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Simplex Infrastructures Ltd.

BSE: 523838 | NSE: SIMPLEXINF |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE059B01024 | SECTOR: Construction & Contracting - Civil

BSE Live

Oct 01, 10:59
30.65 -0.55 (-1.76%)
Volume
AVERAGE VOLUME
5-Day
17,998
10-Day
17,373
30-Day
19,319
6,445
  • Prev. Close

    31.20

  • Open Price

    32.35

  • Bid Price (Qty.)

    30.50 (20)

  • Offer Price (Qty.)

    30.75 (1579)

NSE Live

Oct 01, 10:59
30.70 -0.60 (-1.92%)
Volume
AVERAGE VOLUME
5-Day
134,950
10-Day
115,530
30-Day
140,081
27,538
  • Prev. Close

    31.30

  • Open Price

    31.30

  • Bid Price (Qty.)

    30.55 (5)

  • Offer Price (Qty.)

    30.70 (2931)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

Report on the Standalone Ind AS financial statements

We have audited the accompanying standalone Ind AS financial statements of Simplex Infrastructures Limited (the Company), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone Ind AS financial statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Basis for qualified opinion

Attention is invited to the following notes of standalone Ind AS financial statements:

I. Note 41(a) which states that Unbilled Revenues include Rs. 86,035 lakhs relating to earlier years, in respect of which, as informed, the management is in regular discussion with the concerned customers for completion of necessary certification and recovery thereof. As informed, the availability of appropriate audit evidence on these balances has been limited due to the geographical spread of the company''s operations and the relevant records being maintained at respective project sites. Consequently, we have not been able to audit these balances and are unable to comment upon them.

II. Note 38 regarding certain old balances of trade receivables, retention monies on completed projects, inventories at completed project sites and claims recoverable amounting to Rs. 43,890 lakhs, Rs. 21,540 lakhs, Rs. 2,914 lakhs and Rs. 1,596 lakhs respectively, considered good of recovery by the management due to the reasons mentioned therein. We are unable to comment upon these balances, including the likely time period of collection of trade receivables considered by the company for determining their fair values.

Further, retention monies and unbilled revenues, disclosed as ''other current assets'' instead of ''other financial assets'' have been accounted for at transactional values instead of at fair values, which is not in accordance with the requirements of Ind AS 109 Financial Instruments and Ind AS 32 Financial Instruments: Presentation.

The impact of the above matter on these financial statements is presently not ascertainable.

III. Note 39 in respect of (i) certain projects relating to a customer wherein the management of the Company has considered Trade Receivables, Unbilled Revenue, Retention Money and Inventories amounting to Rs. 5,083 lakhs (Net), Rs. 4,657 lakhs, Rs. 615 lakhs and Rs. 2,915 lakhs respectively, as good and fully recoverable since there are pending legal proceedings including liquidation proceedings against the customer; (ii) Further, advance to suppliers also include balances amounting to Rs. 1,063 lakhs relating to completed projects and outstanding for a long period of time. In our opinion these balances should have been provided for as doubtful of recovery.

Had the impact of the above matters been considered, year end balances of Trade Receivables, Unbilled Revenue, Retention Money, Inventories and Advance to suppliers would have been Rs. 139,994 lakhs, Rs. 392,563 lakhs, Rs. 55,459 lakhs, Rs. 72,694 lakhs and Rs. 12,636 lakhs as against reported amount of Rs. 145,077 lakhs, Rs. 397,220 lakhs, Rs. 56,074 lakhs, Rs. 75,609 lakhs and Rs. 13,699 lakhs with consequential impact on profit for the year and balance of other equity and thereby profit before tax for the year and balance of other equity at the year-end would have been Rs. 759 lakhs and Rs. 148,131 lakhs as against reported amount of Rs. 15,092 lakhs and Rs. 162,464 lakhs respectively.

IV. Note 41(b) regarding unreconciled Value Added Tax Liability relating to period before implementation of Goods and ServiceTax, impact whereof is unascertained and will be considered upon completion of the reconciliation process. We are unable to comment on the impact thereof on these financial statements.

