Mar 31, 2015
We have audited the accompanying standalone financial statements of
MAHAVEER INFOWAY LIMITED ("the Company"), which comprise the Balance
Sheet as at 31 March, 2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's 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 standalone 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 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 standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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
thereunder.
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 standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's 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 Company's preparation of the standalone financial statements
that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of
expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company's
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 standalone 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 31 March, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015("the
Order") issued by the Central Government in terms of Section 143 (11)
the Companies Act, 2013, we give in the Annexure a statement on the
matters specified in paragraph 3 of the Order.
2. As required by Section143(3) of the Act, 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards 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 31 March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
3. With respect to the other matters to be included in the Auditor's
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 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.
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
i. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
ii. Physical verification of inventory has been conducted at
reasonable intervals by the management, and the procedures of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its
business. The company is maintaining proper records of inventory and
material discrepancies noticed on physical verification have been
properly dealt with in the books of account.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of the
Company do not involve purchase of inventory and the sale of goods. We
have not observed any major weakness in the internal control system
during the course of the audit.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
vii. According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been depositing undisputed statutory
dues, including Provident Fund, Employees State Insurance, Income-tax
and other material statutory dues applicable to it with the appropriate
authorities but not with in the respective due dates. However, Interest
for such delay payments are calculated and paid with respective
departments.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax and other material
statutory dues in arrears as at 31 March 2015 for a period of more than
six months from the date they became payable.
(c) There were no dues with respect to Income-tax, Service Tax, Customs
Duty, Excise Duty and Cess which has not been deposited as at 31 March
2015, on account of any dispute.
(d) There are no dues payable to Investors' Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
2013 and rules made there under.
viii. The accumulated losses of the Company at the end of the financial
year are not more than fifty percent of its net worth and the Company
has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions & banks.
x. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee during the current
year for loans taken by others from bank or financial institutions, the
terms and conditions whereof are prejudicial to the interest of the
company .
xi. In our opinion and according to the information and explanations
given to us, the term loan has been applied by the company during the
year for the purposes for which it was obtained, other than temporary
deployments pending application.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For M/s KALYANA & CO.
Chartered Accountants
Firm Registration No. 007095S
Sd/-
A Srilakshmi
Place: Hyderabad Partner
Date : 29.05.2015 M.No:107945
Mar 31, 2014
We have audited the accompanying financial statements of M/s MAHAVEER
INFOWAY LIMITED, Hyderabad which comprise the Balance Sheet as at 31st
March 2014, and the statements of Profit and Loss and Cash Flow
Statement for the year then ended 31st March 2014, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation 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
accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of financial statements that give a true
and fair view and are free from material misstatement whether due to
fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our auditing accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 auditor''s judgment, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments the
auditor considers internal control relevant to the company''s
preparation and fair presentation of the financial statements 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 management, 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.
Opinion :
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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;
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the
directors, as on 31st March, 2014, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2014 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in our Report of even
date)
As required by the companies (Auditor Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
1. a. The Company is in the process of updating records to show full
particulars, including quantitative details and situation of fixed
assets.
b. As explained to us, all the assets have not been physically
verified by the management during the year but there is a regular
program of verification which in our opinion, is reasonable, having
regard to the size of the company and nature of its assets. No material
discrepancies were noticed on such verification.
c. Fixed assets disposed off, if any, during the year were not
substantial, and therefore, do not affect the going concern assumption.
2. a. The physical verification of inventory, as per the management''s
certificate, has been conducted at reasonable intervals by the
management.
b. The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of inventory and any
discrepancies noticed on physical verification are being properly dealt
in the books of accounts.
