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Everest Industries Ltd.

BSE: 508906 Sector: Industrials
NSE: EVERESTIND ISIN Code: INE295A01018
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OPEN 669.05
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VOLUME 1617
52-Week high 783.20
52-Week low 361.25
P/E 22.34
Mkt Cap.(Rs cr) 1,015
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Sell Price 0.00
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OPEN 669.05
CLOSE 664.05
VOLUME 1617
52-Week high 783.20
52-Week low 361.25
P/E 22.34
Mkt Cap.(Rs cr) 1,015
Buy Price 0.00
Buy Qty 0.00
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 Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofEverest Industries Limited ("the Company") which comprise the Balance sheet asat March 31 2022 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone financial statements including a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner 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 2022 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor?s Responsibilities for the Audit of the Standalone FinancialStatements? section of our report. We are independent of the Company in accordancewith 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 Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor?s responsibilities for the audit of the standalone financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone financial statements.

(a) Revenue recognition for long term projects and recoverability ofreceivables (as described in Note 1.4a of the standalone financial statements)

Key audit matters How our audit addressed the key audit matter
The Company?s significant portion of business is undertaken through long term engineering procurement and construction contracts. Revenue from these contracts is recognized over a period of time in accordance with the requirements of Ind AS 115 Revenue from Contracts with Customers. Due to the nature of the contracts revenue recognition involves usage of input method which is determined based on proportion of contract costs incurred to date compared to estimated total contract costs which involves significant judgments identification of contractual obligations and the Company?s rights to receive payments for performance completed till date risk on collectability due to liquidation damages other penalties imposed by the customers changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/ onerous obligations. Accuracy of revenues onerous obligations profits and net receivables may deviate significantly on account of change in judgements and estimates therefore this has been considered as key audit matter in our audit of the standalone financial statements • Our audit procedures included testing of Company?s revenue recognition accounting policies in compliance with Ind AS 115.
• We obtained an understanding of the process followed by the Company in determination of the estimates for evaluating contract obligations and contract revenue
• We performed test of controls over management process of estimation of contract obligations recording of project costs incurred computation of revenue recognized under the input method in Ind AS 115 and review of recoverability of receivables.
• We tested sample contracts to evaluate appropriate identification of contract obligations recording of project costs incurred reasonability of estimates of costs to complete including change orders if any and appropriateness of the timing of recognizing the revenue from the contracts
• We also tested the invoices raised and computation for revenue recognized over a period of time under the input method as per Ind AS 115.
• We examined the management assessment of onerous contracts liquidation damages and other penalties charged by the customer
• We examined contracts where there were significant overdue receivables with marginal or no movement to determine the level of provisioning required in the receivable.
• We tested the adequacy of disclosures in the financial statements in compliance with Ind AS 115.

Uncertain tax positions impacting valuation of tax provision (as described in note1.4(b) of the standalone financial statements)

The Company has ongoing disputes with the Income tax departments on income tax computation for certain assessment years. These disputes are pending with different Appellate authorities and at the Courts. The management has assessed the future outcome of these ongoing proceedings and exposures which directly affects the valuation of tax provisions in the financial statements. As the future outcome of these matters and the accounting effects thereof are based on assessment of complex matters which may take time to finally resolve the valuation of tax provision related to uncertain tax positions has been considered as key audit matter in our audit of the standalone financial statements. We obtained details of completed tax assessments and demands for the assessment years under dispute as of March 31 2022.
We performed test of control over management process of assessment and estimates with regard to the existing tax disputes and uncertain tax positions.
We inspected written communication between the Company and the tax authorities and involved tax specialists to assess the management?s underlying assumptions in estimating the tax provisions and the possible outcome of the disputes.
We also considered the effect of any new information in the current financial year 2021-22 in respect of carried forward uncertain tax positions to evaluate if there is a change in the management?s position on these uncertainties.
We tested the adequacy of provisioning and disclosures relating to uncertain tax positions in accordance with the requirements of Ind AS 12.

We have determined that there are no other key audit matters tocommunicate in our report.

Other Information

The Company?s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual reportof the Company but does not include the standalone financial statements and ourauditor?s report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whethersuch other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management for the Standalone

Financial Statements

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing theCompany?s financial reporting process.

Auditor?s Responsibilities for the Audit of the

Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor?s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended March 31 2022 and are therefore the keyaudit matters. We describe these matters in our auditor?s report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 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 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 havebeen 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 including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to these standalone financial statements and the operating effectiveness ofsuch controls refer to our separate Report in "Annexure 2" to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2022 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements – Refer Note 2.33 to thestandalone financial /statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; iii. There wereno amounts which were required to be transferred to the Investor Education andProtection Fund by the Company

iv. a) The management has represented that to the best of itsknowledge and belief as disclosed in note 2.58 to the standalone financial statements nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other personsor entities including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany 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;

b) The management has represented that to the best of its knowledgeand belief as disclosed in the note 2.58 to the standalone financial statements no fundshave been received by the Company from any persons or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and

v. Based on such audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under subclause (a) and (b) above containany material misstatement.

vi. (a) The final dividend paid by the Company during the year inrespect of the same declared for the previous year is in accordance with section 123 ofthe Act to the extent it applies to payment of dividend.

