MANAGEMENT DISCUSSION AND ANALYSIS REPORT FOR THE YEAR ENDED 31ST MARCH, 2015

FINANCIAL REVIEW

Provestment Services Limited has bestowed its credit Full Fledged Money Changer License and ticketing business and has shown satisfactory financial and operating performance during the period under review  i.e. 2014-2015.

RESOURCES AND LIQUIDITY

The Company relied upon internal and retained resources. During the year, the liquidity position of the Company was satisfactory.

INDUSTRY SCENARIO

The Foreign Exchange business and Tour and Travel in the Private Sector in India is rebrsented by a mix of few large Companies with nationwide brsence and a large number of small and medium size Companies with regional focus. These Companies provide a variety of services

Your Company has not been much affected by the external environment and hence it has been catering to core retail clients by carrying on very attractive and new methods of financing. The Company has its online website for the ease of its clients and applied for Trade Mark PROYATRA.COM to strengthen its brand in the market.

Now the Company has also decided to diversify its business to power trading as a new venture may be fruitful in future.

OPPORTUNITIES

India's size and massive natural, geographic, cultural and artistic diversity offers enormous opportunities for the travel and tourism industry. The promotion and aggressive marketing measures undertaken by the government is expected to aid influx of tourists. The industry would also benefit from introduction of new forms of tourism and development of niche segments. PSL is well placed to identify retail clients and to provide them with convenient servicing.

CHALLENGES

The entire Foreign Exchange Sector faces competitive brssure from the Banking Sector which has access to lower cost of financing.

Security has been a major issue for the growth of tourism for a number of years. However, the government needs to take a proactive approach in addressing these issues and in averting the potential impact on the industry.

REGULATORY ISSUES

For inbound international tourists, visa procedures are seen as a hindrance. A number of countries competing with India for tourists provide visa on arrival. India should provide visa on arrival for more countries or for certain categories of tourists for a specific duration.

RISKS AND CONCERNS

The Company is exposed to risks like volatility in the Indian Economy, falling interest rates, competition from the Banking Sector, volatile economic cycle, market risks, credit risk, and failure of many FFMC during the past few years. PSL manages these risks by maintaining a conservative financial profile and by following prudent business and risk management practices.

TAXATION

Travel and tourism in India is a high-taxed industry, which makes India expensive as a tourist destination. This is affecting the growth of the industry in India and India is losing out to other low-cost destinations. Inbound tourism is the most affected. Various taxes are levied across the entire industry right from tour operators, transporters, air line industry to hotels and these include service tax, luxury tax and various taxes on transportation etc. However, these tax rates tend to vary across different states in the country.

INTERNAL CONTROL SYSTEM

Your Company has proper and adequate internal controls to assure that all activities are monitored and controlled against any unauthorized use or disposition of assets and that all the transactions are authorized, recorded, reported and monitored correctly. The Company works in a fully computerized environment and all its operations including accounts and MIS are electronic.

The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines may relates to SEBI, RBI, IATA, MCA etc.

An Audit Committee has been formed to review and strengthen the adequacy of internal control.

On behalf of the Board of Directors For PROVESTMENT SERVICES LIMITED

 (Deepika Rajput)

Company Secretary(PAN: AMUPD4639A)

(Add: H No. 200, 3rd Floor, Bhai Parmanand Colony East, Delhi-110009)

(Anil Lakhani)

Director DIN: 00450542)

(Add: A-16/1, Rishi Apartment, 282/1, Saket, Meerut, U.P-250001)

(Praveen Bhatia)

Director  ( (DIN: 00147498)

 (Add: W-12/30, DLF-3, Gurgaon, Haryana-122001)