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Simplex Infrastructures Ltd.

BSE: 523838 Sector: Infrastructure
NSE: SIMPLEXINF ISIN Code: INE059B01024
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OPEN 53.30
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VOLUME 2688
52-Week high 102.70
52-Week low 32.90
P/E
Mkt Cap.(Rs cr) 302
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Simplex Infrastructures Ltd. (SIMPLEXINF) - Auditors Report

Company auditors report

To the Members of

Simplex Infrastructures limited

Report on the Audit of Indian Accounting Standard (Ind AS) StandaloneFinancial Statements Qualified

Opinion

We have audited the accompanying Standalone Financial Statements of SimplexInfrastructures Limited ("the Company") which comprise the Balance Sheet asat March 31 2022 the Statement of Profit and Loss including Statement of OtherComprehensive Income the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and notes to the standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation which includes 16 (sixteen) joint operations (hereinafter referred to as"Ind AS Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us and based on the consideration of reports of other auditors onseparate financial statements and on the other financial information of the jointoperations except for the possible effects of the matters described in the "Basis forQualified Opinion" section of our report the aforesaid standalone financialstatements give the information required by the Companies Act 2013 as amended (‘theAct') in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 and its loss (including Other Comprehensive Income) changesin equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a) Note 41(a) to the accompanying Ind AS Standalone FinancialStatements regarding old pending certifications of unbilled revenues pertaining to earlieryears aggregating Rs.3318 lacs (PY Rs.2858 lacs) year as per the management they are inregular discussion with the concerned customers for completion of necessary certificationwhich often takes significant period of time and varies from project to project and alsobelieves that above unbilled revenue will be billed and realized in due course. In theabsence of any convincing evidence to support the management's estimates of suchfuture assumptions we are unable to comment whether the aforesaid balances arerecoverable at this stage. b) Note 38 to the accompanying Ind AS Standalone FinancialStatements

1. Regarding certain old balances of trade receivables of Rs.8216 lacs(PY Rs.9598 lacs) due from customer against various projects are outstanding for aconsiderable period of time but management is of view these are good at this stage andrecoverable. In the absence of confirmation or any other convincing evidence to supportthe management's estimates of such future assumptions we are unable to commentwhether the aforesaid balances are recoverable at this stage.

2. Regarding old inventories aggregating Rs.770 lacs (PY Rs.1862 lacs)pertaining to certain completed projects are good and readily useable in the view ofmanagement. In the absence of any convincing evidence to support the management'sestimates of such future assumptions we are unable to comment whether the aforesaidinventories are good and readily usable at this stage.

3. Regarding retention monies amounting of Rs.2890 lacs (PY Rs.3320lacs) which are receivable only after contracts are completed and clearance of final billby customer and after expiry of defect liability period was pending for settlement incertain completed contracts. As informed by the management regularly reviewed the oldoutstanding receivables and in the opinion of the management the retention amount is goodand recoverable. In the absence of confirmation or any other convincing evidence tosupport the management's estimates of such future assumptions we are unable tocomment whether the aforesaid balances are recoverable at this stage.

c) Note 39 to the accompanying Ind AS Standalone Financial Statementsregarding loans and advances pertaining to earlier years amounting to Rs.33478 lacs (PYRs.8022 lacs) as informed to us the company is in active pursuit and confident ofrecovery/ settlement of these advances. In the absence of confirmation or any otherconvincing evidence to support the management's estimates of such future assumptionswe are unable to comment whether the aforesaid balances are recoverable at this stage.

d) Note 36 to the accompanying Ind AS Standalone Financial Statementregarding company's default in payment of principal and interest of Rs.275193 lacs(PY Rs.181528 lacs) due on revolving facilities like cash credit WCDL obtained frombanks and also defaulted in repayment of interest and principal aggregating Rs.82938 lacs(PY Rs.43701 lacs) due and payable to Debenture holders on the non-convertible debenturesand term loan. e) The Company has recognized net deferred tax assets amounting toRs.61947 lacs as at March 31 2022 mainly on account of carried forward unabsorbed taxlosses unused tax credit and other taxable temporary differences on the basis of expectedavailability of future taxable profit for utilization of such deferred tax assets whichdepends on successful implementation of the resolution plan as referred to in Note 13 ofthe accompanying Statement.

Our audit report dated June 30 2021 on the Standalone FinancialStatements for the year ended 31 March 2021 was also qualified in respect of the mattersmentioned in points (a) to (d).

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the standalone financialstatements' section of our report. We are independent of the Company in accordancewith the ‘Code of Ethics' issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of theStandalone Financial Statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence which we haveobtained is sufficient and appropriate to provide a basis for our Qualified audit opinionon the Standalone Financial Statements.

Emphasis of Matter

a) We draw attention to the following matters:

1. Note 41(a) to the accompanying Ind AS Standalone FinancialStatements regarding old pending certification of unbilled revenues pertaining to earlieryears aggregating Rs.34142 lacs (PY Rs.28803 lacs). As informed to us by the managementthey are in regular discussion with the concerned customers for completion of necessarycertification which often takes significant period of time and varies from project toproject and also believes that above unbilled revenue will be billed and realized in duecourse.

2. Note 38 to the accompanying Ind AS Standalone Financial Statementsregarding certain old balances of trade receivables of Rs.3651 lacs (PY Rs.3328 lacs)due from customers against various projects are outstanding for a considerable period oftime but management is of view that these are good at this stage and recoverable.

