172@29@16@34!~!172@29@0@53!~!|commonstore|commonfiles|moneycontrol_header.php?cid=0&s_cid=0&radar_off=0&is_revamped_header=0&is_responsive=1&sec=PNC_ANNUALREPORT&priceinter=1&frommc=1!~!|commonstore|commonfiles|moneycontrol_header.php
Moneycontrol
SENSEX NIFTY
you are here:

Simplex Projects Ltd.

BSE: 532877 | NSE: SIMPLEX | Series: NA | ISIN: INE898F01018 | SECTOR: Construction & Contracting - Civil

BSE Live

Jun 10, 16:00
11.33 0.00 (0.00%)
Volume
No Data Available
1,100
  • Prev. Close

    11.33

  • Open Price

    11.33

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    11.33 (1901)

Simplex Projects is not traded on BSE in the last 30 days

NSE Live

Jun 10, 15:58
5.20 0.00 (0.00%)
Volume
No Data Available
234
  • Prev. Close

    5.20

  • Open Price

    5.20

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    5.20 (4)

Simplex Projects is not traded on NSE in the last 30 days

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Auditor's Report

To

The Members of

Simplex Projects Limited

Report on the Standalone Financial Statements:

1. We have audited the accompanying standalone financial statements of Simplex Projects Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2016, the 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.

Management''s Responsibility for the Financial Statements:

2. 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 financial statements, that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibilities:

3. Our responsibility is to express an opinion on these standalone 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 there under.

We conducted our audit in accordance with the Standards on Auditing 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the 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 financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Basis of Qualified Opinion

4. a) Attention is invited to Note no. 33 regarding company''s branch at Libya which has stopped functioning due to political unrest prevailing there. The total expenses incurred at the branch during the year amounts to Rs. 1,066.84 Lakhs including depreciation which have been transferred to work in progress and the total assets of the branch as on the balance sheet date amounts to Rs. 97,774.26 Lakhs. The management has certified the financial accounts, assets and liabilities of the branch as on 31.03.2016 and is confident of realising the above amounts and hence no adjustments have been considered necessary in the accounts by them.

b) In view of the lack of adequate information we are unable to comment on the extent of the eventual recoverability of the amounts due and the assets at Libya. The impact of this matter on the financial statement, profits for the period, assets and liabilities and EPS of the Company is not ascertainable presently at this stage and hence we are unable to able to express our opinion on the impact of the same on the financial statements of the Company for the year.

c) Investment of Rs. 542.94 lakhs in the partnership firm Simplex Projects (Netherlands) Co-operative U.A. is doubtful of recovery since project has not started and no provision for the same has been made by the company due to this loss of the company is understated by Rs. 542.94 lakhs and Reserves of the Company over one stated by same amount.

d) We did not audit the financial statements of two branches at Libya and Kuwait included in the standalone financial statements of the Company whose financial statements reflect total assets of Rs. 109,040.02 as at 31st March, 2016 and total revenues of Rs. 14,642.41 for the year ended on that date, as considered in the standalone financial statements. The financial statements of these branches are unaudited and have been furnished to us by the management and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of management.

Qualified Opinion:

5. In our opinion and to the best of our information and according to the explanations given to us except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid the 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 31st March, 2016 and its loss and its Cash Flow for the year ended on the date.

Emphasis of Matter:

6. We draw attention to the following matters in the notes to the following statement.

a) note no. 29 regarding closing balance confirmations of Debtors, creditors, earnest Money, loans and advances being unconfirmed in respect of which we are unable to express our opinion.

b) note no. 18 and 22 regarding recoverability of claim aggregating Rs. 560.92 Lakhs in arbitration and note no. 22 regarding overdue amounts of Work-In-Progress aggregating Rs. 1,528.36 Lakhs respectively due to disputes with the customers. The ultimate outcome of these disputes cannot be determined. However the company is of the view that these amounts are recoverable and no provision is required against the same.

