Qualification in A Limited Review Report Regarding Non-Compliance of Ind As 115 (Revenue From Contracts With Customers)

Emphasis of Matter/s for allegations made by a short seller on the company and some other group entities and other matters

EKI ENERGY SERVICES LTD (PERIOD ENDED 31ST DECEMBER, 2022)

From Limited Review Report

Qualified Opinion

As detailed in Note 3 to the accompanying Statement, we report that the Company has recognized revenue from contracts with few customers during the quarters ended 31st December, 2022, 30th September, 2022 and nine-month period ended 31st December, 2022. However, based on our review, we could not obtain sufficient and appropriate evidence regarding satisfaction of performance obligation for delivering the verified carbon units. Accordingly, in our view recognition of revenues together with the corresponding cost to fulfil the performance obligations is not consistent with the accounting principles as stated in Ind AS 115, Revenue from Contracts with Customers. Had the Company applied the principles as stated in Ind AS 115, revenues would have been lower by Rs. 1,818 lakhs, Rs. 10,162 lakhs and Rs. 19,011 lakhs, cost would have been lower by Rs. 1,140 lakhs, Rs. 3,950 lakhs and Rs. 7,971 lakhs and the profit before tax would have been lower by Rs. 679 lakhs, Rs. 6,212 lakhs and Rs. 11,040 lakhs for the periods