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Simplex Realty Ltd.

BSE: 503229 Sector: Infrastructure
NSE: N.A. ISIN Code: INE167H01014
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NSE 05:30 | 01 Jan Simplex Realty Ltd
OPEN 94.95
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VOLUME 1243
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P/E 11.91
Mkt Cap.(Rs cr) 27
Buy Price 0.00
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OPEN 94.95
CLOSE 90.45
VOLUME 1243
52-Week high
52-Week low
P/E 11.91
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Simplex Realty Ltd. (SIMPLEXREALTY) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

SIMPLEX REALTY LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Simplex Realty Limited("the Company") which comprise of the Balance Sheet as at 31st March 2022 theStatement of Profit and Loss Statement of Changes in Equity and Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2022;

(b) in the case of the Statement of Profit and Loss (including Other ComprehensiveIncome) of the profit for the year ended on that date;

(c) in the case of the Statement of Changes in Equity of the Changes in Equity for theyear ended on that date; and

(d) in the case of the Statement of Cash Flow of the Cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion there on and we do not provide a separate opinion on these matters.

Key Audit Matters Auditor's Response
1 Review of the value of realty stock- in-trade & investments held by the company as on 31st March 2022 Principal Audit Procedures
The assessment of various procedures adopted by the management which includes
i) Ascertaining the value of investments and realty stock-in-trade held as at 31st March 2022.
ii) Considering the impact (if any) of Covid-19 pandemic on investments and stock-in-trade held as at date.
iii) Verification of amount invested current value of investments regularity of receipt of income on those investments and it's fair classification and presentation in the audited financial statements.
iv) Assessing the appropriateness of value of realty stock-in-trade disclosed in the financial statements.
2 Review of financial health of companies in which inter corporate deposits are held. Principal Audit Procedures:
The assessment of procedures adopted by management including;
i) Obtaining the latest audited financial statements of the companies to whom inter-corporate deposits are granted; thereby also assessing the financial soundness and the capability to repay the amount on demand or as per the terms of agreement;
ii) Verification of amounts and regularity of receipt of interest income on such inter corporate deposits;
iii) Obtaining regular confirmation of the closing balance of the deposits held by the borrowers with that of records in the company.
3 Review effect and presentation of completed tax assessments Principal Audit Procedures
Obtained details of completed tax assessments and demands for the year ended 31st March 2022 from the management followed by verification of tax refunds on completed tax assessments and treatment of the same in books of accounts and standalone financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report andShareholder's Information but does not include the financial statements and our auditor'sreport thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial 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 financial statements that give a true and fair view of the financial positionfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

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

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

Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor'sreport. However future events or conditions may cause the Company tocease to continue as a going concern.

Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves 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 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 financial statements of thecurrent period 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief 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 the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.

(d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors of theCompany and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164(2) of the Act.

(f) 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".

(g) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act in our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to it's directors duringthe year is in accordance with the provisions of section 197 of the Act.

(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 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 39 to the financial statements

ii. The Company did not have any longterm contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The amounts which were required to be transferred to Investor Education andProtection Fund by the Company have been transferred on or before due date.

iv. (a) The management has represented that to the best of its knowledge and beliefother than as disclosed in note 44 to the accounts no funds have been advanced or loanedor invested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Compan y or provid e an y guarantee securityor the like on behalf of the Ultimate Beneficiaries.

(b) The management has represented that to the best of its knowledge and belief otherthan as disclosed in note 44 to the accounts no funds have been received by the Companyfrom any persons or entities including foreign entities ("Funding Parties")with the understanding whether recorded in writing or otherwise that the Company shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Beneficiaries") by or on behalf of the FundingParty or provide any guarantee security or the like on behalf of the UltimateBeneficiaries.

(c) Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (iv) (a) and (iv) (b) contain any material mis-statement.

v. The Board of Directors of the Company have proposed final dividend for the yearwhich is subject to the approval of the members at the ensuing Annual General Meeting. Theamount of dividend proposed is in accordance with section 123 of the Act as applicable.

ANNEXURE ‘A' TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our report to the members of Simplex Realty Limited(‘the Company') for the year ended on 31st March 2022. We report that:

i) a) The Company on the basis of available information has maintained proper recordsshowing full particulars including quantitative details and situations of fixed assets;

b) The Management of the Company has physically verified the fixed assets in accordancewith its policy of physical verification at reasonable intervals. The discrepancies ifany noticed during such verification have been suitably adjusted in the books of account.In our opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets;

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company;

d) According to information and explanations given to us and on the basis ofexamination of the records of the Company none of its Property Plant and Equipment orintangible assets or both are revalued during the year.

e) On the basis of available information the Company does not hold any benami propertyunder the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.

ii) a) According to the information and explanations given to us the inventories havebeen physically verified at reasonable intervals by the management during the year and nomaterial discrepancies have been noticed. In our opinion and according to the informationand explanations given to us the procedures followed by the management for physicalverification of inventory are reasonable and adequate in relation to the size of theCompany and the nature of the business.

b) Accord i n g to th e in form ation an d explanations given to us and on the basis ofexamination of the records of the Company the Company has not been sanctioned any workingcapital limits in excess of Rupees five crore in the aggregate from banks on the basisof security of current assets and hence this clause is not applicable.

iii) a) A During the year the Company has not granted any loans and advances tosubsidiaries joint ventures and associates. Accordingly paragraph 3(iii)(a)(A) of theorder is not applicable.

