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Simplex Infrastructures Ltd.

BSE: 523838 Sector: Infrastructure
NSE: SIMPLEXINF ISIN Code: INE059B01024
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OPEN 44.15
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VOLUME 2803
52-Week high 56.05
52-Week low 27.00
P/E
Mkt Cap.(Rs cr) 251
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 the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying standalone financial statements of SimplexInfrastructures Limited ("the Company") which comprise the Balance Sheet as atMarch 312020 the Statement of Profit and Loss including Statement of Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and notes to the standalone financial statements including a summaryof the significant accounting policies and other explanatory information which includes 16(sixteen) joint operations (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements and on the other financial information of the joint operations exceptfor the possible effects of the matters described in the "Basis for QualifiedOpinion" section of our report the aforesaid standalone financial statements givethe information required by the Companies Act 2013 as amended ('the Act') in the mannerso required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 and its loss (including Other Comprehensive Income) changes in equity and itscash flows for the year ended on that date.

Basis for Qualified Opinion

a) Note 41(a) to the accompanying IND AS Standalone Financial Statements regardingpending certifications of unbilled revenues pertaining to earlier years prior to March 312016 aggregating Rs. 2858 Lakhs as per the management they are in regular discussionwith the concerned customers for completion of necessary certification which often takessignificant period of time and varies from project to project and also believes that aboveunbilled revenue will be billed and realized in due course. We are unable to commentwhether the aforesaid balances are recoverable at this stage.

b) Note 38 to the accompanying IND AS Standalone Financial Statements

1. Regarding certain old balances of trade receivables of Rs. 9933 Lakhs due fromcustomer prior to March 31 2016 against various projects are outstanding for aconsiderable period of time but management is of view these are good at this stage andrecoverable. We are unable to comment whether the aforesaid balances are recoverable atthis stage.

2. Regarding inventories aggregating Rs. 2079 Lakhs pertaining prior to March 31 2016to certain completed projects are good and readily useable in the view of management. Weare unable to comment whether the aforesaid inventories are good and readily usable atthis stage.

3. Regarding retention monies amounting of Rs. 4502 Lakhs which is receivable onlyafter contract is completed and clearance of final bill by customer and after expiry ofdefect liability period was pending for settlement in certain completed contracts priorto March 31 2016. As stated by the management they regularly review the old outstandingreceivables and in their opinion the retention amount is good and recoverable. We areunable to comment whether the aforesaid balances are recoverable at this stage.

c) Note 39 to the accompanying IND AS Standalone Financial Statements regarding loansand advances made prior to March 312016 amounting to Rs. 13860 Lakhs on which asinformed to us the company is in active pursuit and confident of recovery/ settlement ofthese advances. We are unable to comment whether the aforesaid balances are recoverable atthis stage.

d) Note 36 to the accompanying IND AS Standalone Financial Statements regarding companydefault in payment of principal and interest of Rs. 75769 Lakhs due on revolvingfacilities like cash credit WCDL term loan etc. obtained from Banks and also defaultedin repayment of interest and principal aggregating Rs. 15073 Lakhs due and payable toDebenture holders on the non - convertible debenture.

e) Note 41(b) to the accompanying IND AS Standalone Financial Statements regardingcurrent assets which includes certain balances of trade receivables retention moniesunbilled revenue statutory advances pending assessment by relevant authorities amountingto Rs. 13242 Lakhs 4502 Lakhs 22482 Lakhs 23183 Lakhs respectively which in ouropinion should have been classified as non-current assets. We are further unable tocomment on any consequential adjustment that may be required in this financial statementin this regard.

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act.

Our responsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our Qualified audit opinion on the Standalone Financial Statements.

