To the Members of
M/S MAHAVEER INFOWAY LIMITED.
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying Consolidated financial statements of M/S MAHAVEER
INFOWAY LIMITED ("the Company") which comprise the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as "the Consolidated financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Consolidated financial statements give the information required
by the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the Loss and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion:
We conducted our audit of the Consolidated financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Companies Act,2013. Our
responsibilities under those standards are further described in the Auditors
Responsibilities for the Audit of the Consolidated Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the Consolidated Financial Statements under
the provisions of the Companies Act,2013 and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
ICAIs Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Consolidated financial statements.
Key Audit Matters:
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Consolidated Financial Statements of the current period.
These matters were addressed in the context of our audit of the Consolidated 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 the matters described below to be
the key audit matters to be communicated in our report.
Information Other than the Consolidated Financial Statements and Auditors Report
Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprise the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the Consolidated Financial Statements and our Auditors report thereon.
Our opinion on the Consolidated 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 the Consolidated financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the Consolidated financial statements,
or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Consolidated Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act")with respect to the preparation of
these Consolidated financial statements that give a true and fair view of the financial
position, financial performance, total comprehensive income, changes in equity and cash
flows of the Company in accordance with the Ind AS and other accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under Section133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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 the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the Consolidated 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. The Board of Directors are responsible for overseeing
the Companys financial reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated
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 Consolidated financial statements.
Report on Other Legal and Regulatory Requirements.
1. As required by Section143(3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the 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 it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash flow dealt with by
this Report are in agreement with the books of account maintained for the purpose of
preparation of these financial statements.
(d) In our opinion, the aforesaid Consolidated financial statements comply with the Ind
AS specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts)
Rules, 2014.
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2)of the
Act;
(f) 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 A " and
(g) As required by the Companies (Auditors report) Order 2020 ("the
Order")issued by the Central Government in terms of Section 143(11) of the Act, we
give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4
of the Order.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (i) The Management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
Company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(iii) Based on such audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
in (a) and (b) above, contain any material misstatement.
v. Since the Company has not declared or paid any dividend during the year, the
question of commenting on whether dividend declared or paid is in accordance with Section
123 of the Companies Act, 2013 does not arise.
|
For M/s. KALYANA & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 007095S) |
|
CA N. Kalyana Sundar |
|
Partner |
| Place: Hyderabad |
Membership No. 204247 |
| Date : 29.05.2023 |
UDIN: 23204247BGYMYK1073 |
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/S
Mahaveer Infoway Limited ("the Company") as of March 31, 2023 in conjunction
with our audit of the Consolidated financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company 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 the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the 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, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the 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 procedures 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 control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the 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 reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes 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
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
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 controls 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
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanation given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls system over financial
reporting were operating effectively as at March 31, 2023, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
|
For M/s. KALYANA & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 007095S) |
|
CA N. Kalyana Sundar |
|
Partner |
| Place: Hyderabad |
Membership No. 204247 |
| Date : 29.05.2023 |
UDIN: 23204247BGYMYK1073 |
"ANNEXURE - B" TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement section of our report to the members of M/s Mahaveer Infoway
Limited of even date to the Standalone Financial Statements of the Company for the year
ended March 31, 2023, we report that:
i. In respect of the Companys Fixed Assets:
a. i. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment;
ii. Whether the company is maintaining proper records showing full particulars of
intangible assets – Not Applicable.
b. The company has a program of verification to cover all the items of fixed assets in
a phased manner which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. Pursuant to the program, certain fixed assets were
physically verified by the management during the year. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us, the records examined by
us and based on the examination of the conveyance deeds/ registered sale deed provided to
us, we report that, the title deeds, comprising all the immovable properties of land and
buildings which are freehold, are held in the name of the Company as at the balance sheet
date.
d. The Company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
e. According to the information and explanations given to us, the records examined by
us we report that there are no proceedings have been initiated or are pending against the
company for holding any Benami property under the "Benami Transactions (Prohibition)
Act, 1988 and Rules made thereunder;
ii. The company is in the business of sale of Cell Phones, Software Security Services
and Staffing and Related services and have physical inventories. Accordingly, reporting
under Clause2 of the Order is applicable to the company.
a. Physical verification of inventory has been conducted at reasonable intervals by
management.
In our opinion, the coverage and procedure by the management is appropriate. The
aggregate of discrepancies of 10% or more in each class of inventory noticed have been
properly dealt with in the books of account.
b. During year, the Company has not been sanctioned any, limits in excess of Rs. 5
crores, in aggregate, from banks or financial institutions on the basis of security of
current assets and the quarterly returns or statements filed by the Company with such
banks or financial institutions are in agreement with the books of account of the Company.
iii. During the year the company has not made investments in, provided any guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or any other parties.
(a) During the year the company has not provided any loans or advances in the nature of
loans, or stood guarantee, or provided security to any other entity.