3. Note 38 to the accompanying Ind AS Standalone Financial Statementsregarding retention monies amounting of Rs.261 lacs (PY Rs.384 lacs) which are receivableonly after contracts are completed and clearance of final bill by customer and afterexpiry of defect liability period is long pending for settlement. As informed to us themanagement regularly reviewed the old outstanding receivables and in the opinion of themanagement the retention amount is good and recoverable.

4. Bank balance confirmation of certain current accounts of Rs.141.31lacs have not been received by us for March 31 2022.

Further certain loans closing balance have not been confirmed by therespective banks management has recognized interest liabilities on such outstandingbalances on provisional basis (as per last sanction letters).

5. Note 41(b) to the accompanying Ind AS Standalone FinancialStatements which describe the uncertainties and the management assessment of possibleimpact of COVID-19 pandemic on its business operations financial assets contractualobligations and its overall liquidity position as at March 31 2022. As informed to us themanagement will continue to monitor in future any material changes arising on financialand operational performance of the company due to the impact of this pandemic andnecessary measure to address the situation.

b) As per Note 36 to the accompanying Ind AS Standalone FinancialStatements the Company has incurred net loss of Rs.52631 lacs (PY Rs.46097 lacs) duringthe year ended March 31 2022 as also there is a default in repayment of financial debtsto its bankers and others amounting to Rs.358131 lacs (PY Rs.225229 lacs). The companyis in the process of formulating a resolution plan with its lenders underlying strengthof the company's business plan having a healthy order book position and future growthoutlook. The Company is confident of improving the credit profile including time boundrealization of its assets arbitration claims etc. which would results in meeting itsobligation in due course of time. Accordingly the management considers it appropriate toprepare these financial statements on going concern basis. Our opinion is not modified inrespect of these matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for thefinancial year ended March 31 2022. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. In addition to thematters described in the "Basis for Qualified Opinion" section. We havedetermined the matters described below to be the key audit matters to be communicated inour report. For each matter below our description of how our audit addresses the matteris provided in that context.

We have fulfilled the responsibilities described in the Auditor'sresponsibilities for the audit of the Standalone Financial Statements section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedure designed to response to our assessment of the risks of materialmisstatement of the Standalone Financial Statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying Standalone Financial Statements.

Sr. No. Key Audit Matter Auditor's Response
Correctness of Project Revenue recognition – Construction Contracts (as described in note 1.14 and 32(i) of the Ind AS Standalone Financial Statements) Our procedures included :
1 Revenue from construction contracts is recognised over a period of time in accordance with the requirements of Ind AS 115 Revenue from Contracts with Customers. Revenue recognition involves usage of percentage of completion method which is determined based on proportion of contract costs incurred to date compared to estimated total contract costs which involves significant judgments reliable estimation of total project cost identification of contractual obligations in respect of Company's rights to receive payments for performance completed till date estimation of period of recovery of receivables changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/ onerous obligations. Testing of the design and implementation of controls involved for the determination of the estimates used as well as their operating effectiveness;
Project revenue recognition is significant to the financial statements based on the quantitative materiality and the degree of management judgment required to apply the percentage of completion method. Management has also considered this area to be a key accounting estimate as disclosed in the ‘critical estimates and judgements' note 1A to the Standalone Financial Statements. We therefore determined this to be a key audit matter. Testing the relevant information technology system's access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard;
Testing a sample of contracts for appropriate identification of performance obligations;
For the sample selected reviewing for amendments of orders and the impact on the estimated costs to complete;
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Unbilled Revenue balance Trade Receivables and Retention Money relating to construction contracts of the Company (as described in note 7(b) and Note 9 of the Ind AS Standalone Financial Statements) As part of our audit procedures:
2 Unbilled Revenue balance Trade Receivables and Retention Money of the Company aggregates H597806 lacs (PY H587817 lacs) as at March 31 2022. Testing of the design and implementation of controls involving management's assessment of recoverability of Unbilled Revenue balance Trade Receivables and Retention Money relating to construction contracts.
The collectability of above balances is a key element of the Company's working capital management. In assessing the recoverability of the aforesaid balances management's judgment involves consideration of status of the project the likelihood of collection based on the terms of the contract and evaluation of litigations if any. We performed test of details and tested relevant contracts and documents on the basis of materiality for Unbilled Revenue Trade Receivables and Retention Money balances.
We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgments as stated above We also carried out additional test procedures in respect of long outstanding balances i.e. tested subsequent documents with customers with respect to recoverability of the same.
We tested contracts to determine the provisioning requirement for loss making contracts/onerous obligations if any.
Pending litigations (as described in note 34 of the Ind AS Standalone Financial Statements) Principal Audit Procedures:
3 The Company is subject to number of claims and litigations including arbitrations mainly with customers and tax authorities. The assessment of the likely outcome of these matters can be judgmental due to the uncertainty inherent in their nature. Our audit approach was a combination of test of internal controls and substantive procedures including:
This area is significant to our audit since the accounting and disclosure of claims and litigations are complex and judgmental and the amounts involved are or may be material to the Standalone Financial Statements. Assessing the appropriateness of the design and implementation of the Company's controls over the assessment of litigations and completeness of disclosures.
Supporting documentations are tested to assess the status of Arbitration/legal proceedings with reference to related counselors' views for likely outcome of these matters.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of other information. The other information comprises the information includedin the Report of the Board of Directors Management Discussion and Analysis Report Reporton CSR activities Business Responsibility Report Corporate Governance Report and otherannexure to Directors Report including Shareholder's Information but does notinclude the standalone financial statements and our auditor's report.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statementsduring the course of our audit or our knowledge obtained in the audit or otherwise appearsto be materially misstated.