B The Company has given loans and advances to employees and given Inter CorporateDeposits (ICDs) to unrelated parties during the year. The aggregate amount given duringthe year is ' 881.45 Lakhs and the balance outstanding of Loans to employees and ICDs asat 31st March 2022 is ' 3403.86 Lakhs.

b) The terms and conditions of all the loans and advances given and investments madeare not prejudicial to the company's interest; the company has not provided anyguarantees.

c) The repayment of principal and payment of interest are regular and there is nodefault.

d) The ICDs given by the company are repayable on demand basis and there are no overdueamounts with respect to ICDs and any other loans and advances given.

e) There are no loans or advances that have fallen due during the year and have beenrenewed or extended by fresh loans to settle the overdues of existing loans.

f) The company has given ICDs in the nature of loans and advances which are repayableon demand aggregating to ' 3393.90 Lakhs which are about 99.71% of the total loans andadvances granted. None of the loans and advances are granted to promoters or relatedparties as defined in clause (76) of section 2 of the Companies Act 2013.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made; the Company has not given any guarantee or security.

v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public.

vi) According to the information and explanation given to us maintenance of costrecords has not been prescribed by the Central Government pursuant to Companies (CostAccounting Records) Rules 2011 under sub-section (1) of section 148 of the Companies Act.

vii) a) According to the records of the Company undisputed statutory dues includingprovident fund employees' state insurance income- tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues have beenregularly deposited with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of aforesaid dues wereoutstanding as at 31st March 2022 for a period of more than six months from the date itbecame payable.

b) According to the records of the Company and information and explanations given to usand the records of the Company examined by us there are no pending dues to be depositedof income tax sales tax or service tax or duty of customs or duty of excise or valueadded tax on account of any disputes.

viii) On the basis of our examination of the books and according to the information andexplanations given to us there is no transaction which is not recorded in the books ofaccount and have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).

ix) a) On the basis of our examination of the books and according to the informationand explanations given to us during the year there are no defaults in repayment of duesto financial institutions banks Government or debenture holders.

b) During the year the Company is not declared as wilful defaulter by any bank orfinancials institution or other lender.

c) During the year the Company has not obtained any Term Loan.

d) The company has not raised any fund on short term basis during the year which havebeen utilised for long term purposes.

e) The Company has not taken any funds from it's subsidiaries associates or jointventures hence question of raising of any funds from any entity or person on account of orto meet the obligations of its subsidiaries associates orjoint ventures does not arise.

f) The Company has not raised any loan during the year on the pledge of securities heldby subsidiaries associates or joint ventures.

x) a) In our opinion and on the basis of information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments).

b) In our opinion and on the basis of information and explanations given to us theCompany has not made any preferential allotment or private placement of shares orconvertible debentures (fully partially or optionally convertible) during the year.

xi) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xii) In our opinion and according to information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to information and explanations given to us and based on ourexamination of the records of the company transactions with related parties are inaccordance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in Financial Statements as required by applicable Ind AS.

xiv) a) According to information and explanations given to us and based on ourexamination of the records of the Company it has an internal audit system commensuratewith the size and nature of its business.

b) The reports of the Internal Auditors for the period under audit were considered byus.

xv) According to information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45- IA of Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

xvii) The Company has not incurred any cash loss in the financial year and in theimmediately preceding financial year.

xviii) There has been no resignation of the statutory auditors during the year.Accordingly paragraph 3(xviii) of the Order is not applicable.

xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans we areof the opinion that no material uncertainty exists as on the date of the audit report thatthe Company is capable of meeting its liabilities existing at the date of balance sheetas and when they fall due within a period of one year from the balance sheet date.

xx) According to the information and explanations given to us and based on ourexamination of the records of the Company there is no unspent amount which is required tobe transferred to any Fund Specified in Schedule VII to the Companies Act or to a Specialaccount in compliance with the provisions of Subsection (6) of Section 135 of the saidAct.

xxi) There are no qualifications or adverse remarks by the respective auditors of inthe Companies (Auditor's Report) Order 2020 of the companies included in the consolidatedfinancial statements. Accordingly paragraph 3(xxi) of the Order is not applicable.

ANNEXURE - ‘B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF SIMPLEX REALTY 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 SimplexRealty Limited ("the Company") as of 31st March 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 (‘ICAI'). 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 Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Khandelwal and Mehta LLP
Chartered Accountants
Firm Reg. No. W100084
(Sunil Khandelwal)
Partner
Membership No: 101388
UDIN : 22101388AKBPNA9675
Place : Mumbai
Date : 25th May 2022.

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