Puravankara Limited — Regulatory Filings 2020

Jun 11, 2020

June 11, 2020

To
The General Manager – DCS,Listing Operations-Corporate Services Dept.BSE Ltd.st1Floor,NewTradingRing,RotundaBuilding, 'P J. Towers,Dalal Street, Fort,Mumbai 400 001.	The Manager,Listing Department,National Stock Exchange of India Ltd.,Exchange Plaza, 5th Floor, Plot No. C/1, GBlock, Bandra-Kurla Complex, Bandra (E),Mumbai
corp.relations@bseindia.comStock Code: 532891	cc_nse@nse.co.inStock Code: PURVA

Dear Sir/ Madam,

Sub: Disclosure under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 – SEBI circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/84 dt 20.05.2020

We submit the following details of Impact of the CoVID-19 pandemic on the business as required under the aforementioned circular:

In the immediate short term, CoVID-19 has impacted the liquidity because of the disruption caused by the pandemic on the activities at the site, as well as the delayed collections from both homebuyers as well as mortgage lenders, where operations were affected. At the same time, we have seen a partial recovery in May 2020, once the sites started functioning and the offices re-opened. It will take a few months for things to return to normal. That said, as such we do not see a long term structural impact on the business.

• Ability to maintain operations including the factories/ units/ office spaces functioning and closed down:

At this point in time, barring Pune and Chennai, all our sites already have some level of activity, depending on the stage of the project and the availability of labour. All our offices are working, whether remotely in Maharashtra and Tamil Nadu, or with the permitted level of staffing and following all safety norms as in our other offices across various other metros in India. It is our endeavour to get back to normal pre- CoVID operations at the earliest.

• Schedule, if any, for restarting the operations: Activities in Maharashtra and Tamil Nadu are expected to resume as soon as the respective state governments permit the re-start of site operations and offices

• Steps taken to ensure smooth functioning of operations: Across the board, various initiatives have been taken. Health and safety concerns have been pro-actively and comprehensively addressed across all sites and offices, including their subsequent resumption. Apart from this our initial efforts focussed on containing the impact of the pandemic- addressing the short term business needs, ensuring continuity and managing stakeholder expectations. Cash flow planning and weekly management has been accelerated to ensure adequate working capital availability and avoid a cash flow mismatch to ensure smooth operations. Digital tools and programmes have been rolled out across functional areas and stakeholders, including customers, current and prospective, channel partners, employees, contractors, vendors and others

• Estimation of the future impact of CoVID-19 on its operations; The impact is expected to be short term, and we are planning a return to normalcy at the earliest. Now that we are getting back to normal, our efforts will now focus on building readiness for the changed environment. We believe at this stage that there is no structural long term impact on our business, considering the sizeable, diversified and

PURAVANKARA LIMITED

execution focussed nature of our business, the value-for-money products and offerings we have and the customer brand that we have the privilege of enjoying.

• Details of impact of CoVID-19 on listed entity –

Our capital and financial resources, and given our access to fresh liquidity, ensure that we are comfortable in our ability to service our financial obligations. During this period we have had access to additional liquidity that we have chosen not to draw on. We have further strengthened our internal planning, budgeting, reporting, and control mechanisms to enable us to ensure that we remain comfortable. The supply chain has been impacted in the short term due to the shortage of labour at some locations. Over the remaining months of this year the focus is to return to normalcy, and indeed a pre- CoVID situation.

We recognise the revenue upon completion of the project and sale of unit to the customers. We expect that due to CoVID, completion of some of our projects would be delayed which may delay recognition of revenue. Further, when we launch the projects for sale, all sales and marketing related costs are recognised as period cost. We have planned for launching of several projects in the near future. Due to CoVID, we believe that due to extention of time to complete the projects, the revenue to be recognized may also be postponed, while, the sales and marketing costs of the new projects being launched will be charged to the profit & loss account affecting our profitability in the near future. However, this is only an accounting aspect in the nearterm, while, in the long run, once the revenue of the projects is recognised upon completion, the same will be neutralised.

• Existing contracts/agreements where non-fulfilment of the obligations by any party will have significant impact on the listed entity's business;

There are no such contracts/ agreements at this point in time.

• Other relevant material updates about the listed entity's business.

None

Thanking you

Yours sincerely

For Puravankara Limited KULDEEP CHAWLA Digitally signed by KULDEEP CHAWLA DN: c=IN, o=Personal, cn=KULDEEP CHAWLA, serialNumber=e534df385ca8e95d0d209561b9e8cb7 2b6f97d1fe88aa12b730aeaf0edd49656, postalCode=110048, 2.5.4.20=116b725a4b511877dc3eaa3c13779f1f4c34 9a32f203bdd7087a6b733c33172c, st=Delhi Date: 2020.06.11 19:20:58 +05'30'

Kuldeep Chawla Chief Financial Officer

PURAVANKARA LIMITED