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Notes to Accounts of Simplex Projects Ltd.

Mar 31, 2016

1. Working Capital Loan from Banks are secured by hypothecation of stocks, work-in-progress and book debts and also charges of certain moveable plant & machinery ranking pari-passu with the banks.

2. Term Loan from Banks are secured by Hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.

3. Foreign Currency term loan from banks carry rate of interest ranging from 6 month USD LIBOR 1% to 6month USD LIBOR 2.65% and 6 months Euro Libor 1% to 6 months Euro Libor 3.50%.

4. Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31.03.2016.

5. Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.

6. Trade payable have been shown net of advances of Rs.7,977.95 Lakh (Previous Year Rs. 9,295.13 Lakh) paid to suppliers and sub contractors.

7. Decline, if any, in the market value of long term quoted investments, considered by management not of permanent nature, has not been provided for.

8. Part of Investment in Simpark Infrastructure Pvt Ltd. disposed and profit on disposal of Rs. 37.20 lakh is recognized in the Profit and Loss account. As a result of disposal the remaining investment in Simpark Infrastructure Pvt Ltd has been reclassified and shown under the head ''Investment in equity instruments of associates''.

9. Investments in National Savings Certificate and Kisan Vikas Patra amounting to Rs. 1.78 lakh have matured in earlier years and are not in possession of the company has been written off as there is no ascertain ability of its receivable.

10. The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Cooperative U.A., in partnership with M/s Simplex fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1. As the co-operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses.

Sundry Debtors include overdue amount aggregating to Rs. 560.92 Lakh (Previous Year - Rs. 581.25 Lakh) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Trade Receivable include an amount of Rs. 8,332.66 Lakh on account of bills submitted but not certified as on the Balance Sheet date.

11. Fixed Deposits Rs. 4,217.15 Lakh (Previous Year - Rs. 3,783.86 Lakh) are not in possession of the company as they have been lodged as security deposit with clients / Banks.

12. Fixed Deposits with maturity of more than 12 months shown under ''Other noncurrent assets’

13. Employee advance have been shown net of credit balance of Rs. 3.73 Lakh.

14. Other advances are shown net of Rs. 8.34 Lakh advance received.

Work-in-progress include overdue amount aggregating to Rs. 1,528.36 Lakh (Previous Year - Rs. 148.50 Lakh) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Gross Billing includes Rs. 8,332.66 Lakh on account of bills submitted but not certified as on the Balance Sheet date.

15. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and Loans & advances. The balances are, therefore, as per the books of account only.

16. The Company''s account with Bank of Baroda, DBS Bank, Yes Bank and Uco Bank for working capital facilities and Kotak Mahindra Bank for Term Loan facilities have been classified as Non Performing assets and accordingly then provision for interest has been made as per the prevailing rates.

17. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed. It also includes Rs. 465.29 lakh pertaining to materials imported and kept at port.

18. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as ''Project'' ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Built-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee’s of the commercial outlets.

19. The operation of the company’s branch at Libya, which was stopped due to prevailing political situation. The Company has signed a supplementary agreement with the Government for realization of dues and resumption of contract. In view of this the amount of dues and assets deployed in Libya are realizable and no provision thereof are required at this stage. The expenses incurred during the year in respect of its said branch amounting to Rs. 680.27 Lakh (Previous year Rs. 1,695 lakh) and the depreciation of Rs. 386.57 Lakh (Previous year Rs. 401.72 Lakh) relating to the machineries deployed there, have been considered as work-in-progress. However, in view of prolonged uncertainty of resumption the Company has moved an application with the Hon’ble High Court at Delhi for proceeding with Arbitration and has been granted an interim stay for further extension / invocation of Bank Guarantees for the project. Accordingly no provision for charges has been made after the stay of extension.

20. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, the Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/ overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31, 2016 is Rs. 911.64 Lakh (Previous year Rs. 1,139.55 Lakh).

21. Contingent Liabilities:

22. There are outstanding guarantees amounting to Rs. 1,11,610 Lakh (Previous Year - Rs. 1,04,110.60 Lakh) and outstanding letters of credit amounting to Rs. 6,085.86 Lakh ( Previous Year - Rs. 9,468.10 Lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company’s behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

23. The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2008-09 and 2009-10 was disallowed by the Income Tax Authority, the company has preferred an appeal with the CIT (A). The Company has also challenged the issue of claiming they said deduction in respect of assessment years 200809 and 2009-10 by a writ petition before the Hon’ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs. 417.46 Lakh (Previous year Rs. 417.46 lakh). Moreover, the Income Tax Authority has filed an appeal before the Hon’ble Calcutta High Court against the order passed by the Appellate Tribunal Kolkata for the AY. 2006-07 and 2007-08, the impact of tax in case of an adverse decision is estimated at Rs. 377.92 Lakh.

