Simplex Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018

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 29.11.2018. The Statutory Auditors of the Company have carried out a “Audit” of the results for the quarter and year ended 31st March, 2018 in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.



2. This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules,2015 (Ind AS) prescribed under section 133 of the Companies Act,2013 and other recognized accounting practices and policies to the extent applicable. Beginning 1st April, 2017, the company has for the first time adopted Ind AS with a transition date of 1st April, 2016.



3. The format for unaudited results as prescribed in SEBI’s circular dated 30th November,2015 has been modified to comply with the requirement of SEBI’s circular dated 5th July,2016, