Parshwanath Corporation Ltd Management Discussions

GLOBAL OVERVIEW

In 2024-2025, the global real estate sector is experiencing a mixed recovery. Residential markets remain strong in key regions due to limited supply, while commercial real estate faces challenges from hybrid work trends and rising interest rates. Emerging markets show growth potential, especially in logistics and data centers. Sustainability and digital innovation continue to reshape investment strategies and development priorities.

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. Mrs. Riddhiben Patel has been nominated as a Business women by one of the leading business magazine and Mr. Rushabh Patel, Managing Dircetor of the company has a was experience in the field of Real estate and construction as he has been on the leading position in GIHEAD. Further, 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, 2025 is Rs.151.75 lakhs out of which revenue from operational income is Rs. 70.19 Lakhs as compared to the revenue of the company in previous year of Rs. 59.16 Lakhs.

2. The Net profit of the Company during the previous year was Rs. 51.64 lakhs and, during the current year, Company has incurred a profit of Rs.55.59 Lakhs which is higher than the Previous Year.

3. Price earning per shares as on 31/03/2025 is INR 1.77/- on face value of INR 10/- each.

DETAILS OF SIGNIFICANT CHANGES

Particulars	FY Ended 31st March, 2025	FY Ended 31st March, 2024	Changes Between Current FY & Previous FY	EXPLANATION
Current ratio	61.14	21.51	184.20%	-
Debt Equity Ratio	0	0.04	-99.48%	Due to increase in short term borrowings in the current period.
Debt Service Coverage Ratio	11.10	10.30	7.69%	As borrowing is for s hort duration, no installment has been stipulated and it is also interest free.
Return on Equity (%)	4.68%	4.55%	2.89%	Due to increase in Interest income from Fixed deposit and housing loan.
Inventory Turnover Ratio	2.01	1.69	18.55%	-
Net Capital Turnover	0.06	0.050	12.24%	-
Net Profit Ratio (%)	79%	87%	(9.23)%	Due to increase in Housing loan interest
Return on Capital Employed (%)	0.05	0.05	9.90%	Due to increase in interest income of Fixed deposit.
Return on Investment	0.00%	59%	(100)%	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
Date : 09-06-2025 Place : Ahmedabad	SD/- Mr. Rushabh N. Patel Managing Director DIN : 00047374	SD/- Mrs. Riddhiben R.Patel Joint-Managing Director& CFO DIN : 00047238