3. According to the information and the explanations given to us the
regarding whether company has granted or taken any loans, secured or
unsecured to or from Companies, firms or other parties covered in the
register maintained under section 301 of the Act.
a) The company has given unsecured loans to Eight parties covered in
the register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loan is Rs. 3,26,77,913/-
b) In our opinion, the rates of interest for above loans are not prima
facie, prejudicial to the interest of the company. However, the above
loans include Rs. 6,89,062/- given to directors & Rs. 2,36,08,815/- to
subsidiary company as interest free loans. Tenure and repayment terms
for such loans have not been specified.
c) The company has taken unsecured loans from Six parties covered in
the register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loans are Rs. 62,95,428/-
d) The above loans taken from directors and relatives of directors are
interest free loans and the tenure, repayment terms have not been
specified for such loans.
e) According to the information and explanation given to us, the tenure
and repayment terms not been specified for the above mentioned loans.
Consequently we are unable to comment on paragraph 4(iii) (c),(d) & (g)
of the order.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, with
regard to inventory and for sale of services, purchase of fixed assets.
5. a) In our opinion, and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in 5(a) above and exceeding the value of Rs.5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted deposits from the public and the
provisions of Section 58A and 58AA of the Act, rules framed there under
and other relevant directives issued by the Reserve Bank of India are
not applicable to the Company.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. However, the
scope and extent of internal audit need to be enlarged having regards
to complexity and expanded operation of the company.
8. To the best of our knowledge and as explained, the Central
Government has not prescribed maintenance of cost records under clause
(d) of sub-section (1) of section 209 of the Companies Act, 1956 for
the products of the Company.
9. According to information and explanations given to us and according
to the books and records as produced and examined by us, in our
opinion:
a. The company is regular in depositing undisputed statutory dues
including provident fund, investor education and protection Fund, or
employees'' state insurance, sales-tax, wealth- tax, service tax,
customs duty, excise duty, cess as applicable have been regularly
deposited with appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
b. According to the information and explanation given to us, no
disputed amounts payable in respect of provident fund, income tax,
wealth tax, sales tax, customs duty, excise duty and cess, and other
material statutory dues were in arrears as on 31.03.2014 for a period
of more than six months from the date they became payable.
c. According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess that have not been deposited with the appropriate authorities
on account of any dispute. In respect of statutory dues:
10. The Company has not incurred cash loss during the current
financial Year and the previous financial year and there are no
accumulated losses as on the balance sheet date.
11. According to the information and explanation given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of share, debentures and other securities.
13. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
bank or financial institutions.
14. The term loans were applied for the purpose for which the loans
were obtained.
15. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment
16. The Company has not made Preferential Allotment of shares to
parties and companies covered in the register maintained U/s.301 of the
Act during the year.
17. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
18. The provisions of special statute applicable to Chit Fund, Nidhi
or Mutual Benefit Fund/ Societies are not applicable to the Company.
19. The Company is not dealing or trading in shares, securities,
debentures or other investments and therefore Paragraph 4(xiv) of the
order is not applicable.
20. During the year covered by our Audit Report, the Company has not
raised any money by public issue.
21. During the course of our examination of books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India, we have neither came across any instance
of fraud on or by the company was noticed or reported during the year,
nor have we been informed of any such case by the management of the
company.
Sd/-
(CA. N.KALYANA SUNDAR)
Partner, M.No :- 204247
M/s. KALYANA & Co.,
Place : Hyderabad Chartered Accountants
Date: 30.05.2014 FRN: 007095S
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s MAHAVEER
INFOWAY LIMITED, Hyderabad which comprise the Balance Sheet as at 31st
March 2013, and the statements of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY for THE FINANCIAL Statements
Management is responsible for the preparation 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
accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of financial statements that give a true
and fair view and are free from material misstatement whether due to
fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our auditing accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 auditor''s judgment, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments the
auditor considers internal control relevant to the company''s
preparation and fair presentation of the financial statements 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 management, 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.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
gives a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
c) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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;
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the
directors, as on 31st December, 2012, and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March 2013 from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956;
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in our Report of even
date)
1. a. The Company is in the process of updating records to show full
particulars, including quantitative details and situation of fixed
assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. No substantial part of Fixed Assets has been disposed off during
the year.
