardham Metro Station, Azadpur Metro Station, Seelampur Metro station and Inderlok Metro Station, subject to approval from Delhi Metro Rail Corporation (DMRC). the Company had acquired these development rights under concession agreement with DMRC. Pending transfer, book value of assets/rights (which is higher than the realisable value) under these concession agreements have been classified as 'Assets held for sale'

b. In case of another project situated at Netaji Subhash Place (NSP) Metro Station, the Company has entered into a Limited Liability Partnership (LLP) agreement dated 18 November, 2021 with Unity Buildwell Limited to form a limited liability partnership called 'Unity Parsvnaths LLP' for the purpose of transfer of all rights of the NSP project acquired by the company under concession agreement with DMRC. Approval of DMRC for transfer of these rights to LLP has been obtained. Pursuant to the LLP Agreement as aforesaid and subsequent addendum agreement dated 31 March, 2022, the company has transferred the NSP project to LLP during the current financial year. The company has invested a sum of Rs. 41,983.15 lakhs towards capital contribution in the said LLP. As per the internal assessment by the management, no impairment in the value of investment has been considered necessary.

53 Parsvnath HB Projects Private Limited (PHBPPL), a subsidiary of the company, was allotted a land by Punjab Small Industrial & Exports Corporation Limited (PSIEC) on freehold basis. Due to non payment of instalment, PSIEC cancelled the allotment of land and the company filed the arbitration petition against cancellation of allotment. The arbitration proceedings are under progress. The matter was listed on 10 July, 2023 and next date of hearing is not fixed.

In the meantime, PSIEC initiated the proceedings under Public Properties (Eviction and Unauthorised occupants) Act. The order was passed by appropriate authority to hand over the possession of the site and accordingly PSIEC has taken symbolic possession of the land. The eviction petition was filed by PSIEC for determination of damages and the company is contesting the matter on the ground that eviction petition is not maintainable as the arbitration proceeding are under progress. Based on the opinion of the legal counsel, the management is of the view that as there are lapses on the part of PSIEC in providing facilities as promised at the time of bid, the company has good chances that the company will succeed in arbitration proceedings and cancellation of allotment will be set aside. Accordingly, on the basis of legal opinion, management is of the view that loan of Rs. 6,635.71 lakhs given to PHBPPL and investment of Rs. 2.50 lakhs in PHBPPL are good and recoverable.

54 The Company was awarded a works contract by Buddha Smriti Udhyaan Development Company Ltd. (BSUDCL) to develop a park, by the name of Buddha Smriti Udhyaan ("the Project") in Patna, Bihar on 27 June, 2008. Major portion of the project was completed in the year 2010 and the Park was inaugurated by the Dalai Lama in May, 2010. The project was thereafter taken over by the Bihar Urban Infrastructure Development Corporation Limited (BUIDCL) on 1 November, 2010 who stepped into the shoes of the BSUDCL. The remaining portion of the project was also completed and bills for the work done were raised on BUIDCL. BUIDCL instead of making payment wrongfully invoked the performance bank guarantee of Rs. 628.00 lakhs submitted by the company, alleging failure on the part of company to complete the project. Payments against bills were also stalled by BUIDCL. The company kept calling upon the BUIDCL for amicable resolution of the disputes. Thereafter, the company approached the Bihar Public Works Contract Disputes Arbitration Tribunal (Tribunal) with its claims against BUIDCL. Thereafter, the company and other side also filed their claims and counter claims before the Tribunal. The matter is disposed of by the Tribunal expressing its inability to entertain the Petition in view of the judgment passed by the Hon'ble Supreme Court in some other matter. However, at the request of counsel appearing for the company, the Tribunal granted liberty to approach the Hon'ble High Court under Section 11 of the Arbitration and Conciliation Act for appointment of an Arbitrator. As per the legal advise obtained by the company, the compay has approached BUIDCL for amicable settlement in the matter. BUIDCL has sought certain clarifications / details regarding delay

in completion, The company has provided detailed response to BUIDCL. Further, as per the legal advise, the company has good chances that the company will succeed in the Arbitral proceedings if the matter is not amicably settled. Based on the above, the management is hopeful for recovery and the amount of Rs. 1,231.82 lakhs has been shown as recoverable.

55 In the opinion of the Board of directors and management, current and non-current assets do have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and liabilities are stated at least at the value they are expected to be settled in the ordinary course of business though balance confirmation in certain cases are not available.

