Pankaj Piyush Trade & Investment Ltd Management Discussions.

The Management of PANKAJ PIYUS1I TRADE AND INVESTMENT LIMITED in its Analysis Report has highlighted the performance and outlook of the Company in order to comply with the requirement of Corporate Governance as laid down in SEB1 Listing Regulations, 2015. However, investors and readers are cautioned that this discussion contains certain forward looking statements that involve risk and uncertainties.

1. Economic Environment World

The world has changed dramatically since the last year. The COVID-19 pandemic and subsequent lockdown that the world has seen has put pressure on all economies.

Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2022 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage point relative to the previous forecast, reflecting expectations of a vaccine powered strengthening of activity later in the year and additional policy support in a few large economies.

The impact of COVID-19 on the world will-across the board-be severe and unprecedented. This is the lowest growth rate in almost all 60 years including during the global financial crisis (4.7%) and the Asian financial crisis (1.3%). The global economy is expected to contract in 2020 by 3%- causing the worst recession since the Great Depression. This is a synchronized contraction, a sudden global shutdown that has had acute adverse impacts on the women, youth, the poor, the informally employed and those who work in contact-insensitive sectors.

The strength of recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spillovers and structural characteristics entering the crisis.

2. Risks

According to IMF, risks to the above forecasts remain on the downside and are likely to be influenced by how the pandemic is contained. Health, economic and trade risks remain prevalent Development of vaccines, norms of social distancing, and productivity gains from the emergence of differentiated models will determine the actual outcomes.

3. India

During the first three quarters of FY 2020, the cyclical slowdown in the Indian economy showed signs of a turnaround on account of counter-cyclical measures announced by the Government of India, along with accommodative stance adopted by the Reserve Bank of India (RBI). However, the emergence of the COVID-19 pandemic in March has cast a shadow in these incipient signs with the economy estimated to have grown at an 11 year low of 4.2%

In addition to a phased nationwide shutdown, the Government of India has rolled out a series of policy initiatives and broad based stimulus to offset the economic impact on the lockdown.

The fiscal support under the Aatma Nirbhar Bharat Abhiyan announced on May 12, 2020 intends to inject Rs. 20.9 trillion into the economy, 10% of the nominal GDP of India. There were some structural measures announced for the vulnerable sections such as using technology to provide seamless disbursal of food subsidy. These actions have served to reduce systematic stress and contributed to limiting the amplification of the shock. However, the full impact of the outbreak cannot be ascertained yet. A concerted effort remains the need of the hour, to position the economy on the path to recovery-spanning a multi-pronged approach through public policy impetus, private sector participation and civic society support

S. No. Dimension Description
1. Size of the budget Rs. 34.83 lakh Crore
2. Fiscal Deficit Rs. 15.06 lakh Crore; 6.8% of GDP
3. 6 pillars of the union budget The Union Budget proposals for 2021-22 rest on 6
2021-22 pillars namely:
• Health and Wellbeing
• Physical and Financial Capital and Infrastructure
• Inclusive Development for Aspirational India
• Reinvigorating Human Capital
• Innovation and R & D and
• Minimum Government and Maximum Governance
4. Agriculture, Allied Activities & Rural Economy It is proposed to extend SWAMITVA scheme to cover property owners in villages in all states/UTs; price changes in MSPs to assure price that is atleast 1.5 times the cost of production across all commodities; enhancing the agricultural credit target to Rs. 16.5 lakh crores in FY 2022 focusing on ensuring increased credit flows to animal husbandly, dairy and fisheries; enhancing the allocation to the Rural Infrastructure Development Fund from Rs 30,000 crores to Rs. 40,000 crores; 1,000 more mandis to be integrated with e-NAM.
5. Industry Launch of Mega Investment Textiles Parks [MITRA] scheme; launch of National Monetization Pipeline of potential brownfield infrastructural assets; strengthening of NCLT framework, e-Courts system shall be implemented; extension of one year in additional deduction of upto Rs. 1.5 lakh for interest paid on loans for affordable house purchase-100% reduction on affordable houses; voluntary vehicle scrapping policy; extension of the Ujjawala scheme.
6. Infrastructure It is proposed to launch The Jaljeevan Mission [Urban); the project pipeline under National Infrastructure Pipeline expanded to 7,400 projects; significant increase in capital outlay for Ministry of road transport and highways to Rs. 1.1 lakh crore; a National Rail Plan for India-2030 prepared by Indian Railways; proposed to
undertake future dedicated freight corridor; launch of a new scheme to support augmentation of public bus transport services; framework to be put in place to give consumer alternatives 7.0 to choose from among more than one power distribution company.
7. Banking, Finance & Taxation Set-up of Development Finance Institution (DFI), capitalized with Rs. 20,000 crore; Debt Financing of InVITs and REITs by Foreign Portfolio Investors; an Asset Monetization dashboard to be created for tracking the progress; National Monetization Pipeline of potential brownfield infrastructure assets will be launched; proposal to introduce an investor charter as a right of all financial investors across all financial products; Privatization of two Public Sector Banks and one General Insurance company in the year 2021-22; stressed Asset Resolution by setting up a New Structure; faceless Income Tax Appellate Tribunal; tax incentives for Affordable Rental Housing Project.
8. Education & Women Empowerment Over Rs. 3,000 crores will be provided for skill development; 100 new Sainik schools will be set up in partnership with NGOs/private schools/states; introduction of Legislation to implement the Higher Education Commission of India; it is proposed to create formal umbrella structures in various research institutions, universities and colleges supported by the Government of India in 9 cities; women allowed to work in all categories and also in the night shifts with adequate protection; reduction in the margin money requirement in scheme of Stand Up India from 25% to 15%.
9. Health and Wellbeing Budget outlay for Health and Wellbeing is Rs. 2,23,846 crores in BE 2021-22; launch of a new centrally sponsored scheme, PM Atma Nirbhar Swasth Bharat Yojana; launch of Mission Poshan 2.0; provision of Rs. 35,000 crores for Covid-19 vaccine in BE 2021-22.