2. a. The physical verification of inventory, as per the management''s
certificate, has been conducted at reasonable intervals by the
management.
b. The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of inventory and any
discrepancies noticed on physical verification are being properly dealt
in the books of accounts.
3. According to the information and the explanations given to us the
regarding whether company has granted or taken any loans, secured or
unsecured to or from Companies, firms or other parties covered in the
register maintained under section 301 of the Act.
a) The company has given unsecured loans to Eight parties covered in
the register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loan is Rs. 1,70,29,641/-
b) In our opinion, the rates of interest for above loans are not prima
facie, prejudicial to the interest of the company. However, the above
loans include Rs. 9,41,565/- given to directors and Rs. 1,02,93,597/-
to subsidiary company as interest free loans. Tenure and repayment
terms have not been specified for such loans.
c) The company has taken unsecured loans from six parties covered in
the register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loans are Rs. 56,54,454/-
d) The above loans taken from directors and relatives of directors are
interest free loans and the tenure, repayment terms have not been
specified for such loans.
e) According to the information and explanation given to us, the tenure
and repayment terms not been specified for the above mentioned loans.
Consequently we are unable to comment on paragraph 4(iii) ( c),(d) &
(g) of the order.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures with regard to inventory
and fixed assets and for sale of goods are being strengthened to be
commensurate with the size of the Company and the nature of the
business.
5. a) In our opinion, and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in 5(a) above and exceeding the value of Rs.5
lakhs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. The Company has not accepted deposits from the public and the
provisions of Section 58A and 58AA of the Act, rules framed there under
and other relevant directives issued by the Reserve Bank of India are
not applicable to the Company.
7. The Company has to strengthen its Internal Audit System in order to
commensurate with the size of the company and nature of its business.
8. The Company is not required to maintain the cost records as
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act.
9. In respect of statutory dues:
a) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, sales tax, and
cess were in arrears, as at 31st March 2013 for a period of more than
six months from the date they became payable.
10. The Company has not incurred cash loss during the current
financial Year and the previous financial year and there are no
accumulated losses as on the balance sheet date.
11. According to the information and explanation given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of share, debentures and other securities.
13. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
bank or financial institutions.
14. The term loans were applied for the purpose for which the loans
were obtained.
15. The funds raised by the Company on short-term basis have not been
used for long-term investment and vice versa.
16. The Company has not made Preferential Allotment of shares to
parties and companies covered in the register maintained U/s.301 of the
Act during the year.
17. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and therefore Paragraph 4 (xii) of the order relating to maintenance of
documents and records is not applicable.
18. The provisions of special statute applicable to Chit Fund, Nidhi
or Mutual Benefit Fund/ Societies are not applicable to the Company and
therefore Paragraph 4(xiii) of the order is not applicable.
19. The Company is not dealing or trading in shares, securities,
debentures or other investments and therefore Paragraph 4(xiv) of the
order is not applicable.
20. During the year covered by our Audit Report, the Company has not
raised any money by public issue and therefore Paragraph 4(xx) of the
order is not applicable.
21. During the course of our examination of books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India, we have neither came across any instance
of fraud on or by the company was noticed or reported during the year,
nor have we been informed of any such case by the management of the
company.
(CA. N.KALYANA SUNDAR)
Partner, M.No :- 204247
M/s. KALYANA & Co.,
Place : Hyderabad Chartered Accountants
Date: 30.05.2013 FRN: 007095S
Mar 31, 2012
We have audited the accompanying financial statements of M/s MAHAVEER
INFOWAY LIMITED, Hyderabad which comprise the Balance Sheet as at 31st
March 2012, and the statements of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation 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
accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of financial statements that give a true
and fair view and are free from material misstatement whether due to
fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our auditing accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 auditor's judgment, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments the
auditor considers internal control relevant to the company's
preparation and fair presentation of the financial statements 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 management, 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.
OPINION:
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and
gives a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Statement of Profit and Loss Account, of the
Profit for the year ended on that date; and
c) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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;
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
1. a. The Company is in the process of updating records to show full
particulars, including
quantitative details and situation of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. No substantial part of Fixed Assets has been disposed off during
the year.
2. a. The physical verification of inventory, as per the management's
certificate, has been
conducted at reasonable intervals by the management.
b. The procedures for physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of inventory and any
discrepancies noticed on physical verification are being properly dealt
in the books of accounts.
3. According to the information and the explanations given to us the
regarding whether company has granted or taken any loans, secured or
unsecured to or from Companies, firms or other parties covered in the
register maintained under section 301 of the Act.
a) The company has given unsecured loans to five parties covered in the
register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loan is Rs.1,19,71,958/-
b) In our opinion, the rates of interest for above loans are not prima
facie, prejudicial to the interest of the company. However, the above
loans include Rs. 4,16,970/- given to directors and Rs. 28,69,201/- to
subsidiary company as interest free loans. Tenure and repayment terms
have not been specified for such loans.
c) The company has taken unsecured loans from four parties covered in
the register maintained under section 301 of Companies Act, 1956. The
yearend balance of such loans are Rs. 27,28,321/-
d) The above loans taken from directors and relatives of directors are
interest free loans and the tenure, repayment terms have not been
specified for such loans.
e) According to the information and explanation given to us, the tenure
and repayment terms not been specified for the above mentioned loans.
Consequently we are unable to comment on paragraph 4(iii) ( c),(d) &
(g) of the order.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures with regard to inventory
and fixed assets and for sale of goods are being strengthened to be
commensurate with the size of the Company and the nature of the
business.
5. a) In our opinion, and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in 5(a) above and exceeding the value of Rs.5
lakhs with any party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. The Company has not accepted deposits from the public and the
provisions of Section 58A and 58AA of the Act, rules framed there under
and other relevant directives issued by the Reserve Bank of India are
not applicable to the Company.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. However, the
scope and extent of internal audit need to be enlarged having regards
to complexity and expanded operation of the company.
8. The Company is not required to maintain the cost records as
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Companies Act.
9. In respect of statutory dues:
a) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, sales tax, and
cess were in arrears, as at 31st March 2012 for a period of more than
six months from the date they became payable.
10. The Company has not incurred cash loss during the current
financial Year and the previous financial year and there are no
accumulated losses as on the balance sheet date.
11. According to the information and explanation given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank.
12. According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of share, debentures and other securities.
13. According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
bank or financial institutions.
14. The term loans were applied for the purpose for which the loans
were obtained.
15. The funds raised by the Company on short-term basis have not been
used for long-term investment and vice versa.
16. The Company has not made Preferential Allotment of shares to
parties and companies covered in the register maintained U/s.301 of the
Act during the year.
17. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and therefore Paragraph 4 (xii) of the order relating to maintenance of
documents and records is not applicable.
18. The provisions of special statute applicable to Chit Fund, Nidhi
or Mutual Benefit Fund/ Societies are not applicable to the Company and
therefore Paragraph 4(xiii) of the order is not applicable.
19. The Company is not dealing or trading in shares, securities,
debentures or other investments and therefore Paragraph 4(xiv) of the
order is not applicable.
20. During the year covered by our Audit Report, the Company has not
raised any money by public issue and therefore Paragraph 4(xx) of the
order is not applicable.
21. During the course of our examination of books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India, we have neither came across any instance
of fraud on or by the company was noticed or reported during the year,
nor have we been informed of any such case by the management of the
company.
