Parshwanath Corporation Ltd Management Discussions

GLOBAL OVERVIEW:

The global construction industry continues to be one of the key drivers of economic growth, supported by increasing investments in infrastructure, urban development, affordable housing and sustainable construction. Rapid urbanization, population growth and government spending on public infrastructure are creating significant opportunities across both developed and emerging economies. The industry is also witnessing a transformation through the adoption of digital technologies, green building practices and modern construction techniques aimed at improving efficiency and sustainability. Despite challenges such as inflationary pressures, rising material costs and supply chain disruptions, the long-term outlook for the global construction sector remains positive, driven by continued demand for residential, commercial and infrastructure development.

COMPANIES OUTLOOK:

Parshwanath Corporation Limited is primarily engaged in the business of construction and development of housing projects in India. However, at present, the Company does not have any ongoing projects and does not foresee any significant business opportunities in its existing line of business in the near future. In view of the prevailing market conditions and to ensure sustainable growth, the Company is exploring opportunities to diversify its business operations into new areas that offer better long-term growth potential and enhanced value for its stakeholders.

PERFORMANCE OVERVIEW :

Parshwanath Corporation Limited is engaged in the business of construction and development of housing projects in India. However, considering the prevailing market conditions, the Board of Directors has not identified any suitable opportunities for undertaking new housing projects that are commercially viable and in the best interests of the Company. Accordingly, the Board is exploring alternative business opportunities and diversification strategies to ensure sustainable growth and enhance long-term value for the Company and its stakeholders.

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 is led by a strong and experienced promoter group with extensive expertise In its business segment. Mrs. Riddhiben Patel, Joint- Managing Director of the Company, possesses significant knowledge and experience in the fields of finance and accounts and has been recognized by a reputed publication for her professional achievements. Mr. Rushabh N. Patel, Managing Director of the Company, brings considerable experience in the real estate and construction sector and has held leadership positions in reputed organizations such as GIHED and JITO.

The Board comprises a balanced mix of Executive Directors and Non-Executive Independent Directors, providing effective governance, strategic guidance, and independent oversight, thereby enhancing the overall value and governance framework of the Company.

The Company has fostered a strong cost-conscious culture, enabling it to effectively manage operational costs and mitigate the impact of inflationary pressures. It also enjoys a positive organizational culture that promotes efficiency, accountability, and sustainable growth.

The Company has not availed borrowings from external financial institutions or the market for several years. Its funding requirements have primarily been supported through promoter funding, including loans from the Managing Director, and internally generated funds. While this conservative capital structure may limit the availability of funds to capitalize on emerging market opportunities, the Company has formulated appropriate financial strategies to strengthen its funding base and adequately meet its future capital requirements.

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. 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 & 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 H R 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, 2026 is Rs.118.83 lakhs out of which revenue from operational income is Rs. 62.33 Lakhs as compared to the revenue of the company in previous year of Rs. 70.19 Lakhs.

2. The Net profit of the Company during the previous year was Rs. 55.59 lakhs and, during the current year, Company has incurred a loss of Rs. 3.97.

3. Price earning per shares as on 31/03/2026 is INR 1.64/- on face value of INR 10/- each.

DETAILS OF SIGNIFICANT CHANGES :

PARTICULARS	FY ENDED 31ST MARCH, 2026	FYENDED 31ST MARCH, 2025	CHANGES BETWEEN CURRENT FY& PREVIOUS FY	EXPLANATION
Current ratio	33.69	53.33	(37.05)%	DUE TO WITHDRAWAL OF FUNDSFROM LIQUID INVESTMENTS
Debt Equity Ratio	0.01	0.00	2909.85%	-
Debt Service Coverage Ratio	0	0.85	(100)%
Return on Equity (%)	-0.26%	4.68%	(105.64)%	-
Inventory Turnover Ratio	-	-	-	-
Net Capital Turnover	0.04	0.04	-12.85%	-
Net Profit Ratio (%)	-5%	79%	(106.50)%	-
Return on Capital Employed (%)	0	0.04	-95.17%
Return on Investment	12.90%	-10.64%	(221.21)	*

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:30/07/2026
Place: Ahmedabad
SD/-	SD/-
Mr. Rushabh N. Patel	Mrs. Riddhiben R.Patel
Managing Director	Joint-Managing Director
DIN:00047374	DIN:00047238