V. Note 41(c) regarding non-consideration of depreciation on property, plant and equipment and borrowing costs as project costs and for determining revenue as per percentage of completion of the contract activity for the reasons stated therein, which is not in accordance with Ind-AS 11 Construction Contracts. The impact of this on these financial statements has not been ascertained by the management.

VI. Note 41(d) in respect of current assets as at the balance sheet date which includes certain balances of trade receivables, statutory advances pending assessment by relevant authorities, security deposits and other balances including those subject to arbitrations amounting to Rs. 8,370 lakhs, Rs. 25,137 lakhs, Rs. 1,885 lakhs and Rs. 17,257 lakhs respectively, which in our opinion should have been classified as non-current assets in these financial statements.

Qualified opinion

In our opinion and to the best of our information and according to the explanations given to us, except for effects of the matters described in Para III and VI in the Basis for Qualified Opinion paragraph above and possible effects of the matters described in the paragraphs I, II, IV and V in the Basis for Qualified Opinion paragraph, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018 of its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Other Matters

I. The Ind AS financial statements of the Company for the year ended March 31, 2017, included in these standalone Ind AS financial statements, have been audited by the predecessor auditor who expressed a modified opinion on those statements on June 1, 2017.

II. We have been appointed as joint auditors of the Company along with M/s H.S. Bhattacharjee & Co., Chartered Accountants (the ''joint auditor''). We are issuing a separate audit report in accordance with the requirements of SA 299 Responsibility of Joint Auditors in view of the difference of opinion with the joint auditor regarding the matters reported in paragraphs under Basis for Qualified Opinion Paragraph above other than Trade receivables, Unbilled revenue and Retention money referred in paragraph III (i) (excepting ascertainment of impact thereof).

III. These financial statements includes financial statements of three joint operations whose financial statements reflect total assets of Rs. 6,210 lakhs as at March 31, 2018 and total revenue of Rs. 2,124 lakhs and total profit before tax of Rs. 9 lakhs for the year ended March 31, 2018, which have not been audited by us. The financial statements of the said joint operations have been audited by other auditors whose reports have been furnished to us and our report on the standalone financial statements of the Company, in so far as it relates to the amounts and disclosures included in respect of the said joint operations, is based solely on the reports of the other auditors. Our report on the standalone financial statements of the Company is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.

Our opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s report) Order, 2016 (the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement 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 effects/possible effects of the matters described in the Basis for Qualified Opinion paragraph above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) Except for the effects/possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

(c) Except for the possible effects of the matters described in Para I in the Basis for Qualified Opinion paragraph above, the Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive income, and Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and with the returns received from branches not visited by us;

(d) Except for the effects/possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;

(e) On the basis of written representations received from the directors as on March 31, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013;

(f) In view of the matters I, II and III discussed in Basis for Qualified Opinion Paragraph above, we are unable to comment whether these may have an adverse effect on the functioning of the Company;

(g) The qualification relating to the maintenance of accounts and other matters connected 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 reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure 2 to this report;

(i) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in

its standalone Ind AS financial statements -Refer Note 34 and Note 36 to the standalone Ind AS financial statements;

ii. In our opinion, the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

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

REFERRED TO IN PARAGRAPH 1 OF THE SECTION ON REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT ON THE EVEN DATE

To the Members of Simplex Infrastructures Limited

i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets, except for the site/location wise details of fixed assets including in relation to movement/transfer of fixed assets across various sites, which as informed, are in the process of updation.

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovable properties included in fixed assets are held in the name of the Company except for the following:

Total Number of cases

Class of assets

Gross carrying amount (Rs. In Lakhs) as at March 31, 2018

Net carrying amount (Rs. In Lakhs) as at March 31, 2018

Four Properties located at New Delhi

Building

11

10

One Property located

Building

5

5

at Mumbai

ii. Inventories have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. In respect of inventories lying with third parties, these 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 not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.

iv. In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the company.

