To the Members of Rithwik Facility Management Services Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Rithwik Facility Management
Services Limited ("the Company"), which comprise the balance sheet as on 31st
day of March 2022, and the statement of profit and loss and statement of cash flows for
the year then ended and notes to the standalone financial statements, including a summary
of significant accounting policies and other explanatory information.
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 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 on 31st
day of March 2022;
b) In the case of the Statement of Profit and Loss, the Profit for the year ended on
that date;
c) In the case of cash flow statement, for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors 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 together with the ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position and financial performance of the Company in accordance with the accounting
principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act, This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of 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, the Board of Directors is responsible
for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities 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 auditors 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design 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 whether
the company has adequate internal financial controls system in place and operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(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 statement of cash flows
statement dealt with by this Report are in agreement with the books of account
d) On the basis of the written representations received from the directors as on 31st
day of March 2022, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st day of March 2022, from being appointed as a director in terms of
Section 164(2) of the Act.
e) i. The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("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, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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 the 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 life), as provided under (a) and
(b) above, contain any material misstatement.
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
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note 29 to the financial statements
b. The Company did not have any long term contracts including derivative contracts for
which there were any material foreseeable losses
c. There has been no delay in transferring amounts required to be transferred to the
Investor Education and Protection Fund by the Company
2. With respect to the provisions of "The Companies (Auditors Report) Order,
2020", issued by theCentral Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to as the Order) we give in the Annexure
B, a statement of matters specified in the paragraph 3 and 4 of the Order, to the
extent applicable to the Company during the year under audit
| For Kalyanasundaram and Associates |
| Chartered Accountants |
| (FRN: 005455S) |
| KMSethu |
| Partner |
| (Membership No: 231703) |
| Place: Chennai |
| Date: 25th May 2022 |
| UDIN: 22231703AJPPTB9739 |
Annexure - A to the Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Rithwik
Facility Management Services Limited as on 31st day of March 2022 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
1. Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorized-acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects except for the matter
discussion in additional note para, an internal financial controls with reference to
standalone financial statements over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31st March 2020, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
| For Kalyanasundaram and Associates |
| Chartered Accountants |
| (FRN: 005455S) |
| KMSethu |
| Partner |
| (Membership No: 231703) |
| Place: Chennai |
| Date: 2S,h May 2022 |
| UDIN: 22231703AJPPTB9739 |
Annexure B to the Auditors Report
The Annexure referred to in paragraph two of our report of even date to the members of
Rithwik Facility Management Services Limited on the accounts of the company for the year
ended 31st day of March 2022.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1) Fixed Assets:
a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
b) The Company has a regular programme for, physical verification in a phased periodic
manner, which, in our opinion, is reasonable having regards to the size of the company and
the nature of its assets. No material discrepancies were noticed on such verification.
c) The Company does not own any immovable property. Hence, Clause 3(i)(c) of the Order
is not applicable.
d) The Company does not revalue its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
e) No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
2) The Company does not have any physical inventories. Hence, clause 3(ii)(a) of the
Order is not applicable to the Company. Therefore,3(ii)(b) of the Order is not applicable
to the Company.
3) The Company has not made any investments in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies,
firms. Limited Liability Partnerships or any other parties.
The Company has also not provided loans or provided advances in the nature of loans, or
stood guarantee, or provided security to any other entity.
4) The Company has not granted loans, made investments, provided guarantee or security
to its directors, Hence, clause 3(iv) of the Order is not applicable.
5) The Company has not accepted any deposits or any amounts which are deemed to be
deposits, and there has been no order passed by Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any court or any other tribunal and therefore, the
provisions of the clause 3 (v) of the order are not applicable to the company.
6) Maintenance of cost records has not been specified by the Central Government under
section 148(1) of the Companies Act. Hence such accounts and records have not been made
and maintained.
7) Statutory Dues:-
a) The Company, has been regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income-tax. Goods and Services Tax, sales-tax,
wealth tax, service tax, duty of customs, duty of excise value added tax cess and other
statutory dues with the appropriate authorities and so there are no arrears of outstanding
statutory dues as at the last day of the financial year concerned, for a period of more
than six months from the date they became payable.
8) There are no transactions that are not recorded in the books of account that are to
be surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961), Hence, clause 3(viii) of the Order is not applicable.
9) Based upon the audit procedure performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, the company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender.
10) The Company has not raised money by way of public offer and it has also not
accepted term loans, or made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year Hence,
clause 3(x) of the Order is not applicable.
11) Based upon the audit procedure performed for the purpose of reporting the true and
fair view of the financial statements and according to the information and explanations
given by the management, we report that no fraud by the company or no fraud on the company
by the officers and employees of the company has been noticed or reported during the year,
There has been no whistle blower complaints that are received during the year.
12) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of
clause 3(xii) of the Order are not applicable to the Company.
13) In our opinion and according to the information and explanations given to us, the
Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14) According to the information and explanations given to us and on an overall
examination of the balance sheet, the company has an internal audit system commensurate
with the size and nature of its business and the reports of the Internal Auditors for the
period under audit were considered by the statutory auditor.
15) In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
16) According to the information and explanations given to us, the provisions of
section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
17) The company has not incurred any cash losses in the financial year and in the
immediately preceding financial year, Hence; clause 3(xvii) of the Order is not
applicable.
18) There has been no resignation of the statutory auditors during the year, Hence,
clause 3(xviii) of the Order is not applicable.
19) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial.statements, the auditors knowledge of the Board of Directors and management
plans. We are of the opinion that no material uncertainty exists as on the date of the
audit report that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date.
| Particulars |
Percentage/ Times |
| Current Ratio |
1.33 |
| Debt Equity Ratio |
0.36 |
| Debt Service Coverage Ratio |
3.08 |
| Return On Equity Ratio |
0.06 |
| Trade receivable Turnover Ratio |
9.35 |
| Trade Payable Turnover Ratio |
16.11 |
| Net Capital Turnover Ratio |
10.15 |
| Net profit Ratio |
0.04 |
| Return on Capital employed |
0.08 |
20) The provisions of corporate social responsibility are not applicable to the entity.
21) The company does not form part of a group holding control of the entity. Hence,
clause 3(xxi) of the Order is not applicable.
| For Kalyanasundaram and Associates |
| Chartered Accountants |
| (FRN: 005455S) |
| KM Sethu |
| Partner |
| (Membership No: 231703) |
| Place: Chennai |
| Date: 25,h May 2022 |
| UDIN:22231703AJPPTB9739 |
+91-9892691696