When we will read the other information on availability of the same tous and if there is anything to report in this regard as required under SA 720 "TheAuditor's Responsibilities Relating to Other Information" we will communicateaccordingly.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 (the "Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive Incomechanges in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian accounting Standardsspecified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error. Inpreparing the standalone financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identify andassess the risks of material misstatement of the standalone financial statements whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant de_ciencies in internal control that we identifyduring our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

a) Due to the outbreak of COVID 19 pandemic that caused nationwidelockdown and other travel restrictions imposed by the Central and State Governments/ localadministrations during the period of our audit we could not travel to the branches /contract sites and carry out the audit processes physically at the respective places.Necessary records / reports / documents / certificates were made available to us by themanagement through e-mail at Head Office Kolkata and on which were relied upon as auditevidence for conducting the audit and reporting for the current period.

b) We did not audit the financial statements and other financialinformation in respect of 16 (sixteen) joint operations whose annual financial statementsand other financial information reflect total assets of Rs.15668.85 lacs as at March 312022 and total revenues of Rs.11155.12 lacs total net profit after tax of Rs.63.15 lacsand total comprehensive income of Rs.63.15 lacs for the year ended on that date and netcash inflows of Rs.241.37 lacs for the year ended March 31 2022 as considered in thefinancial statement which have been audited by other auditors.

The reports of such auditors on annual financial statements and otherfinancial information of the said joint operations have been furnished to us and ouropinion on the Statement in so far as it relates to the amounts and disclosures includedin respect of the said joint operations is based solely on the reports of such otherauditors.

Our opinion on the Statement is not modified in respect of the abovematters.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Act based on our audit and on the consideration of report of the otherauditor on separate financial statement and the other financial information of jointoperations as noted in the "Other Matters" paragraph we give in "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.

2) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained except for the matter(s) described inthe "Basis for Qualified Opinion" paragraph as well as reported "Emphasisof Matters" paragraph all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d) Except for the matter(s) described in the Basis for QualifiedOpinion and Emphasis of Matters paragraph In our opinion the aforesaid StandaloneFinancial Statements comply with the Ind AS specified under Section 133 of the Act readwith Companies (Indian Accounting Standards) Rules 2015 as amended.

e) In view of the matter(s) described in the Basis for QualifiedOpinion and Emphasis of matter paragraph above we are unable to comment whether these mayhave an adverse effect on the functioning of the company.

On the basis of the written representations received from the directorsas on March 31 2022 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2022 from being appointed as a director in terms ofSection 164 (2) of the Act. f) With respect to the adequacy of the Internal FinancialControls over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as Amended and companies (Audit and Auditors) Amendment Rules 2021 in ouropinion and to the best of our knowledge & belief and according to the explanationsgiven to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements– [Refer Note No.34 to theaccompanying Ind AS Standalone Financial Statements.

ii. The Company has made provision as required under the applicablelaw or accounting standard for material foreseeable losses if any on long term contractsincluding derivative contract.

iii. There has been no delay in transferring amounts which wererequired to be transferred to the Investors Education and Protection Fund by the Company.

For CHATURVEDI & CO.
Chartered Accountants
Firm Registration No: 302137E
S.C. Chaturvedi
(Partner)
Membership No: 012705
UDIN: 22012705ANPFWI6302
Place: Kolkata
Date: 30th May 2022

ANNEXURE ‘A'

TO THE INDEPENDENT AUDITOR'S REPORT

{Referred to in Paragraph (1) of "Report on Other Legal andRegulatory Requirements" section of our Independent Auditors Report}

I. (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situations of Property Plant andEquipment.

(B) The Company has maintained proper records showing full particularsof intangible assets. (b) As per the information and explanations given to us and on thebasis of our examination of the records of the Company all fixed assets have not beenphysically verified by the Management during the year but there is a regular programme ofverifying them once in three years which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. Pursuant to the programme a portionof the fixed assets has been physically verified by the Management during the year and nomaterial discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us therecords examined by us and based on the Title deeds provided to us we report that thetitle deeds comprising all the immovable properties (including leased assets where theCompany is a lessee) of land and building are held in the name of the Company as on thebalance sheet date except for the following where the title deeds are not in the name ofthe Company:

Relevant line item in the Balance sheet Description of Property Gross Carrying Value ( D in Lacs) Held in the name of Whether promoter director or their relative or employee Property held – indicate range where appropriate Reason for not being held in the name of Company
Property Plant and Equipment Flat No. 207 in Vaikunth Building 82-83 Nehru Place Delhi 2 Shri K. L. Bhatia No 1984 Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property Plant and Equipment Flat No. 209 in Vaikunth Building 82-83 Nehru Place Delhi 2 Mrs. Sunita Bhan No 1992 Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property Plant and Equipment Flat No. 204 in Vaikunth Building 82-83 Nehru Place Delhi 5 Shri Bhuvan Chawla No 1997 Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property Plant and Equipment Flat at Sector-29 Vashi Navi Mumbai 5 Amitabh Das Mundhra No 2000 Flat being acquired in a co- operative society was required to be registered in the name of individual only.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property plant and equipment (including Right-of-use assets) or Intangible assets orboth during the year.

