Simplex Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Jun 2018
1. The above results were reviewed by the Audit Committee and were considered and approved by the Board of Directors at their respective meetings held on 20th May, 2019. The Statutory Auditors of the company have carried out a "Limited Review" of the results for the quarter ended 30th June, 2018 in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
2. The operations of the company's branch at Libya, was stopped due to prevailing political situation. The company has signed a supplementary agreement with the government for realization of dues and resumption of contract. In view of this the amount of dues and assets deployed in Libya are realizable and no provisions thereof are required at this stage. The expenses incurred during the quarter in respect of its said branch and the depreciation relating to the machineries deployed there has been considered as work-in-progress. However, in view of prolonged uncertainty of resumption the company has moved an application with the Hon'ble High Court at Delhi for proceeding with Arbitration and has been granted an interim stay for further extension/invocation of Bank Guarantees for the project.
3. The Company's account with Bank of Baroda, DBS Bank, IClCI Bank, IDBI Bank, State Bank of India, Yes Bank, UCO Bank, State Bank of Travancore & Axis Bank for working capital facilities and IClCI bank for Term loan have been classified as Non-performing assets and accordingly the provision for interest has not been made for the quarter June, 2018. No further provision of interest has been made on term loan from Kotak Mahindra Bank.
4. In the opinion of the Management, there is lack of clarity in respect of application of IND AS 11 read with IND AS 109 and IND AS 32 with regard to measurement of retention money, unbilled revenues in form of work in progress under the respective contracts and retention money liability which are not due for payment to subcontractors as the respective contracts are in progress at the balance sheet date. Considering the lack of clarity, the outstanding retention money, unbilled revenue and retention money liability as at so" June, 2018 as aforesaid have been accounted for at transactional value as per the past practice by the company.
5. The impact of Ind AS 115 'Revenue from Contracts with Customers' does not have material impact on the financial results for the quarter ended so" June, 2018.