(b) As stated in note 2.47 to the standalone financial statements theBoard of Directors of the Company has proposed final dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The dividenddeclared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
UDIN: 22101143AJTMJN7843
Place of Signature: Mumbai
Date: May 27 2022

Annexure "1" referred to in paragraph under the heading"Report on Other Legal and Regulatory Requirements" of our report of even date

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that:

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.

(B) The Company has maintained proper records showing full particularsof intangibles assets. (b) All Property Plant and Equipment were physically verified bythe management in the previous year in accordance with a planned programme of verifyingthem once in three years which is reasonable having regard to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of use assets) or intangible assets during the year ended March 31 2022.

(e) There are no proceedings initiated or are pending against theCompany for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder.

(ii) (a) The Management has conducted physical verification ofinventory at reasonable intervals during the year. In our opinion the coverage and theprocedure of such verification by the Management is appropriate. Discrepancies of 10% ormore in aggregate for each class of inventory were not noticed on such physicalverification and have been properly dealt with in the books of account.

(b) As disclosed in note 2.53 to the financial statements the Companyhas been sanctioned working capital limits in excess of ` five crores in aggregate frombanks during the year on the basis of security of current assets of the Company. Based onthe records examined by us in the normal course of audit of the financial statements thequarterly returns/statements read with the subsequent revisions filed by the Company withsuch banks are in agreement with the books of accounts of the Company

(iii) (a) During the year the Company has not provided loans advancesin the nature of loans stood guarantee or provided security to companies firms LimitedLiability Partnerships or any other parties. Accordingly the requirement to report onclause 3(iii)(a) of the Order is not applicable to the Company.

(b) During the year the Company has not made investments providedguarantees provided security and granted loans and advances in the nature of loans tocompanies firms Limited Liability Partnerships or any other parties. Accordingly therequirement to report on clause 3(iii)(b) of the Order is not applicable to the Company.

(c) The Company has not granted loans and advances in the nature ofloans to companies firms Limited Liability Partnerships or any other parties.Accordingly the requirement to report on clause 3(iii)(c) 3(iii)(d) 3(iii)(e) and3(iii)(f) of the Order are not applicable to the Company.

(iv) There are no loans investments guarantees and security inrespect of which provisions of sections 185 and 186 of the Companies Act 2013 areapplicable and accordingly the requirement to report on clause 3(iv) of the Order is notapplicable to the Company.

(v) The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act 2013 and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture ofvalue added steel products 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) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including goods and services tax provident fundemployees? state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other statutory dues applicable to it. According tothe information and explanations given to us and based on audit procedures performed byus no undisputed amounts payable in respect of these statutory dues were outstanding atthe year end for a period of more than six months from the date they became payable.

b) The dues of goods and services tax provident fund employees?state insurance income-tax sales-tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues have not been deposited on account of anydispute 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 High Court 2007-08 2009-10 79.39 79.39 -
CIT(Appeals) AY 2004-05 to 2018-19 7999.89 1148.88 6851.01
Total 8079.28 1228.27 6851.01
The Central Excise Act 1944 Demand on account of wrong availment of cenvat credit Assistant Commissioner 2008 to 14 9.86 4.92 4.94
Deputy Commissioner 2009-10 0.70 0.40 0.30
Joint Commissioner 2009-10 14.29 - 14.29
Commissioner (Appeals) 2006-07 to 2011-12 7.75 - 7.75
Commissioner 2007-08 to 2013-14 522.23 - 522.23
Appellate Tribunal 2009-10 2014-15 2015-16 322.52 29.34 293.18
Demand of service tax under section 76 of Finance Act 1994 Assistant Commissioner 2017-18 13.05 13.05 -
Total 890.40 47.71 842.69
Sales Tax Laws Demand on account of non-collection of statutory forms etc. Assistant Commissioner 1994-95 0.47 - 0.47
2016-17 20.28 - 20.28
Joint Commissioner 1999-2000 2000-01 2007-08 & 2008-09 19.25 9.38 9.87
Additional Commissioner 2015-16 36.30 1.37 34.93
Commissioner (Appeal) 1997-98 2000-01 to 2002-03 & 2006-07 26.38 13.64 12.74
Joint Commissioner (Appeals) 2009-10 to 2010-11 & 2013-14 117.23 95.79 21.44
Deputy Commissioner (Assessment) 2012-13 2013-14 & 2014-15 402.95 229.00 173.95
Deputy Commissioner (Assessment) 2015-16 2017-18 7647.98 37.00 7610.98
Appellate Tribunal 1997-98 to 1998-99 and 2009-10 to 2013-14 61.11 35.56 25.55
Demand on account of purchase tax on fly ash Madras High Court 1990-91 1992-93 & 1995-1996 13.18 12.89 0.29
Assessing Officer 1996-97 5.83 5.83 -
Demand on account of reversal of input tax credit Deputy Commissioner 2013-14 10.76 3.79 6.97
Additional Joint Commissioner 2009-10 2.33 2.33 -
Demand on account of stock transfers considered as Interstate sales Central Sales Tax Appellate Authority 1994-1995 & 1995-1996 676.34 0.34 676.00
Demand on account of differential rate Assistant Commissioner 2016-17 1994.13 199.40 1794.73
Penalty for late High Court Orissa 2012-13 4.39 4.39 -
payment of entry tax Appl DC (CT) Coimbatore 2014-18 34.93 5.20 29.73
Total 11073.84 655.91 10417.93

