Five X Tradecom Ltd Management Discussions

The Management Discussion and Analysis Report for the year ended 31^st March, 2020 as stipulated under Regulation 34 (2) (e) read with Schedule V of SEBI (LODR) Regulations 2015, have been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise. The operational performance and future outlook of the business has been reviewed by the management based on current resources and future development of the Company.

Economic Overview:

The operation of the company during majority of the year was mainly centered in Textiles Industry, Finance Business and Share Trading. The company was dealing in Lending, Advancing and Depositing Money in Industrial and other Undertakings and Businesses and to deal in acquiring, selling, subscribing, transferring, holding, disposing, and otherwise dealing and investing in shares, securities, movables, etc.

Segment-wise Performance:

The Company operates in two reportable segments i.e. Commodity Business and Finance & Share Trading Activities. The Business Segments has been identified as separate segment in accordance with Accounting Standard 17 ‘Segment Reporting.

Risk & Concerns:

Risk is an inherent part of any business. There are various types of risks that threat the existence of a company like Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk, Strategic Risk, Regulation Risk etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns. In todays complex business environment, almost every business decision requires executives and managers to balance risk and reward. Effective risk management is therefore critical to an organizations success. Globalization with increasing integration of markets, newer and more complex products and transactions and an increasingly stringent regulatory framework has exposed organizations to and integrated approach to risk management. Timely and effective risk management is of prime importance to our continued success.

Risk Management:

Risk Management is an important business aspect in the current economic environment and its objective is to identify, monitor and take mitigation measures on a timely basis in respect of the events that may pose risks for the business.

The Company has a robust Risk Management Policy and Procedure in place for effective identification and monitoring of risks and implementation of mitigation plans. The Risk Management Committee reviews and monitors the identified risks and mitigation plans at regular interval. The Audit Committee has been periodically reviewing the risk profile of the Company and evaluating the adherence by the branches / functions of the systems and processes in place for monitoring, evaluation, assessment and mitigation of risk through a systematic and effective audit programme. The observations of Audit Committee, if any, on the risk management are reported to the board.

Opportunities and Threats:

Growth of the companys asset book, quality of assets and ability to raise funds depends significantly on economy. Unfavorable events in the Indian economy can affect consumer sentiments and in turn impact consumer decision to purchase financial products. Competition from a broad range of financial service providers, unstable political environment, changes in government policies/ regulatory framework could impact the companys operations.

Internal Control Systems and their Adequacy:

Internal control systems are embedded in the processes across all functions in the Company. These systems are being regularly reviewed and wherever necessary are modified or redesigned to ensure better efficiency and effectiveness. The systems are subjected to supervision by the Board of Directors and the Audit Committee, duly supported by Corporate Governance. The company Complies with all the applicable statutes, policies, procedures, listing requirements and management guidelines. It Adheres to applicable accounting standards and polices.

Human Resources:

a. The Management believes in maintaining cordial relations with its employees. The management recognizes the importance of Human Resources and effective steps will be taken to strengthen the same depending on the requirements.

b. The Company provided excellent working environment so that the individual staff can reach his/her full potential.

c. The Company is poised to take on the challenges and march towards accomplishing its mission with success.

d. The Company maintained good Industrial/Business relation in market which enhanced the creditworthiness of the Company.

Outlook:

The financial year 2021-2022 could well be the period that witnesses a strong and sustained economic upsurge. The outlook of the company for the year ahead is to diversify risk and stabilize its asset quality. The company will adopt a cautious approach and focus on customer relationships.

Cautionary Statement:

Statement in the Management Discussion and Analysis describing the Companys objectives exceptions or predications may be forwards looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement. Several factors could make significant difference to the companys operation. These include climatic conditions and economic conditions affecting demand and supply, Government regulations and taxation, natural calamities etc. over which the company does not have any control.

CEO / CFO CERTIFICATION

To,

The Board of Directors, Five X Tradecom Limited

We hereby certify that:

1. We have reviewed financial statements and the cash flow statement for the year ended 31^st March 2021 and that to the best of our knowledge and belief;

a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. b. These statements together present a true and fair view of the Companys affairs are in compliance with existing accounting standards, applicable laws and regulations.

2. No transaction is entered into by the Company during the year which is fraudulent, illegal or violative of the Companys Code

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

4. We have indicated to the auditors and the Audit Committee:

a. Significant changes in internal control over financial reporting during the year. b. Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and c. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Companys internal control system over financial reporting.

For Five X Tradecom Limited

Sd/-

Vijayshree Desai

Chief Financial Officer

Date: 04/09/2021.