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Enviro Infra Engineers Ltd Auditor Reports

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Enviro Infra Engineers Ltd Share Price Auditors Report

To the Members of Enviro Infra Engineers Limited

Report on the Audit of the Standalone Financial Statements

Opini?n

We have audited the accompanying standalone financial statements of Enviro Infra Engineers Limited ("the Company"), which comprise the balance sheet as at March 31, 2024, the statement of profit and loss, including other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the material accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements") which ineludes 5 Joint Operations accounted on proportionate basis as stated in Annexure -1.

In our opini?n 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 sep?rate 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 amsnded, ("Ind AS") and other accounting principies generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opini?n

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 Auditors 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 (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 ICAIs 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 opini?n 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 opini?n thereon, and we do not provide a sep?rate opini?n on these matters. We have determined the matters described below to the key audit matters to be communicated in our report.

For each matter below, our description of how our audit addressedjthejjiatter js provided in that context.

Key Audit Matter Auditors Response
(1) Revenue Recognition for Construction contracts Our audit procedures included the following:
The Company generates significant revenue from construction contracts and long-term operating and maintenance agreements. Revenue from these contracts is recognized 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 recognizes 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. • 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 provisi?n for estimated loss by the authorised representatives.
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 Companys rights to receive payments for performance completed, scope amendments and price escalations resulting in revised contract price. • Obtained an understanding of Companys revenue recognition policies and reviewed compliance in terms of provisions of Ind-AS 115.
Refer note l.B.I and note 24 of the Standalone Financial Statements. • 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 recognized during the year based on the percentage of completion.
• Obtained an understanding of the revenue recognition processes including documentation maintained and tested key internal Controls impacting revenue, on sample basis.
• Assessed the reliability of managements estimates by comparing the actual outcome of completed projects with previous estimated timelines.
(2) Litigations Matters & Contingent liabilities (as described in note 34 of the Standalone Financial Statements) Our procedures included the following:
• Assessing the procedures implemented by the Company to identify the risks it is exposed to.
The Company is subject to claims and litigations. Major risks identified by the Company in that area relate to claims against the Company and taxation matters. The amounts of claims and litigations may be significant and estimates of the amounts of provisions or contingent liabilities are subject to significant management judgment. • Discussion with the management on the development in these litigations during the year ended March 31, 2024.
Due to complexity involved in these litigation matters, managements judgment regarding • Obtaining an understanding of the risk analysis performed by the Company, with the relating supporting documentation and studying written statements from internal/ external legal experts, when applicable.
recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outeomes of the legal cases are determined and it has been considered as a key audit matter. • 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.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Companys annual report particularly with respect to the Boards Report including Annexures to Boards Report but does not inelude the standalone financial statements and our auditors report thereon.

Our opini?n on the standalone financial statements does not cover the other information and we do not express any form of assurance or conclusi?n 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 if, 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 Companys 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 Income, cash flows and changes in equity of the Company in accordance with the accounting principies generally accepted in India, including (Ind AS) specified under Section 133 of the Act, read with relevant Rules, as amended, as applicable.

This responsibility also ineludes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 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 and Board of Directors are responsible for assessing the Companys ability to continu? 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 or to cease operations, or has no realistic alternative but to do so.

The Companys Board of Directors are responsible for overseeing thejlqmpanys financial reporting process.

Auditors 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 auditors report that ineludes our opini?n. 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:

• 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 opini?n. 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 opini?n 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.

• Eval?ate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of managements 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 Companys ability to continu? as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opini?n. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continu? as a going concern.

• Eval?ate the overall presentaron, 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 Company and its Joint Operations to expiess an opini?n on the Standalone Financial Statements. We are responsible for the direction, supervisi?n and performance of the audit of the financial statements of such entities or business activities included in the Standalone Financial Statements of which we are the independent auditors. For the other entities or business activities included in the Standalone Financial Statements, which have been audited by the other auditors, such other auditors remain

responsible for the direction, supervisi?n and performance of the audits carried out by them. We remain solely responsible for our audit opini?n.

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 eval?ate 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 auditors report unless law or regulation preeludes 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.