(CA. N.KALYANA SUNDAR)
Partner, M.No :- 204247
KALYANA & Co.,
Place : Hyderabad Chartered Accountants
Date: 29.05.2012 FRN: 007095S
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s MAHAVEER INFOWAY
LIMITED, Hyderabad as at 31st March, 2010 and the Profit and Loss
account and the cash flow statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act,1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that
a. We have 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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit.
c. The Balance Sheet, Profit and Loss account and cash flow statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit and Loss account and the
Cash Flow statement dealt with this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the director is disqualified from being appointed as a
director in terms of clause ( g ) of sub-section ( 1 ) of section 274
of the Companies Act, 1956.
f. In our opinion, and to the best of our information and according to
the explanations given to us, they said accounts together with the notes
annexed thereto, give the information required by the Companies Act,
1956 (Act I of 1956), in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2010.
ii) in the case of the Profit and Loss account, of the Profit for the
period ended on that date; and
iii) in the case of the Cash Flow statement, of the Cash Flows for the
year ended on that date.
(i) The nature of the Company''s business/activities during the year is
such that clause (xiii) of paragraph 4 of the companies (Auditor''s
Report) Order 2003 are not applicable to the Company for the year
ended.
(ii) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and explanation
given to us, the company has not made any substantial disposal during
the year.
(iii) In respect of its inventories:
(a) As explained to us inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) In respect of loans, secured or unsecured, granted or taken by the
company to or from other companies, firms and other parties covered in
the register maintained under section 301 of the Companies Act, 1956
according to the information and explanation given to us:
(a) The parties to whom loans and advances in the nature of loan given
by the company where stipulation have been made are generally repaying
the principal amount as stipulated and have also be generally regular
in payment of interest.
(b) The rate of interest and other terms and conditions of such loans
are in our opinion, prima facie not prejudicial to the interest of the
company.
(v) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services.
(vi) In respect of the transactions entered in the register maintained
pursuant to Sec 301 of the Companies Act, 1956,
(a) To the best of our knowledge and belief and according to the
information and explanation given to us, transactions that need to be
entered into the register maintained under section 301 of the Companies
Act,1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except that no comparison was possible in the case of purchase of
items of highly specialized nature which we are informed that there are
no alternative sources of supply.
(vii) In our opinion and according to the information and explanation
given to us the company has not accepted any deposits from the public
within the meaning Section 58A and 58AA of the Companies Act, 1956 and
the rules framed there under.
(viii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. However, the
scope and extent of internal audit need to be enlarged having regards
to complexity and expanded operation of the company.
(ix) The Central Government has not prescribed maintenance of cost
record under Sec.209 (1)(d) of the Companies Act, 1956 for the
company''s products.
(x) In respect of statutory dues :
(a) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, sales tax, and
cess were in arrears, as at 31st March,2010 for a period of more than
six months from the date they became payable.
(xi) In our opinion, the company have no accumulated losses at the end
of the year 31st March, 2010 . The company has no cash losses during
the current year.
(xii) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank etc.
(xiii) According to the information and explanation given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiv) In our opinion, and according to the information and explanation
given to us, the company has maintained records and documents for
investments in shares, securities and the investments are held in the
name of the company.
(xv) In our opinion and according to information and explanation given
to us, the terms and conditions of the guarantees given by the company
for the loans taken by others from banks or financial institutions, are
not prima facie prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, the company has been
sanctioned term loans by banks but is yet to utilize the same.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us and on an
overall basis, we report that the no funds raised on short-term basis
have been used for long-term investment and vice versa.
(xviii) The company has made preferential allotment of shares during
the year.
(xix) The company had not issued any debentures during the period
covered by our audit report.
(xx) The company has not raised money by public issues during the
period covered by our audit report.
(xxi) During the course of our examination of books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India, we have neither came across any instance
of fraud on or by the company was noticed or reported during the year,
nor have we been informed of any such case by the management of the
company.
