mercury trade links ltd Management discussions

ECONOMIC OUTLOOK

The global economy reported de-growth of 3.5% in 2020 compared to a growth of 2.9% in 2019. This steep decline in global economic growth was largely due to the outbreak of the novel corona virus and consequent suspension of economic activities across the world. The global economy is projected to grow by 5.5% in 2021 largely due to the successful roll-out of vaccines across the globe, coupled with policy support in large economies.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The growth of the Company is subject to opportunities and threats as are applicable to the company from time to time. The Company derives its income primarily from investments in financial instruments. The Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at4 per cent while maintaining an ‘accommodative stance as long as necessary to support the economic recovery and to help mitigate the negative impact of COVID-19. IMPACT OF COVID-19

The outbreak of the deadly COVID-19 virus and the ensuing lockdown imposed across the country affected business operations. The health of the employees and workers became a priority; stoppage of operations for an uncertain period resulted in a large financial burden on the one hand and workforce idling on the other. COVID-19 is an unprecedented challenge. However, towards later part of the year consequent to significant opening of the economic activity across the nation the demand picked up compared to that during the initial period of Covid-19. India is currently experiencing a massive second wave of Covid-19 infections. Since there is significant uncertainty with respect to complete opening up of the economy, it is difficult to ascertain the extent of impact of Covid-19 on performance of the Company in the year 2021-2022.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company does not carry on any manufacturing activity and therefore there are no reportable segments in the Companys operation. The surplus funds of the Company are invested in money market instruments which generates investment income.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE

There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:

This ensures orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention of errors, accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

The internal financial controls with reference to the financial statements were adequate and operating effectively.

EMPLOYEES/ HUMAN RESOURCES

During the year, relations with employees remained cordial.

Your Company has always believed that Human Resource is the most important resource and continues to work for its development. The functioning and activities were further aligned to Companys Business objectives. The Human Resource Development activities focused on multi-skill training, performance and improvement etc.

PRESENTATION OF FINANCIAL STATEMENTS

During the year under review, the Company recorded a profit of Rs 6.96 Lacs before depreciation and tax as compared to loss of Rs 29.85 Lacs in the previous year. After providing for depreciation, tax and other comprehensive income, the profit for the year under review was Rs 7.38 Lacs as compared to loss of Rs 30.51 Lacs for the previous year.

DEPOSITS

The Company has not accepted any deposits from the public within the meaning of Section 73 and 76 of the Companies Act, 2013 and Rules made there under. There were no unclaimed or unpaid deposits as on arch 31, 2021.