Paramone Concepts Ltd Management Discussions.


India has emerged as fastest growing economy in world and is expected to grow by over 7 % in FY20. India is one of the largest startup base in the world. With the improvement in the economic scenario and initiatives undertaken by the Government, there have been drastic developments in Indian economy. Some of these developments are as follows:

• Highest direct and indirect tax collection during FY 2018-19 and widening of tax base.

• High inflow of Foreign Direct Investment.

• Rise in Indias Index of Industrial Production.

• Stagnant Consumer Price Index(CPI) inflation.

• Rise in employment generation.

Infrastructure Sector

The year 2018-19 saw the Indian economy yielding the benefits of structural and regulatory reforms by the Government, viz Goods and Service Tax (GST), Demonetisation and Insolvency & Bankruptcy Code. Infrastructure sector is the key driver of the Indian economy, this sector is highly responsible for the overall development and enjoys attention from the Government to formulate policies which are helpful in development of world class infrastructure in the country.

The economy continues to be driven by the public sector investments, mainly in the areas of Road allied infrastructure, water management, irrigation, affordable housing, urban development, smart city infrastructure, solar energy, power generation & transmission, environment protection, financial reforms, information technology, etc. The domestic investment momentum in infra sector was healthy despite of multiple challenges on the economic front, pressure on fiscal and current account deficits and general elections held in Q1 of 2019-20.

Major reforms taken by the Government have resulted in higher tax collection and widening of tax base, which likely to give Government better corpus to allocate higher level of funds for infrastructure and funding from international agencies such as World Bank & Asian Development Bank have provided robust platform for infrastructure facilities in the country.


The Infrastructure segment- especially road and highways has witnessed a decent inflow in the last four quarters of the year, driven mainly by Government capex. Given the favourable macro situation, the implementation ratio of infra projects have improved considerably in FY2018-19. On the water management front Odisha, Jharkhand, Chhattisgarh, Maharashtra, Assam, Bihar, Madhya Pradesh, has significantly enhanced its investments.

Urban Infrastructure, which is the key focus of the current Government, played a key role during the year with the implementation of Housing for All under Pradhan Mantri Awas ., Smart Cities and Water Infrastructure.


The current Governments commitment towards development of world class infrastructure in the country has unlocked enormous amount of opportunities in the infra sector giving sharp rise in demand of consultants in various segments of infrastructure. The Company is one of the rapidly growing consultancy firms in India with the presence in segments like-

• Roads and Highways

• Affordable Housing

• Water Management

• Urban Development and Sustainability

• Environment and Solid Waste Management

• Public Financial Reforms

The Company renders services such as, formulation of detailed project report, feasibility study, project management consultancy, independent engineer, authority engineer, surveys etc., various Government departments and other clients across the country.

Trading Business

The Companys trading business includes trading and investment in equities, mutual funds, commodities. With positive net worth, the Company has portfolio covering investment in different types of securities such as equities, debt securities, mutual fund units, commodities etc., that yields concurrent income for the Company. Further, the Company is looking at fortifying its investment by adding high yielding securities, based on the advice of investment advisors and portfolio managers.

Ourstanding in core business segments:- Roads, Highways & Bridges

During FY 2018-19, we have achieved several work orders for providing consultancy in DPR preparation and independent engineer services under Roads & Highways segment in the State of Maharashtra. As the Government continues investments in the segment, we are focusing on more opportunities across the Country in various States.

Affordable Housing

The Government has given infrastructure status to affordable housing and launched nationwide scheme of "PMAY-Housing For All" which aimed to bring houses within reach of lower and middle class population. We are already rendering planning and PMC services under this segment to ULBs in the states of Odisha, Madhya Pradesh & Chhattisgarh.

Water Management

Water management is need of hour, although the Government has set up piped water supply systems in most cities, but a large part of semiurban and rural areas are not covered by these. Piped sewerage systems feeding into large treatment plants exist only in bigger cities and metros. Most cities have septic tanks or local waste management. Hence there are opportunities in this area for providing water infrastructure facilities. The Company had been in operations in Chhattisgarh and is identifying more opportunities in the segment.

Smart Cities

The Government has launched Smart City Mission for developing 100 cities across India, the cities have already been shortlisted and amongst them several cities have come up with RFPs and a lot of them are likely to follow in 2019-20. Equipped with diversified Smart offerings, The Company is well placed to address such opportunities.

The Companys business is also expanded in segments such as solid waste management, public financial reforms and urban development in various states across the country.


Past few years witnessed significant initiatives being taken by the Government for overall infrastructure development of the country, such initiatives create wide range of opportunities for consulting firms. Further, emergence of new participants in the industry developed a competitive market. In such scenario, maintaining quality of services at optimum cost is necessity to sustain. As compared to peer group, we have developed a niche for ourselves in the industry, by adopting a rational bidding process without compromising with the quality of services rendered by us. We have JVs or Association with other firms for business synergies.

With a vision to penetrate substantial market in India, we are moving

ahead by identifying more opportunities and making them profitable business for the Organisation.

Risk Management

Risk is integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across segments and functional departments is of paramount importance for the hind ranee free growth of every organisation.

Since, the Company provides wide range of services to Government departments, autonomous bodies and other organisations, it is exposed to variety of risks, including liquidity risk, operational risk, regulatory & compliance risk, business and continuity risk.

The Companys risk management process is given below:

1. Identify: Risks are identified across each key business area in relation to achieving our business objectives.

2. Assess: Risk impact and likelihood are assessed keeping business deliverables in frame.

3. Manage: RiskManagement/Mitigation plans are built in alignment with business objectives.

4. Report: Regular reporting to management on how effectively the risks are being managed.

We annually undertake assessment of our principal risks and uncertainties, recognizing that as a growing business, some of our risks can be dynamic and influenced by highly competitive environment.

Significant Initiatives

Being the rapidly growing firm in consultancy business, the Company is also adopting technology to improve its quality of services rendered, the business has been using integrated digital tools like LiDAR,GIS, RFID and other technologies effectively in its project sites.

Environment, Health and Safety

Safety at work is of utmost importance to the business. It continuously strives for a safety culture by organizing various training and awareness programmes throughout the year. The business has been using training modules for safety training. Various initiatives have been taken up to digitally monitor, record and review all safety and quality related aspects at site.

Human Resources

We consider manpower resource as a main asset of our business. In the established structure of the Company, colleagues work together as category teams consisting of related functions. In the year under review, the Company took following initiatives:

1. With the objective of differentiation and innovation in delivering quality services across all the segments of business, we were exposed to the best talent through an exclusive tie up with leading consultants.

2. Leadership System was deployed across the organisation to improve preparedness for addressing strategic opportunities and challenges

3. We encourage our employees to acquire various skills and competencies required for effectively discharging their duties in the organisation.

4. Regular sessions on POSH (Prevention of Sexual Harrasment), code of conduct, women safety, promote safe and healthy work environment based on mutual respect.


Statements in this Management Discussion and Analysis Report describing the Companys objective, projections, estimates and expectations may be "forward looking Statements" within the meaning of applicable laws & regulations. Actual results might differ substantially or materially from those express or implied.

Date: August 14,2019
Place: Mumbai By Order of the Board of Directors
Sd/- Sd/-
(Govind Patodia) (Mushtaq Shaikh)
Managing Director Director
DIN:02794184 DIN:08144509