24. Disputed Sales Tax / VAT under appeal with appropriate forum - Rs. 2,379.12 Lakh (Previous Year - Rs. 2,321.41 Lakh)

25. The Show cause cum demand Notice issued by the Service Tax Department is of Rs. 946.85 Lakh, the Appeal is still pending before The Hon’ble Customs Excise & service Tax Appellate tribunal, EZB, Kolkata.

26. Segment information for the year ended 31st March, 2016

The Company has disclosed Business Segment as the primary segment. The Segment has been identified taking into account the nature of activities, the differing risks and returns. The Company''s operations relate to ''Construction activity1 and ''Trading activity''. As the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments.

The Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include respective amounts identifiable to each of the Segments and also amounts allocated on a reasonable basis.

In respect of Joint Venture the Company along with the JV partner is jointly & severally responsible for performance of the contract.

The amount of Rs. 87.49 Lakh (Previous Year - Rs. 87.49 Lakh) due from the joint venture has been included in Sundry Debtors. The investment in joint venture amounting to Rs. 0.20 Lakh (Previous Year - Rs. 0.20 Lakh ) are included under the head Other Advances.

27. Related Party disclosures pursuant to Accounting Standard (AS)-18 issued by Institute of Chartered Accountants of India.

28. The disclosures required under Accounting Standard 15 “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006, are given below:

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

29. Disclosure under regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements Regulations, 2015)

The Company has given interest free advance to Simplex Agri-Infra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs. 1,913.51 Lakh ( Previous Year Rs. 2,552.80 Lakh). The Company has taken interest free advance from Simpark Infrastructures Pvt Ltd, (its wholly owned subsidiary) having no repayment schedule and advance balance is Rs. 289.44 Lakh on the Balance sheet date. ( Previous Year Loan Given Rs. 337.99 Lakh)

30. Site cost for executing contract work charged off to Profit & Loss Account includes Rs. 2.19 Lakh (Previous year Rs. 13.75 Lakh) relating to previous period.

31.. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.

32. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2015) presented above, is included as an integral part of the current year’s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2015

1 Corporate information

Simplex Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is primarily engaged in Engineering and Construction activities in India and abroad and started trading in commodities in India during the year. The Company focuses on construction of Bridges for Railways, Industrial Projects, Urban Infrastructure and Automated Parking projects.

(i) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. No dividend is proposed by the Board of Directors of the Company for the current year.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Long Term Borrowing

Term Loan from Banks are secured by Hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with interest ranging from 8% to 12% p.a. at a specified date for specific assets. Average tenure of each loan is 36 months.

Term Loan from Other parties are secured by Hypotheciation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a. at a specified date for specific assets. Average tenure of each loans is 36 months.

Foreign Currency term loan from banks carry rate of interest ranging 6 month USD LIBOR 1% to 6 month USD LIBOR 2.65% and 6 months Euro Libor 1% to 6 months Euro Libor 3.50%.

Notes to Short term Borrowings:-

(i) Working Capital Loan from Banks are secured by hypothecation of stocks, work-in-progress and book debts and also charges of certain moveable plant & machinery ranking pari-passu with the banks.

(ii) Term Loan from Banks are secured by Hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.

(iii) Term Loan from Other parties are secured by Hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.

(iv) Foreign Currency term loan from banks carry rate of interest ranging from 6 month USD LIBOR 1% to 6month USD LIBOR 2.65% and 6 months Euro Libor 1% to 6 months Euro Libor 3.50%.

i) Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31.03.2015.

ii) Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.

iii) Trade payable have been shown net of advances of Rs. 9,295.13 Lakh (Previous Year Rs. 9,945.30 Lakh) paid to suppliers and sub contractors.

3. Non Current Investments

(i) Decline, if any, in the market value of long term quoted investments, considered by management not of permanent nature, has not been provided for.

(ii) Investments in National Savings Certificate and Kisan Vikas Patra amounting to Rs.1.78 Lakh (Previous Year - Rs.1.78 lakh) have matured in earlier years and hence no interest has been taken into accounts. These are not in possession of the company as they have been lodged as security deposit with clients.

(iii) The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Co-operatie U.A., in partnership with M/s Simplex fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1. As the co-operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses Sundry Debtors include overdue amount aggregating to Rs. 581.25 Lakh (Previous Year - Rs. 606.08 Lakh) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Trade Receivable include an amount of Rs.8,595.66 lakh on account of bills submitted but not certified as on the Balance Sheet date.

Work-in-progress include overdue amount aggregating to Rs.148.50 lakh (Previous Year - Rs. 148.50 Lakh) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Gross Billing includes Rs.8595.66 lakh on account of bills submitted but not certified as on the Balance Sheet date.

