To The Members of Rithwik Facility Management Services Limited(Formally known as Rithwik Building Services Private Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of RITHWIKFACILITY MANAGEMENT SERVICES LIMITED ("the company") which comprise theBalance Sheet as at 31 March 2018 the Statement of Profit and Loss for the year thenended and the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
Managementfs Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under. We conductedour audit in accordance with the Standards on Auditing specified under section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement. An audit involves performing procedures to obtainaudit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of theCompany as at March 31 2018
b) in the case of the Statement of Profit and Loss of the Profit forthe year ended on that date; and
c) in the case of the Cash Flow Statement of the cash flows for theyear ended March 31 2018
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order2016("the order") issued by the Central Government of India in terms ofsub-section (11) of Section 143 of the Act we give in the Annexure A a statement ofmatters specified in the paragraph 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 and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b. In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books
c. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directorsas on 31 March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B"; and
g. With respect to the other matters included in the Auditor's Reportand to our best of our information and according to the explanations given to us:
a. The Company has no impact of pending litigations on its financialposition in its financial statements. b. The Company did not have any long-term contractsincluding derivatives contracts for which there were any material foreseeable losses.
c. There are no amounts required to be transferred by the Company tothe Investor Education and Protection Fund during the year.
|For KalyanaSundaram & Associates |
|Chartered Accountants |
|FRN No. 05455S |
|Membership No.207024 |
|Place: Chennai |
|Dated: 7th May 2018 |
|Report Ref No: SA/TRG/02 /2018-19 |
Annexure A to the Auditorsf Report
The Annexure A referred to in paragraph 1 of our report of even date tothe members of RITHWIK FACILITY MANAGEMENT SERVICES LIMITED on the accounts of the companyfor the year ended 31st March 2018. On the basis of such checks as we consideredappropriate and according to the information and explanation given to us during the courseof our audit we report that:
1. (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management atreasonable intervals; and no material discrepancies were noticed on such verification.
(c) The Company does not own any immovable property. Hence paragraph3(i) (c) of the Order is not applicable.
2. The Company does not hold any inventories. Hence paragraph 3(ii) ofthe Order is not applicable.
3. The Company has not granted loans unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.Accordingly paragraph 3(iii) of the Order is not applicable.
4. The Company has not granted loans to its directors made anyinvestments in other entities nor extended any guarantee or security. Hence paragraph3(iv) of the Order is not applicable.
5. The Company has not accepted deposits. Accordingly paragraph 3(v)of the Order is not applicable.
6. Maintenance of cost records has not been specified by the CentralGovernment under section 148(1) of the Companies Act. Hence such accounts and records havenot been made and maintained.
7. (a) The company is regular in depositing undisputed statutory duesincluding duty of customs duty of excise value added tax provident fund employees'state insurance income-tax sales-tax wealth tax service tax GST cess and any otherstatutory dues with the appropriate authorities and there are no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.
(b) There are no dues of income tax or sales tax or service tax or dutyof customs or duty of excise or value added tax or GST or cess which has not beendeposited on account of any dispute.
8. The Company has not defaulted in repayment of loans or borrowing toa financial institutions and banks.
9. The Company has raised money by way of initial public offer and wereapplicable for the purpose for which those are raised. The Company has not raised money byway of further public offer and term loan.
10. No fraud on or by the company has been noticed or reported duringthe year.
11. Managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act.
12. The Company is not a Nidhi company. Accordingly paragraph 3(xii)of the Order is not applicable.
13. All transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where ever applicable and the details havebeen disclosed in the Financial Statements as required by the applicable AccountingStandards.
14. The Company has not made any preferential allotment or privateplacement of shares during the year under review. Accordingly paragraph 3(xiv) of theOrder is not applicable.
15. The Company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.
16. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.
|FOR KALYANASUNDARAM & ASSOCIATES |
|Chartered Accountants |
|FRN No. 05455S |
|Membership No.207024 |
|Place: Chennai |
|Dated: 7th May 2018 |
|Report Ref No: SA/TRG/02/2018-19 |
Annexure - B to the Auditorsf Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (gthe Acth)
We have audited the internal financial controls over financialreporting of RITHWIK BUILDING SERVICES PRIVATE LIMITED as on 31 March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Managementfs Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered
Accountants of India (ICAI'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the "Guidance Note") and the Standardson Auditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.
A company's internal financial control over financial reportingincludes those policies and procedures that
(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
FOR KALYANASUNDARAM & ASSOCIATES
FRN No. 05455S
Dated: 7th May 2018
Report Ref No: SA/TRG/02/2018-19