Prithvi Exchange (India) Ltd Management Discussions.

SCENARIO MARKET SCENARIO

Your company is one of the pioneers in Foreign Exchange Business and its identity in the industry is well established. COV1D-19 caused a devastating impact on the foreign exchange market. When all the major economies announced lockdown and put restrictions on global travel in March last year, the foreign exchange market faced the unpredicted wraith. There was no demand as far as foreign exchange was concerned as people were busy battling for their livelihoods. The situation has now improved significantly but the road to full recovery is still unknown. Foreign travel industry was one of the worst-hit sectors due to COVID crisis and the ban on international flights shut down the segment entirely. Your company which deal in currency exchange, forex cards, international remittances has a big impact on the revenue due to a complete halt amid the lockdown except money transfers and forex card re-loads which was being utilized by the customers who are or have their close relatives living overseas.

In spite of the all these damages and external threats your company is fundamentally strong to overcome this adverse situation. The company & the management is doing its every bit to overcome the impacts of the current situation. The company has undertaken various cost cutting measures and adopted remote working during the lockdown to ensure the customers requirements are fulfilled.

We are hopeful that once the International passenger flights are operational & back to its schedule, the business will be back to normalcy & gradual improvement of the epidemiological situation, continued roll-out of the COVID-19 vaccine, a significant improvement in traveller confidence and a major lifting of travel restrictions to foreign countries.

MANAGEMENT INSIGHTS

Your company is always keen in achieving great success and expanding its operations throughout the nation. As a note of positive tone, your company has submitted an application to RBI for opening a new branch in Chandigarh. Your company has also planned for diversification of business in NBFC activities for which we have sought your approval for alteration of main objects of MOA in AGM.

As we stated earlier, we have launched a Digital Forex platform for International travellers and individuals requiring forex services. The Company has consciously embarked on a path of digital transformation of forex business thereby creating a digital ecosystem for all its customer segments. In line with the Companys focus to be on the Digital map, it is our pleasure to announce the launch of "Trav FX - Forex in India" - https://www.travfx.com . At TravFx, you can buy or sell foreign currencies, remit money abroad for various purposes like Education (university fee payments), medical treatment abroad, film shooting, hotel / tour payments etc., all at the click of a button. With this, your Company hopes to create new avenues for a digital push and secure more business.Your Company aspires to provide safe & secure digital Forex solutions with Trust, Transparency, Convenience and Compliance to its customers.

CONCERNS

The uncertainty of resuming scheduled International flights in near future & fear of travel owing to health related risks are the major threats currently in addition to Margin pressure and Internet security.

INTERNAL CONTROLS AND SYSTEMS

PRITHVI EXCHANGE (INDIA) LIMITED has an adequate system of internal control in place which has been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting as set from unauthorized use or losses, Adhering compliance and regulations to ensure the reliability and integrity of reporting financial information.

RISK MANAGEMENT FRAMEWORK

The Company has a Risk Management Framework, which provides the mechanism for risk assessment and mitigation.

The Risk Management Committee (RMC) of the Company comprises the Chairman, Executive Director, CFO and members of senior management. During the year, the RMC reviewed the risks associated with the business of the Company, its root causes and the efficacy of the measures taken to mitigate the same. Thereafter, the Audit Committee and the Board of Directors also reviewed the key risks associated with the business of the Company, the procedures adopted to assess the risks and efficacy of mitigation measures.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include significant changes in political and economic condition.