4. As regard Other Expenses for Executing Contract and Trading Work it has not been possible for the Company to bifurcate the expenses into different heads of account as per Schedule III.

5. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and Loans & advances. The balances are, therefore, as per the books of account only.

a) The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and Loans & advances. The balances are, therefore, as per the books of account only.

b) In respect of dues of DBS Ban (which have became NPA) interest has been charged on contracted rate only and no pental interest or other charges have been accounted for. Balance confirmation for the same has not been received.

c) In respect of dues to banks and other financial institutions relating to Hire purchase loan no interest, penal interest or other charges have been accounted for in case repayment period has expired but amounts due have not been paid. Balance confirmation for the same has not been received.

6. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed. It includes Rs.465.29 lakh pertaining to materials imported and kept at port.

7. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as 'Project' ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Built-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works. Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee's of the commercial outlets.

8. The operation of the company's branch at Libya, which was stopped due to prevailing political situation, has been stabilized and the management is confident of reassuming the projects, once the situation is conducive. The Company has executed a supplementary agreement with the Libyan Government to resume the projects. However the expenses incurred during the year in respect of its said branch amounting to Rs.1,695.45 Lakh (previous year Rs.3,247.32 lakh) and the depreciation of Rs. 401.72 Lakh (previous year Rs. 492.25 Lakh) relating to the machineries deployed there, have been considered as work-in-progress, as the management is in the process of submitting its claim and is confident of realizing it.

9. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, the Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/ overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31, 2015 is Rs. 1,139.55 lakh (Previous year Rs.1,367.46 Lakh).

10. Contingent Liabilities:

a) There are outstanding guarantees amounting to Rs.1,04,110.60 lakh (Previous Year - Rs. 1,00,543.53 lakh) and outstanding letters of credit amounting to Rs. 9,468.10 lakh ( Previous Year - Rs. 6,701.41 lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company's behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

b) The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2008-09 and 2009-10 was disallowed by the Income Tax Authority, the company has preferred an appeal with the CIT (A). The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2008-09 and 2009-10 by a writ petition before the Hon'ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs. 417.46 Lakh (Previous year Rs.417.46 lakh). Moreover, the Income Tax Authority has filed an appeal before the Hon'ble Calcutta High Court against the order passed by the Appellate Tribunal Kolkata for the AY. 2006-07 and 2007-08, the impact of tax in case of an adverse decision is estimated at Rs 377.92 Lakh.

c) Disputed Sales Tax / VAT under appeal with appropriate forum - Rs. 2,321.41 lakh (Previous Year -Rs.1,957.99 lakh)

d) The Show cause cum demand Notice issued by the Service Tax Department as stated last year for an amount of Rs. 946.85 Lakh, the Appeal is still pending before The Hon'ble Customs Excise & service Tax Appellate tribunal, EZB, Kolkata.

11. Segment information for the year ended 31st March, 2015

The Company has disclosed Business Segment as the primary segment. The Segment has been identified taking into account the nature of activities, the differing risks and returns. The Company's operations relate to 'Construction activity' and 'Trading activity'. As the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments.

The Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include respective amounts identifiable to each of the Segments and also amounts allocated on a reasonable basis.

In respect of Joint Venture the Company along with the JV partner is jointly & severally responsible for performance of the contract.

The amount of Rs. 87.49 Lakh (Previous Year - Rs. 87.49 Lakh) due from the joint venture has been included in Sundry Debtors. The investment in joint venture amounting to Rs. 0.20 Lakh (Previous Year - Rs. 0.20 Lakh ) are included under the head Other Advances.

12. Related Party disclosures pursuant to Accounting Standard (AS)-18 issued by Institute of Chartered Accountants of India.

13. The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution plan

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

14. Information pursuant to clause 32 of the listing agreements with Stock Exchange

The Company has given interest free advance to Simplex Agri-Infra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs. 2,552.80 Lakh ( Previous Year Rs. 2,577.65 Lakh). The Company has taken interest free advance from Simpark Infrastructures Pvt Ltd, (its wholly owned subsidiary) having no repayment schedule and advance balance is Rs. 337.99 Lakh on the Balance sheet date. ( Previous Year Loan Given Rs. 382.62 Lakh)

15. Site cost for executing contract work charged off to Profit & Loss Account includes Rs.13.75 Lakh (previous year Rs.11 Lakh) relating to previous period.

16. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.

17. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2014) presented above, is included as an integral part of the current year's financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2014

1 Corporate Information

Simplex Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two Stock Exchanges in India. The Company is engaged in Engineering and Construction activities in India and abroad. The Company focuses on construction of Bridges for Railways, Industrial Projects, Urban Infrastructure and Automated Parking projects.

