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Key Audit Matter
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Auditor’s Response
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(1) Revenue Recognition from construction contracts:
The Company generates significant revenue from
construction contracts and long-term operating and
maintenance agreements. Revenue from these contracts
is recognised over the period of time in accordance with
the requirements of Ind AS 115, Revenue from Contracts
with Customers. For majority of its contracts, the Company
recognises revenue and profit on the stage of completion
based on the proportion of contract costs incurred for the
work performed to the balance sheet date, relative to the
estimated costs on the contract at completion. This method
requires the Company to perform an initial assessment of
total estimated cost and reassess the total construction
cost at each reporting period end to determine the
appropriate percentage of completion. The recognition of
revenue and profit/loss therefore are based on estimates in
relation to the estimated total costs of each contract, which
involves significant judgments, identification of contractual
obligations and the Company’s rights to receive payments
for performance completed, scope amendments and price
escalations resulting in revised contract price. Refer note
1.B.I and note 32 of the Standalone Financial Statements.
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Our audit procedures included the following:
• Understood and evaluated the design and tested the
operating effectiveness of key internal financial controls,
including those related to review and approval of estimated
project cost and review of provision for estimated loss by
the authorised representatives.
• Obtained an understanding of Company’s revenue
recognition policies and reviewed compliance in terms of
provisions of Ind AS 115.
• Performed assessment that the revenue recognition
method applied was appropriate based on the terms of the
arrangement and contract.
• For a sample of contracts, we obtained the percentage of
completion calculations, agreed key contractual terms to
the signed contracts, tested the mathematical accuracy
of the cost to complete calculations and re-performed the
calculation of revenue recognised during the year based on
the percentage of completion.
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Key Audit Matter
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Auditor’s Response
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• Obtained an understanding of the revenue recognition
processes including documentation maintained and tested
key internal controls impacting revenue, on a sample basis.
• Assessed the reliability of management’s estimates by
comparing the actual outcome of completed projects with
previously estimated timelines.
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(2) Litigations Matters & Contingent liabilities (as described
in note 42 of the Standalone Financial Statements)
The Company is subject to claims and litigations. Major
risks identified by the Company in that area relate to
claims against the Company including legal, taxation and
regulatory matters under dispute, corporate guarantees
issued on behalf of subsidiaries, and funding commitments
towards group companies. The amount involved may be
significant and estimates of the amounts of provisions or
contingent liabilities are subject to significant management
judgment. Due to the complexity involved in these litigation
matters, management’s judgment regarding recognition
and measurement of provisions for these legal proceedings
is inherently uncertain and might change over time as the
outcomes of the legal cases are determined and it has been
considered as a key audit matter.
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Our procedures included the following:
• Assessing the procedures implemented by the Company to
identify the risks it is exposed to.
• Discussion with management on the development in these
litigations during the year ended 31st March, 2026.
• Obtaining an understanding of the risk analysis performed
by the Company with the related supporting documentation
and studying written statements from internal/external legal
experts, when applicable.
• Verification that the accounting and/or disclosures as
the case may be in the Standalone Financial Statements
is in accordance with the assessment of legal counsel/
management.
• Obtaining representation letter from the management on
the assessment of those matters as per SA 580 (revised)-
written representations.
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We have audited the accompanying standalone financial
statements of Enviro Infra Engineers Limited (“the Company”),
which include the Company’s interest in joint operations as
listed in Annexure 1, which comprise the standalone balance
sheet as at 31st March, 2026, the standalone statement of
profit and loss (including other comprehensive income),
the standalone statement of changes in equity and the
standalone statement of cash flows for the year then ended,
and notes to the standalone financial statements, including
material accounting policy information and other explanatory
information (hereinafter referred to as “the standalone
financial statements”).
In our opinion and to the best of our information and
according to the explanations given to us and based on the
consideration of reports of the other auditors on the audited
financial statements of the joint operations referred to in
the Other Matter section below, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under Section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, made thereunder, as amended, (“Ind AS”) and
other accounting principles generally accepted in India, of
the state of affairs of the Company, its joint operations, as at
31st March, 2026, and its profit, other comprehensive losses,
changes in equity and its cash flows for the year ended on
that date.
