To the Members of FIVE X TRADECOM LIMITED (Formerly known as Five X Finance &
Investment Limited)
Report on the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone Ind AS financial statements of FIVE X
TRADECOM LIMITED (Formerly known as Five X Finance & Investment Limited) (“the
Company”), CIN- L74110MH2010PLC201249, which comprise the Balance Sheet as at 31st
March 2021, and the statement of Profit and Loss (including Other Comprehensive Income),
Statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid standalone financial statements
give the information required by the Companies Act,2013 “the Act” in the manner
so required and give a true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules,2015, as amended “Ind AS” and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2021, and profit/loss including total comprehensive income, changes in equity and its
cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Standalone Ind AS Financial Statements and Auditors Report
Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the standalone financial statements and our auditors report thereon. Our opinion
on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon. In connection with our audit of the
standalone financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained during the course of our audit
or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information; we are
required to report that fact. We have nothing to report in this regard.
Responsibility of Management for the Standalone Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, (changes in equity) and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
accounting Standards specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate implementation
and maintenance of accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial
statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error. In preparing the financial statements, management is responsible
for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. The Board of Directors are also
responsible for overseeing the companys financial reporting process
Auditors Responsibility for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements. As part of an audit in accordance with SAs, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also: Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls. Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as going concern. Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation. Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating the results of our work; and (ii)
to evaluate the effect of any identified misstatements in the financial statements. We
communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit. We also provide those
charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards. From the matters communicated with those charged with
governance, we determine those matters that were of most significance in the audit of the
standalone financial statements of the current period. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 (“the Order”),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the “Annexure B” a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
We have sought and obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purposes of our audit.
a. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
b. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
c. In our opinion, the aforesaid standalone financial statements comply with the IND AS
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
d. On the basis of the written representations received from the directors as on 31st
March, 2021 taken on record by the Board of Directors, none of the directors are
disqualified as on 31st March, 2021 from being appointed as a director in terms of Section
164 (2) of the Act. e With respect to other matters to be included in the auditors report
in accordance with the requirement of section 197(16) of the Act, as amended: In our
opinion and to the best of our information and according to the explanations given to us,
the remuneration paid by the Company to its Directors during the year is in accordance
with the provisions of section 197 of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in “Annexure A”.
g. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
1 The Company has represented that it does not have any pending litigations which would
impact its financial position. Refer Note 16 to the Standalone IND AS Financial
Statements.
2. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
3. The Company is not liable to transfer any amount to the Investor Education and
Protection Fund. Therefore, there has been no delay in transferring amounts required to be
transferred to, the Investor Education and Protection Fund by the Company.
4. The company has not appointed an Internal Auditor or a firm of Internal Auditors for
conducting Internal Audit of the company as required under section 138 of the Companies
Act 2013, read with Rule 13 of Companies (Accounts) Rules 2014.
ANNEXTURE ‘A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE
IND AS FINANCIAL STATEMENTS OF FIVE X TRADECOM LIMITED (Formerly known as Five X Finance
& Investment Limited)
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section
143 of the Companies Act, 2013 (‘the Act)
We have audited the internal financial controls over financial reporting of FIVE X
TRADECOM LIMITED (Formerly known as Five X Finance & Investment Limited) (‘the
Company) as of 31st March 2021.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the Companys policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the ‘Guidance Note) and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting were established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of the
Management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the
following material weakness have been identified as at March 31, 2021.
a) The Company did not have an appropriate internal control system for granting Loans,
Demand and other loans given are governed by the Board Policies. Considering the close
monitoring of Board no appraisal, renewal, Policies, Procedure, Committee or documents
have been prescribed and executed.
b) The Companys internal control system is not commensurate to the size and scale of
operation over purchase and sale of shares and inventory and for expenses incurred.
A ‘material weakness is a deficiency, or a combination of deficiencies, in
internal financial control over financial reporting, such as there is a reasonable
possibility that a material misstatement of the Companys annual or interim financial
statements will not be prevented or detected on a timely basis.
