parle software ltd share price Management discussions

World Economy:

The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflations return to target is unlikely before 2025 in most cases.

Indian Economy:

After two years of rapid economic growth in 2021 and 2022, the near-term economic outlook is for continued rapid expansion during 2023-24, underpinned by strong growth in private consumption and investment.

The acceleration of foreign direct investment inflows into India over the past decade reflects the favourable long-term growth outlook for the Indian economy, helped by a youthful demographic profile and rapidly rising urban household incomes. Indias nominal GDP measured in USD terms is forecast to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030. This rapid pace of economic expansion would result in the size of the Indian GDP exceeding Japanese GDP by 2030, making India the second largest economy in the Asia-Pacific region. By 2022, the size of Indian GDP had already become larger than the GDP of the UK and also France. By 2030, Indias GDP is also forecast to surpass Germany.

Infrastructure & Real Estate Sector in India:

The Real Estate Industry In India is estimated at USD 265.18 billion in 2023, and is expected to reach USD 828.75 billion by 2028, growing at a CAGR of 25.60% during the forecast period (2023-2028).

• The countrys real estate market was affected by the COVID-19 pandemic. In addition, the residential sector was the worst hit as strict lockdown measures across major cities in India impacted housing sales as home registrations were suspended and home loan disbursement was slow. However, the sector recovered due to an increase in house sales, new project launches, and increasing demand for new office and commercial spaces, etc.

• The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy.

• According to Savills India, real estate demand for data centers is expected to increase by 15-18 million sq. ft. by 2025. Demand for residential properties has surged due to increased urbanization and rising household income. India is among the top 10 price-appreciating housing markets internationally.

Business Analysis, Performance & Outlook: -

The Company is considering the various business strategies, including analysing short-term cash flow requirements, scenario planning to unlock capital and need to access funding, managing financial reporting and compliance with regulations, navigating workforce disruption, evaluating business restructuring, including business re-organisations and simplifications and in the forthcoming year your company is positive about potential real estate development by utilizing available resources.

To ensure better utilization of available funds and resources of the company, pursuant to the Shareholder Approval in previous AGM 27^th Sept 2022, in FY 2022-2023, the Board has completed the divestment of the whole of assets and liabilities relating to one of its business division: Paper, Waste Paper & Allied Products w.e.f 31.03.2023 in terms of the agreement with the buyer thererin. Therefore, your Company ceased to operate in the business segment of Paper, Waster Paper and Allied Products w.e.f 31.3.2023.

Your company w.e.f 1^st April 2023, operates in a single segment of Infra & Real Estate sector.

Combined with partial economic recovery from the pandemic & improved economic activity & increasing demand for real estate, the management of the Company expects to have an improved generation of revenue streams in the future years.

Opportunities, Risks &Concerns:-

Risks are part of almost every industry and real estate is no exception. Post - January 2022, the global macro factors have led to further cost escalations, especially in commodities such as cement and steel, leading to a significant increase in costs for upcoming projects. Also, given the imminent rise in the interest rate and no respite in global inflation, the quantum of increase remains uncertain.

It is believed that the demand for Real Estate shall be strong in medium to Long Term. While the government regulation initiatives like Housing for all and the Smart Cities concept shall create opportunities and improve the demand for Real Estate. The Real Estate sector also awaits critical examinations of the impact of COVID- 19 in all its aspects.

Also the Increased cost of manpower, rising cost of construction and over regulated environment is a concern in this business sector. However the management of the Company shall timely capitalize on the market opportunities considering the strengths it possesses.

Internal Control Systems & their adequacy:

The Company has a regular system of internal check & control, costing, budgeting, forecasting, monitoring projections & efforts are regularly put in to further strengthen the system.

Material Development in Human Resources:

The Company uses the services of a fairly good team of professionals such as Engineers, Contractors, Suppliers and Legal Advisors. The people employed by the Company and other agencies working for the project, are technically qualified/competent and help in successful and timely execution of work. The Company has a qualified Company Secretary and Compliance Officer to deal with secretarial work and service to shareholders.

Accounting Treatment:

The Company has duly complied with the prescribed Accounting Standards and have not followed any alternative method.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections and expectations may be "forward looking statement" within the meaning of applicable laws and regulations.

Actual result might differ materially from those either expressed or implied. Important factors that materially affect the future performance of the Company include the State of the Indian economy, changes in government regulations, tax laws, input availability and prices, and the state of financial markets and other factors such as litigation over which the Company does not have direct control.