Simplex Infrastructures

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.