56 Corporate social responsibility

In terms of the provisions of section 135 of the Companies Act, 2013, the Company was not required to spend any amount on activities relating to Corporate Social Responsibilities (CSR) for the year 2022-23 due to continuing losses in preceding three years except an amount of Rs. 238.38 lakhs pertaining to financial year 2014-15 which is pending for compounding before Regional Director, Northern Region, Ministry of Corporate Affairs.

57 the Company is engaged in the business of real estate development, which has been classified as infrastructural facilities as per Schedule VI to the Companies Act, 2013. Accordingly, provisions of section 186 of the Companies Act are not applicable to the company and hence no disclosure under that section is required.

58 SEBI has issued a Show Cause notice dated 19 October, 2020 under various Sections of SEBI Act, 1992 and Securities Contracts (Regulations) Act, 1956, etc., to the Company and all the Directors and Chief Financial Officers (CFOs) who were holding office during the financial years 2009-10, 2010-11 and 2011-12 along with the Forensic Audit Report submitted by E&Y relating to certain transactions during the aforesaid financial years. the SCN was replied by the Company and also requested for a personal hearing before Whole time Member (WTM), SEBI. the SEBI informed the Company and the other noticee to appear before Shri Ananta Barua, Whole time Member (WTM), SEBI in online hearing. On the hearing scheduled on 25 October, 2021, where the senior counsel appeared on behalf of the Company concluded the arguments. the WTM also heard the other noticees. Some of the noticees sought further time to file their reply and requested for the same before the WTM. the WTM has allowed them to file their reply before the next date of hearing to be announced by SEBI. The SEBI had scheduled a hearing on December 31,2021 for filing of reply of other noticees. On the appointed date of hearing other noticees made their representation before WTM. The final order of SEBI was issued on 29 June, 2022 under provisions of the Securities and Exchange Board of India Act, 1992 and Securities Contracts (Regulations) Act, 1956 read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 as under: (i) The Company is restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of six months, from the date of coming into force of this order (ii) SEBI has imposed a penalty of Rs. 15 lakhs under Section 23H of SCRA, 1956, and (iii) The Proceedings against other noticees are disposed of without any directions/penalty.

The Company has already deposited the penalty amount of Rs. 15 lakhs under protest. The Company has filed an appeal against the above mentioned order of WTM. However, the period of restrained / freeze from accessing the securities market has already been completed.

iii. Refer note 67 for Corporate Gurantees given by the Company on behalf of Subsidiary / Associate companies as on 31 March, 2023 and 31 March, 2022. Closing balances of corporate gurantees given by the company on behalf of subsidiary / associate Companies were the maximum outstanding balances as on 31 March, 2023 and 31 March, 2022.

62 Segment information

The Company's business activities which are primarily real estate development and related activities falls within a single reporting segment as the management of the company views the entire business activities as real estate development. Accordingly, the reporting requirements for segment disclosure as prescribed by Ind AS 108 are not applicable.

63 Employee benefit plans

a Defined contribution plan

the Company makes Provident Fund contributions to Regional Provident Fund Commissioner (RPFC) and ESI contributions to Employees State Insurance Corporation (ESIC), which are defined contribution plans, for qualifying employees. the Company contributes a specified percentage of salary to fund the benefits. the contributions payable to these plans by the Company are at the rates specified in the rules of the scheme. the amount of contribution is as under:

the Company's contributions towards provident fund is charged to the Statement of Profit and Loss comprises

b Defined benefit plan

The Company offers its employees defined benefit plan in the form of a gratuity scheme. Benefits under gratuity scheme are based on year's of service and employee remuneration. the scheme provides for lump sum payment to vested employees at retirement, death while on employment, resignation or on termination of employment.

Amount is equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months. Vesting occurs upon completion of 5 years of continuous service.

the present value of the defined benefit obligation and the related current service cost were measured using the Projected unit Credit Method with actuarial valuations being carried out at each balance sheet date.

64 Operating lease arrangements - As lessee - Ind AS 116

The Company has entered into Concession Agreements with Delhi Metro Rail Corporation (DMRC) and has acquired the License Rights to develop properties and sub license it to the customers for a defined period of time. license fee payable to DMRC over the concession period has been recognised as 'Right of use assets' and 'lease liabilities' as at 1 April, 2019 as per Ind AS 116.

the company has applied Ind AS 116 using the modified retrospective approach.

a. The Company has adopted Ind AS 116 "Leases" effective 1 April, 2019 and applied the standard to its lease contracts existing as at 1 April, 2019 using the modified retrospective approach. the Company has recorded lease liability at the present value of the lease payments that are not paid as at 1 April, 2019, discounted using the company's incremental borrowing rate and recognised right of use assets of equal amounts.

b. the depreciation expense of Rs. 145.45 lakhs (Previous year Rs. 134.00 lakhs) on right-of-use assets is included under depreciation and amortisation expense in the statement of Profit and Loss and depreciation of Rs. Nil (Previous year Rs. Nil) has been capitalised in 'Intangible Assets under Development'.

c. The following is the summary of practical expedients elected on initial application:

(i) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

(ii) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application or low value leases.

