MANAGEMENT DISCUSSION ANALYSIS REPORT:

GLOBAL OVERVIEW:

The global economy in the financial year 2014 - 2015, has been quite a roller - costar ride. Many of the economies were performing average growth rate, while some of the economies were under the aftershock of the recession impact. Several European economies and U. S. economy has have survived the recession and has started to propel at the average growth rate. While some of the developing economies are struggling to achieve the optimum growth rate. India being an emerging market, is struggling with the inflationary brssure and political instability. The average growth and slow recovery from the global recession is hampering the business growth.

COMPANIES OUTLOOK:

Parshwanath Corporation Limited is engaged in the business of housing finance, Construction and development of housing projects in India. In current situation Company do not Envisage any business in the near Future.

PERFORMANCE OVERVIEW:

The company has not launched any new construction projects from last few years and there in only income from the interest of the investments of the company. The company is mainly engaged in construction business but due to current market condition and slow down business there is not new projects to be launched in future so no performance given by the company.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUECY:

The 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 Company has an internal audit function which conducts regular internal audits to examine the adequacy and compliance with policies, plans and statutory requirements. 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 regularly taking on record the unaudited financial results on quarterly basis as per requirements of the Clause 41 of the listing Agreement and the same are published in English and Gujarati News Papers 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, 1956 and ensures to maintain the same policy with the Companies Act, 2013.

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 brssure. The Company has extremely favorable organizational Culture. 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 brsent condition of the Company there is no threats to the company.

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 which 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 company's internal control system are:

• Adequate documentation of policies & guidelines.

• Preparation & monitoring of annual budget for all functions

• Management audit department brpares 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 &capex 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 relvant 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 strengthing of company's risk management policies & systems.

HUMAN RESOURCE DEVELOPMENT

Human resource department is instrumental in building employees capabilities through structured talend acquisition and its development through technical and need based training. The company enjoys harmonious employee relations 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, 2015 has been increased from 7 74,50,1317 of brvious year to 7 133,62,704 7 in the current year, which is worth apbrciating. The Company does not have any project in brsent time. The company is generating revenue from interest business.

2. The profit of the Company during the brvious year was 7 (-14,31,053). However, during the current year, it mounted to 7 60,74,364 which was higher than Previous Year. The proper planning and knowledge of the management in investing the Company's funds at right place and at right time has brought good results. The efficiency of the Directors in this field has proved to be beneficial for the Company.

3. Price earning per shares as on 31.03.2015 is 7 7.92 on face value of 7 10/- each

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the company's 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.