(i) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder Is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. No dividend is proposed by the Board of Directors of the Company for the current year.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) Term Loan from Banks are secured by hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.

(iii) Term Loan from Other parties are secured by hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.

(iv) Foreign Currency term loan from banks carry rate of interest ranging from 6 month USD LIBOR 1% to 6 month USD LIBOR 2.65% and 6 months Euro LIBOR 1 % to 6 months Euro LIBOR 3.50%.

(v) Foreign currency term loan relating to Libya Projects has been considered as Long term as the approval order has been received from the client in Libya, and such Term loans are expected to be rolloed over.

(v) Term Loan above does not include Current maturities and Unpaid matured Term Loans which is shown under the head ‘Other Current Liabilities''.

In absence of Information from the Actuary for bifurcation of Current and Non Current Provision on Gratuity the total amount of Provision is disclosed under Long Term Provision.

2. Notes to Short term Borrowings:-

(i) Working Capital Loan from Banks are secured by hypothecation of stocks, work-in-progress and book debts and also charges of certain moveable plant & machinery ranking pari-passu with the Banks.

(ii) Term Loan from Banks are secured by hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a. at a specified date for specific assets. Average tenure of each loan is 36 months.

(iii) Foreign Currency term loan from banks carry rate of interest ranging from 6 month USD LIBOR 1% to 6 month USD LIBor 2.65% and 6 months Euro Libra 1 % to 6 months Euro Libor 3050%.

iv) Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31.03.2014.

v) Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.

(vi) Trade payable have been shown net of advances of Rs. 8,845.30 Lakh paid to suppliers and sub contractors.

(vii) Decline, if any, in the market value of long term quoted investments, considered by management not of permanent nature, has not been provided for.

(vii) Investments in National Savings Certificate and Kisan Vikas Patra amounting to Rs.1.78 Lakh (Previous Year - Rs.1.78 lakh) have matured in earlier years and hence no interest has been taken into accounts. These are not in possession of the company as they have been lodged as security deposit with clients.

(viii) The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Co- operatie U.A., in partnership with M/s Simplex Fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1 .As the co-operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses.

Note : Security deposits has been shown net of deposits of Rs. 40 Lakh received. Security Deposits includes Rs. 46.23 lakhs in the form of fixed deposits with UCO Bank.

Sundry Debtors include overdue amount aggregating to X 606.08 Lakh (Previous Year - Rs. 606.08 Lakh) that are under arbitration and Rs. 826.54 Lakh (previous year - Rs. 826.54 Lakh) in court cases. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Trade Receivable include an amount of Rs. 8,282.78 lakh on account of bills submitted but not certified on the Balance Sheet date.

(i) Balances with banks - Other earmarked accounts have restriction on repatriation. It is lying unpaid in escrow refund account of the Company with its refund banker, which is shown under the head ''Other Current Liabilities''.

(ii) Fixed Deposits X 5,494.66 Lakh (Previous Year - X 5,458.55 Lakh) are not in possession of the company as they have been lodged as security deposit with clients/ Banks.

(iii) Fixed Deposits with maturity of more than 12 months shown under ''Other non current assets''

3 Notes :

Note : (i) Employee advance have been shown net of credit balance of Rs. 18.51 Lakh (ii) Other advances are shown net of Rs. 8.35 lakh advance received.

Note: Work-in-progress include overdue amount aggregating to 148.50 lakh (Previous Year - Rs. 148.50 Lakh) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

Gross Billing includes Rs. 8,282.78 lakh on account of bills submitted but not certified as on the Balance Sheet date.

Note: (i) Expenses recognised and Cenvat credit available in previous year, not availed earlier now availed and written back, (ii) Interst on Fixed Deposits with UCO Bank and Laying with other party (as EMD) has not been considered as income.

Note : Other site and Trading Expenses includes 205.54 Lakh incurred toward Trading Expenses.

4. As regard Other Expenses for Executing Contract and Trading Work it has not been possible for the Company to bifurcate the expenses into different heads of account as per Schedule VI.

5. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and Loans & advances. The balances are, therefore, as per the books of account only.

6. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed. It also includes 7471.61 lakh pertaining to materials imported and kept at port.

7. The Company has entered into an agreement dated 08/11/1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as ''Project'') at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Build-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit, to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee''s of the commercial outlets.

8. The operations of the company''s branch at Libya, which was stopped due to prevailing political situation, has been since stabilized and the Company has executed a supplementary agreement with the Libyan Government to resume the project. However, the expenses incurred during the year in respect of its said branch amounting to Rs. 3,247.32 Lakh (previous year 71,828.30 lakh) and the depreciation of 7 492.25 Lakh (previous year7 526.67 Lakh) relating to the machineries deployed there, have been considered as Work-in-progress, as the management is in the process of restarting the project.

9. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, the Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31,2014 is Rs. 1,367.46 lakh (Previous year Rs. 737.32 Lakh).

10. Contingent Liabilities:

a) There are outstanding guarantees amounting to Rs. 1,00,543.53 lakh (Previous Year - Rs. 1,00,654.06 lakh) and outstanding letters of credit amounting to Rs. 6,701.41 lakh ( Previous Year - Rs. 459.94 lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company''s behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

b) The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2007-08 was disallowed by the Income Tax Authority, as stated last year that the company has preferred an appeal with the appellate Tribunal. The matter is last heard on 27th April 2012 but the case is yet to be decided. The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2008-09 to 2009-10 by a writ petition before the Hon''ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs. 417.46 Lakh (Previous year Rs. 1,736.49 lakh).

c) Disputed Sales Tax/VAT under appeal with appropriate forum- Rs. 1,957.59 lakh(PreviousYear-Rs. 1,957.99 lakh)

d) The Show cause cum demand Notice issued by the Service Tax Department as stated last year for an amount of Rs. 946.85 Lakh, the Appeal is still pending before The Hon''ble Customs Excise & Service Tax Appellate tribunal, EZB, Kolkata.

11. Segment information for the year ended 31st March, 2014

The Company''s business activity falls mainly within a single primary segment i.e. construction business and hence there is no separate reportable business segment under primary segment reporting. However, as the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments.

The Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include respective amounts identifiable to each of the Segments and also amounts allocated on a reasonable basis.

In respect of Joint Venture the Company along with the JV partner is jointly & severally responsible for performance of the contract.

The amount of Rs. 87.49 Lakh (Previous Year - Rs. 105.85 Lakh) due from the joint venture have been included in Sundry Debtors. The investment in joint venture amounting to Rs. 0.20 Lakh (Previous Year- Rs. 0.20 Lakh) are included under the head Other Advances.

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

12. Information pursuant to clause 32 of the listing agreements with Stock Exchange

The company has given interest free advance to Simplex Agri-lnfra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs. 2,577.65 Lakh ( Previous Year Rs. 2,213.64 Lakh). The Company has taken interest free advance from Simpark Infrastructures Pvt Ltd, (its wholly owned subsidiary) having no repayment schedule and advance balance is 382.62 Lakh on the Balance sheet date. (Previous Year Loan Given 1891.66 Lakh)

13. Site cost for executing contract work charged off to Profit & Loss Account includes 11 Lakh (previous year - 24.83 Lakh) relating to previous period.

14. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.

15. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2013) presented above, is included as an integral part of the current year''s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2013

1 Corporate Information

Simplex Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two Stock Exchanges in India. The Company is engaged in Engineering and Construction activities in India and abroad. The Company focuses on construction of Bridges for Railways, Industrial Projects, Urban Infrastructure and Automated Parking projects.

2. As regard Other Expenses for Executing Contract Work it has not been possible for the Company to bifurcate the Expenses into different heads of account as per Schedule VI.

3. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and advances. The balances are, therefore, as per the books of account only.

4. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed. It also includes Rs. 471.61 lakh pertaining to materials imported and kept at port.

5. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as Rs.ProjectRs.) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Build-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee''s of the commercial outlets.

6. The operation of the company''s branch at Libya, which was stopped due to prevailing political situation, has since been stabilized and the management is confident of reassuming the projects, once the situation is conducive. The expenses incurred during the year in respect of its said branch amounting to Rs. 1,828.30 Lakh (previous year Rs. 2,270.61 lakh) and the depreciation of Rs. 526.67 Lakh (previous year Rs. 552.69 Lakh) relating to the machineries deployed there, have been considered as work-in-progress, as the management is in the process of submitting its claim and is confident of realizing it.

7. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, the Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31, 2013 is Rs.. 737.32 lakh (Previous year Rs.. 588.61 Lakh).

8. Contingent Liabilities:

a) There are outstanding guarantees amounting to Rs.. 1,00,654.06 lakh (Previous Year - Rs.. 74,886.82 lakh) and outstanding letters of credit amounting to Rs.. 459.94 lakh ( Previous Year - Rs.. 1,853.28 lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company''s behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

b) The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2007-08 was disallowed by the Income Tax Authority. As stated last year that the company has preferred an appeal with the appellate Tribunal. The matter is last heard on 27th April 2012 but the case is yet to be decided. The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2005-06 to 2009-10 by a writ petition before the Hon''ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs.. 1,736.49 Lakh (Previous year Rs.1,690.87 lakh).

c) Disputed Sales Tax / VAT under appeal with appropriate forum – Rs.. 1,957.59 lakh (Previous Year –Rs..1,754.09 lakh)

d) The Show cause cum demand Notice issued by the Service Tax Department as stated last year for an amount of Rs.. 946.85 Lakh is disputed and the Appeal is still pending before The Hon''ble Customs Excise & Service Tax Appellate Tribunal, EZB, Kolkata.

