Peninsula Land Limited , a prominent real estate company, has been fined by both the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange (BSE) for delayed compliance with SEBI ICDR Regulations Schedule XIX-Para(2).

Fine Details and Company Response

The NSE has imposed a fine of Rs 10,14,800 (including GST) on Peninsula Land Limited. This fine came after the NSE rejected the company's appeal filed in September, which followed the refusal of an earlier waiver application.

Separately, the BSE has rejected Peninsula Land Limited's waiver request and imposed a fine of Rs 8,40,000 (excluding 18% GST) for the same non-compliance issue.

In response to these fines, Peninsula Land stated that while they acknowledge the delayed compliance, they believe it did not cause any detriment to shareholders or market participants. The company has expressed its intention to discharge the obligations while simultaneously pursuing further appeals with the appropriate authorities.

Regulatory Non-Compliance and Its Impact

The non-compliance in question relates to Schedule XIX - Para (2) of SEBI (ICDR) Regulations, 2018. While the specific details of the violation are not disclosed, these regulations are designed to ensure transparency and protect investor interests in the Indian capital markets.

Financial Impact and Company's Stance

Peninsula Land Limited has stated that the fines, although significant, are not considered to have a material impact on the company's financials, operations, or other activities. This assertion suggests that the company remains financially stable despite the regulatory setbacks.

Disclosure and Transparency

In line with regulatory requirements, Peninsula Land Limited has promptly disclosed these developments to the stock exchanges. The company's Company Secretary and Compliance Officer, Pooja Sutradhar, signed off on the official communication, demonstrating the company's commitment to transparency in its dealings with regulatory bodies and shareholders.

Conclusion

As Peninsula Land Limited navigates these regulatory challenges, investors and market participants will be keenly watching how the company manages its compliance obligations going forward. The outcome of any further appeals pursued by the company could have implications for both Peninsula Land and the broader real estate sector's approach to regulatory compliance.

Peninsula Land , a prominent real estate developer, has reported a net loss of 182 crore rupees for the second quarter, marking a significant downturn from a profit of 87 crore rupees in the same period last year. The company's financial performance reflects challenges in the real estate sector and broader economic conditions.

Revenue and Profitability

The company's revenue saw a substantial decline, dropping to 372 crore rupees from 523 crore rupees year-over-year. This 28.9% decrease in revenue highlights the difficulties faced by the real estate sector during the quarter.

Operational Performance

Peninsula Land's operational efficiency also took a hit, as evidenced by the following key metrics:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell to 38 crore rupees from 119 crore rupees in the previous year.
• The EBITDA margin contracted significantly to 10.07% from 22.69%, indicating increased pressure on the company's operational profitability.

Financial Position

The company's balance sheet as of September 30 reveals:

Cash Flow and Liquidity

Peninsula Land's cash flow statement for the half-year ended September 30 shows:

• Net cash flows from operating activities: 79.60 crore rupees
• Net cash flows used in investing activities: (350.40) crore rupees
• Net cash flows used in financing activities: (66.40) crore rupees

The company ended the period with cash and cash equivalents of 101.70 crore rupees, down from 438.90 crore rupees at the beginning of the year.

Corporate Developments

During the quarter, Peninsula Land converted 77,27,000 0% Unsecured Compulsorily Convertible Debentures of face value 2 rupees each into an equivalent number of equity shares on April 16, at a conversion price of 44 rupees per share.

Legal Proceedings

The company is facing challenges related to its investment in Hem Infrastructure and Development Private Limited (HIPDPL), a joint venture entity. The National Company Law Tribunal (NCLT) has initiated a Corporate Insolvency Resolution Process (CIRP) against HIPDPL. Peninsula Land's aggregate financial exposure in HIPDPL stands at 961.50 crore rupees, comprising investments and loans.

Outlook

While Peninsula Land continues to navigate through a challenging real estate market, the company is actively pursuing legal and commercial remedies to safeguard its investments. The management remains focused on improving operational efficiency and resolving ongoing legal issues to stabilize its financial position in the coming quarters.