(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no proceedingsinitiated or pending against the Company for holding any benami property under theProhibition of Benami Property Transactions Act 1988 and rules made thereunder.

II. (a) As informed the inventories of the Company have beenphysically verified by the management during the year except for one of the contractinventory valuing Rs.2815 lacs which is under the custody of third party (contractee) andis under arbitration. In our opinion and according to the information and explanationsgiven to us the frequency of such verification is reasonable and procedures and coverageas followed by management were appropriate. No discrepancies were noticed on verificationbetween the physical stocks and the book records that were 10% or more in the aggregatefor each class of inventory. Minor discrepancies noticed during physical verification wereproperly dealt within the books of account.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate from bankson the basis of security of current assets. In our opinion the quarterly returns orstatements filed by the Company with such banks are in agreement with the books of accountof the Company.

III. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anyinvestments in subsidiaries and provided guarantee or security which are characterized asloans secured or unsecured to LLPs firms or companies or any other person during theyear.

IV. In our opinion and according to information and explanations givento us the Company has in respect of loans investments guarantees and securitycomplied with the provisions of section 185 and 186 of the Act.

V. The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public within the meaning of sections 73 to 76 or any otherrelevant provisions of the Act. In respect of overdue earnest money deposits and securitydeposits Management is of the view that overdue earnest money deposits and securitydeposits of suppliers/contractors appearing in the books are in the nature of retentionmoney for performance of contracts for supply of goods and services and accordingly notto be treated as deemed deposits by virtue of amendment in rule 2 sub rule (1) clause(c) of the Companies (Acceptance of Deposits) Amendment Rules 2016.

VI. We have broadly reviewed the books of account maintain by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(i) of the companies Act 2013 related to its product/servicesand are of the opinion that prima facie the specified accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

VII. (a) Based on the information and explanations given to us andaccording to the records maintained by the Company in our opinion except for some delaysin depositing dues in respect of income tax (TDS) Provident Fund during the year thecompany is generally regular in depositing with appropriate authorities undisputedstatutory dues including Goods and Service Tax Cess Value Added Tax and other materialstatutory dues applicable to it though there have been slight delays in few cases.

According to the information and explanations given to us the extentof the arrears of statutory dues outstanding as at March 31 2022 for a period of morethan six months from the date they became payable are as follows :