Emphasis of Matter

1. We draw attention to the following matters:

a) Note 41(a) to the accompanying IND AS Standalone Financial Statements regardingpending certification of unbilled revenues pertaining to earlier years aggregating Rs.19624 Lakhs. As per the management they are in regular discussion with the concernedcustomers for completion of necessary certification which often takes significant periodof time and varies from project to project and also believes that above unbilled revenuewill be billed and realized in due course;

b) Note 38 to the accompanying IND AS Standalone Financial Statements regarding certainold balances of trade receivables of Rs. 3309 Lakhs due from customers against variousprojects are outstanding for a considerable period of time but management is of view thatthese are good at this stage and recoverable.

c) Note 41(c) of the Standalone Financial Statements which describe the uncertaintiesand the management's assessment of possible impact of COVID-19 pandemic on its businessoperations financial assets contractual obligations and its overall liquidity positionas at March 31 2020. Management will continue to monitor in future any material changesarising on financial and operational performance of the company due to the impact of thispandemic and necessary measure to address the situation.

d) As per Note 36 to the accompanying IND AS Standalone Financial Statements theCompany has incurred net loss of Rs. 31747 Lakhs during the year ended March 31 2020 asalso there is delay in payment of financial debts to its bankers and others amounting toRs. 90842 Lakhs. The Company is in the process of formulating a resolution plan with itslenders underlying strength of the Company's business plan having a healthy order bookposition and future growth outlook. The Company is confident of improving the creditprofile including time bound realization of its assets arbitration claims etc. whichwould result in meeting its obligation in due course of time. Accordingly the Managementconsiders it appropriate to prepare these financial statements on going concern basis.

Our opinion is not modified in respect of these matters.

Key Audit Matters

1. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements for the financial yearended March 31st 2020. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. In addition to the matters described inthe "Basis for Qualified Opinion" section. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report. For eachmatter below our description of how our audit address the matter is provided in thatcontext.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the Standalone Financial Statements section of our report including inrelation to these matters. Accordingly our audit included the performance of proceduredesigned to response to our assessment of the risks of material misstatement of theStandalone Financial Statement. The results of our audit procedures including theprocedures performed to address the matters below provide the basis for our audit opinionon 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 Standalone Ind AS 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;
• Testing the relevant information technology systems' 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; and
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. • Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Sr No. Key Audit Matter Auditor's Response
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 Standalone Ind AS Financial Statements)
2 Unbilled Revenue balance Trade Receivables and Retention Money of the Company aggregates Rs. 604147 lakhs as at March 312020. As part of our audit procedures:
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 judgement involves consideration of status of the project the likelihood of collection based on the terms of the contract and evaluation of litigations if any. • 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.
• 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 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 considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above. • We tested contracts to determine the provisioning requirement for loss making contracts/onerous obligations if any.
Sr No. Key Audit Matter Auditor's Response
3 Pending litigations (as described in Note 34 of the Standalone Ind AS Financial Statements)
Principal Audit Procedures
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 documentation 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 and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the Report of theBoard of Directors Management Discussion and Analysis Report Report on CSR activitiesBusiness Responsibility Report Corporate Governance Report and other annexure toDirectors Report including Shareholder's Information but does not include the StandaloneFinancial Statements and our auditor's report.

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

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements during the course ofour audit or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (the "Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive Income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian accounting Standards specified under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements the Board of Directors is responsiblefor assessing 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 are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

a) Due to the outbreak of COVID-19 pandemic that caused nationwide lockdown and othertravel restrictions imposed by the Central and State Governments/ local administrationsduring the period of our audit we could not travel to the branches / contract sites andcarry 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 financial information inrespect of 3 (Three) joint operations whose annual financial statements and otherfinancial information reflect total assets of Rs. 5313.37 Lakhs as at March 31 2020 andtotal revenues of Rs. 1194.96 Lakhs total net profit after tax of Rs. (0.82) Lakhs andtotal comprehensive income of Rs. (0.82) Lakhs for the year ended on that date and netcash inflows of Rs. 0.83 Lakhs for the year ended March 31 2020 as considered in theFinancial Statement which have been audited by other auditors.

The reports of such auditors on annual financial statements and other financialinformation of the said joint operations have been furnished to us and our opinion on theStatement in so far as it relates to the amounts and disclosures included in respect ofthe said joint operations is based solely on the reports of other auditors.