Other Matter

(i) We did not audit the financial statement/information of four Joint Operations included in the standalone financial statements of the Company for the year ended March 31, 2024, whose financial statement /information reflect total assets Rs. 153.55 lakhs as at March 31, 2024, total revenue of Rs. 247.73 lakhs and total net profit after tax of Rs. 3.94 lakhs and total comprehensive income of Rs. 3.94 lakhs for the year ended March 31, 2024, and net cash outflows of Rs. 10.09 lakhs for the year ended March 31, 2024, as considered in the standalone financial statement which have been audited by other auditors.

The auditors reports on the financial statements for these four joint operations have been furnished to us by the management and our opini?n 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.

We did not audit the financial statement/information of a Joint Operation included in the standalone financial statements of the Company for the year ended March 31, 2024, whose financial statement /information reflect total assets Rs. 382.67 lakhs as at March 31, 2024, total revenue of Nil Amount and total net profit after tax of Rs. 0.04 lakhs and total comprehensive income of Rs 0.04 lakhs for the year ended March 31, 2024, and net cash inflows of Rs. 0.42 lakhs for the year ended March 31, 2024, as considered in the standalone financial statement whose financial statement have been consider on the basis of management certified financi?is.

These previously issued financial information have been restated to comply with entities under common control and included in these financial statementRs.-^ comparative financial information.

Our opini?n 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 management certified financial and the reports of the other auditors.

(ii) The standalone financial statements of the Company for the year ended March 31, 2023, were audited by predecessor auditor, PVR & Co. who have expressed an unmodified opini?n on those standalone financial statement vide their audit report dated on July 11, 2023.

Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditors 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 sep?rate 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 opini?n, 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 balance sheet, the statement of profit and loss including the statement of other comprehensive income, the cash flow statement and statement of changes in equity dealt with by this Report are in agreement with the relevant books of account;

d) In our opini?n, 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 principies generally accepted in India;

e) On the basis of the written representations received from the directors as on March 31, 2024, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 the operating effectiveness of such Controls, refer to our sep?rate Report in "Annexure B" to this report; Our report expresses an unmodified opini?n on the adequacy and operating effectiveness of the company internal 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 Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended in our opini?n 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 ye.at.js in accordance with the provisions of section 197 of the Act.

h) With respect to the Other Matters to be included in the Auditors Report in accordance with

Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opini?n 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 as at March 31, 2024 on its financial position in its standalone financial statements Refer Note 34 to the standalone financial statements;

(ii) The Company has long-term contracts for which there were no material foreseeable losses as at March 31, 2024. Further, the Company did not have any outstanding derivative contracts as at March 31, 2024.

(iii) There has been no amount required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2024.

(iv) a) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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, security or the like on behalf of the Ultimate Beneficiaries;

b) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the account, 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.

c) Based on our audit procedure conducted that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that cause us to believe that the representation given by the management under paragraph (2) (h)

(iv) (a) & (b) above contain any material misstatement.

(v) In our opini?n, and according to the information and explanations given to, the Company has not declared and paid dividend during the year, henee, provisions of section 123 to the Act are not applicable to the Company and has not been commented upon.

(vi) Based on our examination, which ineludes test checks, the company has used accounting softwares (Tally Prime Edit Log 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 softwares. During the course of our audit, we did not come across any instance of the audit trail feature being tempered. Further Tally is hosted in house in Delhi regi?n.

As per Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023 reporting under Rule 11 (g) of the companies (Audit and Auditors) Rules,2014 on preservaron of audit trail as per the statutory requirements for record retention is not relevant for the financial year ended March 31,2024.

For S S Kothari Mehta & Co. LLP
Chartered Accountants
Firms Registration No. 000756N/NiOiQ444c
Deepak K. Aggarwal
Partner
Membership No. 095541
UDEN:-24095541BKEXLL2437
Place:New Delhi.
Date: August 28, 2024.

Annexure A to the Independent Auditors Report to the members of Enviro Infra Engineers Limited on its financial statements dated August 28, 2024.

Report on the matters specified in paragraph 3 of the Companies (Auditors Report) Order, 2020 ("the Order) issued by the Central Government of India in terms of section 143(11) of the Companies Act, 2013 ("the Act") as referred to in paragraph 1 of ‘Report on Other Legal and Regulatory.

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we State that:

(i) In respect of the Companys property, plant and equipment and intangible assets:

a) (i) The Company has maintained proper records showing full particulars including quantitative details and situation of property, plant and equipment.

