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 |
+91-9892691696
