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Riddhi Corporate Services Ltd.

BSE: 540590 Sector: Others
NSE: N.A. ISIN Code: INE325X01015
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NSE 05:30 | 01 Jan Riddhi Corporate Services Ltd
OPEN 158.00
PREVIOUS CLOSE 165.00
VOLUME 4
52-Week high 214.00
52-Week low 51.70
P/E 40.94
Mkt Cap.(Rs cr) 188
Buy Price 164.00
Buy Qty 1.00
Sell Price 165.00
Sell Qty 102.00
OPEN 158.00
CLOSE 165.00
VOLUME 4
52-Week high 214.00
52-Week low 51.70
P/E 40.94
Mkt Cap.(Rs cr) 188
Buy Price 164.00
Buy Qty 1.00
Sell Price 165.00
Sell Qty 102.00

Riddhi Corporate Services Ltd. (RIDDHICORPORATE) - Auditors Report

Company auditors report

To the Members of RIDDHI CORPORATE SERVICES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the financial statements of RIDDHI CORPORATE SERVICES LIMITED("the Company") which comprise the balance sheet as at 31st March 2019 and thestatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information. In our opinion and to the best of our information andaccording to the explanations given to us and based on the Standalone Financial Statementreferred to Notes to Accounts Above Except for the effect of the matter described in thebasis for Qualified Opinion Section Of Our Report the Aforesaid Standalone FinancialStatement give the information required by the Companies Act 2013("the Act") inthe Manner so required and give true and Fair View in conformity with the AccountingPrinciples generally Accepted in India of the state of affairs of the Company as at 31stMarch 2019 its profit and its cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion. During the YearEnded 31st March 2019 the Company has Paid remuneration to its ManagingDirector Whole time Director And Manager Which is Excess of limit given under Section197(1) read with the Schedule V Of the Companies Act 2013 By Rs.2327720.Pending Approvalfrom the Central Government Impact thereof on the Financial Statement is not currentlyascertainable. Refer Notes 21 to the Standalone Financial Statement.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the year ended March 31 2019.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report:

Key Audit Matter How our audit addressed the key audit matter
1 Revenue Recognition
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances based on Contracts with Customers. The revenue recognition involves certain key judgments relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised over a period and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. We assessed the Company's process to identify the impact of Contracts with Customers. Our audit approach consisted of studying the internal system and IT platform used regarding the implementation and also testing of the design and operating effectiveness of the internal controls and substantive testing. We evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
We selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation. Samples in respect of recording and recognition of revenue were tested by checking the invoices and performance.
Conclusion Our procedures did not identify any material exceptions.
2 Inter corporate deposit to Subsidiary
During the year the Company has granted loan to its subsidiaries. We consider granting loan to Subsidiaries as a key audit matter as it constitutes significant percentage of loan given. The rate of interest charged is at par with rate charged for outsiders. We have verified the relevant records and found the interest charges are in accordance with company policy. Based on the above procedure and in our opinion the management's determination is considered to be reasonable.
3 Investment in Subsidiary
Investment in subsidiaries are carried at cost in the accompanying Standalone Financial Statement which as at March 31 2019 reflected equity investment balance of Rs. 51124000/-. The recoverability of the investments in subsidiaries was assessed by the management based on certain assumption professional judgments expectation of future events which are believed to be reasonable under the circumstances & other factors. Based on the impairment test performed carrying amount of investment in subsidiaries do not exceed their recoverable amount on the basis that the current business plans of the subsidiaries will materialize without material adverse effects.
We have reviewed the main assumption & the professional judgments made by the management in performing the impairment tests & we have found them reasonable under the current circumstances.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the ‘Annexure A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss and theCash 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 Accounting Standardsspecified 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 ason 31st March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act. f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in ‘Annexure B'. g) With respect to the other matters tobe included in the Auditor's report in accordance with the requirements of Sec 197(16) ofthe Act as amended we report that Section 197 is not applicable to a private company.Hence reporting as per Section 197(16) is not required. h) With respect to the othermatters 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 andaccording to the explanations given to us: i. The Company does not have any pendinglitigations on its financial position; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Place : Ahmedabad For Nitin K. Shah & Co.
Date : 30/05/2019 Chartered Accountants
Firm Reg. No.:107140W
Vaibhav N. Shah
Proprietor
M. No. 116817