(ii) The Company has maintained proper records showing full particulars of intangible assets.

b) As explained to us, property, plant & equipments were physically verified by the management in a phased manner over a period of three years, which in our opini?n is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanation given to us, the discrepancies noticed in the current phase of physical verification were not material.

c) According to the information and explanations given to us and the records examined by us in respect of immovable properties disclosed as property, plant & equipment (other than properties where the company is the lessee and the lease agreements are duly executed in favors of the lessee) in the financial statements are in the ?ame of the Company, except as stated in Note 2A(b) of the standalone financial statements.

d) According to information and explanations given to us and books of accounts and records examined by us, Company has not revalued its property, plant and equipment or intangible assets during the year.

e) According to information & explanations and representation given to us by the management, no proceedings have been initiated or are pending against the Company as at March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

(ii) a) As explained to us and on the basis of the records examined by us, in our opini?n, physical verification of the inventories (except stock in transit, for which material have been received subsequently) have been conducted at reasonable intervals by the management and having regard to the size and nature of business of the Company and nature of its inventory, the coverage and procedures of such verification by the management is appropriate. As explained to us and on the basis of the records examined by us, no discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical verification of inventories when compared with books of account and discrepancies have been properly dealt with in the books of account.

b) As disclosed in Note-49(h) to the financial statements, the Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks and/or financial institutions during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks are not in agreement with the books of accounts of the Company and the details are as fpilqwfS?

Quarter ?ame of Bank Particulars of Securities provided Amount as per books of account Amount as reported in the quarterly return/sta tement Amount of Difference Reason for material difference
Jun-23 Punjab National Bank, Induslnd Bank, Yes Bank, Kotak Bank, HDFC Bank, & Axis Bank Stock, Debtors and Security Deposit Net of creditors 4,654.19 4,533.12 121.07 Security Deposit Adjustment taken into books post submission of stock statement to Bank and in Stock statement cheques issued but not cleared, to suppliers/ contractors taken in creditors list etc.
Sep-23 Punjab National Bank, Induslnd Bank, Yes Bank, Kotak Bank, HDFC Bank, & Axis Bank Stock, Debtors and Security Deposit Net of creditors 6,969.97 7,046.56 (76.59) In Stock Statement cheques issued but not cleared, to suppliers / contractors taken in Creditors list etc. Due to clerical mistake stock overstated by Rs.4.72 lacs and Debtors Rs.36.73 lacs under stated in Stock Statement.
Dec-23 Punjab National Bank, Induslnd Bank, Yes Bank, Kotak Bank, HDFC Bank, Axis Bank & ICICI Bank Stock, Debtors and Security Deposit Net of creditors 7,955.79 7,408.42 547.36 While submitting Stock Statement to Bank, partial amount of advance to suppliers / contractors taken into consideration as well as cheques issued but not cleared, to suppliers / contractors taken in Creditors list etc.
Mar-24 Punjab National Bank, Induslnd Bank, Yes Bank, Kotak Bank, HDFC Bank, Axis Bank, ICICI Bank & Federal Bank Stock, Debtors and Security Deposit Net of creditors 3,073.53 1,816.37 1,257.16 Due to finalization of account, provisional stock statement for the period ended 29.03.2024 submitted to Bank.

(iii) With respect to investments made in or any guarantee or security provided or any loans or advances in the nature of loans, secured or unsecured, granted during the year by the Company to companies, firms, Limited Liability Partnerships or any other parties:

a) As per the information and explanations given to us and books of accounts and records examined by us, during the year, company provided unsecured loans to its subsidiary and has guarantee security or advances in the nature of loans to companies, firms, Limited Liability Partnerships or any other entities.

Guarantees Loans
Aggregate amount granted/provided during the year
Subsidiaries 1,138.00
Associates
Others
Balance outstanding as at balance sheet date in respect ofabove cases (Net of impairment provisi?n)
Subsidiaries 728.80 5,229.50
Associates
Others

b) In our opini?n and according to information and explanations given us and on the basis of our audit procedures, the investments made, guarantee provided, security given and the terms and conditions of all loans and advances in the nature of loans and guarantee provided are, prima facie, not prejudicial to Companys interest.

c) In respect of loan granted to subsidiary, the schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular.

d) There are no loans or advances in the nature of loans granted to subsidiary company which are overdue for more than 90 days as at the balance sheet date.

e) There were no loans or advances in the nature of loan granted to subsidiary company which was fallen due during the year, that have been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.