9. Segment information for the year ended 31st March, 2013

The Company''s business activity falls mainly within a single primary segment i.e. construction business and hence there is no separate reportable business segment under primary segment reporting. However, as the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments

10. Information pursuant to clause 32 of the listing agreements with Stock Exchange

The company has given interest free advance to Simpark Infrastructure Pvt. Ltd. (wholly-owned subsidiary) and Simplex Agri-Infra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs.. 1,891.66 Lakh (Previous Year Rs.. 3,203.48 Lakh) and Rs.. 2,213.64 Lakh ( Previous Year Rs. 1,889.19 Lakh) respectively.

11. Site cost for executing contract work charged off to Profit & Loss Account includes Rs.. 24.83 Lakh (previous year - Rs.. 2.60 Lakh) relating to previous period.

12. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.

13. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2012) presented above, is included as an integral part of the current year''s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2012

1 Corporate information

Simplex Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in Engineering and Construction activities in India and abroad. The Company focuses on construction of Bridges for Railways, Industrial Projects, Urban Infrastructure and Automated Parking projects.

2. As regard Other Expenses for Executing Contract Work it has not been possible for the Company to bifurcate the expenses into different heads of account as per Part II of the Schedule VI.

3. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and advances. The balances are, therefore, as per the books of account only.

4. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed.

5. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for

installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as `Project` ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Build-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the Company against civil and other work of the project undertaken by it from SIPL. The Company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The Company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee's of the commercial outlets.

6. The operation of the Company's branch at Libya, which was stopped due to prevailing political situation, has since been stabilized and the management is confident of reassuming the projects, once the situation is conducive. The expenses incurred during the year in respect of its said branch amounting to Rs. 2270.61 lakh including loss of cash/ cash equivalents of Rs. 86.62 lakh) and the depreciation of Rs. 552.69 Lakh relating to the machineries deployed there, have been considered as work-in-progress, as the management is in the process of submitting its claim and is confident of realizing it.

7. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, there is a change in accounting policy. The Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. Consequent upon this change, fixed assets is higher by Rs. 251.99 lacs and charged to the Profit & Loss is lower to that extent. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to

Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31, 2012 is Rs. 588.61 lacs (Previous year Rs. Nil).

8. Contingent Liabilities:

a) There are outstanding guarantees amounting to Rs.74,886.82 lakh (Previous Year - Rs. 89,898.87 lakh) and outstanding letters of credit amounting to Rs. 1,853.28 lakh ( Previous Year - Rs. 1,888.45 lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company's behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

b) The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2007-08 was disallowed by the Income Tax Authority, for which the company has preferred an appeal with the appellate Tribunal. The matter is last heard on 27th April 2012 but the case is yet to be decided. The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2005- 06 to 2009-10 by a writ petition before the Hon'ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs.1690.87 lakh (Previous year Rs. 1346.21 lakh).

c) Disputed Sales Tax / VAT under appeal with appropriate forum – Rs. 1754.09 lakh (Previous Year –Rs.664.21 lakh)

d) The Service Tax department has issued a Show cause cum demand Notice on the Company on 30th March 2012 for an amount of Rs. 946.85 Lakh. The Company is contesting the above notice and is in process of filing an appeal against the same to the Commissionerate.

9. Segment information for the year ended 31st March, 2012

The Company's business activity falls mainly within a single primary segment i.e. construction business and hence there is no separate reportable business segment under primary segment reporting. However, as the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

10. Information pursuant to clause 32 of the listing agreements with Stock Exchange

The Company has given interest free advance to Simpark Infrastructure Pvt. Ltd. (wholly-owned subsidiary) and Simplex Agri-Infra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs. 3,203.48 (Previous Year Rs. 3,650.46 Lakh) and Rs. 1889.19 ( Previous Year Rs. 708.02 Lakh) respectively.

11. Site cost for executing contract work charged off to Profit & Loss Account includes Rs. 2.60 Lakh (previous year Rs.2.77 Lakh) relating to previous period.

12. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.

13. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2011) presented above, is included as an integral part of the current year's financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.


Mar 31, 2011

1. Decline, if any, in the market value of long term quoted investments, considered by management not of permanent nature, has not been provided for.

