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Simplex Infrastructures Ltd.

BSE: 523838 Sector: Infrastructure
NSE: SIMPLEXINF ISIN Code: INE059B01024
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VOLUME 39787
52-Week high 195.50
52-Week low 24.60
P/E 8.61
Mkt Cap.(Rs cr) 265
Buy Price 46.30
Buy Qty 65.00
Sell Price 46.30
Sell Qty 14881.00
OPEN 46.30
CLOSE 48.70
VOLUME 39787
52-Week high 195.50
52-Week low 24.60
P/E 8.61
Mkt Cap.(Rs cr) 265
Buy Price 46.30
Buy Qty 65.00
Sell Price 46.30
Sell Qty 14881.00

Simplex Infrastructures Ltd. (SIMPLEXINF) - Auditors Report

Company auditors report

To the Members of

Simplex Infrastructures Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of SimplexInfrastructures Limited ("the Company") which comprise the Balance sheetas at March 31 2019 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information which includes 16(sixteen) joint operations.

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 operationsexcept for the possible effects of the matters described in the ‘Basis for QualifiedOpinion' section of our report the aforesaid standalone Ind AS financial statements givethe information required by the Companies Act 2013 as amended ("the Act") inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 its Profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Qualified Opinion

a. Notes 38 39 and 41(a) regarding certain old balances of unbilled revenues loan /advances trade receivables retention monies inventories at project sites and claimsrecoverable aggregating Rs. 68924 lacs Rs. 28548 lacs Rs. 1558feilacs Rs. 5354lacs Rs. 2854 lacs and Rs. 6909 lacs respectively in respect of which we have beeninformed that the management is in regular discussion with the concerned customers forcompletion of necessary certifications and/or recovery thereof. Based on the informationand explanations provided to us we are unable to comment upon the extent ofrecoverability of Rs. 117772 lacs out of the aforesaid amounts and classification of theaforesaid amounts aggregating Rs. 128172 lacs as current the likely period forcollection of these balances considered by the Company for determination of their fairvalues and any other consequential adjustments that may be required in these financialstatements in this regard. b. Note 41(b) in respect of current assets which includescertain balances of trade receivables retention monies unbilled revenues statutoryadvances pending assessment by relevant authorities and other balances including thosesubject to arbitrations aggregating to Rs. 1196feilacs Rs. 337feilacs Rs. 29405 lacsRs. 24162 lacs and Rs. 18586 lacs respectively which in our opinion should have beenclassified as non-current assets. We are further unable to comment on any otherconsequential adjustments that may be required in these financial statements in thisregard.

The matters mentioned above were also Qualified in our last audit report for the yearended March 31 2018. We conducted our audit of the standalone Ind AS financial statementsin accordance with the Standards on Auditing (SAs) as specified under section 143(10) ofthe Act. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordance withthe ‘Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our Qualified audit opinion on the standalone Ind AS financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2019. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. In addition to the matter describedin the ‘Basis for Qualified Opinion' section we have determined the matters describedbelow to be the key audit matters to be communicated in our report. For each matter belowour description of how our audit addressed the matter is provided in that context. We havefulfilled the responsibilities described in the Auditor's responsibilities for the auditof the standalone Ind AS financial statements section of our report including in relationto these matters. Accordingly our audit included the performance of procedures designedto respond to our assessment of the risks of material misstatement of the standalone IndAS financial statements. The results of our audit procedures including the proceduresperformed to address the matters below provide the basis for our audit opinion on theaccompanying standalone Ind AS financial statements.

Key audit matters How our audit addressed the key audit matter
Correctness of Project Revenue recognition – Construction Contracts
(as described in note 1.14 and 32(a) of the standalone Ind AS financial statements)
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. As part of our audit procedures:
We obtained the accounting policy for revenue recognition of the Company and assessed compliance of the policy in terms of principles enunciated under Ind AS 115.
We tested controls over revenue recognition with specific focus on determination of progress of completion recording of costs incurred and estimation of total project cost.
We inspected the underlying customer contracts performed test of details of cost incurred performed review of estimated total project costs to identify significant variations and assess whether those variations have been considered in consequential determination of stage of completion. We reviewed the management's evaluation process to recognize revenue over a period of time status of completion for projects and total cost estimates.
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. We read the disclosures made by management in compliance of Ind AS 115 and evaluated the disclosures made with underlying transactions.