(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

(iv) Applied the practical expedient to assessment of which transactions are leases. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

69 Financial Risk Management

The Company's business operations are exposed to various financial risks such as liquidity risk, market risks, credit risk, interest rate risk, funding risk etc. the Company's financial liabilities mainly includes borrowings taken for the purpose of financing company's operations. Financial assets mainly includes trade receivables, investment in subsidiaries/joint venture/associates and loans to its subsidiaries.

the Company has a system based approach to financial risk management. the Company has internally instituted an integrated financial risk management framework comprising identification of financial risks and creation of risk management structure. the financial risks are identified, measured and managed in accordance with the Company's policies on risk management. Key financial risks and mitigation plans are reviewed by the board of directors of the Company.

Liquidity Risk

Liquidity risk is the risk that the Company may face to meet its obligations for financial liabilities. the objective of liquidity risk management is that the Company has sufficient funds to meet its liabilities when due. the Company is under stressed conditions, which has resulted in delays in meeting its liabilities. the Company, regularly monitors the cash outflow projections and arrange funds to meet its liabilities.

Market risk

Market risk is the risk that future cash flows will fluctuate due to changes in market prices i.e. interest rate risk and price risk.

A. Interest rate risk

Interest rate risk is the risk that the future cash flows will fluctuate due to changes in market interest rates. The Company is mainly exposed to the interest rate risk due to its borrowings. the Company manages its interest rate risk by having balanced portfolio of fixed and variable rate borrowings. the Company does not enter into any interest rate swaps.

Interest rate sensitivity analysis

the exposure of the company's borrowing to interest rate change at the end of the reporting periods are as follows:

B. Price risk

the Company has very limited exposure to price sensitive securities, hence price risk is not material.

Credit Risk

Credit risk is the risk that customer or counter-party will not meet its obligation under the contract, leading to financial loss. the Company is exposed to credit risk for receivables from its real estate customers and refundable security deposits.

Customers credit risk is managed, generally by receipt of sale consideration before handing over of possession and/or transfer of legal ownership rights. the Company credit risk with respect to customers is diversified due to large number of real estate projects with different customers spread over different geographies.

Based on prior experience and an assessment of the trade receivables, the management believes that there is no credit risk and accordingly no provision is required.

70 Capital Management

For the purpose of capital management, capital includes equity capital, share premium and retained earnings. The Company maintains balance between debt and equity. the Company monitors its capital management by using a debt-equity ratio, which is total debt divided by total capital.

73 The company has not provided or paid any remuneration to directors during the year.

74 The Company has no outstanding derivative or foreign currency exposure as at the end of the current year and previous year.

75 the Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

Based on the preliminary assessment the entity believes the impact of the change will not be significant.

76 The Company do not have any benami property, where no proceedings have been initiated during the year or are pending against the Company as at 31 March, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

77 The company has not been declared willful defaulter by any bank and financial institution or any other lender.

78 Term Loans taken from bank and financial institutions or any other lender were applied for the purpose for which the loans were obtained.

79 The company has been sanctioned working capital limits from banks during the year on the basis of security of current assets. The quarterly statements filed by the company with such banks are in agreement with the books of accounts of the company.

80 The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) except advance to related parties as disclosed in note 67 for projects of the company, with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate Beneficiaries); or

b. provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries.

81 the Company has not received funds from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (ultimate Beneficiaries); or

b. provide any guarantee, security or the like to or on behalf of the ultimate Beneficiaries.

82 the Company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period. However, in certain cases, charge will be created after getting approval from DMRC which is a pre-requisite for the said charge creation. Further, in case of loan from Rare Asset Reconstruction Limited (RARE) and ECL Finance Limited (ECL), charge has been modified suo moto by Rare and ECL and the securities have been consolidated against all loans outstanding to these lenders which is not in terms of agreement.

83 the Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.

84 the Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

85 the Company has not traded or invested in Crypto currency or Virtual Currency during the year.

86 Events after the reporting period

there are no event observed after the reported period which have an impact on the Company's operation.

87 Figures for the previous year have been regrouped / rearranged wherever necessary to make them comparable with current year classifications.

88 Approval of the financial statements

the financial statements were approved for issue by Board of Directors on 31 August, 2023.