2. Investments in National Savings Certificate and Kisan Vikas Patra amounting to Rs.177 thousand (Previous Year – Rs.1,77 thousand) have matured in earlier years and hence no interest has been taken into accounts. These investments along with Fixed Deposit with banks amounting to Rs. 5,09,018 thousand (Previous Year – Rs. 5,03,762 thousand) are not in possession of the company as they have been lodged as security deposit with clients / Banks.

3. As regard Contract expenses for executing work it has not been possible for the Company to bifurcate the expenses into different heads of account as per Part II of the Schedule VI.

4. Sundry Debtors and Work-in-progress include overdue amount aggregating to Rs. 65,770 thousand (Previous Year - Rs. 24,450 thousand) and Rs. 14,779 thousand (Previous Year - Rs. 23,881 thousand) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

5. A sum of Rs. 1,221 thousand (Previous Year Rs. 1,332 thousand) is lying unpaid in the escrow refund account of the company with its refund banker, which is shown under the head 'Other Current Liabilities'. The corresponding balance has been included in the balances with schedule banks.

6. a) Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31. 03.2011.

b) Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.

7. The Company is yet to receive the Balance confirmations in respect of certain Bank Balances, Sundry Creditors, Sundry Debtors and advances. The balances are, therefore, as per the books of account only.

8. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed.

9. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as 'Project' ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Built-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee's of the commercial outlets.

10. The company was subjected to a search operation by an investigating agency in connection with one of its projects during which certain documents relating to such project were seized. The audit of the company has been carried out without such original documents.

11. The figures pertaining to the Company's Libya branch have been taken up 16th February 2011 as the construction activities in respect of the projects awarded to the company in Libya has completely stopped since then due to the political situation prevailing there and information thereafter could not be obtained. The financial statement of the company for the year 2010-11 hence includes Fixed and Current assets of Rs. 82,81,423 thousand and Work done of Rs. 36,55,601 thousand relating to its said branch in Libya, which pending outcome of the uncertainty, the amounts are being carried forward as realisable, as they are adequately covered through various insurance policies. The same could not be audited and has been prepared by the management. The company will be in a position to review after improvement of the situation in Libya. The relevant information has been filed with the appropriate authorities in this regard.

12. Site Cost for executing contract work charged off to Profit & Loss account includes Rs.277 thousand (Previous Year NIL) relating to prior period.

13. Contingent Liabilities

a) There are outstanding guarantees amounting to Rs. 89,89,887 thousand (Previous Year - Rs. 86,84,027 thousand) and outstanding letters of credit amounting to Rs. 1,88,845 thousand ( Previous Year - Rs. 9,73,408 thousand) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company's behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.

b) The Companies claims of certain deduction under the provisions of the Income Ta x Act 1961 for the Assessment Year 2007-08 was disallowed by the Income Tax Authority, for which the company has preferred an appeal with the appellate Tribunal. The matter is yet to be heard. The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2005-06 to 2009-10 by a writ petition before the Hon'ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs.1,34,621 thousand (Previous year - 48,145 thousand).

c) Disputed Sales Tax / VAT under appeal with appropriate forum – Rs.66,421 thousand (Previous Year –Rs.4,913 thousand)

14. Segment information for the year ended 31st March, 2011

The Company's business activity falls mainly within a single primary segment i.e. construction business and hence there is no separate reportable business segment under primary segment reporting. However, as the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments

15. The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Co-operatie U.A., in partnership with M/s Simplex fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1. As the co–operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses.

The amount of Rs.3,35,45 thousand (Previous Year – Rs. 19,85,91 thousand) due from the joint venture have been included in Sundry Debtors. The investment in joint venture amounting to Rs. 20 thousand (Previous Year – Rs. 20 thousand) are included under the head Other Advances.

16. Related Party Disclosures pursuant to Accounting Standard (AS) – 18 issued by the Institute of Chartered Accountants of India

I. Related Parties and their Relationships:

Key Management Personnel

Mr. B.K. Mundhra

Mr. J.K. Bagri

Mr. R.D. Mundhra

Mr. S.D. Mundhra

Relative of Key Management personnel

Mrs. Krishna Devi Mundhra

Mrs. Pushpa Mundhra

Subsidiary

Simpark Infrastructure Pvt. Ltd.

Simplex Agri-Infra Services Pvt. Ltd.

Simplex Projects (Netherlands) Co-operative UA

Jointly controlled Entity / Joint Venture

Triveni Engicons Pvt. Ltd –

Simplex Projects Ltd (JV)

Other related party (Entities in which Key Management Personnel or Relatives of Key Management Personnel have control or significant influence).

Bharat Gypsum Pvt. Ltd.

SPL Gypsum BV

Pioneer Engineering Co. Pvt. Ltd.

