Simplex Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2020

1. The above results, after review by the Audit Committee, have been approved and taken on record by the Board of Directors at its meeting held on 06.04.2021. The Statutory Auditors of the Company have carried out a "Limited Review" of the results for the quarter and six months ended 30th September, 2020 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 considered realizable and no provisions thereof are required at this stage. The depreciation relating to the machineries deployed in respect said of the said branch has been taken 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. The Company has filed a claim of INR 770.00 Crores against State of Libya in International Arbitration.


3. The Company's account with Bank of Baroda, DBS Bank, ICICI Bank, IDBI Bank, State Bank of India, Yes Bank, UCO Bank, State Bank of Travancore & Axis Bank for working capital facilities and ICICI bank for Term loan have been classified as Non-performing assets and accordingly the provision for interest has not been made amounting to Rs. 2729.44 Lakh approximately for the quarter ended September, 2020 and Rs. 5439.02 Lakh approximately for the six months ended September, 2020. No further provision of interest has been made on term loan from Kotak Mahindra Bank.

4. The Investment made earlier in Simplex - Netharlands (JV) Rs.542.94 Lakhs was only for the purpose of Libya Project procurement which is under Arbitration proceedings and the Management are quite confident about recovery / settlement of these issue.


5. There are advances to suppliers, sub-contractors & staffs related to certain projects amounting to Rs. 4672.62 Lakhs on which the company is in active pursuit and confident of recovery / settlement of these advances within a reasonable period of time and amount of Rs. 924.67 Lakhs under the head of advance against project.

6. Capital work in progress consists of materials lying outside amounting to Rs. 1894 lakhs which includes Rs. 465.29 lakhs pertaining to materials imported and kept at port.


7. Site Working Progress amounting to Rs. 6095.76 Lakhs (out of which Rs.4587.87 lakh are under dispute with client) and uncertified sales amounting to Rs. 1908.78 Lakhs (included under revenue) has been lying as such since long, due to some dispute arise with the customer for some of the projects which is under regular follow up by the management and will be resolved very shortly.
Trade Receivables include overdue amount aggregating to Rs. 9746.90 Lakh & Work In Progress (for work done) Rs. 4587.87 Lakh are under arbitration. However, the same is considered good by the management, based on the opinion obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

8. Other Comprehensive Income that may be reclassified to profit or loss represents Exchange (loss) / gain on translation of foreign operations.

9. GSTR -1 & GSTR 3B is not yet filed in the states of Meghalaya, Assam & Uttar Pradesh for the FY 201920 and 2020-21. In consequence of which, Goods and Service Tax department has locked the system.

10. Company has defaulted in repayment of interest and principal amounting to Rs. 421.36 lakhs payable to SREI Equipment Finance Limited up to 31.03.2019 and the interest for the further period has not been ascertained and booked on account of legal proceedings.


11. On account of lockdown declared by Central Government and State Government on 23rd March, 2020 due to Covid-19 the Company suspended all its operations. The operations at our working sites and offices gradually resumed from May, 2020 with limited man power which has an adverse impact on the normal business operations of the company for the six months ended 30th September, 2020. The company has taken various cost cutting measures and also made assessment of carrying value of its Assets. Based on such assessment no adjustment is required at this stage.

12. These results have been prepared in accordance with Ind AS, notified under section 133 of the Companies Act, 2013 read together with the Companies (Indian Accounting Standard) Rules, 2015 as amended.

13. The quarter to quarter results are not comparable inter-se and not indicative of the annual results due to seasonality of the Construction Industry.

14. The figures for the previous periods relating to results have been regrouped/ rearranged wherever necessary to conform to current period.