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

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act based onour audit and on the consideration of report of the other auditor on separate financialstatement and the other financial information of joint operation as noted in the"other matter" paragraph we give in "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the 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 in the "Basisfor Qualified Opinion" paragraph as well as reported "Emphasis of Matters"paragraph all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) Except for the matter(s) described in the Basis for Qualified Opinion and Emphasisof Matters paragraph in our opinion the aforesaid Standalone Financial Statements complywith the Ind AS specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e) In view of the matter(s) described in the Basis for Qualified Opinion and Emphasisof matter paragraph above we are unable to comment whether these may have an adverseeffect on the functioning of the company.

f) On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312020 from being appointed as a director in terms of Section164 (2) of the Act;

g) With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as Amended inour opinion and to the best of our knowledge & belief and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements- [Refer Note No. 34 to the accompanyingStandalone Financial Statements].

ii. The Company has made provision as required under the applicable law or accountingstandard for material foreseeable losses if any on long term contracts includingderivative contract.

iii. There has been no delay in transferring amounts which were required to betransferred to the Investors Education and Protection Fund by the Company.

For Chaturvedi & Co. For H. S. Bhattacharjee & Co.
Chartered Accountants Chartered Accountants
(FRN:- 302137E) (FRN:- 322303E)
S.C. Chaturvedi H. S. Bhattacharjee
Partner Partner
Membership Number: 012705 Membership. Number: 050370
UDIN: 20012705AAAAAJ2916 UDIN: 20012705AAAAAK4668
Place: Kolkata
Date: July 312020

ANNEXUREA

TO THE INDEPENDENT AUDITOR'S REPORT

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

I. (a) According to the information and explanations given by the management theCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets except for the site/location details of certainitems of Fixed Assets including those that have been/ are being transferred acrossvarious project sites which as informed are in the process of updation.

(b) All fixed assets have not been physically verified by the Management during theyear but there is a regular programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

(c) According to the information and explanations given to us by the management and onthe basis of our examination of the records of the Company title deeds of immovableproperties included in fixed assets are held in the name of the Company except thefollowing:

Total No. of case Class of asset Gross carrying amount (Rs. in Lakhs) as at 31st March 2020 Net carrying amount (Rs. in Lakhs) as at 31st March 2020
Four Properties located at New Delhi Apartments (included under buildings) 11 9
One property located at Mumbai Apartment (included under buildings) 5 4

II. Inventories have been physically verified by the management during the year. In ouropinion the frequency of such verification is reasonable. No material discrepanciesnoticed on physical verification. In respect of inventories lying with third partiesthese have been confirmed by them and taken as such by the management.

III. According the information and explanations given to us the Company has notgranted any loans secured or unsecured to any companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theorder are not applicable to the company and hence not commented upon.

IV. In our opinion and according the information and explanations given to usprovisions of section 186 of the Companies Act 2013 in respect of loans to directorsincluding entities in which they are interested and respect of loans and advances giveninvestment made and guarantees and securities given have been complied with by thecompany. Further as informed to us the company has not granted any loans or given anyguarantees or securities which fall under their preview of section 185.

V. The Company has not accepted deposits within the meaning of section 73 to 76 of theAct and the Companies (Acceptance of Deposits) Rules 2014 (as Amended). Accordingly theprovisions of clause 3(v) of the Order are not applicable and hence not commented upon.

VI. We have broadly reviewed the books of account maintain by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 related to its product/services and are of the opinionthat prima facie the specified accounts and records have been made and maintained. Wehave not however made a detailed examination of the same.

VII. a) Based on the information and explanations given to us and according to therecords maintained by the Company in our opinion except for some delays in depositingdues in respect of goods and service tax and value added tax during the year the Companyis generally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund income tax cess and other material statutory dues applicableto it though there have been slight delay in few cases.

According to the information and explanations given to us the extent of the arrears ofstatutory dues outstanding as at March 31 2020 for a period of more than six months fromthe date they became payable are as follows:

Statement of Arrears of Statutory Dues Outstanding for More than Six Months

Name of the statue Nature of dues Amount (Rs. in lakhs) Period to which amount relates Due date Date of Payment
The Bihar Goods and Service Tax Act 2017 GST 100.77 August 2019 20.9.2019 -
The Delhi Goods and Service Tax Act 2017 GST 244.82 June 2019 20.7.2019 22.7.2020
The Delhi Goods and Service Tax Act 2017 GST 171.42 July 2019 22.8.2019 22.7.2020
The Delhi Goods and Service Tax Act 2017 GST 2.94 August 2019 20.9.2019 22.7.2020
The Haryana Goods and Service Tax Act 2017 GST 126.82 May 2019 20.6.2019 -
The Haryana Goods and Service Tax Act 2017 GST 1.46 June 2019 20.7.2019 -
The Haryana Goods and Service Tax Act 2017 GST 1.90 July 2019 22.8.2019 -
The Haryana Goods and Service Tax Act 2017 GST 19.49 August 2019 20.9.2019 -
The Jharkhand Goods and Service Tax Act 2017 GST 349.80 March 2019 23.4.2019 2.6.2020
The Jharkhand Goods and Service Tax Act 2017 GST 137.38 April 2019 20.5.2019 7.8.2020
The Jharkhand Goods and Service Tax Act 2017 GST 225.90 May 2019 20.6.2019 31.8.2020
The Jharkhand Goods and Service Tax Act 2017 GST 156.17 June 2019 20.7.2019 -
The Jharkhand Goods and Service Tax Act 2017 GST 161.10 July 2019 22.8.2019 -
The Jharkhand Goods and Service Tax Act 2017 GST 561.87 August 2019 20.9.2019 -
The Orissa Goods and Service Tax Act 2017 GST 65.87 August 2019 20.9.2019 1.5.2020
Haryana Value added Tax Act 2003 VAT-TDS 44.57 April 2017 15.5.2017 -
Haryana Value added Tax Act 2003 VAT-TDS 48.34 May 2017 15.6.2017 -
Haryana Value added Tax Act 2003 VAT-TDS 62.24 June 2017 15.7.2017 -

b) Based on information and explanations given to us and according to the recordsmaintained by the Company the dues in respect of sales-tax service tax duty of exciseand value added tax that have not been deposited on account of any dispute are asfollows:

Name of the statute Nature of dues Amount (Rs. in Lakhs) 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 141 January 2012 - March 2014 Customs Excise & Service Tax Appellate Tribunal
Name of the statute Nature of dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty 34 April 2009 - December 2009 CESTAT Bangalore
Finance Act1994-Service Tax Service Tax 3272 October 2006 - September 2007 Kolkata High Court
Finance Act1994-Service Tax Service Tax 2122 October 2008 - March 2010 Kolkata High Court
Finance Act1994-Service Tax Service Tax 107 September 2004 - June 2005 Kolkata High Court
Finance Act1994-Service Tax Service Tax 170 June 2007 - May 2008 High Court of Jharkhand at Ranchi
Finance Act1994-Service Tax Service Tax 893 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 62 April 2010 - March 2011 Customs Excise & Service Tax Appellate Tribunal
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 General Sales Tax Act1957 Sales Tax Cases 8 2003-04 Appellate Tribunal in Vizag
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
Goa - Central Sales Tax Act 1956 CST Cases 7 2003-04 Additional CCT(Appeal) Margao
Goa Sales Tax Act 1964 Sales Tax Cases 64 2004-05 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 Value Added Tax Act 2003 VAT 4 2006-07 High court of Calcutta
Name of the statute Nature of dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
West Bengal Value Added Tax Act 2003 VAT 3545 2011-12 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 Value Added Tax Act 2003 VAT 64 2012-13 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 - 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)
West Bengal Value Added Tax Act 2003 VAT 272 2015-16 Additional CCT (Appeals)
Maharashtra VAT Act 2002 VAT 5333 2012-13 Joint Commissioner Sales Tax
Maharashtra VAT Act 2002 VAT 223 2013-14 Joint Commissioner Sales Tax
Maharashtra VAT Act 2002 VAT 52 2014-15 Joint Commissioner Sales Tax
Orissa Sales Tax Act 1947 [For Sambalpur] Sales Tax Cases 3 1985-86 1988-89 & 1989-90 Sales Tax Appellate Tribunal
Orissa Central Sales Tax CST Cases 2 2013-14 & 2014-15 Additional CCT (Appeal) Cuttack
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
Kerala VAT Act 2003 VAT 72 2012-13 Additional CCT (Appeals)
Kerala VAT Act 2003 CST 62 2012-13 Additional CCT (Appeals)
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
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 266 2000-2001 Sales Tax Appellate Tribunal (STAT)

VIII. The company has defaulted in payment of principal and interest of INR 75769lakhs due on revolving facilities like cash credit WCDL term loan etc. obtained fromBanks/financial institution and also defaulted in repayment of interest and principalaggregating INR 15073 lakhs due and payable to Debenture holders on the non-convertibledebenture.