viii) The Company has not surrendered or disclosed any transactionpreviously unrecorded in the books of account in the tax assessments under the Income TaxAct 1961 as income during the year. Accordingly the requirement to report on clause3(viii) of the Order is not applicable to the Company.

(ix) (a) The Company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender.

(b) The Company has not been declared willful defaulter by any bank orfinancial institution or government or any government authority.

(c) The Company did not have any term loans outstanding during the yearhence the requirement to report on clause (ix)(c) of the Order is not applicable to theCompany.

(d) The Company did not raise any funds during the year hence therequirement to report on clause (ix) (d) of the Order is not applicable to the Company.

(e) On an over all examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries.

(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries. Hence the requirement to report on clause (ix)(f) ofthe Order is not applicable to the Company.

(x) (a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on clause 3(x)(a) of the Order is not applicable to the Company

(b) The Company has not made any preferential allotment or privateplacement of shares / fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company.

(xi) (a) No fraud by the Company or no material fraud on the Companyhas been noticed or reported during the year.

(b) During the year no report under sub-section (12) of section 143 ofthe Companies Act 2013 has been filed by cost auditor/ secretarial auditor or by us inForm ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year while determining the nature timing and extent ofaudit procedures.

(xii) The Company is not a Nidhi Company as per the provisions of theAct. Accordingly the requirement to report on clause 3(xii) of the Order is notapplicable to the Company.

(xiii) Transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the notes to the financial statements as required by the applicableaccounting standards.

(xiv) (a) The Company has an internal audit system commensurate withthe size and nature of its business.

(b) The internal audit reports of the Company issued till the date ofthe audit report for the period under audit have been considered by us.

(xv) The Company has not entered into any non-cash transactions withits directors or persons connected with its directors and hence requirement to report onclause 3(xv) of the Order is not applicable to the Company. (xvi) (a) The provisions ofsection 45-IA of the Reserve Bank of India Act 1934 (2 of 1934) are not applicable to theCompany. Accordingly the requirement to report on clause (xvi)(a) of the Order is notapplicable to the Company.

(b) The Company is not engaged in any Non-Banking Financial or HousingFinance activities. Accordingly the requirement to report on clause (xvi)(b) of the Orderis not applicable to the Company.

(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi) of the Order is not applicable to the Company.

(d) There is not a Core Investment Company as a part of the Grouphence the requirement to report on clause 3(xvi)(d) of the Order is not applicable to theCompany.

(xvii) The Company has not incurred cash losses in the current year andin the immediately preceding financial year respectively.

(xviii) There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.

(xix) On the basis of the financial ratios disclosed in note 2.59 tothe financial statements ageing and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the financial statementsour knowledge of the Board of Directors and management plans and based on our examinationof the evidence supporting the assumptions nothing has come to our attention whichcauses us to believe that any material uncertainty exists as on the date of the auditreport that Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) (a) In respect of other than ongoing projects there are nounspent amounts that are required to be transferred to a fund specified in Schedule VII ofthe Companies Act 2013 (the Act) within a period of six months of the expiry of thefinancial year in compliance with second proviso to sub section 5 of section 135 of theAct. This matter has been disclosed in note 2.46 to the financial statements.

(b) All amounts that are unspent under section (5) of section 135 ofCompanies Act pursuant to any ongoing project has been transferred to special account incompliance of with provisions of sub section (6) of section 135 of the said Act. Thismatter has been disclosed in note 2.46 to the financial statements.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
UDIN: 22101143AJTMJN7843
Place of Signature: Mumbai
Date: May 27 2022

Annexure ‘2? to the Independent Auditor?s Report Of EvenDate On The Standalone Financial Statements Of Everest Industries Limited Report on theInternal Financial Controls under Clause (i) of Subsection 3 of Section 143 of theCompanies Act 2013 ("the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Everest Industries Limited ("the Company") asof March 31 2022 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.

Management?s 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 the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to these standalone financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to these standalone financial statements was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone financialstatements 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 judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 financial controls with reference to thesestandalone financial statements.

Meaning of Internal Financial Controls With Reference to these

Standalone Financial Statements

A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to standalone financial statements includesthose 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 unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls With Reference toStandalone Financial Statements Because of the inherent limitations of internal financialcontrols with reference to standalone financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls with reference to standalone financial statements to futureperiods are subject to the risk that the internal financial control with reference tostandalone financial statements may become inadequate because of changes in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
UDIN: 22101143AJTMJN7843
Place of Signature: Mumbai
Date: May 27 2022

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