In our opinion, except for the effects/possible effects of the material weakness
described above on the achievement of the objectives of the control criteria, the Company
has maintained, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting
were operating effectively as at 31st March 2021, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
We have considered the material weakness identified and reported above in determining
the nature, timing, and extent of audit tests applied in our audit of the 31st
March, 2021 financial statements of the Company, and the material weakness does not affect
our opinion of the financial statements of the Company.
ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
Reports on Companies (Auditors Report) Order, 2016 (‘the Order) issued by the
Central Government in terms of Section 143(11) of the Companies Act, 2013 (‘the Act)
of FIVE X TRADECOM LIMITED (Formerly known as Five X Finance & Investment Limited):
1. In respect of companys Fixed Assets:
(a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no material discrepancies were noticed on such verification.
(c) The Company does not hold any Immovable properties. Hence this clause is not
applicable
2. As the Company does not hold any inventory the Clause pertaining to reasonableness
of verification and materiality of discrepancy is not applicable.
3. The Company has granted loans to entities covered in the register maintained under
section 189 of Companies Act, 2013.
a) The terms and conditions of the grant of such loan are not prejudicial to the
Interest of the Company.
b) No schedule of repayment of principal and payment of interest has been stipulated.
c) There are no overdue amounts in respect of the loan granted to a body corporate
listed in the register maintained under section 189 of the Act
4.In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act in respect of
grant of loans, making investments and providing guarantees and securities, as applicable.
5. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits in contravention of Directives issued by Reserve
Bank of India and the provisions of section 73 to 76 or any other relevant provisions of
the Act and the rules framed there under, where applicable. No order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other tribunal.
6. The Central Government has not prescribed the maintenance of cost records under
section 148(1) of the Act, for any services rendered by the Company.
7. According to the information and explanation given to us, in respect of
statutory dues:
(a) According to the records of the Company the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues statutory dues
applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, service Tax, sales tax, goods and service
tax, custom duty, excise duty and cess were in arrears, as at 31st March, 2019
for a period of more than six months from the date they became payable
(c) According to the information and explanations given to us, there are no dues of
sales tax, income tax, custom duty, wealth tax, excise duty and cess that have not been
deposited with appropriate authorities on account of any dispute.
8.Based on our audit procedures and according to the information and explanations given
to us, we are of the opinion that the company has not borrowed from financial Institution,
Debentures and Government and the question of default does not arise.
9. The Company has not raised money by initial public offer or further public offer
during the year. The Company has not taken any term loans during the year.
10. Based upon the audit procedures performed and according to the information and
explanations given to us, no fraud by the company or any fraud on the company by its
officers or employees has been noticed or reported during the course of our audit, that
causes the financial statements to be materially misstated.
11.The Managerial remuneration has been paid or provided in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act.
12.The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the
Order is not applicable.
13.Based upon the audit procedures performed and according to the information and
explanations given to us, all transactions with related parties are in compliance with
sections 177 and 188 of Companies Act, 2013 where applicable and the details have been
disclosed in the Financial statements etc. as required by the applicable accounting
standards.
14.The Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review and hence this
clause in not applicable
15. The Company has not entered into any non-cash transactions with directors or
persons connected with him and hence provision of Section 192 of the Act is not
applicable.
16. As per provisions of Section 45-IA of RBI Act 1934, a Company is classified under
various categories of Finance Company if a Companys Financial assets are more than 50% of
the total assets of the Company and Gross Income from Financial Activities constitute more
than 50% of Gross Income. In view of these provisions, the Company is required to be
registered under section 45-IA of the Reserve Bank of India Act, 1934 as both the
Financial Assets exceeds 50% of total assets as well as Income from Financing activities
exceeds 50% of Gross Income during the year.
| For PMPK & Company |
| Chartered Accountants |
| Firm Regn. No 019681N |
| CA Manikant Vashistha |
| Partner |
| M. No. 075198 |
| Place: Mumbai |
| Date: 6th May, 2021. |
+91-9892691696