 

Key audit matters How our audit addressed the key audit matter
Unbilled Revenue balance Trade Receivables and Retention Money relating to construction contracts of the Company (as described in notes 7(b) and 9 of the standalone Ind AS financial statements)
Unbilled Revenue balance Trade Receivables and Retention Money of the Company aggregates Rs. 63088feilacs as at March 31 2019. 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. As part of our audit procedures:
We understood and tested the design and operating effectiveness of 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 for material 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 judgements as stated above. We performed additional procedures in respect of material long outstanding balances i.e. tested subsequent receipts and communication / correspondence with customers. We obtained and tested contracts to determine the level of provisioning required for loss making contracts/ onerous obligations if any.
Pending litigations including arbitrations (as described in notes 34 and 36 of the standalone Ind AS financial statements)
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 procedures covered in particular: understanding and assessing the internal control environment relating to the identification recognition and measurement of provisions for disputes potential claims and litigation and disclosure of contingent liabilities;
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. review of legal opinion obtained by the management in respect of major litigations including arbitration proceedings to evaluate management's assessment of probable / possible out3 flow of the Company's resources for settlement.
consultations with specialists / experts related to material ongoing tax proceedings; and assessment of the management's assumptions and estimates related to the recognized provisions for disputes and disclosures of contingent liabilities in the standalone financial statements.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and Analysisand Board's Report including Annexures to Board's Report but does not include thestandalone Ind AS financial statements and our auditor's report thereon. Our opinion onthe standalone Ind AS financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thestandalone Ind AS financial statements our responsibility is to read the otherinformation and in doing so consider whether such other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

Responsibilities of the Management for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

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

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial 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 Ind AS financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

•  Evaluate the overall presentation structure and content of the standaloneInd AS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant defficiencies 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 withthose charged with governance we determine those matters that were of most significancein the audit of the standalone Ind AS financial statements for the financial year endedMarch 31 2019 and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 Matter

We have been appointed as joint auditors of the Company along with M/s H.S.Bhattacharjee & Co. Chartered Accountants (the other ‘joint auditor'). We areissuing a separate audit report in accordance with the requirements of SA 299"Responsibility of Joint Auditors" in view of the difference of opinion with thejoint auditor regarding the matters reported under Basis for Qualified Opinion paragraph.

We did not audit the financial statements and other financial information in respectof 3 (three) joint operations whose Ind AS financial statements include total assets ofRs. 5870 lacs as at March 31 2019 and total revenues of Rs. 1962 lacs and net cashout3 ows of Rs. 182 lacs for the year ended on that date. These Ind AS financialstatements and other financial information of the said joint operations have been auditedby other auditors whose financial statements other financial information and auditor'sreports have been furnished to us by the management. Our opinion on the standalone Ind ASfinancial statements in so far as it relates to the amounts and disclosures included inrespect of those joint operations and our report in terms of sub-sections (3) of Section143 of the Act in so far as it relates to the aforesaid joint operations is based solelyon the report(s) of such other auditors. Our opinion is not modified in respect of thismatter.

We did not audit the financial statements and other financial information in respectof 13 (thirteen) joint operations whose Ind AS financial statements include total assetsof Rs. 18172 lacs as at March 31 2019 and total revenues of Rs. 24575 lacs and netcash inflows of Rs. 278 lacs for the year ended on that date. These Ind AS financialstatements and other financial information of the said joint operations have been auditedby the other joint auditor M/s H.S. Bhattacharjee & Co. whose financial statementsother financial information and auditor's reports have been furnished to us by theManagement. Our opinion on the standalone Ind AS financial statements in so far as itrelates to the amounts and disclosures included in respect of these joint operations andour report in terms of sub-sections (3) of Section 143 of the Act in so far as it relatesto the aforesaid joint operations is based solely on the report(s) of such other jointauditor. Our opinion is not modified in respect of this matter.

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 sub-section (11) of section 143 ofthe Act based on our audit and on the consideration of report of the other auditors onseparate financial statements and the other financial information of joint operations asnoted in the ‘other matter' paragraph we give in the "Annexure 1" astatement on the matters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and except for the matter(s) described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

(b) Except for the matter(s) described in the Basis for Qualified Opinion paragraph inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) Except for the effects of the matter(s) described in the Basis for QualifiedOpinion paragraph above in our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended; (e) In view of the mattersdescribed in the Basis for Qualified Opinion paragraph above we are unable to commentwhether these may have an adverse effect on the functioning of the Company;

(f) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disQualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct;

(g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above; (h)With respect to the adequacy of the internal financial controls over financial reportingof the Company with reference to these standalone Ind AS financial statements and theoperating effectiveness of such controls refer to our separate Report in "Annexure2" to this report;

(i) In our opinion managerial remuneration for the year ended March 31 2019 has beenpaid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act.