(iv) The Company has complied with the Provisions of Section 185 of the Act in respect of loans granted, investments made and guarantees and securities provided, as applicable. Provisions of Section 186 except sub-section (1) of the Section are not applicable to the Company, being a company engaged in the business of providing infrastructural activities.

(v) According to the information and explanations given to us, the Company has not accepted any deposits or amounts which are deemed to be deposits within the meaning of provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Therefore, the clause (v) of paragraph 3 of the Order is not applicable to the Company.

(vi) In our opini?n and according to the information and explanations given to us, the requirement of maintenance of cost records pursuant to Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government in terms of sub-section (1) of section 148 of the Act for the business activities carried by the Company is not applicable. Accordingly, the reporting under clause 3(vi) of the Order is not applicable to the company.

(vii) (a) According to the records examined by us of the Company, undisputed statutory dues including Goods and Service tax, provident fund, employees>(5fSt?fesyrance, income tax, duty

of customs, cess and any other statutory dues have been generally regularly deposited with the appropriate authorities with slight delays and delay in payment of advance tax as per Income tax act, 1961. According to the information and explanations given to us, there were no undisputed amounts payable in respect of the aforesaid dues, outstanding as at March 31, 2024 for a period of more than six months from the date they became payable.

(b) Details of Statutory dues referred to in subclause (a) above which has not been deposited as on March 31, 2024 on account of dispute are given below:

?ame of the Statute Nature of dues Forum where dispute is pending Period to which the Amount Relates Amount Involved (Rs. in Lakhs)
Sales Tax Sales Tax Tribunal 2011-12 154.93
Additional Commissioner 2012-13 1.50
Income Tax Act1961 Income Tax Assistant Commissioner 2020-2021 1.38
Income Tax Act1961 Income Tax Income Tax Department 2017-2018 NIL*
Income Tax Act1961 TDS Income Tax Department 2023-24 4.75

* The company has received the notice u/s 148A and for the proposed adjustment aggregating of Rs 60 lakhs against which demand has not been finalized by the department. The matter is subjudiced.

(viii) According to the information and explanations and representation given to us by the management, there were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

(ix) (a) According to the information and explanations given to us and as per the books and records examined by us, in our opini?n, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender including the loans and interest which are repayable on demand.

(b) According to the information and explanations given to us and the records of the Company examined by us including representation received from the management, the Company has not been declared willful defaulter by any bank, financial institution or other lenders or government or any government authority.

(c) Term loans were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the financial statements of the Company, prima facie, no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiary. Henee, the requirement to report on clause 3 (ix)(f) of the Order is not applicable to the Company.

(x) a) According to the information and explanations given to us and as per the books and records examined by us, the company has not raised money by way of initial public offer or further public offer (including debt instruments). Accordingly, reporting under clause 3 (x) (a) of the Order is not applicable to the Company.

b) During the year, the company has made private / preferential placement of shares as per section 42 and section 62 of the Act and the money raised have been utilized for the same purpose for which it was raised.

(xi) a) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud by the Company or on the Company has been noticed or reported during the year.

b) According to information and explanation given to us, no report under sub-section 12 of section 143 of the Act has been filed by us or by any other auditor in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

c) As represented to us by the management, there are no whistle blower complaints received by the company during the year.

(xii) In our opini?n, the Company is not a Nidhi Company. Accordingly reporting under clause 3 (xii)

(a) to (c) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by applicable accounting standards.

(xiv) a) In our opini?n, and according to the information and explanations given to us, the company has an internal audit System commensurate with the size and nature of its business.

b) We have considered the internal audit reports of the company issued till date, for covering the period upto March 31, 2024.

(xv) According to the information and explanations provided by the management, the Company has not entered into any non-cash transaction with directors or persons connected with him as referred to in Section 192 of the Act.