c) note no. 34 regarding foreign exchange fluctuation on account of overseas borrowing which has been amortized by treating the same as long term from the initial time of borrowing. Due to this profit has increased by Rs. 911.64 Lakhs for the year as the same is amortized.

d) The company has not made any provision against

Trade Receivables of more than three years amounting to Rs. 990.42 Lakh and Advances paid to suppliers of material and Subcontractors amounting to Rs. 4,073 lakhs for more than 3 years, and advance against projects Rs. 665.50 lakhs which according to management are recoverable / adjustable and no provision is required for the same.

e) Attention is invited to note no. 31 regarding materials in transit amounting to Rs. 465.29 lakhs which have been charged to capital work in progress but the materials are still lying at the port.

Our opinion is not modified in respect of these matters except as otherwise stated.

Report on Other Legal and Regulatory Requirements:

7. As required by the Companies (Auditor''s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure (A) a statement on the matters specified in paragraphs 3 and 4 of the Order.

8. As required by section 143(3) of the Act, we report that:

a) except for the indeterminate effect of matter referred to in paragraph 4(a) to (d) above, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion, except for the effect of the matter described in the Basis for Qualified opinion paragraph 4(a) to (d) above, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books except in case of branches which have not have audited and for which we are unable to give our comments.

c) The reports on the accounts of the two branch offices of the Company duly certified by the management have been given us and have been properly dealt with by us in preparing this report.

d) except for the matter referred to in paragraph 4(a) to (d) and above, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the certified accounts of the two branches given by the management.

e) in our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph 4 above the aforesaid standalone financial statement comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rule, 2014.

f) The matter described in the Basis for Qualified Opinion paragraph 4 above in our opinion may have an adverse effect on the function of the Company.

g) On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164(2) of the Act.

h) The qualification relating to the maintenance of accounts and other matters connected therewith reference is drawn to Basis of Qualified Opinion paragraph to the financial statements and the matters are as stated in the Basis of Qualified Opinion paragraph above.

i) 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 B and

j) With respect to the other matters to be included in the Auditors’ 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 standalone financial position, as detailed in Note 35 to the standalone financial statements;

ii) the Company has long term contracts as on 31st March, 2016 for which there were no materials foressable losses, and

ii) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company at the end of the year.

(Referred to in paragraph 7 under ‘Report on Other Legal and Regulatory Requirements'' section of our report of even date)

(i) (a) The company has generally maintained proper

records showing full particulars including quantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management during the year end (except for the assets deployed at its branch in Libya and Kuwait), which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. However, in absence of physical verification at its branch in Libya and Kuwait, we are unable to comment on the discrepancies therein, if any.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.

(ii) As explained to us, the inventories were physically verified during the year by the Management except for the branch at Libya at reasonable intervals and no material discrepancies were noticed on physical verification.

(iii) (a) According to the information and explanation

given to us, the company has granted interest free advance in the nature of loans to two parties (one subsidiaries of the company and one Joint Venture) which are covered in the register maintained under section 189 of the Companies Act 2013.

(b) The advance in the nature of loans are given interest free.

(c) According to the information and explanation given to us no repayment schedule has been specified and loans are repayable on demand. Accordingly paragraph 3(iii)(b) of the order is not applicable to the Company in respect of repayment of principal amount.

(d) There are no overdue amounts of more than Rupees One lakh in respect of loans granted to the bodies corporate listed in the register maintained under section 189 of the Act

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

(v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public and therefore, the directives issued by the Reserve Bank of India and the provisions contained in Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and Rules framed there under are not applicable to the company. According to the information and explanation given to us no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in respect of deposits.

(vi) We have broadly reviewed the books and accounts maintained by the company pursuant to rules made by the Central Government of India, regarding the maintenance of cost records under such clause (l) of the section 148 of the Company’s Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanation

given to us and as per the records of the Company examined by us undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, duty of Customs, duty of Excise, VAT, Cess, TDS and other material statutory dues have been deposited with the appropriate authorities with certain delays. Undisputed amount payable in respect of Service Tax and TDS dues outstanding at the year-end for a period of more than six months from the date it became payable, is in respect of service tax - Rs. 619.13 Lakhs and in respect of TDS Rs. 51.77 Lakhs.