Statement of Arrears of Statutory Dues outstanding for more than Sixmonths

Name of the statute Nature of dues Amount (Rs. In Lacs) Period to which amount relates Due date Date of Payment
Income Tax Act 1961 Salary -TDS 73.08 August2021 07.09.2021 Rs.30.00 lacs paid on 07.04.22 Rs.25.00 lacs paid on 16.04.22 & Rs.18.08 lacs paid on 26.04.22
Income Tax Act 1961 Salary -TDS 76.91 September 2021 07.10.2021 Rs.31.91 lacs paid on 26.04.22 & Rs.45.00 lacs paid on 06.05.22
Income Tax Act 1961 Interest other than "Interest on securities" -TDS 0.23 May 2021 07.06.2021 -
Income Tax Act 1961 Interest other than "Interest on securities" -TDS 0.08 August 2021 07.09.2021 -
Income Tax Act 1961 Interest other than "Interest on securities" -TDS 8.24 September 2021 07.10.2021 -
Income Tax Act 1961 Fees for professional or technical services -TDS 9.47 April 2021 07.05.2021 Rs.0.5 lacs paid on 07.04.22 Rs.5.01 lacs paid on 16.04.22 & Rs.3.75 lacs paid on 17.05.22
Income Tax Act 1961 Fees for professional or technical services -TDS 5.46 May 2021 07.06.2021 Rs.0.15 lacs paid on 07.04.22 Rs.0.32 lacs paid on 16.04.22 Rs.0.12 lacs paid on 02.05.22 & Rs.4.86 lacs paid on 17.05.22
Income Tax Act 1961 Fees for professional or technical services -TDS 6.84 June 2021 07.07.2021 Rs.1.00 lacs paid on 16.04.22 Rs.0.07 lacs paid on 21.04.22 Rs.1.22 lacs paid on 02.05.22 & Rs.4.53 lacs paid on 17.05.22
Income Tax Act 1961 Fees for professional or technical services -TDS 14.05 July 2021 07.08.2021 Rs.1.56 lacs paid on 07.04.22 Rs.1.91 lacs paid on 02.05.22 Rs.4.22 lacs paid on 17.05.22 & Rs.1.08 lacs paid on 26.05.22
Income Tax Act 1961 Fees for professional or technical services -TDS 11.90 August 2021 07.09.2021 Rs.2.32 lacs paid on 07.04.22 Rs.0.75 lacs paid on 02.05.22 & Rs.5.51 lacs paid on 26.05.22
Income Tax Act 1961 Fees for professional or technical services -TDS 10.30 September 2021 07.10.2021 Rs.2.86 lacs paid on 07.04.22 Rs.0.62 lacs paid on 02.05.22 & Rs.2.53 lacs paid on 26.05.22
Income Tax Act 1961 Payment to contractors -TDS 6.46 April 2021 07.05.2021 Rs.0.69 lacs paid on 16.04.22 & Rs.0.18 lacs paid on 17.05.22
Income Tax Act 1961 Payment to contractors -TDS 17.34 May 2021 07.06.2021 Rs.1.92 lacs paid on 16.04.22 & 0.21 lacs paid on 17.05.22
Income Tax Act 1961 Payment to contractors -TDS 26.40 June 2021 07.07.2021 Rs.3.15 lacs paid on 16.04.22 Rs.0.14 lacs paid on 21.04.22 & Rs.0.69 lacs paid on 17.05.22
Income Tax Act 1961 Payment to contractors -TDS 63.77 July 2021 07.08.2021 Rs.1.20 lacs paid on 07.04.22 Rs.0.14 lacs paid on 21.04.22 Rs.7.28 lacs paid on 02.05.22 Rs.10.07 lacs paid on 17.05.22 & Rs.0.59 lacs paid on 26.05.22
Income Tax Act 1961 Payment to contractors -TDS 45.93 August 2021 07.09.2021 Rs.1.58 lacs paid on 07.04.22 Rs.0.81 lacs paid on 21.04.22 & Rs.1.28 lacs paid on 26.05.22
Income Tax Act 1961 Payment to contractors -TDS 49.66 September 2021 07.10.2021 Rs.1.87 lacs paid on 07.04.22 Rs.0.04 lacs paid on 21.04.22 & Rs.8.57 lacs paid on 26.05.22
Income Tax Act 1961 Rent -TDS 6.86 April 2021 07.05.2021 Rs.0.32 lacs paid on 16.04.22 & Rs.0.41 lacs paid on 17.05.22
Income Tax Act 1961 Rent -TDS 6.62 May 2021 07.06.2021 Rs.0.30 lacs paid on 16.04.22 & Rs.0.24 lacs paid on 17.05.22
Income Tax Act 1961 Rent -TDS 18.02 June 2021 07.07.2021 Rs.2.21 lacs paid on 16.04.22 & Rs.0.28 lacs paid on 17.05.22
Income Tax Act 1961 Rent -TDS 15.27 July 2021 07.08.2021 Rs.0.62 lacs paid on 07.04.22 Rs.0.18 lacs paid on 21.04.22 Rs.0.57 lacs paid on 17.05.22 & Rs.1.05 lacs paid on 26.05.22
Income Tax Act 1961 Rent -TDS 16.14 August 2021 07.09.2021 Rs.0.64 lacs paid on 07.04.22 Rs.0.42 lacs paid on 21.04.22 & Rs.0.61 lacs paid on 26.05.22
Income Tax Act 1961 Rent -TDS 15.83 September 2021 07.10.2021 Rs.0.73 lacs paid on 07.04.22 Rs.0.15 lacs paid on 21.04.22 & Rs.0.36 lacs paid on 26.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 0.04 April 2021 15.05.2021 17.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 0.03 May 2021 15.06.2021 17.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 0.06 June 2021 15.07.2021 17.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 14.50 July 2021 15.08.2021 Rs.3.00 lacs paid on 04.04.22 Rs.4.00 lacs paid on 05.04.22 Rs.1.35 lacs paid on 06.04.22 Rs.2.00 lacs paid on 07.04.22 Rs.4.12 lacs paid on 11.04.22 & Rs.0.03 lacs paid on 17.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 45.87 August 2021 15.09.2021 Rs.0.10 lacs paid on 11.04.22 Rs.3.50 lacs paid on 12.04.22 Rs.1.25 lacs paid on 13.04.22 Rs.5.45 lacs paid on 19.04.22 Rs.1.35 lacs paid on 21.04.22 Rs.5.60 lacs paid on 22.04.22 Rs.2.00 lacs paid on 25.04.22 Rs.3.00 lacs paid on 28.04.22 Rs.2.50 lacs paid on 29.04.22 Rs.3.10 lacs paid on 30.04.22 Rs.3.90 paid on 04.05.22 Rs.2.50 lacs paid on 05.05.22 Rs.2.00 lacs paid on 06.05.22 Rs.2.75 lacs paid on 09.05.22 Rs.1.01 lacs paid on 12.05.22 Rs.2.00 lacs paid on 13.05.22 Rs.3.61 lacs paid on 17.05.22 & Rs.0.25 lacs paid on 18.05.22
The Employee's Provident Fund & Miscellaneous provisions Act1952 Provident Fund 45.42 September 2021 15.10.2021 Rs.0.18 lacs paid on 17.05.22 Rs.2.04 lacs paid on 18.05.22 Rs.2.26 lacs paid on 21.05.22 Rs.1.17 lacs paid on 24.05.22 Rs.3.00 lacs paid on 25.05.22 Rs.2.73 lacs paid on 27.05.22 & Rs.3.50 lacs paid on 30.05.22

(b) Based on information and explanations given to us and according tothe records maintained by the Company the dues in respect of sales-tax service tax dutyof excise and value added tax that have not been deposited on account of any dispute areas follows:

Name of the statute Nature of dues Amount (Rs. in Lacs) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty 84 2007-08 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 30 2009-10 to 2010-11 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 34 April 2009 - December 2009 CESTAT Bangalore
Central Excise Act 1944 Excise Duty 36 April 2014 – December 2015 CESTAT Delhi
Central Excise Act 1944 Excise Duty 179 March 2013 – February 2016 Karnataka High Court
Central Excise Act 1944 Excise Duty 176 January 2012 – March 2016 CESTAT Bangalore
Central Excise Act 1944 Excise Duty 242 January 2013 – February 2016 CESTAT Bangalore
Central Excise Act 1944 Excise Duty 35 2013-14 to 2015-16 Commissioner Appeal
Foreign Trade Policy 2015-2020 SEIS Benefit 641 2015-2020 DGFT KOLKATA
Finance Act1994-Service Tax Service Tax 341 June 2007 - May 2008 High Court of Jharkhand at Ranchi
Finance Act1994-Service Tax Service Tax 1786 August 2008 - September 2011 Customs Excise & Service Tax Appellate Tribunal
Finance Act1994-Service Tax Service Tax 104 October 2009 - March 2010 Commissioner (Adjudication)
Finance Act1994-Service Tax Service Tax 36 April 2011 - March 2012 Commissioner (Adjudication)
Finance Act1994-Service Tax Service Tax 1 2007-08 & 2008-09 Commissioner of Central Excise (Appeals)
Andhra Pradesh Value Added Tax Act 2005 VAT 128 2007-08 Andhra Pradesh High Court
Andhra Pradesh Value Added Tax Act 2005 VAT 373 2008-09 Andhra Pradesh High Court
Andhra Pradesh Value Added Tax Act 2005 VAT 397 2009-10 Andhra Pradesh High Court
Andhra Pradesh Value Added Tax Act 2005 VAT 114 2010-11 Andhra Pradesh High Court
Andhra Pradesh Value Added Tax Act 2005 VAT 25 2011-12 Andhra Pradesh Taxation Tribunal
West Bengal Value Added Tax Act 2003 VAT 4 2006-07 High court of Calcutta
West Bengal Value Added Tax Act 2003 VAT 119 2010-11 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal Value Added Tax Act 2003 VAT 3545 2011-12 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal Value Added Tax Act 2003 VAT 2294 2013-14 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal Value Added Tax Act 2003 VAT 272 2015-16 Additional CCT (Appeals)
Maharashtra VAT Act 2002 VAT 5333 2012-13 Joint Commissioner of Sales Tax
Maharashtra VAT Act 2002 VAT 376 2013-14 Maharashtra State Tribunal
Maharashtra VAT Act 2002 VAT 52 2014-15 Joint Commissioner Sales Tax
Chattisgarh VAT 2005 VAT 28 2014-15 Taxation Tribunal
Chattisgarh VAT 2005 VAT 52 2015-16 Additional Commissioner commercial Tax Bilaspur
Chattisgarh VAT 2005 VAT 212 2016-17 Additional Commissioner commercial Tax Bilaspur
Jharkhand VAT Act 2005 VAT 80 2006-07 As represented by the management the appeal is yet to be filed due to pending receipt of certified copy of order.
Kerala VAT Act 2003 VAT 13 2007-08 DC (Appeal) Ernakulam
Kerala VAT Act 2003 VAT 4 2009-10 AC (Works Contract) Ernakulam
Haryana Value Added Tax Act 2003 VAT 12 2009-10 Haryana VAT Tribunal
Haryana Value Added Tax Act 2003 VAT 22 2012-13 Haryana VAT Tribunal
Haryana Value Added Tax Act 2003 VAT 34 2013-14 Haryana VAT Tribunal
Haryana Value Added Tax Act 2003 VAT Cases 59 2014-15 Haryana VAT Tribunal
Haryana Value Added Tax Act 2003 VAT Cases 33 2015-16 Haryana VAT Tribunal
Haryana Value Added Tax Act 2003 VAT Cases 165 2016-17 Appeal filed with Tribunal
Haryana Value Added Tax Act 2003 VAT Cases 441 2017-18 Jt. Commissioner Appeal
The Uttar Pradesh Value Added Tax 2008 VAT 158 2017-18 Deputy Commissioner
Andhra Pradesh General Sales Tax Act1957 Sales Tax Cases 8 2003-04 Appellate tribunal in Vizag
Goa Sales Tax Act 1964 Sales Tax Cases 64 2004-05 Additional CCT (Appeal) Margao
Orissa Sales Tax Act 1947 [For Sambalpur] Sales Tax Cases 3 1985-86 1988-89 & 1989-90 Sales Tax Appellate Tribunal
Bombay Sales Tax Act1959 Sales Tax Cases 144 2003-04 & 2004-05 Mazz India has filed Writ Petition in Bombay High Court
Goa - Central Sales Tax Act 1956 CST Cases 7 2003-04 Additional CCT (Appeal) Margao
Goa - Central Sales Tax Act 1956 CST Cases 1 2006-07 Sales Tax Appellate Authority
WB - Central Sales Tax Act 1956 CST Cases 9 2010-11 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal - Central Sales Tax Act 1956 CST Cases 137 2011-12 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal - Central Sales Tax Act 1956 CST Cases 7 2013-14 West Bengal Commercial Taxes Appellate and Revisional Board
West Bengal - Central Sales Tax Act 1956 CST Cases 26 2014-15 Additional CCT (Appeals)
Orissa Central Sales Tax CST Cases 2 2013-14 & 2014-15 Additional CCT (Appeal) Cuttack
Kerala CST Rules CST 1 2014-15 Sales Tax Office (WC) Ernakulam
The Uttar Pradesh Central Sales Tax Act 1956 CST 2 2017-18 Deputy Commissioner
Tamil Nadu General Sales Tax Act 1959 Sales Tax 145 1999-2000 Sales Tax Appellate Tribunal (STAT)
Tamil Nadu General Sales Tax Act 1959 Sales Tax 321 2000-2001 Sales Tax Appellate Tribunal (STAT)

VIII. According to the information and explanations given to us and onthe basis of our examination of the records of the Company there were no transactionsrelating to previously unrecorded income that have been surrendered or disclosed as incomeduring the year in the tax assessments under the Income Tax Act 1961 (43 of 1961).