BASIS FOR OPINION
We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing
specified under Section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the
standalone financial statements section of our report. We
are independent of the Company and its joint operations in
accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the
Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
the ICAI’s Code of Ethics.
We believe that the audit evidence obtained by us and the
audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters below, is sufficient
and appropriate to provide a basis for our audit opinion on
the standalone financial statements.
KEY AUDIT MATTERS
Key audit matters (KAM) are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone financial statements of the current
period. These matters were addressed in the context of
our audit of the standalone financial statements as a whole,
and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have determined
the matters described below to be the key audit matters to
be communicated in our report. For each matter below, our
description of how our audit addressed the matter is provided
in that context.
INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR’S REPORT
THEREON
The Company’s Board of Directors are responsible for the
preparation for the other information. The other information
comprises the information included in the Company’s
annual report particularly with respect to the Management
Discussion and Analysis, Board’s Report including Annexures
to Board’s Report, Corporate Governance and Shareholder’s
Information, but does not include the standalone financial
statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not
cover the other information and we do not express any form
of assurance or conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
and, in doing so, consider whether such other information
is materially inconsistent with the standalone financial
statements, or our knowledge obtained during the course of
our audit or otherwise appears to be materially misstated.
When we read the other information identified above, we
conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with
governance.
RESPONSIBILITIES OF THE MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company’s Management and Board of Directors is
responsible for the matters stated in Section 134(5) of the Act
with respect to the preparation and presentation of these
standalone financial statements that give a true and fair view
of the financial position, financial performance including other
comprehensive losses, cash flows and changes in equity of
the Company in accordance with the accounting principles
generally accepted in India, including (Ind AS) specified under
Section 133 of the Act, read with relevant Rules, as amended,
as applicable.
The respective Board of Directors of the Company and its joint
operations are responsible for the maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and its
joint operations 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, which have
been used for the purpose of preparation of the standalone
financial statements by the Directors of the Company, as
aforesaid.
In preparing the standalone financial statements, the
respective Management and Board of Directors of the
Company and its joint operations are responsible for
assessing the ability of the Company and its joint operations
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern
basis of accounting unless Board of Directors either intends
to liquidate the Company and its joint operations, or to cease
operations, or has no realistic alternative but to do so. The
respective Board of Directors of the Company and its joint
operations are also responsible for overseeing the financial
reporting process of the Company and its joint operations.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
STANDALONE 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 auditor’s 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 aggregate, they
could reasonably be expected to influence the economic
decisions of users taken based on these standalone financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We are also:
• I dentify and assess the risks of material misstatement
of the standalone 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 Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to the standalone
financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management.
• Conclude on the appropriateness of management’s 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 ability of the Company
and its joint operations to continue as a going concern.
If we conclude that material uncertainty exists, we
are required to draw attention in our auditor’s report
to the disclosures related in the standalone 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 auditor’s
report. However, future events or conditions may
cause the Company and its joint operations to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding
the financial information of the Joint Operations which
are included in the Company’s financial statements
to express an opinion on the Standalone Financial
Statements. We are responsible for the direction,
supervision and performance of the audit of the financial
statements of such joint operations included in the
standalone financial statements of which we are the
independent auditors. For the other joint operations
included in the standalone financial statements, which
have been audited by other auditors, such other auditors
remain responsible for the direction, supervision and
performance of the audits carried out by them. We
remain solely responsible for our audit opinion
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the financial statements
may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the standalone
financial statements.
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.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the benefits of public interest such
communication.
OTHER MATTER
(i) We did not audit the financial statement of six joint
operations included in the standalone financial
statements of the Company, which constitute total assets
of Rs. 3,484.84 lakhs, total revenues of Rs. 2,691.00
Lakhs, total comprehensive income (comprising of profit
and Total comprehensive income) of Rs. 0.09 Lakhs for
the year then ended and cash inflow (outflow) (net) of
Rs. 13.14. These financial statements and other financial
information have been audited by the respective
independent auditors. According to the information
and explanations given to us by the management,
these Joint operations are not considered material to
the Company. All the figures stated above represent
the Company’s share before giving the effect of
consolidation adjustments.
The auditor’s reports on the financial statements for
these six joint operations have been furnished to us by
the management and our opinion on the standalone
financial statement in so far as it relates to the amounts
and disclosures included in respect of these joint
operations is based solely on the reports of such
auditors and the procedure performed by us as stated
in paragraph above.