(vii) (b) According to the information and explanation given to us, the particulars of dues of Income Tax, Sales Tax, Service Tax, duty of customs, duty of excise, VAT which have not been deposited on account of dispute are as follows :

Nature of Dues

Period to which the amount related

Amount Rs. in lakh

Forum where the dispute is pending

Service Tax

2000-01 to 2004-05

531.24

Commissioner of Service Tax, Kolkata

2005-06 to 2008-09

167.15

The Hon''ble Customs Excise & Service Tax Appellate Tribunal, EZB, Kolkata, Stay Granted.

2007-08 to 2009-10

3.32

Demand confirmed by Addl. com. of Service tax for which Appeal is pending before Commissioner (Appeal-I)

2006-07 to 2010-11

946.85

Demand confirmed by Commissioner of Service tax for which Appeal is pending before The Hon''ble Customs Excise & Service Tax Appellate Tribunal, EZB, Kolkata. Stay Granted

2006-07 to 2007-08

26.75

Addl. Com. of Service tax

2010-11 to 2011-12

62.58

Commissioner of Service tax 1 commissioner ate Kolkata

Sales Tax

VAT / CST

2005 - 06

39.36

Calcutta High Court

2007 - 08

560.13

62.44

2008 - 09

1092.16

Appeal filled in W.B. Commercial Taxes Appellate & Revisioinal

2009 - 10

203.50

Board.

2010-11

363.82

2012-13

57.71

Appeal filed before Joint commissioner Commercial Taxes Kolkata (South) Circle

Income Tax

2008 - 09

367.44

CIT (A) - XXX, Kolkata

2009-10

50.02

2012-13

50.16

CIT (A) - 4 Kolkata

(vii) Based on our audit procedures and according to the information and explanation given to us, the company has made delays in making repayment of dues to banks and financial institution. The Company has also defaulted in some repayment of dues to certain Banks. The outstanding dues as on 31.03.2016 are as follows:

Sl.No.

Name of the Bank / Financial Institution

Principal due (Rs. in lakh)

Interest Due

Period of outstanding

1

DBS Bank

1,750.00

563.00

Continuing since 2014-15

2

Bank of Baroda

8,341.00

447.00

Continuing since January 2016

3

Yes Bank

750.00

181.00

Continuing since September 2015

4

Uco Bank

8,600.00

496.00

Continuing since December 2015

5

Kotak Mahindra Bank

463.55

0.22

Continuing since 2014-15

(ix) The Company has not raised money by way of initial public offer or further public offer (including debt instruments). The term loans have been applied for the purpose for which they were raised.

(x) To the best of our knowledge and according to the information and explanations given to us by the Management, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.

(xi) To the best of our knowledge and according to the information and explanations given to us, the Company has paid /provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the order is not applicable

(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.

(xvi) The Company is not required to be registered under section 45- I of the Reserve bank of India Act, 1934.

ANNEXURE “B’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 8(i) under ‘ Report on Other Legal and Regulatory Requirements'' of our report of even date)

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 PROJECTS LIMITED (''the Company’) as on 31st March, 2016 in conjunction with our audit of the standalone 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 (''ICAI’). 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 safe guarding 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.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting 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, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both 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 were 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 and their operative effectiveness. Our audit of internal Financial Controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 auditors judgment, 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 audit opinion of the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in responsible detail, accurately and fairy reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are records as necessary to permit preparation of financial statements in accordance with authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and nor be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future period are subject to the risk that the internal financial control over financial reporting may become inadequate because of change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Chaturvedi & Company

Chartered Accountants

(Firm Reg. No. 302137E)

Nilima Joshi

Place : Kolkata Partner

Date : 30th May, 2016 Membership No. 52122