IX. (a) The Company has defaulted in repayment of principal andinterest thereon which are due on cash credit WCDL Term loan etc. obtained frombanks/financial institution and non-convertible debentures holder as set out below:-

Default in repayment of principal and interest (Rs. in lacs)

Nature of borrowing including debt securities Name of lender Amount not paid on due date (Rs. in lacs) Whether principal or interest Upto 180 days From 181 Days to 365 Days Above 365 Days Remarks if any
Secured Non- Convertible debentures Axis Bank Ltd 7084 Both 337 335 6412
Bank Of Baroda 4325 Both 197 2221 1907
Bank Of Baroda (Employees) 707 Both 34 34 639
Pension Fund
Bank Of Baroda Provident Fund 707 Both 34 34 639
Trust
Bank Of India 9296 Both 1362 3084 4850
Bank Of Maharashtra Tibd 1341 Both 63 1158 120
Canara Bank 7127 Both 327 3446 3354
Canara Bank-Mumbai 2824 Both 128 128 2568
General Insurance Corporation Of India 1304 Both 626 23 655
HDFC Trustee Company Ltd A/C 17750 Both 907 903 15940
HDFC Credit Risk Debt Fund
Indian Bank 1415 Both 69 68 1278
Indian Overseas Bank 5697 Both 250 2845 2602
Prathama U P Gramin Bank 2045 Both 96 1192 757
Punjab And Sind Bank 1458 Both 621 22 815
United India Insurance 1285 Both 60 60 1165
Company Limited
Secured Rupee Term Loan from Bank Karnataka Bank Limited 159 Both 7 7 145
HDFC Bank Limited 2195 Both 359 388 1448
ICICI Bank Limited 208 Both 42 54 112
Axis Bank Ltd. 33 Both - - 33
The Federal Bank Ltd. 1041 Both 69 65 907
Secured Rupee Term Loan from Financial Companies Sundaram Finance Limited 67 Both 15 18 34
Tata Capital Financial Services Limited 111 Both 23 36 52
Srei Equipment Finance Limited 3792 Both 754 791 2247
Kotak Mahindra Prime Limited 21 Both 5 6 10
Mahindra & Mahindra Financial Services Limited 189 Both 42 53 94
Hinduja Leyland Finance Limited 694 Both 118 167 409
IFCI Limited 1701 Both 46 55 1600
Secured Foreign Currency Term Loan from Bank Bank Muscat 4023 Both 273 108 3642
IndusInd Bank Ltd. 4339 Both 1334 1166 1839
Rupee Working Capital Loans repayable on demand from Bank Axis Bank Ltd 1540 Both 126 425 989
Bank of Baroda 8042 Both 854 1315 5873
Bank of India 11337 Both 1076 1088 9173
Bank of Maharashtra 1098 Both 149 223 726
Canara Bank 7918 Both 574 1900 5444
Syndicate Bank 8095 Both 2496 1464 4135
Central Bank of India 5264 Both 436 860 3968
DCB Bank Ltd. 446 Both 126 117 203
HDFC Bank Ltd 3777 Both 724 731 2322
ICICI Bank Ltd 13954 Both 1466 2551 9937
IDBI Bank 4240 Both 1725 279 2236
Indian Bank 7016 Both 762 1363 4891
Allahabad Bank 37770 Both 6435 9449 21886
IndusInd Bank 1537 Both 389 566 582
Karnataka Bank Ltd 3733 Both 751 763 2219
Karur Vysya Bank Ltd 5145 Both 1746 1324 2075
Punjab National Bank 17584 Both 2531 782 14271
Oriental Bank of commerce 2025 Both 225 430 1370
United Bank of India 45654 Both 8398 8924 28332
RBL Bank Ltd 4520 Both 1093 2422 1005
Standard Chartered Bank 2003 Both 579 396 1028
State Bank of India 60085 Both 21956 8863 29266
The Lakshmi Vilas Bank Ltd 471 Both 126 119 226
UCO Bank 1977 Both 327 349 1301
Union Bank of India 17081 Both 2796 1469 12816
Andhra Bank 1362 Both 502 278 582
Yes Bank Limited 1519 Both 339 781 399

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not beendeclared a willful defaulter by any bank or financial institution or other lender.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company term loans were applied forthe purpose for which the loans were obtained.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company funds raised on short termbasis have prima facie not been used during the year for long-term purposes by theCompany. (e) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries or joint ventures. Accordingly clause 3(ix)(e) of the Order is notapplicable.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries or joint ventures. Accordinglyclause 3(ix)(f) of the Order is not applicable.

X. (a) In our opinion and according to the information and explanationsgiven to us the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) during the year. Accordingly clause3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly or optionallyconvertible debentures during the year. Accordingly clause 3(x)(b) of the Order isnot applicable to the Company. XI. (a) Based on examination of the books and records ofthe Company and according to the information and explanations given to us considering theprinciples of materiality outlined in Standards on Auditing we report that no fraud bythe Company or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) According to the information and explanations given to us nowhistle blower complaints have been received by the company during the year. XII. TheCompany is not a Nidhi Company. Hence reporting under clauses 3(xii)(a) (b) and (c) ofthe Order is not applicable to the Company.

