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Five X Tradecom Ltd.

BSE: 536751 Sector: Financials
NSE: N.A. ISIN Code: INE750L01019
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NSE 05:30 | 01 Jan Five X Tradecom Ltd
OPEN 0.43
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VOLUME 3000
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P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.43
Buy Qty 100.00
Sell Price 0.43
Sell Qty 5147.00
OPEN 0.43
CLOSE 0.43
VOLUME 3000
52-Week high 0.96
52-Week low 0.35
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.43
Buy Qty 100.00
Sell Price 0.43
Sell Qty 5147.00

Five X Tradecom Ltd. (FIVEXTRADECOM) - Auditors Report

Company auditors report

To

the Members of

Five X Tradecom Limited

(Formerly Known as "Five X Finance & Investment Ltd")

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of Five XTradecom Limited (Formerly Known as "Five X Finance & Investment Ltd.") ("theCompany") which comprise the balance sheet as at 31 March 2018 the statement ofprofit and loss and the cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS)specified under Section 133 of the Act read with relevant rules issuedthereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the company as at 31st March2018 and its financialperformance including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with relevant ruleissued thereunder;

(e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) with respect to adequacy of internal financial control over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin "Annexure B" and

(g) with respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements Refer Note no. 23 to the standaloneInd AS financial statements;

ii. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The company is not liable to transfer any amounts to the Investor Education andProtection Fund. Therefore there has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

For Pravin Chandak & Associates

Chartered Accountants

Firm's Registration Number: 116627W

Sd/-

Pravin Chandak

Partner

Firm's registration number: 116627W

Membership Number: 049391

Place: Mumbai

Date: 26/05/2018

Annexure- A to theAuditors' Report as on 31st March 2018

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31 March 2018 we report that:

(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The company has a regular programme of physical verification of fixed assets. Nomaterial discrepancy was noticed during physical verification.

(c) The company does not have any immovable property hence the clause is notapplicable.

(ii) As informed to us the equity shares held as inventories in dematerializedform have been verified by the management with supportive evidence during the year. Andfor other unquoted equity shares held as inventories the procedures performed by themanagement for physical verification were found to be satisfactory. No materialdiscrepancy was found.

(iii)

(a) The Company has granted loans to One party covered in the register maintained undersection 189 of the Companies Act 2013 (‘the Act') and terms and conditions of thegrant of such loans are not prejudicial to the company's interest.

(b) In the case of the loans granted to any parties in the register maintained undersection 189 of the Act the borrowers have been regular in the payment of the interest asstipulated. The terms of arrangements do not stipulate any repayment schedule and theloans are repayable on demand. Accordingly paragraph 3(ii) (b) of the order is notapplicable to the Company in respect of repayment of the principal amount.

(c) There are no overdue amounts for period of more than ninety days in respect of theloans granted to the bodies corporate listed in the register maintained under section 189of the Act.

(iv) The company has complied with the provisions of section 185 and 186 of theCompanies Act 2013.

(v) During the year Company has not accepted any deposits from the public hencethe clause is not applicable.

(vi) The Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on thebasis of our examination of the records of the Company amounts deducted/ accrued in thebooks of account in respect of undisputed statutory dues including provident fund incometax goods and service tax cess and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities. As explained tous the Company did not have any dues on account of employees' state insurance and duty ofexcise

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax goods and sevice tax were in arrears asat 31 March 2018 for a period of more than six months from the date they became payable.However company is subject to pay dues under Professional Tax but no amount was depositedtill the reporting date.

(viii) The Company did not have any outstanding dues to financial institutionsbanks or debenture holders during the year.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer during the year. The company has not taken any term loans during the year.

(x) According to the information and explanations given to us no material fraud onor by the Company has been noticed or reported during the course of our audit. (xi) Thecompany has paid managerial remuneration in accordance with provisions of the section 197read with Schedule V of the Companies Act.

(xii) The company is not a Nidhi Company hence the clause is not applicable.

(xiii) All the transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 and the necessary details have been disclosedin the Financial Statements etc as required by the applicable accounting standards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.

As per provisions of section 45-IA of RBI Act 1934 a company is classified undervarious categories of Finance company if the company's financial assets are more than 50%of the total assets of the company and Gross Income from Financial activities constitutemore than 50% of the gross income. The company is required to be registered under section45-IA of the Reserve Bank of India Act 1934 however it has not obtained registration

ForPravin Chandak & Associates

Chartered Accountants

Firm's Registration Number: 116627W

Sd/-

Pravin Chandak

Partner

Firm's Registration Number: 116627W

Membership Number: 049391

Place: Mumbai

Date: 26/05/2018

Annexure- B to the Auditor's Report as on 31st March 2018

Report on the Internal Financial Controls under Clause (i) of sub- section 3 of theSection 143 of the Companies Act 2013 (‘the Act)

We have audited the internal financial controls over financial reporting of M/s.Five X Tradecom Limited (Formerly Known as "Five X Finance & InvestmentLtd.") (‘The company) as of 31st March 2018 in conjunction with ouraudit of the financial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountant of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Not on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control-based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorization of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2018.

a) The Company did not have an appropriate internal control system for granting Loans.Demand and other loans given are governed by the Board policies. Considering the closemonitoring of Board no appraisal renewal Policies Procedure Committee or documentshave been prescribed and executed.

b) The Company's internal control system is not commensurate to the size and scale ofoperation over purchase and sale of share and inventory and for expenses incurred.

A ‘material weaknesses' is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis.

In our opinion except for the effects / possible effects of the material weaknessesdescribed above on the achievement of the objectives of the control criteria the Companyhas maintained in all material respects adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31 2018 based on the internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2018financial statements of the Company and the material weaknesses does not affect ouropinion on the financial statements of the Company.

ForPravin Chandak & Associates

Chartered Accountants

Firm's registration number: 116627W

Sd/-

Pravin Chandak

Partner

Membership number: 049391

Firm's registration number: 116627W

Place: Mumbai

Date: 26/05/2018