A. the aggregate amount during the year, and balance outstanding at the balance sheet
date with respect to such loans or advances and guarantees or security to subsidiaries,
joint ventures and associates - NIL
B. the aggregate amount during the year, and balance outstanding at the balance sheet
date with respect to such loans or advances and guarantees or security to parties other
than subsidiaries, joint ventures and associates - NIL
(b) In respect of the investment have made by the company in its subsidiaries Techminfy
Info Solutions LLP and Mahaveer Telecom Private Limited, an amount of Rs. 64,33,830 has
been written off during the year towards diminution in the value of investments as the
said subsidiaries have stopped their operations. As explained to us the company has not
provided any guarantees, security given if any and the terms and conditions of the grant
of all loans and advances in the nature of loans and guarantees provided are not
prejudicial to the companys interest;
(c) in respect of loans and advances in the nature of loans the schedule of repayment
of principal and payment of interest has been stipulated and the repayments or receipts
are regular – Not Applicable.
(d) In respect of loans and advances the amounts are not overdue.
(e) No loan or advance in the nature of loan granted which has fallen due during the
year, has been renewed or extended or fresh loans granted to settle the overdues of
existing loans given to the same parties.
(f) the Company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment; Loans to
promoters, related parties as defined inclause (76) of Section 2 of the Companies Act,
2013, are not applicable.
iv. In respect of loans, investments, guarantees, and security the provisions of
section 185 and 186 of the Companies Act, 2013 have been complied.
v. The Company has not accepted any deposits, or amounts which are not deemed to be
deposits, whether the directives issued by the Reserve Bank of India and the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the
rules framed thereunder, are not applicable.
vi. Maintenance of cost records has not been specified by the Central Government under
subsection (1) of section 148 of the Companies Act , 2013 .
vii. (a) The company is regular in depositing undisputed statutory dues including Goods
and Service Tax, provident fund, employees state insurance, income-tax, sales-tax,
service tax, duty of customs, duty of excise, value added tax, cess and any other
statutory dues to the appropriate authorities, except for Professional Tax amounting to Rs
1,25,400/-.
(b) Statutory dues referred to in sub-clause (a) have been deposited on account of any
dispute.
viii. There are no transactions recorded in the books of account have been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961.
ix. (a) The company has not defaulted in repayment of loans or other borrowings or in
the payment of interest thereon to any lender.
(b) The company is not declared willful defaulter by any bank or financial institution
or other lender.
(c) The term loans were applied for the purpose for which the loans were obtained.
(d) Funds raised on short term basis have not been utilised for long term purposes.
(e) The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
(f) The Company has not raised any loans from subsidiaries / Associates / Joint
ventures during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies.
x. (a) No Monies raised by way of initial public offer or further public offer
(including debt instruments) during the year.
(b) The Company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year and
the requirements of Section 42 and Section 62 of the Companies Act, 2013 have been
complied with and the funds raised have been used for the purposes for which the funds
were raised are not applicable.
xi. (a) There is no fraud by the company or any fraud on the Company has been noticed
or reported during the year.
(b) No report under sub-Section (12) of Section 143 of the Companies Act has been filed
by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and
Auditors) Rules 2014 with the Central Government.
(c) The auditor has considered whistle-blower complaints, if any, received during the
year by the Company.
xii. (a) The Company is not a Nidhi Company and the Nidhi Company compliance with the
Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability are not
applicable
(b) The Company is not a Nidhi Company is maintaining ten per cent unencumbered term
deposits as specified in the Nidhi Rules, 2014 to meet out the liability are not
applicable.
(c) There has been no default in payment of interest on deposits or repayment thereof
for any period .
xiii. All transactions with the related parties are in compliance with sections 177 and
188 of Companies Act where applicable and the details have been disclosed in the Financial
Statements etc., as required by the applicable accounting standards;
xiv. (a) The company does not have an internal audit system commensurate with the size
and nature of its business.
(b) No reports of the Internal Auditors for the period under audit were available and
not considered.
xv. The company has not entered into any non-cash transactions with directors or
persons connected with him and the provisions of section 192 of Companies Act are not
applicable;
xvi. a. The company is not required to be registered under section 45-1A of the Reserve
Bank of India Act, 1934.
b. The Company has not conducted any Non-Banking Financial or Housing Finance
activities and Certificate of Registration (CoR) from the Reserve Bank of India as per the
Reserve Bank of India Act 1934 has not been sought.
c. The Company is not a Core Investment Company (CIC) as defined under the Regulations
by the Reserve Bank of India.
d. The Group does not have CIC as part of the Group.
xvii. The Company has not incurred cash losses in the Financial Year 2022-23 and
2021-22.
xviii. There has been resignation of statutory Auditor during the year. There were no
issues, objections or concerns raised by the outgoing auditors.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, whether the auditor is of the opinion that no material uncertainty exists as on the
date of the audit report that company is capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date.
xx. Provisions of Section 135(5) of Companies Act,2013 are not applicable.
xxi. There are no qualifications or adverse remarks by the respective auditors in the
Companies (Auditors Report) Order (CARO) reports of the companies included in the
consolidated financial statements.
|
For M/s. KALYANA & Co. |
|
Chartered Accountants |
|
(Firm Registration No. 007095S) |
|
CA N. Kalyana Sundar |
|
Partner |
| Place: Hyderabad |
Membership No. 204247 |
| Date : 29.05.2023 |
UDIN: 23204247BGYMYK1073 |
+91-9892691696
