Enviro Infra Engineers Limited has announced that the GST Department, Gujarat, has dropped proceedings initiated against the company, providing significant relief from potential financial liabilities worth over ₹8.39 crores.

GST Proceedings Background

The company had previously received a Show Cause Notice from the GST Department alleging discrepancies in GST compliance. The notice covered an extended period from the tax year 2018-19 to 2023-24, highlighting the comprehensive nature of the department's review.

The proceedings were initiated under Section 74(5) of the CGST/SGST Act, which deals with cases involving tax evasion or fraud allegations.

Company's Response and Resolution

Enviro Infra Engineers Limited responded proactively to the GST Department's notice by submitting a detailed reply within the prescribed timeline. The company provided requisite clarifications along with comprehensive supporting documents to address the department's concerns.

Following examination of the company's submissions, the GST Department issued an order formally dropping the proceedings against the company.

Financial Impact and Current Status

The favorable order brings complete closure to the GST matter, with significant positive implications for the company:

• No demand payable by the company
• No penalty liability
• No interest charges applicable
• Matter stands fully concluded

This development eliminates a potential financial burden of ₹8,39,89,002 that the company could have faced if the proceedings had resulted in an adverse order. The resolution demonstrates the company's ability to effectively address regulatory concerns through proper documentation and compliance procedures.

Specifically, the company is no longer liable for the alleged GST discrepancies worth ₹5.07 crores, and the penalty and interest totaling ₹3.33 crores have been dropped.

Regulatory Compliance

The company has maintained transparency with stakeholders by promptly informing both the National Stock Exchange of India Limited and BSE Limited about this development under Regulation 30. This follows the company's earlier intimation when it had first disclosed the receipt of the Show Cause Notice from the GST Department.

Enviro Infra Engineers Limited has announced the appointment of M/s Jain Bansal Gupta, Chartered Accountants as its Internal Auditors for the financial years 2025-26 and 2026-27. The decision was approved by the Board of Directors on December 12, 2025, following the recommendation of the Audit Committee.

Board Meeting and Regulatory Compliance

The Board meeting that approved this appointment was held on December 12, 2025, commencing at 04:30 PM and concluding at 04:40 PM. The appointment was made pursuant to Regulation 30 and other applicable provisions read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The appointment ensures compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, as amended by SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Profile of Appointed Internal Auditor

M/s Jain Bansal Gupta, Chartered Accountants is an established firm with more than 25 years of comprehensive experience in various financial and auditing domains. The firm specializes in multiple areas of expertise that align with modern corporate requirements.

Core Competencies

The appointed firm has extensive experience in the following areas:

• Statutory and Non-Statutory Audit services
• Direct and Indirect taxation including International Taxation
• Goods and Service Tax (GST) compliance
• Corporate Law Matters
• Limited Liability Partnership (LLP) services
• Financial and Project Consultancy
• Financial Reviews and assessments

Specialized Services

Beyond traditional auditing services, M/s Jain Bansal Gupta has expanded into contemporary business areas including Information System Audits and Business Process Outsourcing (BPO) in Accountancy. The firm also provides specialized services in Payroll Processing, XBRL reporting, and Trade Marks.

Organizational Structure

The auditing firm maintains dedicated teams focused on specific areas of expertise to ensure comprehensive service delivery:

• Corporate Laws team
• Income tax specialists
• Audit professionals
• GST compliance experts

This appointment strengthens Enviro Infra Engineers' internal audit framework and ensures continued adherence to regulatory requirements for the upcoming financial years.