Everest Industries received a show cause notice from the Odisha GST department on August 31, 2026. The notice raises a total demand of ₹3.89 crore for the financial year 2020-21.

The Deputy Commissioner of State Tax, CT & GST Circle, Balasore, issued the notice under Section 74 of the CGST Act, 2017 & OGST Act, 2017. The company disclosed the receipt to stock exchanges on September 1, 2026, pursuant to Regulation 30 of SEBI Listing Regulations.

Notice Details

The demand comprises tax, interest, and penalty components. The breakdown is as follows:

The notice cites several objections regarding the company's tax compliance for FY21. Key issues include:

• Discharge of CGST & SGST liabilities without due interest
• Issuance of Credit Notes beyond the time limit
• Receipts of Credit Notes for inward supplies and reduction of Input Tax Credit (ITC)
• Availed blocked credit under Section 17(5) of the CGST/SGST Act
• Disallowance of ITC on contravention of Section 16(2)(c)
• Liability under Reverse Charge Mechanism (RCM) transactions

Company Response

Everest Industries stated it firmly believes it has strong legal and factual grounds to defend the case. The company is preparing a response to the notice.

Management indicated there is no expected material financial impact at this stage. The company does not consider it likely that the potential demand will materialize as a claim or result in liability.

Everest Industries shareholders appointed M/s. Price Waterhouse Chartered Accountants LLP (Firm Registration No. 012754N/N500016) as its Statutory Auditors for a five-year term during the company’s 93rd Annual General Meeting (AGM) held on August 3, 2026. The appointment, effective from the conclusion of the AGM until the 98th AGM, replaces M/s. S R B C & Co. LLP, which completed its second consecutive term of five years. This governance update ensures continuity in financial oversight while adhering to the mandatory rotation requirements under the Companies Act, 2013.

The resolution was passed alongside other key agenda items, including the approval of a final dividend of ₹1 per equity share and the ratification of director remuneration. The meeting, chaired by Non-Executive Independent Chairman Anant Talaulicar, saw a 60.35% voting turnout from 18,350 shareholders on record as of July 27, 2026. All 12 resolutions, covering ordinary and special business, were approved with the requisite majority, reflecting strong shareholder alignment on the company’s financial distribution and governance framework for FY26.

Auditor Transition Details

The transition marks the end of S R B C & Co. LLP’s tenure, which concluded at 4:47 p.m. (IST) on August 3, 2026. Price Waterhouse Chartered Accountants LLP, established in 1991 and converted into a limited liability partnership in 2014, will serve as the new statutory auditor. The firm, registered with the Institute of Chartered Accountants of India (ICAI), operates from New Delhi with 17 branch offices across India. As of December 31, 2025, the firm had more than 125 Assurance Partners and holds a valid peer review certificate. It is a member of Price Waterhouse & Affiliates, a network registered with the ICAI under Network Registration No. NRN/E/14.

Governance and Compliance

The appointment was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The Board reported that the outgoing auditors’ reports on the Audited Standalone and Consolidated Financial Statements for FY26 contained no qualifications, reservations, adverse comments, or disclaimers. This clean audit opinion applies to both standalone and consolidated figures, signaling robust financial transparency.

Ms. Jigyasa Ved, Partner at Parikh & Associates, served as the scrutinizer for the e-voting process conducted via the National Securities Depository Limited (NSDL) platform. Remote e-voting was available from July 30, 2026, to August 2, 2026. The combined voting results are scheduled to be uploaded to the company’s website and stock exchanges within two working days.

What the Numbers Show

The selection of a large national network like Price Waterhouse Chartered Accountants LLP for a five-year term suggests a focus on stability in audit oversight. The clean audit report from the outgoing firm reinforces the credibility of the FY26 financial statements, supporting the board’s decision to maintain a modest dividend payout of ₹1 per share. The high voter turnout of 60.35% indicates active shareholder engagement in governance matters, particularly regarding long-term appointments such as auditors and director remuneration structures.