Everest Industries Limited, one of India’s established industrial and construction materials companies, has officially informed the stock exchanges about receiving a show cause notice from the Employees’ Provident Funds Organization (EPFO). The disclosure was made on August 29, 2025, in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, commonly known as SEBI Listing Regulations.

The company clarified that this action is a part of regulatory proceedings and does not have any material impact on its financial, operational, or business activities. Everest Industries also emphasized that it has strong legal and factual grounds to defend itself and is fully prepared to contest the matter.

Details of the Show Cause Notice

According to the official filing, the Regional Provident Fund Commissioner – I/OIC, Regional Office, Delhi-East issued the notice on August 27, 2025. The claims raised by EPFO total Rs 5,17,61,354, and cover various issues identified in compliance audits and reports.

The notice includes the following claims and objections:

• Short deposit of Rs 2.05 crore, as highlighted in a third-party report submitted on November 27, 2023.

• Claim of transfer of securities worth Rs 49 lakh to EPFO.

• TDS amounting to Rs 6.80 lakh, pertaining to the financial year 2023-24.

• Pending interest of Rs 39.51 lakh on securities since 2018-19.

• Rs 2.10 crore payment by the Board of Trustees (BoT) to EPFO, which had previously been written off.

• Surcharge of Rs 3.65 lakh due to failure by BoT to invest the net contributions during FY2017-18 and FY2019-20 as per mandated investment patterns.

• Unrecouped loss of Rs 3.65 lakh for the financial year 2020-21.

• Interest of Rs 39.51 lakh on IL&FS, Sintex, and DHFL Bonds not passed on by BoT since 2018-19.

Financial Implications

The company disclosed that the total quantum of claims is Rs 5.17 crore, out of which Rs 2.05 crore has already been deposited with EPFO. The final outcome will be subject to adjudication proceedings.

Importantly, Everest Industries assured investors and stakeholders that there is no significant financial or operational impact from this development. The company highlighted that the matter is largely procedural and it remains confident of its position.

Company’s Response and Preparedness

In its statement, Everest Industries noted that it is in the process of preparing a comprehensive response to the show cause notice. The company reiterated its commitment to compliance with SEBI Listing Regulations and transparency in its disclosures to both BSE Limited and National Stock Exchange of India Limited (NSE).

The company emphasized that it firmly believes it maintains strong legal and factual grounds to defend its case against EPFO. If required, Everest Industries is ready to contest the notice through legal and regulatory channels.

Regulatory and Investor Significance

This development comes under the purview of Regulation 30 of SEBI Listing Regulations and the SEBI Master Circular issued on November 11, 2024, which mandates listed companies to disclose material litigation, notices, or regulatory actions to the exchanges promptly.

Such disclosures are crucial for ensuring transparency for investors, regulators, and stakeholders. By making this filing, Everest Industries has complied with regulatory requirements and provided clarity on the financial impact of the notice.

Broader Context

Cases involving EPFO and corporate entities often arise due to disputes related to deposits, securities, and compliance with investment norms for provident fund contributions. While such matters can raise short-term concerns for shareholders, companies generally resolve them either through regulatory settlements or legal proceedings.

In the case of Everest Industries, the company has taken a proactive stance by informing the exchanges immediately and assuring that its core operations, financial stability, and future growth prospects remain unaffected.

Investor Perspective

For investors, the key takeaway is that while the quantum of claims raised is sizeable at over Rs 5.17 crore, Everest Industries has already deposited a significant portion of Rs 2.05 crore and is prepared to contest the rest.

Additionally, the company’s clear disclosure, assurance of no material impact, and legal preparedness help in maintaining investor confidence. As the matter proceeds through adjudication, the company’s strong compliance record and financial position are expected to minimize any long-term effects.

Conclusion

The receipt of a show cause notice from EPFO highlights the regulatory scrutiny faced by corporates in India, especially with regard to employee benefit funds and compliance audits. For Everest Industries, this development is not expected to materially affect its business or operations, and the company has expressed confidence in defending its case.

Investors and stakeholders will be watching closely for updates on the adjudication process, but as of now, Everest Industries has ensured that it remains transparent and compliant with all disclosure norms while safeguarding its financial health.

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