(j) 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 information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer Notes 34 and 36 to thestandalone Ind AS financial statements;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Bhaswar Sarkar

Partner

Membership Number: 55596

Place of Signature: Kolkata

Date: May 30 2019

ANNEXURE 1

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF SIMPLEX INFRASTRUCTURES LIMITED

To the Members of

Simplex Infrastructures Limited

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. As informed no material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in fixed assets are held in the name of the Companyexcept for the following:

Total Number of cases Class of assets Gross carrying amount (Rs. In Lakhs) as at March 31 2019 Net carrying amount (Rs. In Lakhs) as at March 31 2019
Four Properties located at New Delhi Apartments (included under buildings) 11 10
One Property located at Mumbai Apartment (included under buildings) 5 5

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

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships 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 to 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 in respect of loans and advancesgiven investments made and guarantees and securities given have been complied with bythe company. Further as informed to us the Company has not granted any loans or givenany guarantees or securities which fall under the purview of section 185.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable and hence not commentedupon.

vi. We have broadly reviewed the books of account maintained 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 products/services and are of theopinion that prima facie the specified accounts and records have been made andmaintained. We have 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 during the year the Company is generally regularin depositing with appropriate authorities undisputed statutory dues including providentfund income tax duty of customs cess and other material statutory dues applicable toit 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 2019 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 Name of dues Amount (Rs. in lakhs) Period to which amount relates Due date Date of Payment
Haryana Value Added Tax Act 2003 VAT-TDS 6.34 June 2016 July 15 2016 -
Haryana Value Added Tax Act 2003 VAT-TDS 5.03 July 2016 August 15 2016 -
Haryana Value Added Tax Act 2003 VAT-TDS 29.51 August 2016 September 15 2016 -
Haryana Value Added Tax Act 2003 VAT-TDS 26.18 October 2016 November 15 2016 -
Haryana Value Added Tax Act 2003 VAT-TDS 11.78 November 2016 December 15 2016 -
Haryana Value Added Tax Act 2003 VAT-TDS 14.23 December 2016 January 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 10.45 January 2017 February 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 8.80 February 2017 March 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 34.43 March 2017 April 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 44.57 April 2017 May 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 48.34 May 2017 June 15 2017 -
Haryana Value Added Tax Act 2003 VAT-TDS 62.24 June 2017 July 15 2017 -
The Delhi Goods and Services Tax Act 2017 GST 145.53 September 2018 October 25 2018 -
The Haryana Goods and Services Tax Act 2017 GST 162.83 September 2018 October 25 2018 -

b) Based on information and explanations given to us and according to the recordsmaintained by the Company the dues in respect of income-tax sales-tax service tax dutyof custom duty of excise and value added tax that have not been deposited on account ofany dispute are as follows:

Name of the statute Nature of dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
Customs Excise & Service Tax
Central Excise Act 1944 Excise Duty 84 2007-08
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
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
West Bengal Value Added Tax Act 2003 VAT 4 2006-07 High Court at Calcutta
WB - Central Sales Tax Act 1956 CST Cases 9 2010-11 West Bengal Commercial Taxes Appellate and Revisional
West Bengal Value Added Tax Act 2003 VAT 3545 2011-12 Board West Bengal Commercial Taxes Appellate and Revisional Board West Bengal Commercial
West Bengal - Central Sales Tax Act 1956 CST Cases 137 2011-12 Taxes Appellate and Revisional Board
West Bengal Commercial
West Bengal Value Added Tax Act 2003 VAT 64 2012-13 Taxes Appellate and Revisional
West Bengal Value Added Tax Act 2003 VAT 2294 2013-14 Board West Bengal Commercial Taxes Appellate and Revisional
Board West Bengal Commercial
West Bengal - Central Sales Tax Act 1956 CST Cases 7 2013-14 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 feiled due to pending receipt of certified copy of order.
Karnataka VAT Act 2003 VAT 34 2010-11 Karnataka 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
Karnataka VAT Act 2003 VAT 84 2013-14 Karnataka Appellate Tribunal
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)
The Uttar Pradesh Value Added Tax Act 2008 VAT 6 2010-11 Additional Commissioner
The Uttar Pradesh Value Added Tax Act 2008 VAT 10 2011-12 Additional Commissioner
The Uttar Pradesh Value Added Tax Act 2008 VAT 25 2017-18 Additional Commissioner
The Uttar Pradesh Value Added Tax Act 2008 VAT 4169 2014-15 Deputy Commissioner
The Uttar Pradesh Value Added Tax Act 2008 CST 20 2014-15 Deputy Commissioner
The Uttar Pradesh Value Added Tax Act 2008 VAT 3915 2015-16 Deputy Commissioner
The Uttar Pradesh Value Added Tax Act 2008 CST 40 2015-16 Deputy Commissioner
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)
Tamil Nadu Value Added Tax Act 2006 Value Added Tax 480 2010-2011 Madras High Court
29637

