Parshwanath Corporation Ltd Management Discussions

GLOBAL OVERVIEW:

The construction sector is visualized to play a powerful role in economic growth, in addition to producing structures that adds to productivity and quality of life. Infrastructure plays a huge role in propelling other industries and Indias overall development. The government, therefore, focuses on the development of infrastructure and construction services through focused policies such as open FDI norms, large budget allocation to the infrastructure sector, smart cities mission, etc. The Construction industry in India consists of the Real estate as well as the Urban development segment. India aims to become the third largest construction market globally by 2025

COMPANIES OUTLOOK:

Parshwanath Corporation Limited is engaged in the business of Construction and development of housing projects in India. In current situation Company do not envisage any business in the near Future.

PERFORMANCE OVERVIEW:

Parshwanath Corporation Limited is engaged in the business of Construction and development of housing projects in India. As per the current market scenario, directors dont found any good opportunity in new projects which is beneficial to the company.

SEGMENT WISE PERFORMANCE

Currently, the Segment wise report is not applicable to the company as the company has not multiple segments. STRENGTH AND WEAKNESS:

The company has strong promoter background with rich experience in the segment. Board of Directors of the company is well qualified in the specified field. Composition of Board consists of Executive Directors and Non-executive independent Directors adding value to the company. The Company has an extremely cost conscious culture that has resulted in multiple cost management, thus company is trying to cope up with inflationary pressure. The Company has extremely favorable organizational Culture. The Company has not borrowed money from the market since last many years and working with owned funds thus The company has limited fund to meet the challenges of the markets and to overcome the weakness company has define the strategies to meet the fund requirement.

OPPORTUNITIES AND THREATS:

As the business of the company had been stopped from last few years, the management is not searching any opportunities to restart any operation right now. Considering the present condition of the Company there is no threats to the company.

RISK AND CONCERN:

Your Company considers that risk is an integral part of its business and therefore, it takes proper steps to manage all risks in a proactive and efficient manner. The Company management periodically assesses risks in the internal and external environment and incorporates suitable risk treatment processes in its strategy, and business and operating plans. The details of practices being followed by the Company in this regard, forms part of the Corporate Governance Report. There are no risks which, in the opinion of the Board, threaten the very existence of your Company. However, some of the challenges faced by it have been dealt with under Management Discussion and Analysis which forms part of this Report.

MANAGEMENT CONTROL, INTERNAL CONTROL AND INTERNAL AUDIT SYSTEM AND THEIR ADEQUACY:

The company has put in place strong internal control system and best in class processes commensurate with its size and scale of operations.

A well-established multidisciplinary management Audit & Assurance services consists of professionally qualified accountants who carries out extensive audit throughout the year, across all functional area and submits its reports to management and audit committee about the compliance with internal controls and efficiency and effectiveness of operation and key processes and risks.

Some key features of the companys internal control system are:

• Adequate documentation of policies & guidelines.

• Preparation & monitoring of annual budget for all functions

• Management audit department prepares risk based internal audit scope with the frequency of audit being decided by risk ratings of areas/functions. Risk based scope is mutually accepted by various functional heads/process owners.

• The company has strong compliance Management System which runs on an online monitoring system.

• Company has well defined delegation of power with authority limits for approving revenue & cape expenditure.

• Apart from having all policies, procedures and internal audit mechanism in place, company periodically engages outside experts to carry out and independent review of the effectiveness of various business processes.

• Internal audit is carried out in accordance with auditing standards to review design effectiveness of internal control system & procedures to manage risks, operation of monitoring control compliance with relevant policies & procedure and recommend improvement in processes and procedure.

• The audit committee of the board of directors regularly reviews the adequacy & effectiveness of internal audit environment and monitor implementation of internal audit recommendations including those relating to strengthen of companys risk management policies & systems.