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

vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to its products/services, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

vii. a) According to the information and explanations given to us and the records of the Company, in our opinion, except for dues in respect of provident fund, employees'' state insurance, income-tax, sales-tax and value added tax (including in respect of unreconciled Value Added Tax Liability in Para IV of Basis for qualified opinion impact whereof has not been ascertained), service tax, and professional tax, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues, including duty of customs, duty of excise, goods and service tax, cess and other material statutory dues, as applicable to it. According to the information and explanations given to us, the extent of the arrears of statutory dues outstanding as at March, 2018 for a period of more than six months from the date they became payable are as follows:

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

Name of the statute

Nature 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

11.97

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

41.84

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

51.49

May 2017

June 15, 2017

-

Haryana Value Added Tax Act, 2003

VAT-TDS

0.58

May 2017

June 15, 2017

April 20, 2018

Haryana Value Added Tax Act, 2003

VAT-TDS

63.32

June 2017

July 15, 2017

-

Haryana Value Added Tax Act, 2003

VAT-TDS

18.68

June 2017

July 15, 2017

April 20, 2018

Rajasthan Value Added Tax Act 2003

VAT-TDS

0.58

April 2017

May 15, 2017

-

Rajasthan Value Added Tax Act 2003

VAT-TDS

1.28

May 2017

June 15, 2017

-

Name of the statute

Nature of dues

Amount (Rs. in lakhs)

Period to which amount relates

Due date

Date of Payment

Rajasthan Value Added Tax Act 2003

VAT-TDS

3.50

June 2017

July 15, 2017

-

Delhi Value Added Tax Act,2004

VAT-TDS

10.23

June 2017

July 15, 2017

-

Delhi Value Added Tax Act,2004

VAT-TDS

0.68

June 2017

July 15, 2017

May 23, 2018

Madhya Pradesh Value Added Tax Act, 2002

VAT-TDS

9.55

June 2017

July 21, 2017

May 18, 2018

Orissa Entry Tax Act, 1999

Entry Tax

6.32

June 2017

July 21, 2017

April 26, 2018

Assayita Woreda Finance Bureau, Ethiopia

Withholding Tax on Employment income

3.48

May 2017

June 30, 2017

-

Assayita Woreda Finance Bureau, Ethiopia

Withholding Tax on Employment income

2.95

June 2017

July 31, 2017

-

Assayita Woreda Finance Bureau, Ethiopia

Withholding Tax on Employment income

2.90

July 2017

August 31, 2017

-

Assayita Woreda Finance Bureau, Ethiopia

Withholding Tax on Employment income

2.95

August 2017

September 30, 2017

-

Assayita Woreda Finance Bureau, Ethiopia

Withholding Tax on Employment income

3.79

September 2017

October 31, 2017

-

b) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of excise and value added tax on account of any 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

Central Excise Act, 1944

Excise Duty

84

2007-08

Customs, Excise & Service Tax Appellate Tribunal

Central Excise Act, 1944

Excise Duty

30

2009-10 to 2010-11

Customs, Excise & Service Tax Appellate Tribunal

Central Excise Act, 1944

Excise Duty

141

January 2012 - March 2014

Customs, Excise & Service Tax Appellate Tribunal

Central Excise Act, 1944

Excise Duty

34

April 2009 - December 2009

CESTAT,Bangalore

Name of the statute

Nature of dues

Amount (Rs. in Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Finance Act,1994-Service Tax

