Mercury Trade Links Ltd Directors Report.

To the Members,

Mercury Trade Links Limited

We have audited the standalone financial statements of Mercury Trade Links Limited, (hereinafter referred to as "the Company"), prepared as per tire Indian Accounting Standards (Ind-AS), which comprise the Balance Sheet as at 31st March 2021, the Statement of Profit & Loss including the Other Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and lire Notes to the Financial Statements, including a summary of Significant Accounting Policies and other explanatory information (collectively referred to as Financial Statements).

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred to as "the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the State of Affairs of the Company as at March 31, 2021, its Profit 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 Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of tire Financial Statements section of our report. We are independent of llie 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 Act and line 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.

Emphasis of Matter

(i) Attention is drawn to Note No. 21 of the financial statements regarding managements current assessment of the Companys assets and liabilities, The Company has carried out a detailed study to assess the impact of Covidl9, including the second wave, on its liquidity position and on the recoverability and carrying values of its assets and has concluded that there is no significant impact on account of the same on its financial statements as at 31st March 2021. The impact assessment of Covidl9 is a continuous process, given the uncertainties associated with its nature and duration. The management will continue to monitor material changes to the future economic conditions which may have an impact on the operations of the Company.

(ii) In view of the initial lockdown and ongoing lockdown the audit for the year was carried out online based on remote access of data, as provided by the management, instead of standard conventional Audit. This resulted in need for carrying out alternative audit procedures as per tire Standards on Auditing prescribed by the Institute of Chartered Accountants of India (ICAI). The Audit has been carried out based on the advisory on "Specific Considerations while conducting Distance Audit/ Remote Audit/ Online Audit under current Covid-19 situation" issued by the Auditing anil Assurance Standards Board of ICAI. We have been represented by the management that tire data provided for our audit purposes is correct, complete, reliable, and are directly generated by the accounting system of tire Company without any further manual modifications. Audit of tire financial statements has been performed in the aforesaid conditions

We have been represented by the management that the data provided for our audit purposes is correct, complete, reliable, and are directly generated by tire accounting system of the Firm without any further manual modifications. We bring to the attention of the users that tire audit of the financial statements has been performed in the aforesaid conditions.

Our report is not modified in the above two matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of tire financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to be communicated in our report.

Other Information

Tire Companys Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our Auditors report thereon.

Our opinion on tire 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 tire financial statements, our responsibility is to read tire other information and in doing so, consider whether Ihe other information is materially inconsistent with the financial statement or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If, based on tire work we have performed, we conclude Ural there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Tire Companys Board of Directors is responsible for the matters stated in Section 134(5) of lire Act with respect to the preparation of these financial statements that give a true and fair view of the financial positioir, financial performance, 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 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 tire accounting records, relevant to die 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 tire 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.

Those board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the 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 tire risks of material misstatement of the 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. Tire 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 control 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 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 a going concern;

• evaluate the overall presentation, structure and content of the financial statements including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;

Materiality is the magnitude of misstatements in the 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 wre 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 tire audit of the financial statements of the current period and are therefore the key audit matters. 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

1. 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 Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in tire Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable to the Company during the year under review.

2. Further to our comments in the Annexure referred to in Para 1 above, as required by Section 143(3) of the Act, wrc report that;

a) We have sought and obtained all the information and explanations which to tire best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;

c) The Balance Sheet, the Statenreirl of Profit and Loss, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the Companys books of account;

d) In our opinion the aforesaid Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of written representations received from the directors as on March 31, 2021, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021, from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of Section 197(16) of the Act, as amended, the Company has not paid/provided any managerial remuneration except sitting fees in the current year and hence provisions of Section 197 of the Act are not applicable to the Company;

g) 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-B.

h) With respect to the other matters to be included in the Auditors Report in accordance with the 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, we further report that:

i) The Company does not have any pending litigations which would impact its financial position;

ii) The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and

iii) There were no amounts which were required to be transferred to the Investors Education and Protection Fund by the Company.

For S M M P & Company
(formerly S M M P & Associates)
Chartered Accountants
Firm Registration No. 12043^V
Chintan Shah
Partner
Membership No. 166729
U DIN:21166729A AAAKN5729
Mumbai, dated: 29th June, 2021

Annexure -A to the Independent Auditors Report to the members of Mercury Trade Links Limited for year ended on 31st March 2021

(Referred to in paragraph V(l) of our report of even date)

In terms of the information and explanations given to us and the books and records examined by us and on the basis of such checks as we considered appropriate, we further report as under:

(i) Property, Plant and Equipment (Fixed Assets):

The Company has maintained proper records in respect of its Property. Plant and Equipment during the year under review. Tire items forming part of the Property, Plant and Equipment have been physically verified by the management at reasonable intervals during the year. No material discrepancies were found during the said verification. The Company does not hold any immovable property during the year.

