To the Members of TEJ INFOWAYS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements M/s TEJ INFOWAYS LIMITED
("the Company"), which comprises the Balance Sheet as at March 31, 2017, the
Statement of Profit and Loss and cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the 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 and
presentation of these financial statements that give a true and fair view of the financial
position, 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, read with relevant rules issued there under. This
responsibility 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;
design, implementation and maintenance of adequate internal financial controls, that are
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.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal financial control relevant to the Companys preparation of the
financial statements that give a true and fair view, in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by the Companys Directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the 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 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 31st
March 2017, its Profit and its cashflows for the year ended on that date.
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, we give in the Annexure A, a statement on the matters Specified in paragraphs 3
and 4 of the Order.
2. As required by section 143(3) of the Act, we further 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 purpose 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, Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the applicable
Accounting Standards specified under Section 133 of the Act, read with relevant rules
issued there under.
e) On the basis of written representations received from the directors as on March 31,
2017, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2017, 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 B; and
g) With respect to other matters to be included in the Auditors Report in accordance
with 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:
i. The Company has no pending litigations on its financial position in its notes to
financial statements.
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. The company had provided requisite disclosures in its financial statements as to
holdings as well as dealings in SBNs during the period from 8th Nov 2016 to 30thDec
2016.and these are in accordance with the books of account prepared by the company.
For P. Murali & CO., Chartered Accountants
Firm Registration No : 007257S
Sd/-
Partner
Place: Hyderabad
Date : 30.05.2017
Annexure A to the Auditors Report
Annexure referred to in Independent Auditors Report to the Members of TEJ INFOWAYS
LIMITED on the financial statements for the year ended 31st March 2017, we
report that:
i. a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management at
regular intervals, as informed to us no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is reasonable.
(c ) According to the information and explanations given to us and on the basis of our
examination of records of the Company, the title deeds of immovable properties are held in
the name of the Company.
ii. The company has no Inventory. Accordingly, the provision of this clause is not
applicable to the Company.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms,
and Limited Liability partnerships or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Therefore, the provisions of Clause 3(iii),
(iii)(a), (iii)(b) and (iii)(c) of the said order are not applicable to the company.
iv. The Company has not granted any loans or made any Investments, or provided any
guarantee or security to the parties covered under section 185 and 186 of the Act.
Therefore, the provisions of clause 3(iv) of the said order are not applicable to the
company.
v. The Company has not accepted any deposits from the public covered under Section 73
to 76 of the Companies Act, 2013 and rules framed there under to the extent notified.
vi. The Central Government has not prescribed the maintenance of cost records under
section 148(1) of The Companies Act, 2013.
vii. (a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is regular in depositing the undisputed
statutory dues, including Income-tax and other material statutory dues, as applicable,
with the appropriate authorities in India ;
(b) There were no undisputed amounts payable in respect of, Income-tax, and other
material statutory dues in arrears as at 31st March 2017 for a period of more
than 6 months for the date they became payable.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues of Income Tax, which have not been
deposited on account of any disputes.
viii. In our opinion, and according to the information and explanations given to us,
the company has not taken loans from any financial institution or banks or Government or
debenture holders as at the balance sheet date.
ix. The Company has raised moneys by way of further public offer. Such money has been
applied for the stated purposes.
x. According to the information and explanations given to us, no material fraud by the
company or on the company by its officers or employees has been noticed or reported during
the course of our Audit.
xi. The company has not paid any managerial remuneration. Accordingly, the provision of
Section 197 of Companies Act 2013 is not applicable to the company.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it; the Provisions of clause 3(xii) of the order are not applicable to the company.
xiii. The Company has not entered into transactions with related parties during the
year. Accordingly the provisions of sec.177 and 188 are not applicable to the company.
xiv. The Company has not made any preferential allotment of private placement of shares
or fully or partly convertible debentures during the year under review. Accordingly, the
provisions of clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into non-cash transactions with its directors or
persons connected with him. Accordingly, the provisions of clause 3(xv) of the Order are
not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of The Reserve
Bank of India Act 1934. Accordingly, the provisions of clause 3(xvi) of the order are not
applicable to the Company.
For P. Murali & Co.,
Chartered Accountants Firm Registration No 007257S
Sd/-
Partner
Place: Hyderabad
Date: 22.05.2017
Annexure B to the Independent Auditors Report
Report on the Internal Financial Controls over financial reporting under clause (i) of
the Sub-section 3 of the Section 143 of the Companies Act, 2013 (The Act)
We have audited the internal financial controls over financial reporting of M/s TEJ
INFOWAYS LIMITED (the company) as of 31st march 2017 in conjunction with our
audit of financial statements of the company for the year ended on that date.
Managements Responsibility for 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 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 Act.
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 deed 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. These standards and guidance note require that we comply with ethical
requirements and plan and performed 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 risk 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 and the companys internal financial control 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 these policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detailed, 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 principles, and that receipts and expenditures are
being made only in accordance with authorization 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.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation 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, the company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31st, 2017,
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 P. Murali & Co.,
Chartered Accountants FRN: 007257S
Sd/-
Partner
Place: Hyderabad
Date: 22.05.2017
+91-9892691696