IX. In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurposes for which they were raised. The Company has not raised any money by way ofinitial public offer / further public offer / debt instruments during the year.

X. Based upon the audit procedure performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

XI. According to the information given to us by the management the managerialremuneration has been paid/ provided in accordance with the requisite approvals which isunder process as mandated by the provisions of section 197 read with schedule V to theCompanies Act 2013.

XII. In our opinion the Company is not a Nidhi Company and as such provisions ofparagraph 3(xii) of the said order are not applicable to the company and hence notcommented upon.

XIII. According to the information and explanations given to us by the management andbased on our examination of books of account transactions with the related parties are incompliance with Section 177 and 188 of the Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

XIV. The company has not made any preferential allotment of convertible equity warrantsand private placement during the year as required under the provisions of section 42 ofthe Companies Act 2013.

XV. According to the information and explanation given by the management the Companyhas not entered into any non-cash transactions with its directors or persons connectedwith them as referred to in section 192 of the Companies Act 2013. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

XVI. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company hence not commented upon.

For Chaturvedi & Co. For H. S. Bhattacharjee & Co.
Chartered Accountants Chartered Accountants
(FRN:- 302137E) (FRN:- 322303E)
S.C. Chaturvedi H. S. Bhattacharjee
Partner Partner
Membership Number: 012705 Membership. Number: 050370
UDIN: 20012705AAAAAJ2916 UDIN: 20012705AAAAAK4668
Place: Kolkata
Date: July 312020

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT

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

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SimplexInfrastructures Limited (hereinafter referred as "the Company") as of March 312020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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 about the adequacy ofthe internal financial controls over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reporting withreference to these standalone financial statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the internal financial controls systemover financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

1. According to information and explanation given to us and based on the report issuedby other auditors on internal financial controls over financial reporting the followingmaterial weakness have been identified as at March 312020.

a. The Company's internal financial controls for evaluation of recoverability ofcertain old balances of unbilled revenue loans/ advances trade receivables retentionmonies inventories at project sites and claims recoverable were not operating effectivelyas on March 31 2020 which could potentially result in the company not recognizingappropriate provision on the Standalone financial statement in respect of assets that aredoubtful of recovery/ credit impaired.

b. The Company's internal financial controls for assessing the period over whichcertain old balances of unbilled revenue loans / advances trade receivables retentionmonies and claim recoverable are expected to be recovered were not operating effectivelyas on March 31 2020 which could potentially result in the holding company notappropriately measuring the fair values of those financial assets.

c. The Company's internal financial controls for classification of unbilled revenuesloan/advances trade receivables retention monies inventories at project sites claimsrecoverable statutory advances pending assessment by relevant authorities and otherbalances as current were not operating effectively as on March 31 2020 which couldpotentially result in the holding company not appropriately classifying the above asset asnon-current.

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of Company's annual or interim financial statements will notbe prevented or detected on a timely basis

In our opinion the Company has in all material respects maintained adequateinternal financial control over financial reporting which reference to these Standalonefinancial statements as of March 31 2020 based on the internal control over financialreporting criteria establish by the Company considering the essential components ofinternal control stated in the Guidance note on Audit of Internal Financial Control overfinancial reporting issued by Institute of Chartered Accountants of India and except forthe 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 312020.

Explanatory Paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under section 143(10) of theAct these standalone financial statements of Simplex Infrastructures Limited whichcomprise the Balance Sheet as at March 31 2020 and the related statement of Profit &Loss and Cash Flow Statements for the year then ended and a summary of SignificantAccounting Policies and other explanatory information. These Material Weaknesses wereconsidered in determining the nature timing and extent of Audit test applied in our Auditof the March 31 2020 Standalone Financial Statements of Simplex Infrastructures Limitedand the Report does not affect our report dated July 312020 which express a qualifiedopinion on those financial statements.

For Chaturvedi & Co. For H. S. Bhattacharjee & Co.
Chartered Accountants Chartered Accountants
(FRN:- 302137E) (FRN:- 322303E)
S.C. Chaturvedi H. S. Bhattacharjee
Partner Partner
Membership Number: 012705 Membership. Number: 050370
UDIN: 20012705AAAAAJ2916 UDIN: 20012705AAAAAK4668
Place: Kolkata
Date: July 312020

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