Rithwik Facility Management Services Ltd received a show cause notice from the Assistant Commissioner (ST), Guindy Assessment Circle, regarding Goods and Services Tax compliance for Financial Year 2023-24. The notice was received on October 1, 2026, proposing tax on specific items with a potential financial implication of ₹8.41 crore.

The communication falls under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The GST authorities have flagged three primary areas requiring documentary proof: non-GST supplies, Input Tax Credit (ITC) non-reversal in proportion to GST and non-GST supplies, and excess or ineligible ITC.

Nature of the Notice

The show cause notice was issued under Section 73 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, and the Central Goods and Services Tax (CGST) Act, 2017. The company clarified that no penalty, restriction, or sanction has been imposed at this stage.

Company Response and Implications

Rithwik Facility Management Services stated that it possesses all supporting documents for the disallowances proposed by the authorities. Consequently, the company asserted that there will not be any financial implication. However, the filing acknowledged that the financial impact would be ₹8.41 crore if the authorities confirm the proposed tax demand.

The company indicated it will take appropriate action in response to the notice. The dispute centers on the proportionality of ITC reversal between taxable and exempt supplies, a common area of scrutiny for facility management firms that often handle mixed services.

What the Numbers Show

The potential liability of ₹8.41 crore represents a contingent exposure rather than an immediate cash outflow. The divergence between the proposed amount and the company's assertion of zero impact hinges entirely on the validity of the documentary proofs submitted regarding non-GST supplies and ITC eligibility. Since the notice is a preliminary step under Section 73, the final liability remains subject to adjudication.

Rithwik Facility Management Services Limited declared a final dividend of ₹1 per equity share for the financial year ended March 31, 2026. The payout was approved by shareholders at the company's 16th Annual General Meeting held on September 30, 2026.

The meeting also saw the adoption of the audited standalone financial statements for FY26. Shareholders approved the appointment of M/s. SVRJNS & Co, Chartered Accountants, as the new statutory auditors of the company. The firm holds Registration No. 019519S.

Board and governance changes

Several director appointments were ratified during the proceedings. The resolutions included the appointment of three new directors to strengthen the board's composition.

The board noted that there were no qualifications in the statutory auditors' report on the financial statements. Similarly, the secretarial audit report submitted by Arun Kumar Khandelwal, a practising company secretary, contained no qualifications.

Voting and compliance

The company provided remote e-voting facilities to members from September 27, 2026, to September 29, 2026. Voting results are scheduled to be declared within 48 hours of the meeting's conclusion. A total of 22 shareholders attended the meeting in person or through electronic means.

Key managerial personnel present included Chief Financial Officer Suresh Babu T and Company Secretary S. Jayapandi. Independent directors Shama Prasanna Tipparaju, G. Jayaraman, and Anitha Radhakrishnan were also in attendance. The meeting was chaired by Whole-Time Director V. Niranjan Rao.

AGM voting results

Voting results for the 16th AGM were submitted to the Bombay Stock Exchange on October 1, 2026. All six resolutions proposed at the meeting were passed with 100% votes in favour and zero votes against.

Resolution-wise voting summary

Voter participation details

A total of 87 shareholders were on the register as of the record date, September 23, 2026. Of these, 22 shareholders participated in the voting process, comprising one promoter/promoter group member and 21 public shareholders. No shareholders attended via video conferencing.

For most resolutions, 18 members cast their votes through remote e-voting before the AGM, representing 28,45,496 shares. For the appointment of Mr. Ranjit Patro, 17 members voted, representing 28,39,496 shares, with one member abstaining from voting on this specific resolution. No invalid votes were recorded for any resolution.