Source: PHD Research Bureau, PHDCCl compiled from Union Budget 2021-22, Government of India 5. Opportunities & Threats

The risks and opportunities of all corporations are inherent and inseparable elements. Directors and management of the Company take constructive decisions to protect the interests of stakeholders. The Company has in place a Risk Management Policy, which is monitored and reviewed under the guidance of the Audit Committee. The Committee comprises various departmental heads who meet regularly to identify processes exposed to risks, determine risk mitigation strategies, and monitor their implementation.

The company is mainly exposed to market risk, interest risk and credit risk. However, prudent business and risk management practices followed by the company over the years helps it to manage normal industry risk factors which includes economic/business cycle, fluctuations in the stock prices in the market besides the interest rate volatility. However, the company hopes to improve its performance on the strength of its long experience and its strong emphasis on the fundamentals.

6. Risks and Concerns

Our revenues and expenses are difficult to predict and can vary significantly from period to period, which could cause decline in our performance.

An economic slowdown or other factors that affect the economichealth of the country may affect our business. Our net income may get reduced if Government of India slashes the subsidies given.

Changes in the policies of the Government of India or political instability could delay the further liberalization of Indian economy, which could impact our business prospects. Our client contracts are often conditioned on our performance, which, if unsatisfactoiy, could result in lesser revenues.

7. Internal Control Systems and their Adequacy

The Company has well-equipped and effective internal control systems in place that match the scale of its sector and the complexity of the market it works in. Such stringent and detailed controls ensure the effective and productive use of resources, to the degree that the Companys assets and interests are safeguarded, transactions are approved, registered and properly reported, and checks and balances guarantee reliability and consistency of accounting data. The Audit, Committee is undertaking a comprehensive system of internal audits and periodic assessments to ensure compliance with best practices. The Company has appointed M/s Anil Hariram & Co., Chartered Accountants as the Internal Auditors of the Company to report on the Internal Financial Controls of the Company.

The Company has developed adequate internal control system commensurate to its size and business to ensure that all assets are safeguarded and protected against any loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly. The internal audit report reviewed by the Management together with the Audit Committee of the Board. The Company has a strong Management Information System as a part of Control Mechanism. In an interdependent, fast-moving world, organizations are increasingly confronted by risks that are complex in nature and global in consequence. Such risks can be difficult to anticipate and respond to, even for the most seasoned business leaders. The audit committee reviews the performance of the audit and compliance functions, the effectiveness of controls and compliances with regulatory guidelines and gives such directions to the management as considered appropriate. The company has framed a compliance policy to effectively monitor and supervise the compliance functions in accordance with statutory requirements.

8. Financial Performance

• During the financial year 2020-21, total revenue has been increased to Rs. 99,294,930 from Rs. 41,939,980 in the previous year. The company has incurred a net loss of Rs. 75,73,00/- as compared to loss of Rs. 19,48,770/- in the previous year.

• The Revenue, Expenses of the Company has increased by Rs. 57,354,950 Rs. 54,606,680 & and Net loss has decreased by Rs. 11,91,470 in the year 2020-21 under review thereby registering a growth of 136.75%, 125.09% and registering a decline of-61.14% respectively.

Particulars For the year ended on 31.03.2021 For the year ended on 31.03.2020
Total Revenue 99,294,930 41,939,980
Total Expenses 98,260,310 43,653,630
Net Loss n-m 7,57,300 19,48,770

• Similarly, the Current Assets & Current Liabilities of the Company has decreased by Rs. 5,11,58,580 and 35,19,900 and thereby registering a decline of 55.82% & 24.12%

Particulars For the year ended on 31.03.2021 For the year ended on 31.03.2020
Current Assets 4,04,91,280 9,16,49,860
Current Liabilities 1,10,70,740 1,45,90,640

9. Human Resources / Industrial Relations

Human resource is the most vital factor to achieve the goals of any organization. Being a progressive organization PANKAJ PIYUSH TRADE AND INVESTMENT LIMITED firmly believes in the strength of its most vital asset. The company recognizes the importance of human value and ensures that encouragement both moral and financial is extended to each individual for motivating them to perform to the maximum capacity. The company industrial relations are cordial and satisfactory during the year under review.

IR-related risks continue on account of surplus capacity at the Companys Power train systems plants and high lead time for wage settlement. These include possible risks arising from stoppage of production and/or leading to unpredictable cost structure and/or possible lay-off. The Company adopts more focused continuous action plan for wage settlement, offers attractive voluntary retirement schemes, Firm and Fair approach for settlement with contract labour and implement "selected" industry best practices. As continued process in building capability initiative, special trainings were conducted on Employee Relations and adding value to Frontline leadership development in the plant.

10. Cautionary Statement

Certain statements in this report may be forward looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. The company does not undertake to update these statements.

11. Acknowledgement

Your directors take this opportunity to place on record their appreciation to all employees for their hard work, spirited efforts, dedication and loyalty to the company which helped the company for maintaining its growth. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of the investors, vendors, dealers, business associates and employees in an ensuring an excellent all around operational performance.

For and on behalf of the Board of Directors For Pankaj Piyush and Trade Investment Limited

Place: New Delhi Date: 12th August, 2021 Sd/- Vinod Kumar Bansal Managing Director DIN:00243709 Sd/- Shweta Gupta Director DIN:07452923