XIII. According to the information and explanations given to us by themanagement and based on our examination of books of accounts transactions with therelated parties are in compliance with Section 177 and 188 of the Companies Act 2013where applicable and the details of such transactions have been disclosed in the Noteno.30 to the standalone financial statements as required by the applicable accountingstandards.

XIV. (a) The company is having Internal Audit Department responsiblefor carrying out the internal audit of various registered office Zonal offices andcontacts/project sites at periodical intervals as per the approved audit plan. Theinternal audit system adopted by the internal audit department is commensurate with thesize and nature of the business of the company.

(b) We have considered the internal audit reports for the year underaudit submitted by Internal Audit Department to the Company during the year and tilldate in determining the nature timing and extent of our audit procedures.

XV. According to the information and explanations given to us and asrepresented to us by the management and based on our examination of the records of theCompany the Company has not entered into non-cash transactions with directors or personsconnected with him. Accordingly clauses 3(xv) of the Order are not applicable.

XVI. According to the information and explanations given to us andbased on our examination of the records of the Company (a) The Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934. (b) The Companyhas not conducted any Non- Banking Financial or Housing Finance activities during theyear.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India.

(d) The Group does not have any CIC.

Accordingly clauses 3(xvi) (a) (b) (c) and (d) of the Order are notapplicable.

XVII. The Company has incurred cash losses in current and in theimmediately preceding financial year to the extent of Rs.64772 lacs and Rs.54947 lacsrespectively. XVIII. There has been no resignation of the statutory auditors during theyear. Accordingly clause 3(xviii) of the Order is not applicable.

XIX. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the StandaloneFinancial Statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

XX. In our opinion and according to the information and explanationsgiven to us the company has negative average net profit of three immediately precedingfinancial years therefore the company was not required to spend any amount towardscorporate social responsibilities under the provision of Section 135 of the Companies Act2013. Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

XXI. The reporting under Clause 3(xxi) of the Order is not applicablein respect of audit of standalone financial statements. Accordingly no comment in respectof the said clause has been included in this report.

For CHATURVEDI & CO.
Chartered Accountants
Firm Registration No: 302137E
S.C. Chaturvedi
(Partner)
Membership No: 012705
UDIN: 22012705ANPFWI6302
Place: Kolkata
Date: 30th May 2022

ANNEXURE ‘B'

TO THE INDEPENDENT AUDITOR'S REPORT

{Referred to in Paragraph (2)(g) of "Report on Other Legal andRegulatory Requirements" section of our Independent Auditors Report}

To The Independent Auditors' Report of even date on The StandaloneFinancial Statement of Simplex Infrastructures Limited

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Simplex Infrastructures Limited (hereinafter referred as "theCompany") as of March 31 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to respectivecompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting with reference to these standalone financial statements assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our qualified audit opinion on the internal financialcontrols system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to information and explanation given to us and based on thereport issued by other auditors on internal financial controls over financial reportingthe following material weakness have been identified as at March 31 2022 a. TheCompany's internal financial controls for evaluation of recoverability of oldbalances of unbilled revenue loans/ advances trade receivables retention moniesinventories at project sites and claims recoverable were not operating effectively as onMarch 31 2022 which could potential result in the company not recognizing appropriateprovision on the standalone financial statement in respect of assets that are doubtful ofrecovery/ credit impaired. b. The Company's internal financial controls for assessingthe period over which old balances of unbilled revenue loans / advances tradereceivables retention monies and claim recoverable are expected to be recovered were notoperating effectively as on March 31 2022 which could potentially result in the holdingcompany not appropriately measuring the fair values of those financial assets.

A ‘material weakness' is a de_ciency or a combination ofde_ciencies in internal financial control over financial reporting such that there is areasonable possibility that a material misstatement of Company's annual or interimfinancial statements will not be prevented or detected on a timely basis.

In our opinion the Company has in all material respects maintainedadequate internal financial control over financial reporting with reference to theseStandalone Financial Statements as of March 31 2022 based on the internal control overfinancial reporting criteria establish by the Company considering the essential componentsof internal control stated in the Guidance note on Audit of Internal Financial Controlover Financial Reporting issued by Institute of Chartered Accountants of India and exceptfor the possible effects of material weakness described above on the achievement of theobjectives of the control criteria the internal financial control over financialreporting with reference to these standalone financial statements were operatingeffectively as of March 31 2022.

Explanatory Paragraph

We also have audited in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India as specified under section143(10) of the Act these standalone financial statements of Simplex InfrastructuresLimited which comprise the Balance Sheet as at March 31 2022 and the related statementof Profit & Loss and Cash Flow Statements for the year then ended and a summary ofSignificant Accounting Policies and other explanatory information. These materialweaknesses were considered in determining the nature timing and extent of audit testapplied in our audit of the March 31 2022 standalone financial statements of SimplexInfrastructures Limited and the Report does not affect our report dated May 30 2022 whichexpress a qualified opinion on those financial statements.

For CHATURVEDI & CO.
Chartered Accountants
Firm Registration No: 302137E
S.C. Chaturvedi
(Partner)
Membership No: 012705
UDIN: 22012705ANPFWI6302
Place: Kolkata
Date: 30th May 2022

.