(xvi) a) To the best of our knowledge and according to the information and explanations provided to us , the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

b) In our opini?n, and according to the information and explanations provided to us and on the basis of our audit procedures, the company has not conducted any Non-Banking Financial or Housing Finance activities during the year as per the Reserve bank of India Act 1934.

c) In our opini?n, and according to the information and explanations provided to us, the company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

d) In our opini?n, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable

(xvii) In our opini?n, and according to the information and explanations provided to us, Company has not incurred any cash losses in the financial year and in the immediately preceding financial year.

(xviii) During the year PVR & Co. (FRN -013191N), Chartered Accountants, the statutory auditors of the Company for immediately preceding year, have resigned with effect from October 21, 2023. We have not received any objections or concerns from the outgoing auditors.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, State that this is not an assurance as to the future viability of the company. We further State that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee ?or any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xx) With respect to CSR contribution under section 135 of the Act:

a) According to the information and explanations given to us and on the basis of our audit procedures, in respect of other than ongoing projects, there were no unspent amount that were required to be transferred to a Fund specified in Schedule VII in compliance with second proviso to sub-section 5 of section 135 of the Act.

b) According to the information and explanations given to us and on the basis of our audit procedures, in respect of ongoing projects there were no unspent amount that were required to be transferred to special account in compliance with provisi?n of sub section 6 of section 135 of the Act.

For S S Kothari Mehta & Co. LLP
Chartered Accountants
Firms Registration No. 000756^^^??^f^^
Deepak K. Aggarwal
Partner
Membership No. 095541
UDIN:-24095541BKEXLL2437
Place:New Delhi.
Date: August 28, 2024.

Annexure B to the Independent Auditor s Report to the members of Enviro Infra Engineers Limited (‘the Company) on its standalone financial statements dated August 28, 2024.

Report on the Infernal Financial Controls Over Financial Reporting under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 ("the Act") as referred to in paragraph 2(f) of ‘Report on Other Legal and Regulatory Requirements section

Our reporting on the internal financial control with reference to Consolidated financial statement is not applicable in respect of five joint operations incorporated in India on which internal financial control is not applicable.

We have audited the internal financial Controls with reference to standalone financial statements of Enviro Infra Engineers Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Infernal Financial Controls

The Board of Directors and the Management of the Company is responsible for establishing and maintaining internal financial Controls with reference to the standalone financial statements based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Financial Reporting issued by the Institute of Chartered Accountants of India (the "ICAI"). These responsibilities inelude the design, implementation and maintenance of adequate internal financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opini?n on the Companys internal financial Controls with reference to the standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the ICAI and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial Controls with reference to the standalone financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial Controls with reference to the standalone financial statements were established and maintained and if such Controls operated effectively in all material respeets.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial Controls with reference to the standalone financial statements and their operating effectiveness. Our audit of internal financial Controls with reference to the standalone financial statements included obtaining an understanding of internal financial Controls with reference to the standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opini?n on the Companys internal financial controj^-^y^tein with reference to the standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financial statements

A Companys internal financial control with reference to the standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the standalone financial statements for external purposes in accordance with generally accepted accounting principies. A Companys internal financial control with reference to the standalone financial statements ineludes those policies and procedures that

1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the standalone financial statements in accordance with generally accepted accounting principies, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Infernal Financial Controls with reference to the standalone financial statements

Because of the inherent limitations of internal financial Controls over financial statements, including the possibility of collusion or improper management override of Controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial Controls with reference to the standalone financial statements to future periods are subject to the risk that the internal financial control with reference to the standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteri?rate.

Opini?n

In our opini?n, to the best of our information and according to the explanations given to us, the Company has, in all material respeets, an adequate internal financial Controls with reference to the standalone financial statements and such internal financial Controls with reference to the standalone financial statements were operating effectively as at March 31, 2024, based on the internal control with reference to the standalone financial statements established by the Company considering the essential components of internal control stated in the "Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For S S Kothari Mehta & Co. LLP
Chartered Accountants
Firms Registration No. 000755WN5Q0441
Deepak K. Aggarwal
Partner
Membership No. 095541
UDIN:-24095541BKEXLL2437
Place:New Delhi.
Date: August 28, 2024.

Annexure 1

List of entities included in the Standalone Financial Statement: - (a) Joint Operations:

1. EIEPL-HNB JV

2. HNB-EIEPL JV

3. BIPL-EIEPL JV

4. EIEPL-ABI JV

5. EIEPL-LCIPPL-ABI JV

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