Parshwanath Corporation Ltd Management Discussions.
The Indian Construction Industry valued at $126 billion and employing around 44 million people, accounts for approx. 11% of the countrys GDP. The construction industry ranks third in terms of direct, indirect and induced effects in all sectors of the economy. Thus, it plays a pivotal role in the economic growth of the nation. Global construction industry looks good with opportunities in residential, non-residential, and infrastructure. The global construction industry is expected to reach an estimated $10.5 trillion by 2023, and it is forecast to grow at a CAGR of 15.7% to reach $ 738.5bn by 2022. The major drivers for the growth of this market are increasing housing starts and rising infrastructure due to increasing urbanization and growing population.
Emerging trends which have a direct impact on the dynamics of the construction industry include increasing demand for green construction to reduce carbon footprint, bridge lock-up device systems to enhance the life of structures, building information systems for efficient building management, and the use of fiber-reinforced polymer composites for the rehabilitation of aging structures.
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.
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 two year 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.
This Report contains forward-looking statements that involve risks and uncertainties. When used in this Report, the words anticipate, believe, estimate, expect, intend, will and other similar expressions as they relate to the Company and/or its businesses are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. This Report should be read in conjunction with the financial statements included herein and the notes thereto.
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, 2019 is Rs. 125.44 Lakhs out of which revenue from operational income is Rs. 64.68 Lakhs as compared to the revenue of the company in previous year of Rs. 30.71 Lakhs.
2. The Net profit (loss) of the Company during the previous year was Rs. (3.31) Lakhs /-. However, during the current year, Company has incurred a (loss)/ profit of Rs. 45.93 lakhs/-. The Directors are trying to achieve higher profit in the upcoming year.
3. Price earning per shares as on 31/03/2019 is INR 1.47/- on face value of INR 10/- each.
DETAILS OF SIGNIFICANT CHANGES:
|PARTICULARS||FY ENDED 31st MARCH, 2019||FY ENDED 31st MARCH, 2018||CHANGES BETWEEN CURRENT FY & PREVIOUS FY||EXPLANATION|
|Current ratio||184.70||80.10||104.6%||Due to decrease in the total current liabilities of the company.|
The company has not made any changes in the Accounting treatments during the year. Further as per the Information provided by the company in the previous Annual Report, the company has adopted Ind-As with effect from 01/04/2017.
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.
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 and on behalf of the Board
For, Parshwanath Corporation Limited
|Mr. Rushabh N. Patel||Mrs. Riddhiben R. Patel|
|Date : 28.05.2019||Chairman & Managing Director||Joint Managing Director|
|Place : Ahmedabad||DIN : 00047374||DIN : 00047238|