(ii) Inventories:

We have been explained that during tire year, tire Company has conducted physical verification of its inventory of shares as well as mutual fund units at regular intervals, which in our opinion, is reasonable. We have been explained that no material discrepancies were noticed in the said verification.

(iii) Loans to the Parties covered under Section 189 of the Act:

During the year, the Company has not granted any loans, secured or unsecured to the parties covered in the register maintained under Section 189 of the Act.

(iv) Loans to Directors and investment by Company:

The Company has not given any loans /guarantees to or made any investments or provided any security within the purview of the Sections 185 and 186 of the Act to the directors during the year.

(v) Acceptance of Deposits:

According to the information and explanations given to us, lire Company has not accepted any deposits within the purview and the directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.

(vi) Maintenance of Cost Records:

As explained to us, maintenance of cost records has not been prescribed by the Central Government for the Company under Section 148(1) of the Act.

(vii) Undisputed & Disputed Statutory Dues

(a) According to tire information and explanations given to us and as per the records verified by us, the Company has been regular in depositing undisputed statutory dues involving Income Tax, Professional Tax and Goods & Service Tax with tire appropriate authorities and there were no arrears under the above heads which were due for more than six months from the date they become payable as at lire close of the year. Keeping in view tire present operations of lhe Company, statutes relating to Provident Fund, ES1C, Customs Duty and Cess are not applicable to the Company during the year under review.

(b) As per the records provided to us, no disputed statutory dues have been lying pending with the Company as at the close of the year under review.

(viii) Loans from Banks/Financial Institutions/ Government/Debentures:

No Loans from Banks/ Financial Institutions/Government wrere taken by the Company during the year. The Company has not issued any debentures since its inception.

(ix) Proceeds of Public issue (including debt instruments) /Term Loans:

The Company has not raised any money during the year through initial / further public offer (including debt instruments). Based on the records verified by us, no term loan was raised by the Company during the year.

(x) Frauds on or by the Company:

During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company or its officers, noticed or reported during the year, nor have we been informed of such case by the management.

(xi) Managerial Remuneration:

Ihe Managerial remuneration paid/provided for by the Company during the year under review was well writhin the limits and purview of Section 197 of the Act, read together with Schedule V to the Act.

(xii) Nidhi Companies:

The Company is not a Nidhi company during the year under review and hence, the criteria as stipulated under the Nidhi Rules 2014 are not applicable to the Company.

(xiii) Related Party Transactions:

As per the information and explanations given during the course of our verification, in our opinion, all transactions with the related parties made by the Company were in compliance with Sectionsl77 & 188 of the Act, to the extent applicable to the Company during the year, the relevant details in respect of which have boon appropriately disclosed in the financial statements.

(xiv) Preferential Issue:

During the year, tire Company has not made any preferential allotment or private placement of equity shares or convertible debentures and hence die requirements of Section 42 of die Act are not applicable.

(xv) Non-cash Transactions with Directors, etc:

As per the information and explanations provided to us, during the year, the Company has not entered into any non-cash transactions with directors or persons connected with the directors within the purview of Section 192 of tire Act.

(xvi) Provisions of 45-1A of the Reserve Bank of India Act,1934:

During the year under review, the Company is not required to be registered as a Non Banking Finance Company within tire purview of Section 45-IA of the Reserve Bank of India Act, 1934.

For S M M P & Company
(formerly S M M P & Associates)
Chartered Accountants
Firm Registration No. 120438 YV

 

Cffmtan Shah
Partner
Membership No. 166729
UD1N: 21166729AAAA KN5729
Mumbai, dated 29,h June, 2021

Annexure-B to Independent Auditors Report

The Annexure referred to in paragraph 2(f) under the Report on Other Legal and Regulatory Requirements our report to the members of Mercury Trade Links Limited, (the Company) for the year ended on March 31, 2021-

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Act

We have audited internal financial controls over financial reporting of the Company as of March 31, 2021 in conjunction with our Audit of the Financial Statements of the Company for the year then ended on that date.

Managements Responsibility for the 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by tire Institute of Chartered Accountants of India (ICAI). These responsibilities includes design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of business, including adherence to Companys policies, the safeguarding of the assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and tire timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on 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 deemed to be prescribed under Section 143(10) of the Act 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 ICAI. Those Standards and Guidance note require that we comply with ethical requirements and plan and perform audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedure 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 controls based on the assessed risk. Tire procedures selected depend on the auditors judgement, including lire assessment of tire 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 a reasonable assurance regarding tire reliability of financial reporting and preparation of financial statements for external purpose 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 the transactions are recorded as necessary to permit preparation of financial statements in accordance with tire generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of (lie 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 control 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 die degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material aspects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by die Company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S M M P & Company
{formerly 5 M M P & Associates)
Chartered Accountants
Firm Registration No. 120438 W
Chintan Shah
Partner
Membership No. 166729
UDIN: 21166729AAAAKN5729
Mumbai, dated 29th June, 2021