You are here » Home » Companies » Company Overview » Everest Industries Ltd

Everest Industries Ltd.

BSE: 508906 Sector: Industrials
NSE: EVERESTIND ISIN Code: INE295A01018
BSE LIVE 15:57 | 21 Sep 352.85 -8.75
(-2.42%)
OPEN

360.25

HIGH

362.15

LOW

350.00

NSE 15:41 | 21 Sep 351.80 -9.35
(-2.59%)
OPEN

360.05

HIGH

362.55

LOW

350.00

OPEN 360.25
PREVIOUS CLOSE 361.60
VOLUME 3679
52-Week high 421.60
52-Week low 182.00
P/E 61.37
Mkt Cap.(Rs cr) 546
Buy Price 352.85
Buy Qty 7.00
Sell Price 0.00
Sell Qty 0.00
OPEN 360.25
CLOSE 361.60
VOLUME 3679
52-Week high 421.60
52-Week low 182.00
P/E 61.37
Mkt Cap.(Rs cr) 546
Buy Price 352.85
Buy Qty 7.00
Sell Price 0.00
Sell Qty 0.00

Everest Industries Ltd. (EVERESTIND) - Auditors Report

Company auditors report

TO THE MEMBERS OF

EVEREST INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of EVERESTINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial 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 standalone financial statements that give a true and fair view of the financialposition financial and cash flows of the Company in accordance with accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and the Companies(Accounting Standards) Amendment Rules 2016. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 its profit and its cash flows for the year ended on that date.

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 Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. 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 bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified the Act read with Rule 7 of the Companies (Accounts)Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016;

e. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164 (2) ofthe Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A" to this report;

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 2.24 to the standalone financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in Note 2.48 to these standalonefinancial statements as to the holding of Specified Bank Notes on November 8 2016 andDecember 30 2016 as well as dealings in SpecifiedBank Notes during the period fromNovember 8 2016 to December 30 2016. Based on our audit procedures and relying on themanagement representation regarding the holding and nature of cash transactions includingSpecified Bank Notes we report that these disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the Management.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number : 301003E/E300005

Sanjay Vij

Partner

Membership Number : 095169

Place : Mumbai

Date : 3rd May 2017

ANNEXURE 2 REFERRED IN PARAGRAPH 2(F) UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR REPORT ON THE STAND ALONE FINANCIAL STATEMENTS OFEVEREST INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of EverestIndustries Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 Companies Act 2013.

Auditor's Responsibility

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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial 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 andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 unauthorised 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

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

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 2017 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.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number : 301003E/E300005

Sanjay Vij

Partner

Membership Number : 095169

Place : Mumbai

Date : 3rd May 2017

ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER ‘REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS' SECTION OF OUR REPORT OF EVEN DATE

Re: EVEREST INDUSTRIES LIMITED (The Company)

i. In respect of Fixed Assets

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The company has a programme of verifying fixed assets once in three years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain fixed assets were physically verified by themanagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

c. According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment/ fixed assets areheld in the name of the company.

ii. The management has conducted physical verification of inventory at reasonable werenoticed on such physical verification.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

Accordingly the provisions of clause 3(iii)(a) (b) and (c) of the Order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of Companies Act 2013 in respectof making investments. However the Company has not granted any loans or provided anyguarantees and securities.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same. vii. According to the information and explanations given to us :

a. The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of custom duty of excise value added tax cess and otherstatutory dues applicable to it.

b. There are no undisputed amounts payable in respect of provident fund employees'state insurance income-tax service tax sales-tax duty of custom duty of excise valueadded tax cess and other statutory dues were outstanding at March 31 2017 for a periodof more than six months from the date they became payable.

c. The dues of income-tax sales-tax service tax duty of custom duty of excisevalue added tax and cess on account of any dispute are as follows: (Rs. In Lakhs)

Name of the applicable Act Nature of dues Forum where the dispute is pending Period to which the amount relates Amount involved Amount Paid Amount unpaid
Income Tax Act 1961 Demand on account of disallowance of certain claims Appellate Tribunal 2003-2004 2004-2005 and 2006-2007 342.36 256.20 86.16
Commissioner of Income Tax Appeals 2005-2006 2006-2007 2009-2010 2010-2011 2011-2012 2012-2013 and 2013-2014 1658.88 1658.88 -
Total 2001.24 1915.08 86.16
The Central Excise Act 1944 Demand on account of wrong availment of cenvat credit Assistant Commissioner 2005 to 2014 2015-2016 6.30 - 6.30
Commissioner 2007-08 to 2014-15 464.93 - 464.93
Commissioner (Appeals) 2006-07 to 2011-12 242.64 0.35 242.29
Deputy Commissioner 2009-10 and 2012-13 0.56 - 0.56
Joint Commissioner 2009-10 14.29 - 14.29
Additional 2010-11 52.16 - 52.16
Commissioner 2011-12 and 2015-16
Appellate Tribunal 2008-09 and 2009-10 33.26 4.38 28.88
Demand of duty under Section 11D of the Central Excise Act1944 Appellate Tribunal 1992 to 1996 2462.40 - 2462.40
Total 3276.54 4.73 3271.81
Sales Tax Laws Demand on account of non-collection of statutory forms etc. Appellate Tribunal 1997 to 1999 2000- 2001 2007-08 2010-12 21.05 - 21.05
Assistant Commissioner 1994-95 0.47 - 0.47
Joint Commissioner 1999-2001 2007-08 to 2014-15 119.68 36.36 83.32
Commissioner (Appeal) 1997-1998 2000-2003 and 2006-07 26.07 1.59 24.48
Joint Commissioner (Appeals) 2009-10 2010-11 and 2011-12 158.62 63.42 95.20
Additional Commissioner 2012-13 2013-14 and 2014-15 390.15 40.57 349.58
Demand on account of purchase tax on fly ash Assessing Officer 1996-1997 and 1999-2000 14.77 14.77 -
Madras High Court 1990-1991 1992-1993 and 1995-1996 13.18 12.89 0.29
Demand on account of reversal of input tax credit Addl. Joint Commissioner 2009-10 2.33 2.33 -
Demand on account of reversal of input tax credit Joint Commissioner 2013-14 10.76 3.79 6.97
Demand on account of stock transfers considered as inter-state sales Central Sales Tax Appellate Authority 1994-1995 and 1995-1996 676.34 0.95 675.39
Madras High Court 1998-1999 420.75 - 420.75
Demand on account of understatement of sales/ purchase Appellate Tribunal 2011-12 and 2012-13 154.99 - 154.99
Joint Commissioner (Appeals) 2013-14 0.13 0.02 0.11
Penalty for late payment of Entry Tax High Court Orissa 2012-13 4.39 4.39 -
Total 2013.69 181.08 1832.61

viii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to banks. Thecompany has not taken any loans or borrowings from a financial institution and governmentnor has it issued any debenture.

ix. In our opinion and according to information and explanations given by themanagement the term loans have been applied for the purpose for which they were raised.The company has not raised moneys by way of initial public offer or further public offer(including debt instruments).

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud / materialfraud on the company by the officers and employees of the Company has been noticed orreported during the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a nidhi company. Therefore the provisions of clause 3(xii) ofthe order are not applicable to the Company.

xiii. According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

xiv. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reportingrequirements under clause 3(xiv) are not applicable to the company.

xv. In our opinion and according to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in section 192 of Companies Act 2013.

xvi. The Company is not required to be registered under section 45-IA of The ReserveBank of India Act 1934

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number : 301003E/E300005

Sanjay Vij

Partner

Membership Number : 095169

Place : Mumbai

Date : 3rd May 2017