Everest Industries Limited
Report on the Audit of the Standalone Financial Statements
OPINION
We have audited the accompanying standalone financial statements of Everest Industries Limited ("the Company"), which comprise the Standalone Balance Sheet as at March 31 2026, the Standalone Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Standalone Statement of Cash Flows and the Standalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of material 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, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, its loss including other comprehensive income, its cash flows and the changes in equity 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 (SAs), as specified under section 143(10) of the Act. 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 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 Act 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 audit opinion on the standalone financial statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2026. 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. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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(a) Revenue recognition for long term projects and recoverability of receivables (as described in note 1.3(ix), note 1.4(a)
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and note 2.24 of the standalone financial statements)
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A significant portion of the Company's business is undertaken
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As part of our audit procedures, we:
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through long-term engineering, procurement and construction
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• Read the Company's accounting policy relating to revenue
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contracts. Revenue from these contracts is recognized over a
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recognition to assess compliance with Ind AS 115.
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period of time in accordance with the requirements of Ind AS
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115, Revenue from Contracts with Customers.
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• Obtained an understanding of the process followed by the Company in determination of the estimates for evaluating contract obligations and contract revenue.
• 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.
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Key audit matters
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How our audit addressed the key audit matter
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Due to the nature of the contracts, revenue recognition
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1 nspected sample of contracts to evaluate appropriate
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involves usage of input method which is determined based
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identification of contract obligations, recording of
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on proportion of contract costs incurred to date compared
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project costs incurred, reasonability of estimates of
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to estimated total contract costs, which involves significant
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costs to complete including change orders, if any, and
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judgments, identification of contractual obligations and the
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appropriateness of the timing of recognizing the revenue
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Company's rights to receive payments for performance
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from the contracts.
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completed till date, risk on collectability due to liquidated 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
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Tested the invoices raised and computation for revenue recognized, over a period of time under the input method as per Ind AS 115.
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obligations. Accuracy of revenues, onerous obligations, profits
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Examined and evaluated management judgments of
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and net receivables may deviate significantly on account of
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onerous contracts, liquidated damages, other penalties
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change in judgements and estimates therefore, this has been
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charged by customers and adequacy of contingency
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considered as a key audit matter in our audit of the standalone
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provisions.
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financial statements.
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Examined contracts where there were significant overdue receivables with marginal or no movement to determine the level of provisioning required in respect of trade receivables.
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Read and evaluated adequacy of disclosures in the standalone financial statements for compliance with Ind AS 115.
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(b) Uncertain tax position impacting valuation of tax provision (as described in Note 1.4b and note 2.23 of the standalone
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financial statements)
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The Company has ongoing disputes with the Income
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As part of our audit procedures, we:
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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
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Obtained details of completed tax assessments and demands for the assessment years under dispute as of March 31,2026.
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and exposures which directly affects the valuation of tax
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Performed test of control over management process of
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provisions in the standalone 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 a key audit matter in our audit of the standalone financial statements.
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assessment and estimation with regard to the existing tax disputes and uncertain tax positions.
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 possible outcome of the disputes.
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Considered the effect of new information in the financial year 2025-26 in respect of carried forward uncertain tax positions to evaluate if there is a change in the management's position on these uncertainties.
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We tested the adequacy of provisioning and disclosures in the standalone financial statements, relating to uncertain tax positions in accordance with the requirements of Ind AS 12.
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Key audit matters
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How our audit addressed the key audit matter
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(c) Recoverability of investments in and loans to a subsidiary (as described in note 1.4(f), note 2.05 and note 2.06 of the
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standalone financial statements)
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The Company has invested in, and extended loan to, its
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Our audit procedures included the following:
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subsidiary. As at March 31, 2026, the gross carrying amount of such investment and loan is Rs. 1,703.55 lakhs and Rs. 10,777.66 lakhs, respectively.
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Obtained an understanding of and evaluated the design and implementation of controls over management's impairment assessment process.
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The subsidiary continues to incur losses and its net worth
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Obtained and examined management's assessment for
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stands negative as at March 31, 2026.
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impairment.
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During the year ended March 31,2026, the Company recognized impairment allowances of Rs. 1,500.88 lakhs on its investment in the subsidiary and Rs. 1,369.12 lakhs on the loan extended
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Assessed the competence, capabilities and objectivity of the expert used by management in the process of determining recoverable amounts.
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to the subsidiary, respectively, as disclosed in note 2.05 and
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Evaluated the key assumptions used by management
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note 2.06 to the standalone financial statements.
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in assessment of recoverable value including forecast revenue growth, operating margins, long-term growth
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Given the significance of the carrying amounts involved
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rates and discount rates which included comparing these
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and assessment requires management to make significant
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inputs with externally derived data as well as our own
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estimates concerning the estimated future cash flows and
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assessment based on our knowledge of the client and the
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associated discount rates and growth rates, we considered
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industry.
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this to be a key audit matter.
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Tested the arithmetic accuracy and performed sensitivity analyses on key assumptions to evaluate potential impact of changes in assumptions on the recoverable amounts.
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Compared the projected cash flows used in the impairment assessment with the approved budgets.
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Assessed the compliance of the disclosures made in the standalone financial statements with the accounting standards.
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INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON
The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, including the report of the Board of Directors, but does not include the standalone financial statements and our auditor's report thereon. The Annual Report, including the report of the Board of Directors is expected to be made available to us after the date of this audit report.
Our opinion on the standalone financial statements does not cover the Other Information and we do not express any form of assurance 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 in the audit or otherwise
appears to be materially misstated. When we read the Annual Report, including the report of the Board of Directors, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
RESPONSIBILITIES OF MANAGEMENT FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 standalone 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, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of 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 also:
• Identify 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 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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures 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 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.
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 for the financial year ended March 31,2026 and are
security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, as disclosed in note 2.59(vi),no funds have been received by the Company from any persons or entities, including foreign entities ("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; and
c) Based on such audit procedures performed 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 subclause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 2.49 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval
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 public interest 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 the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 except for the matters stated in paragraph 2(i)(vi) below on reporting under rule 11(g) of the Companies (Audit and Auditors) Rules, 2014;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Statement of Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2026 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(i)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014;
(g) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(h) In our opinion, the managerial remuneration for the year ended March 31,2026 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(i) 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 Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 2.34 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. a) The management has represented
that, to the best of its knowledge and belief, as disclosed in note 2.59(v), no funds 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 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 ("Ultimate Beneficiaries") or provide any guarantee,
of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. Based on our examination which included test checks, the Company has used accounting software 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 except that, the audit trail feature is not enabled for certain changes made, if any, using privileged / administrative access rights, as described in note 2.57 to the standalone financial statements.
Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with, in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Vinayak Pujare
Partner
Membership Number: 101143
UDIN: 26101143ELOGOA9223
Place of Signature: Mumbai
Date: May 26, 2026
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