Service Tax

2,643

April 2005 - September 2006

Kolkata High Court

Finance Act,1994-Service Tax

Service Tax

3,272

October 2006 -September 2007

Kolkata High Court

Finance Act,1994-Service Tax

Service Tax

3,608

October 2007 -September 2008

Kolkata High Court

Finance Act,1994-Service Tax

Service Tax

2,122

October 2008 - March 2010

Kolkata High Court

Finance Act,1994-Service Tax

Service Tax

107

September 2004 - June 2005

Kolkata High Court

Finance Act,1994-Service Tax

Service Tax

170

June 2007 - May 2008

High Court of Jharkhand at Ranchi

Finance Act,1994-Service Tax

Service Tax

893

August 2008 -September 2011

Customs, Excise & Service Tax Appellate Tribunal

Finance Act,1994-Service Tax

Service Tax

669

September 2004 -March 2008

Supreme Court of India

Finance Act,1994-Service Tax

Service Tax

821

April 2008 - September 2008

Supreme Court of India

Finance Act,1994-Service Tax

Service Tax

104

October 2008 -September 2009

Supreme Court of India

Finance Act,1994-Service Tax

Service Tax

104

October 2009 - March 2010

Commissioner (Adjudication)

Finance Act,1994-Service Tax

Service Tax

62

April 2010 - March 2011

Customs, Excise & Service Tax Appellate Tribunal

Finance Act,1994-Service Tax

Service Tax

36

April 2011 - March 2012

Commissioner (Adjudication)

Finance Act,1994-Service Tax

Service Tax

25

April 2007 - March 2008

Commissioner (Appeal)

Finance Act,1994-Service Tax

Service Tax

63

October 2006 - March 2010

Customs, Excise & Service Tax Appellate Tribunal

Finance Act,1994-Service Tax

Service Tax

1

2007-08 & 2008-09

Commissioner of Central Excise

Andhra Pradesh General Sales Tax Act,1957

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

A P High Court

Andhra Pradesh Value Added Tax Act 2005

VAT

25

2011-12

AP 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

Name of the statute

Nature of dues

Amount (Rs. in Lakhs)

Period to which the amount relates

Forum where the dispute is pending

West Bengal Value Added Tax Act, 2003

VAT

4

2006-07

High Court at Calcutta

West Bengal Value Added Tax Act, 2003

VAT

375

2006-07

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

110

2008-09

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

11

2009-10

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

119

2010-11

West Bengal Commercial Taxes Appellate and Revisional Board

WB - Central Sales Tax Act 1956

CST Cases

9

2010-11

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

3,545

2011-12

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal - Central Sales Tax Act 1956

CST Cases

137

2011-12

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

64

2012-13

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal Value Added Tax Act, 2003

VAT

2,294

2013-14

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal - Central Sales Tax Act 1956

CST Cases

7

2013-14

West Bengal Commercial Taxes Appellate and Revisional Board

West Bengal - Central Sales Tax Act 1956

CST Cases

30

2014-15

Additional CCT (Appeal)

Maharashtra VAT Act,2002

VAT

5,539

2012-13

Joint Commissioner Sales Tax

Maharashtra VAT Act,2002

VAT

236

2013-14

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

CST Cases

86

2013-14

As represented by the management, the appeal is yet to be filed with the JCCT due to pending receipt of certified copy of order.

Karnataka VAT Act,2003

VAT

34

2010-11

Karnataka Appellate Tribunal

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

The Uttar Pradesh Value Added Tax Act,2008

Vat Cases

6

2010-11

Additional Commissioner

The Uttar Pradesh Value Added Tax Act,2008

Vat Cases

10

2011-12

Additional Commissioner

The Uttar Pradesh Value Added Tax Act,2008

Vat Cases

25

2017-18

Additional Commissioner

The Uttar Pradesh Value Added Tax Act,2008

Vat Cases

4,169

2014-15

Deputy Commissioner

The Uttar Pradesh Value Added Tax Act,2008

CST Case

20

2014-15

Deputy Commissioner

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

16

2007-2008

Deputy Commissioner of Commercial Taxes (Appeals)

Name of the statute

Nature of dues

Amount (Rs. in Lakhs)

Period to which the amount relates

Forum where the dispute is pending

Tamil Nadu Value Added Tax Act 2006

Value Added Tax

35

2008-2009

Deputy Commissioner of Commercial Taxes (Appeals)

Tamil Nadu Value Added Tax Act 2006

Value Added Tax

480

2010-2011

Madras High Court

Tamil Nadu Value Added Tax Act 2006

Value Added Tax

9

2011-2012

Deputy Commissioner of Commercial Taxes (Appeals)