Annexure A to Independent Auditors' Report

Referred to in Report on Other Legal and Regulatory requirements paragraph 1 of theIndependent Auditors' Report of even date to the members of RIDDHI CORPORATE SERVICESLIMITED on the financial statements for the year ended March 31 2019 (i) In respect ofits Fixed Assets: (a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets; (b) These fixed assets havebeen physically verified by the management at reasonable intervals in accordance withregular programme of verification. According to the information and explanation given tous no material discrepancies were noticed on such verification. (c) The immovableproperty held by the Company is on lease rental basis hence para 3(ii) of the Order isnot applicable to the Company. (ii) In respect of its Inventory: The company is renderingthe services of ITeS including Data Warehousing. Accordingly it does not hold anyphysical inventories. Thus paragraph 3(ii) of the Order is not applicable to the company.(iii) (a) The company has granted loans to its two subsidiary company covered in theregister maintained under section 189 of the companies Act 2013. The amount outstandingas on 31st March 2019 is Rs. 16159959/-. In our opinion and according to theinformation and explanations given to us the terms and conditions of the grants and loansare not prejudicial to the company's interest. (b) The Company has granted loans that arere-payable on demand to companies covered in the register maintained under section 189 ofthe Companies Act 2013. We are informed that the Company has not demanded repayment ofany such loan along with interest during the year and thus there has been no default onthe part of the party to whom the money has been lent. (iv) According to information andexplanations given to us the Company has not given any loans guarantees or security. Inrespect of the investments made in our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 186 ofthe Act. (v) According to information and explanations given to us the Company has notaccepted any deposits during the year. (vi) In our opinion and according to theinformation and explanations given to us in view of Rule 3 of the Companies (Cost Recordsand Audit) Amendments Rules 2014 the maintenance of cost records under sub-section (1) ofsection 148 of the Companies Act 2013 is not applicable to the Company and thereforereporting under clause (vi) of the Order is not applicable to the Company.

(vii) According to the information and explanations given to us in respect ofstatutory dues: The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities. However delay in depositing of GST wasobserved. There are no undisputed amounts payable in respect of provident fund employees'state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other statutory dues in arrears as at March 31 2019 forperiod of more than six months from the day they became payable. (viii) According to therecords of the Company examined by us and the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to any financialinstitution banks or government. Further the Company does not have any debenturesissued/outstanding any time during the year. (ix) The Company has not raised moneys by wayof initial public offer or further public offer (including debt instruments) and termloans during the year. Accordingly the provisions of Clause 3(ix) of the Order are notapplicable to the Company. (x) During the course of our examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Company by itsofficers or employees noticed or reported during the year nor have we been informed ofany such case by the Management. (xi) According to the records of the company examined byus and the information and explanations given to us managerial remuneration to the extentof Rs. 2327720/- exceeds the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013. The company is in the process ofobtaining necessary approval from shareholders for remuneration payable to its whole timedirector. Pending such approvals the amount is held in trust for the company. (xii) Thisclause of the CARO 2016 is not applicable to the Company as the Company is not a NidhiCompany. (xiii) According to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards. (xiv) According tothe information and explanations given to us the Company has not made any preferentialallotment or private placement of shares or fully convertible debentures during the yearunder audit. Accordingly the provisions of Clause 3(xiv) of the Order are not applicableto the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him andthe provisions of section 192 of the Companies Act 2013 have been complied with. (xvi)This clause of the CARO 2016 is not applicable to the Company as the Company is notrequired to registered under section 45-IA of the Reserve Bank of India Act 1934.

Place : Ahmedabad For Nitin K. Shah & Co.
Date : 30/05/2019 Chartered Accountants
Firm Reg. No.:107140W
Vaibhav N. Shah
Proprietor
M. No. 116817

Annexure B to Independent Auditors' Report

Referred to in Report on Other Legal and Regulatory requirements paragraph 2(f) of theIndependent Auditors' Report of even date to the members of RIDDHI CORPORATE SERVICESLIMITED on the financial statements for the year ended March 31 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of RIDDHICORPORATE SERVICES LIMITED ("the Company") as of March 31 2019 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. 4. Ouraudit involves performing procedures to obtain audit evidence about the adequacy of theinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. 5. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place : Ahmedabad For Nitin K. Shah & Co.
Date : 30/05/2019 Chartered Accountants
Firm Reg. No.:107140W
Vaibhav N. Shah
Proprietor
M. No. 116817

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