Simplex Infrastructures
BSE: 523838 | NSE: SIMPLEXINF | ISIN: INE059B01024 | Construction & Contracting - Civil
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
1. There are outstanding guarantees given by Banks amounting to
20,863,115 (2008 - 15,643,926). The above guarantees are secured by the
security as recited under Working Capital Loans from Banks in Schedule
3.
2. a) The Company has entered into non-cancellable operating lease for
office, warehouses and employee accommodation.The
obligation for non-cancellable operating lease is 99,778 (2008 -
44,875) payable within one year and 178,382 (2008 - 26,909) payable
later than one year but not later than five years and payable after
five years 206,369 (2008- Nil) as on 31st March, 2009. Rental expenses
towards non-cancellable operating lease charged to the Profit and Loss
Account for the year amounts to 112,490 (2008 - 12,305).
b) The Company has entered into cancellable operating lease for office,
warehouses and employee accommodation. Tenure of leases generally vary
between 1 to 3 years. Terms of the lease include operating term for
renewal, terms of cancellation, etc.. Related lease rentals aggregating
53,448 ( 2008 - 29,739) have been debited to Profit and Loss Account
during the year.
3. Contingent Liabilities:
31st March, 2009 31st March, 2008
a) Claims not acknowledged as Debts
Interest (others) 600 600
Professional Tax 434 434
b) Uncalled liability on partly paid shares 100 100
c) Sales Tax 32,268 40,886
d) Entry Tax 1,387 1,387
e) Income Tax 84,062 84,062
The Companys claim for certain deduction under the provision of the
Income-tax Act, 1961 for the Assessment Years 2005-06 and 2006-07 was
disallowed by the Income Tax authorities in respect of which the
Companys appeals are currently pending. Based on legal opinion
obtained, the management is of the view that the Company is eligible to
the benefit of the aforesaid deduction and the year end tax provision
has been made accordingly. The tax impact in this regard in respect of
unassessed years amount to 230,532 (2008 - 136,871).
f) Show-cause cum demand notices for 264,331 and 327,240 issued by the
Commissioner of Service Tax during previous year and current year
respectively have been challenged by the Company by writ petitions
currently pending before the Calcutta High Court. Further a show-cause
notice issued by the Directorate General of Central Excise
Intelligence,Delhi, in current year for 66,943 has been challenged by
the Company by a writ petition currently pending before the Delhi High
Court. According to a legal opinion obtained in this regard, the
contention of the service tax authorities and consequent demand of
service tax is not valid in law. Based on the aforesaid legal opinion
the management is of the view that even in case of an adverse decision,
tax impact in this regard should not exceed 63,464 (2008 - 41,818).
4. Capital commitments not provided for 88,371(Net of advance) (2008 –
792,134)
5. Year-end exchange fluctuation loss of 113,664 pertaining to a
foreign currency loan, which is fully hedged by derivative contracts
with a year-end mark to market gain of 139,582, has not been provided
for as according to management the loan is fully hedged and the
aforesaid loss / gain are notional in nature.
6.On 4 October 2007, the Company had allotted 5,500,000 warrants at a
price of Rs. 401/- per warrant to a promoter group Company, in
accordance with Section 81 (1A) of the Companies Act, 1956 and Chapter
XIII of Securities and Exchange Board of India (Disclosure and Investor
Protection) Guidelines, 2000. Each warrant was convertible into one
Equity Share of nominal value of Rs. 2/- each at a price of Rs. 401/-
per share at the option of the warrant holder within eighteen months
from the date of allotment in accordance with relevant SEBI Guidelines.
Such option was exercised by the allottee Company during 2007-2008 with
regard to 200,000 warrants only and accordingly at the expiry of the
aforesaid stipulated time-frame the remaining 5,300,000 warrants stand
lapsed and cancelled effective from 4 April 2009 resulting in
forfeiture of the related consideration money 212,530 paid in this
regard.