Tamil Nadu Value Added Tax Act 2006

Value Added Tax

3

2012-2013

Deputy Commissioner of Commercial Taxes (Appeals)

33,995

viii. In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank or government or dues to debenture holders as at the balance sheet date.

ix. In our opinion, and according to the information and explanations given by the management, the Company has utilized the monies raised by way of term loans for the purposes for which they were raised, though idle funds of Rs. 498 lacs (out of which Rs. 362 lacs have since been utilized) outstanding at the end of the year were lying in the cash credit account of the Company. The Company has not raised any money by way of initial public offer / further public offer / debt instruments during the year.

x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud on the company by 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, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

xii. In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 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 management, transactions 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 notes to the financial statements, as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.

xv. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with them as referred to in section 192 of Companies Act, 2013.

xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

ANNEXURE 2

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

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the internal financial controls over financial reporting of Simplex Infrastructures Limited (the Company) as of March 31, 2018 in conjunction with our audit of the standalone IND-AS financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing, specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the internal financial controls system over financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting With Reference to these Standalone Financial Statements

A company''s internal financial control over financial

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

Inherent Limitations of Internal Financial Controls over Financial Reporting With Reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these standalone financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone financial statements may become inadequate because of changes in conditions, or that the degree 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, the following material weaknesses have been identified in the operating effectiveness of the Company''s internal financial controls over financial reporting with reference to these standalone financial statements as at March 31, 2018:

(a) The Company''s Internal financial controls relating to documentation and other relevant evidences relating to exact status of unbilled revenue including discussions with concerned customers so as to substantiate recoverability thereof were not operating effectively which resulted in non-availability of appropriate audit evidence on certain such balances relating to earlier years.

(b) The Company''s Internal financial controls relating to (i) old balances of trade receivables, retention monies on completed projects, inventories at completed project sites and claims recoverable, and also the time period of likely collection of trade receivables considered by the management for fair valuation thereof and (ii) application of appropriate policies and procedures that provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles were not operating effectively which resulted in accounting of certain such balances as good and recoverable by the management and accounting of retention money and unbilled revenue at transactional values instead of at fair value and disclosure thereof under Other Current Assets instead of Other Financial Assets;

(c) The Company''s internal financial controls relating to review of assets, financial or otherwise, for considering appropriate provisioning / impairment / write downs thereagainst did not operate effectively which resulted in non-provisioning / impairment / write down of certain Trade Receivables, Retention Money, Unbilled Revenue, inventories and advances to suppliers.

(d) The Company''s internal financial controls relating to reconciliation of statutory dues and balances did not operate effectively which resulted in unreconciled Value Added Tax Liability (relating to period before implementation of Goods and Service Tax) at the year end;

(e) The Company''s Internal financial controls relating to inclusion of all project costs for determining percentage of completion of the contract activity did not operate effectively which resulted in non-consideration of depreciation on property, plant and equipment and borrowing costs as project costs for the purpose as stated above with consequential impact thereof on contract revenue and other consequential impact thereof in these accounts.

(f) The Company''s internal financial controls relating to presentation and disclosure of balances of assets and liabilities in compliance of the provisions of Schedule III to the Companies Act, 2013 and IND AS 1 Presentation of Financial Statements did not operate effectively which resulted in certain balances of trade receivables, statutory advances pending assessment by relevant authorities, security deposits and other balances as current which should have been classified as noncurrent assets in these financial statements.

A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting with reference to these standalone financial statements, such that there is a reasonable possibility that a material misstatement of the Company''s annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the effect/possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financial statements were operating effectively as of March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Explanatory paragraph

We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the standalone financial statements of the Company, which comprise the Balance Sheet as at March 31, 2018, and the related Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2018 standalone financial statements of the Company and this report does affect our report dated May 31, 2018 which expressed a qualified opinion on those financial statements.

For S. R. BATLIBOI & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Kamal Agarwal

Partner

Membership No.: 058652

Kolkata May 31, 2018