viii. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to afinancial institution bank or dues to debenture holders as at the balance sheet date. TheCompany did not have any loans or borrowing from government during the year.

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 procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud on the companyby the officers and employees of the Company has been noticed or reported during the year.

xi. According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 of

Companies Act 2013 where applicable and the details have been disclosed in the notesto the financial statements as required by the applicable accounting standards. xiv.According to the information and explanations given by the management the Company hascomplied with provisions of section 42 of the Companies Act 2013 in respect of thepreferential allotment of convertible equity warrants and private placement of equityshares during the year. According to the information and explanations given by themanagement we report that the amounts raised have been used for the purposes for whichthe funds were raised. xv. According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with them as referred to in section 192 of Companies Act 2013.Accordingly clause (xv) is not applicable and hence not commented upon.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.Accordingly clause (xvi) is not applicable and hence not commented upon.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Bhaswar Sarkar

Partner

Membership No.: 55596

Kolkata

May 30 2019

ANNEXURE 2

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF SIMPLEX INFRASTRUCTURES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of SimplexInfrastructures Limited ("the Company") as of March 31 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the

Standards on Auditing as specified under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these standalone financial statements was established andmaintained and if such controls operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone financial statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 over financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseStandalone Financial Statements

A company's internal financial control over financial reporting with reference to thesestandalone financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these standalone financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified in the operating effectiveness of theCompany's internal financial controls over financial reporting with reference to thesestandalone financial statements as at March 31 2019: (a) The Company's internal financialcontrols for evaluation of recoverability of old balances of unbilled revenue loans /advances trade receivables retention monies inventories at project sites and claimsrecoverable were not operating effectively as on March 31 2019 which could potentiallyresult in the Company not recognising appropriate provision in the standalone financialstatements in respect of assets that are doubtful of recovery / credit impaired.

(b) The Company's internal financial controls for assessing the period over which oldbalances of unbilled revenue loans / advances trade receivables retention monies andclaims recoverable are expected to be recovered were not operating effectively as on March31 2019 which could potentially result in the Company not appropriately measuring thefair values of those financial assets. (c) The Company's internal financial controls forclassification of unbilled revenues loan / advances trade receivables retention moniesinventories at project sites claims recoverable statutory advances pending assessment byrelevant authorities and other balances as current were not operating effectively as onMarch 31 2019 which could potentially result in the Company not appropriatelyclassifying the above assets as non-current. A ‘material weakness' is a defficiencyor a combination of defficiencies in internal financial control over financial reportingsuch that there is a reasonable possibility that a material misstatement of the company'sannual or interim financial statements will not be prevented or detected on a timelybasis.

In our opinion the Company has in all material respects maintained adequate internalfinancial controls over financial reporting with reference to these standalone financialstatements as of March 31 2019 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 and except for thepossible effects of the material weaknesses described above on the achievement of theobjectives of the control criteria the Company's internal financial controls overfinancial reporting with reference to these standalone financial statements were operatingeffectively as of March 31 2019.

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 the standalone financial statements of Simplex Infrastructures Limited whichcomprise the Balance Sheet as at March 31 2019 and the related Statement of Profit andLoss and Cash Flow Statement 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 tests applied in ouraudit of the March 31 2019 standalone financial statements of Simplex InfrastructuresLimited and this report does not afiect our report dated May 30 2019 which expressed aQualified opinion on those financial statements.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Bhaswar Sarkar

Partner

Membership Number: 55596

Place of Signature: Kolkata

Date: May 30 2019