Parsvnath Developers reports significant losses, auditor raises going concern doubts

Parsvnath Developers Limited reported a total income of INR 12,524.43 lakhs for the year ended March 31, 2025, with a net loss of INR 13,900.71 lakhs, resulting in diluted earnings per share of INR -3.20. For the quarter, the company recorded a total income of INR 5,319.24 lakhs and a net loss of INR 7,035.76 lakhs, with diluted earnings per share of INR -1.62.

The audit report includes qualified opinions, highlighting uncertainties in the recoverability of intangible assets under development related to projects with Delhi Metro Rail Corporation (DMRC) and Punjab Small Industrial & Exports Corporation Limited (PSIEC), amounting to INR 8097.89 lakhs and INR 6636.45 lakhs respectively. Additionally, long-outstanding advances to vendors and trade receivables totaling INR 9,196.53 lakhs lacked sufficient audit evidence for recoverability. Auditors also noted a material uncertainty regarding the company's ability to continue as a going concern due to recurring cash losses and tight liquidity.

The board of directors announced the appointment of M/s VKC & Associates as secretarial auditor for five consecutive years from FY 2025-26 to FY 2029-30, effective August 31, 2025, subject to shareholder approval. The board did not recommend any dividend for the financial year 2024-25.