CA. N.KALYANA SUNDAR
Partner
For and on behalf of
KALYANA & Co.,
Place: Hyderabad Chartered Accountants
Date: 31.07.2010. Membership No. 204247
Mar 31, 2008
1. We have audited the attached Balance Sheet of M/s MAHAVEER INFOWAY
LIMITED, Hyderabad as at 31st March, 2008 and the Profit and Loss
account and the cash flow statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act,1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we
report that
a. We have 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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit.
c. The Balance Sheet, Profit and Loss account and cash flow statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit and Loss account and the
Cash Flow statement dealt with this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
thereto, give the information required by the Companies Act, 1956 (Act
I of 1956), in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2008. ii) in the case of the Profit and Loss
account, of the Profit for the period ended on that date; and iii) in
the case of the Cash Flow statement, of the Cash Flows for the year
ended on that date.
(i) The nature of the Company''s business/activities during the year is
such that clause (xiii) of paragraph 4 of the companies (Auditor''s
Report) Order 2003 are not applicable to the Company for the year
ended.
(ii) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
(c) In our opinion and according to the information and explanation
given to us, the company has not made any substantial disposal during
the year.
(iii) In respect of its inventories:
(a) As explained to us inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) In respect of loans, secured or unsecured, granted or taken by the
company to or from other companies, firms and other parties covered in
the register maintained under section 301 of the Companies Act, 1956
according to the information and explanation given to us:
(a) The parties to whom loans and advances in the nature of loan given
by the company where stipulation have been made are generally repaying
the principal amount as stipulated and have also be generally regular
in payment of interest.
(b) The rate of interest and other terms and conditions of such loans
are in our opinion, prima facie not prejudicial to the interest of the
company.
(v) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services.
(vi) In respect of the transactions entered in the register maintained
pursuant to Sec 301 of the Companies Act, 1956,
(a) To the best of our knowledge and belief and according to the
information and explanation given to us, transactions that need to be
entered into the register maintained under section 301 of the Companies
Act,1956 have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except that no comparison was possible in the case of purchase of
items of highly specialized nature which we are informed that there are
no alternative sources of supply.
(vii) In our opinion and according to the information and explanation
given to us the company has not accepted any deposits from the public
within the meaning Section 58A and 58AA of the Companies Act, 1956 and
the rules framed there under.
(viii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business. However, the
scope and extent of internal audit need to be enlarged having regards
to complexity and expanded operation of the company.
(ix) The Central Government has not prescribed maintenance of cost
record under Sec.209 (1)(d) of the Companies Act, 1956 for the
company''s products.
(x) In respect of statutory dues :
(a) According to the records of the company, the company has not paid
Professional Ta x for the financial year 2007-08.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, sales tax, and
cess were in arrears, as at 31st March,2008 for a period of more than
six months from the date they became payable.
(xi) In our opinion, the company have accumulated losses at the end of
the year 31st March, 2004 of Rs.43,75,669. The company has earned a net
profit of Rs. 685, 815 during the current year.
(xii) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank etc.
(xiii) According to the information and explanation given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiv) In our opinion, and according to the information and explanation
given to us, the company has maintained records and documents for
investments in shares, securities and the investments are held in the
name of the company.
(xv) In o u r opinion and according to information and explanation
given to us, the terms and conditions of the guarantees given by the
company for the loans taken by others from banks or financial
institutions, are not prima facie prejudicial to the interest of the
company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, the company has not raised
any term loans.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us and on an
overall basis, we report that the no funds raised on short-term basis
have been used for long-term investment and vice versa.
(xviii) The company has not made preferential allotment of shares
during the year.
(xix) The company had not issued any debentures during the period
covered by our audit report.
(xx) The company has not raised money by public issues during the
period covered by our audit report.
(xxi) During the course of our examination of books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India, we have neither came across any instance
of fraud on or by the company was noticed or reported during the year,
nor have we been informed of any such case by the management of the
company.
For KALYANA & Co.,
Chartered Accountants
(N.KALYANA SUNDAR)
Partner
Hyderabad,
Date: 08.07.2008