7.EMPLOYEE BENEFITS.
a) In terms of the Guidance on implementing Accounting Standard (AS) 15
on Employee Benefits issued by the Accounting Standard Board of the
Institute of Chartered Accountants of India, a Provident Fund set up by
the Company is treated as a defined benefit plan in view of the
Companys obligation to meet interest shortfall, if any. However, there
is no such interest shortfall at the year end. According to the
management on the basis of consultation with an actuary, actuarial
valuation cannot be applied reliably to measure provident fund
liabilities as at the year end in the absence of any guidance from the
Actuarial Society of India. Accordingly, complete information required
to be considered as per AS 15 in this regard are not available and the
same could not be disclosed. During the year, the Company has
contributed 33,029 ( 2008 - 24,511) to the Provident Fund.
c) Post Employment Defined Benefit Plans
i) Gratuity (Funded)
The Company provides for gratuity, a defined benefit retirement plan
covering eligible employees. As per the scheme, the Gratuity Trust fund
managed by the Trust, make payment to vested employees on retirement,
death, incapacitation or termination of employment, of an amount based
on the respective employees eligible salary (half months salary)
depending upon the tenure of service subject to a maximum limit of
twenty months salary. Vesting occurs upon completion of five years of
service. Liabilities with regard to the Gratuity plan are determined by
actuarial valuation as set out in Note 1(k) above, based upon which,
the Company makes contribution to the Gratuity fund.
ii) End of Service Benefit / Severance Pay (Unfunded)
The Company provides for End of Service Benefit / Severance Pay
(unfunded) defined benefit retirement plans for certain foreign
branches covering eligible employees. As per the schemes, the Company
makes payment to vested employees on retirement, death, incapacitation
or termination of employment, of an amount based on the respective
employees eligible salary for specified number of days (ranging from
fifteen days to one month) depending upon the tenure of service
(maximum limit of two years salary in case of a foreign branch).
Vesting occurs upon completion of one year of service. Liabilities with
regard to the End of Service benefit / Severance Pay Scheme are
determined by actuarial valuation as set out in Note 1(k) above.
iii) Leave Encashment Scheme (Unfunded)
The Company provides for accumulated leave benefit for eligible
employees payable at the time of retirement of service subject to
maximum of ninety / one hundred twenty days based on last drawn salary.
8.Information pursuant to the Provisions of Paragraphs 3 and 4 of the
Part II of Schedule VI to the Companies Act,1956.
i) Licensed Capacity
ii) Installed Capacity
iii) Actual Production
iv) Opening & Closing Stock of goods produced
v) Raw Material Consumption
vi) Turnover
Not applicable as the Company is a Civil Engineering Concern doing
mainly the Contractors Business, manufacturing and trading activities
under taken being very insignificant.
9.Sundry Creditors include:
(i) Nil ( 2008 - 50) on account of outstanding installment dues under
Hire Purchase Scheme. (ii) 285 (2008 - 417 ) on account of outstanding
installment dues under Finance Lease.
10.a) Miscellaneous Expenses under Schedule 17 include Derivative loss
of 60,244 (2008 - Nil).
b) Other Expenses under Schedule 14 includes Rent 536,043 (2008 -
261,796 ) and Equipment Hire Charges 1,271,687 (2008 - 968,387)
c) Repairs and renewals under Schedule 14 includes repairs pertaining
to Plant and Machinery 8,339 (2008 - 1,087) and Others 12,424 (2008 -
7,434)
11. Segment information for the year ended 31st March,2009:
The Company is engaged in construction business both within India as
well as outside India and its primary reporting format in the previous
year was based on the Geographical Locations of its Operations.
However, in view of the expanding business activity, the Company, after
review, has revised during the year the system of segment reporting by
considering business segment as primary segment for disclosure of
segment information. The segment composition is construction business
and other segment which includes income from wind mill and hire of
plant and equipment including Oil Drilling Rig. |
|
![]() | |
| Source : Religare Technova | |
![]() | |




Online