HUMAN RESOURCE DEVELOPMENT

Human resource department is instrumental in building employees capabilities through structured talented acquisition and its development through technical and need based training. The company enjoys harmonious employee relations and hired employee during the year which have been built over the years by taking various HR initiatives to enhance the employee morale.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATION PERFORMANCE:

1. The total Revenue of the Company for the year ended on 31st March, 2023 is Rs.103.21 out of which revenue from operational income is Rs. 51.99 as compared to the revenue of the company in previous year of Rs. 41.45.

2. The Net profit (loss) of the Company during the previous year was Rs. 28.90 However, during the current year, Company has incurred a (loss )/ profit of Rs.29.71. The Directors are trying to achieve higher profit in the upcoming year.

3. Price earning per shares as on 31/03/2023 is INR 0.92/- on face value of INR 10/- each.

DETAILS OF SIGNIFICANT CHANGES:

PARTICULARS	FY ENDED 31st MARCH, 2023	FY ENDED 31st MARCH, 2022	CHANGES BETWEEN CURRENT FY & PREVIOUS FY	EXPLANATION
Current ratio	23.89	34.62	(30.99)%	Due to increase in short term borrowings in current period
Debt Equity Ratio	0.03	0.02	37.93%	Due to increase in short term borrowings in current period
Debt Service Coverage Ratio	5.78	8.49	(31.92)%	As borrowing is for short duration, no installment has been stipulated and it is also interest free.
Return on Equity (%)	2.65%	2.80	(5.39)%	-
Inventory Turnover Ratio	1.50	1.20	24.78%
Net Capital Turnover	0.05	0.04	22.20%
Net Profit Ratio (%)	56	72	(22.80)%	-
Return on Capital Employed (%)	0.03	0.03	1.12%
Return on Investment	23.22	57	140.74%	Due to change in Market price of Invetsment

ACCOUNTING TREATMENT:

The Ministry of Corporate Affairs (MCA) vide its notification in the Official Gazette dated February 16, 2015 notified the Indian Accounting Standards applicable to certain classes of companies. Ind AS has been replaced the existing Indian GAAP prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. For our Company Ind AS applicable from April 1, 2017 hence there is effect for this year Audit Report and Accounting treatments.

INTERNAL CONTROLS:

Your Company has a well-established internal control system, which is commensurate with the size and nature of its business. The Company strives to maintain a dynamic system of internal controls and procedures including internal control over financial reporting designed to ensure reliable financial record keeping, transparent financial reporting and disclosures. The management duly considers and takes appropriate action on the recommendations made by the statutory auditors, internal auditors and the independent Audit Committee of the Board of Directors.

ESTABLISHMENT OF INTERNAL MANAGEMENT INFORMATION SYSTEMS:

Any problems requiring policy decisions are being intimated to Audit Committee for redressed or amendments in the policy and procedure. The progress reports are being regularly on monthly basis intimated to the Audit committee through the Financial Officers of the company who in turn put the same to Audit Committee.

INFORMATION SYSTEM BETWEEN COMMITTEE AND THE BOARD:

Both Audit committee and Stakeholder Relationship Committees receive periodical regular information from the concerned function heads, and after resolution of all the problems re-communicate the same to functional heads for further communications and implementation of any suggestions. The progress report and minutes of all meetings held of both the committees are being placed before the Board for information and taking the same on records.

INFORMATION SYSTEM BETWEEN THE COMPANY AND INVESTORS:

The Company is taking on record the unaudited financial results on quarterly basis as per requirements Regulation 33 of the SEBI (Listing Obligations & Disclosures Requirements) Regulations, 2015 and the same are published in English and Gujarati Newspapers in time. The Audited Financial Balance Sheet is being dispatched to every shareholder in time at their registered addresses in Compliance with the Companies Act, 2013.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

For, Parshwanath Corporation Limited

	SD/-	SD/-
	Mr. Rushabhbhai N. Patel	Mrs. Riddhiben R. Patel
Date : 28/08/2023	Managing Director	Joint-Managing Director
Place : Ahmedabad	DIN :00047374	DIN : 00047238