SPL International BV

Pioneer Engineering Co. Pvt. Ltd.

Simplex Fiscal Holdings Pvt. Ltd.

Kirti Vinimay Pvt. Ltd.

Datson Exports Ltd.

Prozen Merchants Pvt. Ltd.

Simplex Foundation

Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

17. Information pursuant to clause 32 of the listing agreements with Stock Exchange

The company has given an interest free advance to Simpark Infrastructure Pvt. Ltd., (wholly-owned subsidiary) and Simplex Agri-Infra Services Pvt. Ltd. (subsidiary), having no repayment schedule and outstanding balance is Rs.3,65,046 thousand (Previous Year - Rs. 31,83,00 thousand) and Rs. 70,802 thousand (Previous Year - Rs. NIL) respectively.

18. Information pursuant to the provisions of Paragraph 3 and 4 of the Part II of Schedule VI of the Companies Act, 1956:

The Company being Civil Engineering Construction concern, these are not applicable as in running contracts quantities of different type of work is not ascertainable.

i) Licensed Capacity

ii) Installed Capacity

iii) Actual Production

iv) Opening & Closing Stock of Goods Produced ascertainable.

v) Raw Material Consumption

vi) TURNOVER

19. Previous year's figures have been re-arranged / re-grouped where ever considered necessary.


Mar 31, 2010

1. Sundry Debtors and Work-in-progress include overdue amount aggregating to Rs. 2,44,50,493/- (Previous Year - Rs. 1,51,70,197/-) and Rs. 2,38,81,498/- (Previous Year - Rs. 1,09,28,668/-) that are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

2. A sum of Rs.13,31,550/- (Previous Year Rs.15,97,950/-) is lying unpaid in the escrow refund account of the company with its refund banker, which is shown under the head ‘Other Current Liabilities. The corresponding balance has been included in the balances with schedule banks.

3. a) Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31. 03.2010.

b) Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.

4. The Company is yet to receive the Balance confirmations in respect of certain Bank Balances, Sundry Creditors, Sundry Debtors and advances. The balances are, therefore, as per the books of account only.

5. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed.

6. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as ‘Project‘ ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Built-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.

Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottees of the commercial outlets.

7. Contingent Liabilities:

a) There are outstanding guarantees amounting to Rs. 868,40,26,870/- (Previous Year - Rs.159,59,94,544/-) and outstanding letters of credit amounting to Rs. 97,34,08,255/- ( Previous Year - Rs. 6,28,29,980/-) given on behalf of the Company by Banks and an outstanding guarantee amounting to Rs.NIL /- (Previous Year – Rs.1,77,00,000/-) given on behalf of the subsidiary of the company by earmarking the limits of the company by the Banks, which are secured by the securities as specified in Schedule 3 of the accounts. The receipts of term deposits are also held by Banks towards margin money against the guarantees/letters of credit given by them on Companys behalf, besides the counter indemnity by the Company for such guarantees/letters of credit. The company has also given its corporate guarantee to a bank for financial assistance in foreign currency extend to its Associates amounting to Rs 2,88,26,560/- (Previous Year Rs 3,22,03,200/-)

b) The Companies claims of certain deduction under the provisions of the Income Ta x Act 1961 for the Assessment Year 2007-08 was disallowed by the Income Tax Authority, for which the company has preferred an appeal with the appellate Tribunal. The Company has also challenged the issue of claiming the said deduction in respect of assessment years 2005-06 to 2009-10 by a writ petition before the Honble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs. 4,81,45,128/-.

c) Disputed Sales Tax / VAT under appeal with appropriate forum – Rs. 49,13,264/- (Previous Year – Nil.)

8. The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Co-operatie U.A., in partnership with M/s Simplex fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1. As the co–operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses.

9. Information pursuant to clause 32 of the listing agreements with Stock Exchange :

The company has given an interest free advance to Simpark Infrastructure Pvt. Ltd., a wholly-owned subsidiary of the company, having no repayment schedule and outstanding balance is Rs.31,83,00,000/- (Previous Year Rs. 18,98,36,309/-)

10. During the year the company has issued 6,00,000 equity shares of face value of Rs. 10 each on preferential basis at a price of Rs. 135/-. The proceeds of the issue have been utilized for the purpose of working capital requirements.

11. Information pursuant to the provisions of Paragraph 3 and 4 of the Part II of Schedule VI of the Companies Act, 1956:

i) Licensed Capacity

ii) Installed Capacity

iii) Actual Production

iv) Opening & Closing Stock of

Goods Produced ascertainable.

v) Raw Material Consumption

vi) TURNOVER

12. Previous years figures have been re-arranged / regrouped where ever considered necessary

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