bluechip stockspin ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT Activity

The company is engaged in providing service. However, during the year company has not carried out any business activities.

Financial Review

Company has earned Nil Revenue from operations during the Year ended on 31.03.2017. However, Company has earned Other Income of Rs. 2,24,623 during the year. Company has incurred loss of Rs. 5,47,673 as compared to the profit of Rs. 1.11 Lakhs earned during the previous year.

Future Outlook

Based on the buoyancy of the Indian Economy, the overall scenario and steps taken by the management, the future outlook of your company looks good.

Risk Management

Back Ground and Implementation

(i) Section 134(3) of the Companies Act, 2013 (‘the Act’) required the Board of Directors of a company, as part of the Board’s Report, to give a statement indicating development and implementation of a risk management policy for the company including identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company. Additionally, Clause 49 of Listing Agreement requires to lay down procedures about the risk assessment and risk minimization.

Bluechip Stockspin Limited is prone to inherent business risks like any other organization. This document is intended to formalize a risk management policy the objective of which shall be identification, evaluating, monitoring, and minimizing identifiable risks. (ii) The Board of Directors of the Company and the Audit Committee of Directors shall periodically review the risk management policy of the Company so that management controls the risk through properly defined net work. (iii) Head of Departments shall be responsible for implementation of the risk management system as may be applicable to their respective areas of functioning and report to the Board and the Audit Committee. The risks are broadly categorized into:

Risk Category	Description
	Market Strategy, Organizational Growth-Market Penetration, Market Share
	Volatility in Commodity Market
Strategic Risks	Loss of Trade Secret
	Uncertainty surrounding political leadership in Domestic Markets
	Economic condition of the Market,, Global recession and Environmental Issues
	Consistent Revenue growth
	Cost Optimization
Optional Risks	Manpower retention
	Disaster Management and Data security
	Inefficient working capital management - High Inventory
Compliance	Ensure stricter adherence to laws/ rules/ regulations/ standards
Risks	Adherence of company Policies and Procedures
Financial and Reporting Risks	Volatility in Currency Maintaining standards of Corporate Governance and public disclosures

In adherence to the present regulatory mandates described hereinabove, risk management policy, to be implemented by departmental heads, for the purpose:

(1) Ensure an organisation relevant and perpetual Risk Management framework for identifying, assessing, responding to, monitoring or controlling and reporting risks. (2) Apply an organized, thorough approach to effectively anticipate and mitigate the probable or realistic risks that could endanger achievement of key objectives. (3) Ensure systemic risk evaluation, categorization, and prioritization thereof to assign relative importance to identified risks to determine where appropriate management attention is required. (4) Practice the highest level of control measures by installing mechanisms and tools, with involvement of all process-owners across the organization, to ensure that all applicable legal, regulatory, and business requirements are up-to-date and met. (5) Develop alternative/ recommended courses of action for critical risks and control the probability of occurrence of the risk, keeping ready contingency plans for selected risks where the consequences of the risks are determined to be high. (6) Review the activities, status, and results of the risk management process on a periodic and event-driven basis with appropriate levels of management and resolve issues i.e. gauging potential risk exposure and addressing the same with appropriate corrective action. (7) Obtaining, wherever required or desirable, the advice, opinion and assistance from outside legal, accounting, or other advisors, as necessary, to aid informed decision making.

Material Development in Human Resource

The Company will be investing appropriately with focus on customer centricity, human resources will be focused on optimum employment engagement and the talent will be strengthened vis-a –vis the performance.

Internal Control Systems

The Company has in place adequate internal control systems and procedures covering all the financial and operating functions. These have been designed to provided adequate assurance to the management regarding compliance with the accounting standards by maintenance of appropriate accounting records, monitoring the economy and efficiency of operations, protecting the assets of the Company form losses and ensuring the reliability of financial and operational information though proper compliance with the statutory enactments and its rules and regulations. Some of the significant features of the internal control systems and procedures are as follows:

• Appropriate delegation of authority limits with responsibility incurring capital and revenue expenditures.

• Approval and monitoring of annual revenue budget for all operating and service functions.

• Procedure for approval of capital budget proposals and monitoring the expenditure on such acquisitions.

• Formulating and reviewing the annual and long-term business plans.

• A comprehensive code of conduct for ensuring the integrity of financial reporting, ethical conduct, regulatory compliances and conflict of interest, if any.

• Review of the operations and financial plans in key business areas through monthly management meetings.

• Appointment of an independent experienced accountant for conducting internal audit for reporting to the management and the Audit committee, the adequacy and compliance with the internal controls and efficiency and effectiveness of operations. of internal controls, compliance with the accounting standards, as well as recommends to the Board the adoptions of the quarterly and annual results of the company and appointment of auditors. The Audit Committee also reviews the related party transactions, entered into by the company during each quarter.

Environmental Issues

As the company is not in the field of manufacture, the matter relating to produce any harmful gases and the liquid effluents are not applicable.

Cautionary Statement

Statement in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially, from those expressed or implied. Important factors that could make a difference to the company’s operations include global and domestic conditions. And changes in government regulation and tax structure, economic development within India and the countries with which the company has business contacts and other factors such as litigation and industrial relations.

The Company assumes no responsibility in respect of forward - looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events.

Place: Ahmedabad	For and on behalf of the Board
Date: 30.05.2017	SD/-
	Karan P. Shah
	Managing Director
	DIN : 05343920

DECLARATION UNDER CLAUSE 49 OF THE LISTING AGREEMENT

The Member of Bluechip Stockspin Limited

The Board has laid down a code of conduct for all Board Members and Senior Management of the Company. The Board members and Senior Management have affirmed compliance with the code of conduct.

Place: Ahmedabad	For and on behalf of the Board
Date: 30.05.2017	SD/-
	Karan P. Shah
	Managing Director
	DIN : 05343920