Our opinion on the standalone financial statements
above and our report on Other Legal and Regulatory
Requirements below are not modified in respect of the
above matter with respect to our reliance on the reports
of the other auditors.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
(i) As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government
of India in terms of Section 143 (11) of the Act, we give in
the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
(ii) As required by Section 143(3) of the Act, based on our
audit, and based on the consideration of the reports of
the other auditors on the separate financial statements/
information of the Joint Operations referred to in Other
Matters section above, 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 of the aforesaid standalone
financial statements;
b. In our opinion, proper books of account as
required by law have been kept by the Company
and its joint operations so far as it appears from our
examination of those books;
c. The standalone balance sheet, the standalone
statement of profit and loss including the statement
of other comprehensive income, the standalone
statement of cash flow and standalone statement
of changes in equity dealt with by this Report are in
agreement with the relevant books of account;
d. I n our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under
Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015 as amended
and other accounting principles generally accepted
in India;
e. On the basis of the written representations
received from the directors as on 31st March, 2026,
taken on record by the Board of Directors and the
reports of the auditors of joint operations, none of
the directors is disqualified as on 31st March, 2026,
from being appointed as a director in terms of
Section 164(2) of the Act;
f. With respect to the adequacy of the internal
financial controls with reference to the standalone
financial statements of the Company and its joint
operations, and the operating effectiveness of
such controls, refer to our separate Report in
“Annexure B” to this report: Our report expresses
an unmodified opinion on the adequacy and
operating effectiven ess of the Company intern al
financial control over financial reporting with
reference to the standalone financial statements;
and
g. With respect to the Other Matters to be included
in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as
amended in our opinion and to the best of our
information and according to the explanation
given to us, the remuneration paid/provided by
the Company to its directors during the year is in
accordance with the provisions of section 197 of
the Act.
h. With respect to the Other Matters to be included
in the Auditor’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 to the explanations
given to us:
i. The standalone financial statements disclose
the impact of pending litigations on the
standalone financial position of the Company
and its joint operations. (Refer Note 42 to the
standalone financial statements);
ii. The Company and its joint operations has
long-term contracts for which there were no
material foreseeable losses as at 31st March,
2026. Further, the Company and its joint
operations did not have any outstanding
derivative contracts as at 31st March, 2026.
iii. There has been no amount required to be
transferred to the Investor Education and
Protection Fund by the Company and its joint
operations during the year ended 31st March,
2026.
iv. a) The respective managements of the
Company and its joint operations whose
financial statements have been audited under
the Act, have represented to us and the other
auditors of such joint operations, respectively
that, to the best of our knowledge and belief,
no fu nds 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 or any
of such joint operations to or in any other
persons or entities, including foreign entities
(“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 or any of such
joint operations (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The respective managements of the Company
and its joint operations whose financial
statements have been audited under the Act,
have represented to us and the other auditors
of such joint operations, respectively that,
to the best of our knowledge and belief, no
funds have been received by the Company
or any of such joint operations from any
persons or entities, including foreign entities
(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that
the Company or any of such joint operations
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; and
c) Based on such audit procedures that has
been considered reasonable and appropriate
in the circumstances, performed by us and
those performed by the auditors of joint
operations whose financial statements have
been audited under the Act, nothing has
come to our or other auditor’s notice that has
caused us to believe that the representations
under sub-clause (a) and (b) contain any
material misstatement.
v. I n our opinion, and according to the information
and explanations given to, the Company has not
declared and paid dividend during the year, hence,
the provisions of section 123 to the Act are not
applicable to the Company and have not been
commented upon.
vi. Based on our examination which included test
checks, the Company has used an accounting
software (Tally Gold) for maintaining its books of
account which has a feature of recording audit
trail (edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software.
Further, during our audit, it is noted that Edit Logs
are being preserved since 7th Apr 23.
Further Tally is hosted in Delhi, India region and
backups are being maintained in Delhi region.
For S S Kothari Mehta & Co. LLP
Chartered Accountants
Firm’s Registration No. - 000756N/N500441
Deepak K. Aggarwal
Partner
Place: New Delhi Membership No. 095541
Date: 28th May, 2026 UDIN: 26095541HGTRJE7374
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