We have audited the accompanying Standalone financial statements of M/S MAHAVEER INFOWAY
LIMITED (“the Company”) which comprise the Balance Sheet as at March 31,2024, 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 notes to the standalone
financial statements, including material accounting policies and other explanatory information
(hereinafter referred to as “the Standalone financial statements”).
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 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 31,2024, 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 Standalone 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 Auditor's Responsibilities for the Audit of the Standalone
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 Standalone 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
ICAI's 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 Standalone 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 Standalone Financial Statements of the current period. These matters were addressed
in the context of our audit of the Standalone 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.
Revenue Recognition
The Company's contracts with customers include contracts with multiple products and services. The
Company derives revenues from IT services comprising licensing of software products and other
digital offerings.
In certain integrated services arrangements, contracts with customers include third-party vendor
equipment or software. In these types of arrangements, revenue from sales of third-party vendor
products or services is recorded net of costs when the Company is acting as an agent between the
customer and the vendor, and gross when the Company is the principal for the transaction. In doing
so, the Company first evaluates whether it controls the products or service before it is transferred to
the customer. The Company considers whether it has the primary obligation to fulfil the contract,
inventory risk, pricing discretion and other factors to determine whether it controls the products or
service and therefore, is acting as a principal or an agent.
Auditors Response
Principal Audit Procedures Performed
Our audit procedures related to the (1) identification of distinct performance obligations, (2)
determination of whether the Company is acting as a principal or agent and (3) whether fixed price
maintenance revenue is recognized on a straight-line basis or using the percentage of -completion
method included the following, among others:
1. We tested the effectiveness of controls relating to the (a) identification of distinct performance
obligations, (b) determination of whether the Company is acting as a principal or an agent and
(c) determination of whether fixed price maintenance revenue for certain contracts is recognized
on a straight-line basis or using the percentage of completion method.
2. We selected a sample of contracts with customers and performed the following procedures:
- Obtained and read contract documents for each selection, including master service
agreements, and other documents that were part of the agreement.
- Identified significant terms and deliverables in the contract to assess management's
conclusions regarding the (i) identification of distinct performance obligations (ii) whether
the Company is acting as a principal or an agent and (iii) whether fixed price maintenance
revenue is recognized on a straight-line basis or using the percentage of completion
method
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Management and Board of Directors is responsible for the preparation of the other
information. The other information comprise the information included in the Company's annual
report, Management Discussion and Analysis, Board's Report including Annexures to Board's Report,
Business Responsibility Report, Corporate Governance and Shareholder's Information, but does
not include the Standalone Financial Statements and our Auditor's report thereon. The Company's
annual report is expected to be made available to us after the date of this auditor's report.
Our opinion on the Standalone 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 Standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the Standalone 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.
Management’s Responsibility for the Standalone 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, 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 Standalone financial statements, management is responsible for assessing the
Company's 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 Company's financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's 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 Standalone financial statements.
Report on Other Legal and Regulatory Requirements.
1. As required bySection143(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 Standalone 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 31,2024
taken on record by the Board of Directors, none of the directors is disqualified as on March
31,2024 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 (Auditor's 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 Auditor's 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.
(j) The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
(k) There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.
(l) (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.
(m) 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.
(n) The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable
from 1 April 2023
Based on our examination which included test checks and as explained to us by the company,
the Company has used accounting software for maintaining its books of account, which does
not have a feature of recording audit trail (edit log) facility and the same has operated throughout
the year for all relevant transactions recorded in the respective software:
(o) With respect to the matter to be included in the Auditor's Report under Section 197(16) of the
Act: In our opinion and according to the information and explanations given to us, the
remuneration paid/payable by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are
required to be commented upon by us.
For M/s. KALYANA & Co.
Chartered Accountants
(Firm Registration No. 007095S)
CA N. Kalyana Sundar
Partner
Membership No. 204247
UDIN: 24204247BKEKYI9349
Place: Hyderabad
Date : 24.05.2024
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