First Financial Services Ltd Management Discussions.

As per IMF, World GDP growth slowed down to 2.9% in 2019 as compared to 3.6% in 2018.The ongoing COVID 19 pandemic is inflicting high human costs worldwide and the protection measures and lockdownsare severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharplyby 3.0% in 2020, which is worse than that during 2008-09 financial crisis. The company is a public limited company carrying on business of providing financial services to the public. Company has its registered office in Chennai, Tamilnadu. The company is listed on BSE Limited. Financial statements of the company are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP). GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘the Act) read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI).

A) INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company is engaged in Financial Service Activity and Consultancy Business.

B) PERFORMANCEAND OUTLOOK :

PARTICULARS FINANCIAL YEAR ENDED 31st MARCH 2020 FINANCIAL YEAR ENDED 31st MARCH 2019
Total Revenue 19,713,811.00 5,836,992.00
Profit/(Loss) Before Tax (22,685,976.00) (38,478,376.00)
Provision for Taxation - -
Current Tax - -
Deferred Tax 2,712,579.00 -
Tax of earlier year - -
Profit/(Loss) After Tax (25, 398,555.00) (38,478,376.00)

The ongoing COVID 19 pandemic is inflicting high human costs worldwide and the protection measures and lockdowns are severely impacting economic activity. In the last few years, the financial services sector was under pressure due to many factors i.e. downtrends in global markets, changes in regulatory policies, changes in RBI Polices etc. However the Company has a vision to enhance its business in the coming years.

C) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

An appropriate and adequate system of internal controls exist in your Company to ensure that all assets are safeguarded and protected against loss or from misuse or disposition, and that the transactions are authorized, recorded and reported suitably. Internal control systems are ensuring effectiveness of operations, accuracy and promptness of financial reporting and observance with laws & regulations.

The internal control is supplemented on an ongoing basis, by an extensive program of internal audit being implemented throughout the year by independent Chartered Accountants firm of "Internal Auditors". The internal audit reports along with management comments thereon are reviewed by the Audit Committee of the Board comprising of independent and non-executive Directors, on a regular basis. Implementations of the suggestions are also monitored by the Audit Committee. The internal control is designed to ensure that the financial and other records of the Company are reliable for preparing financial statements and other data, and for maintaining accountability of assets.

D) HUMAN RESOURCES POLICIES:

It is your Companys belief that people are at the heart of corporate & constitute the primary source of sustainable competitive advantage. The trust of your Companys human resource development efforts therefore is to create a responsive and market driven organization. Your Company continues its focus on strengthening competitiveness in all its business. Your directors look forward to the future with confidence. The Company has followed a conscious policy of providing training to Management Staff through in-house and external programs, for upgrading personal and technical skills in relevant areas of functional disciplines.

E) RISK MANAGEMENT:

Although the Company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion.

Therefore, in accordance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the Company through Audit Committee.

The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are Regulations, competition, Business risk, Technology obsolescence, Investments, retention of talent and expansion of facilities.

Business Risk, inter alia, further include financial risk, political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps are taken to mitigate the same.

F) OPERATIONAL PERFORMANCE PARAMETERS

In order to avoid duplication between the Directors Report and Management Discussion & Analysis, your Directors give a composite summary of the financial performance in the Directors Report.

H) DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE, INCLUDING

In the past few years, the performance of the Company is inadequate and the Company is making loss. The Company is therefore, unable to calculate key financial ratios. Further, there are no significant changes occurred.

(J) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Company has incurred loss of Rs. 25,398,555/- for the Financial year 2019-20 as compared to Rs. 38,478,376/- for the previous financial year 2018-19.

G) CAUTIONARY STATEMENT:

The statements in report of the Board of Directors and the Management Discussion & Analysis Report describing the Companys outlook, estimates or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since the Companys operations are influenced by many external and internal factors beyond the control of the Company. The Company takes no responsibility for keeping the members updated on changes in these factors except as may be statutorily required from time to time.

Place: Mumbai On behalf of the Board
Date: 01stSeptember , 2020 For First FinancialServices Limited
Sd/- Sd/-
Mr.Nirmal Singh Mertia Mr. Girishkumar Panchal
Whole Time Director Director
DIN-03584434 DIN-07227360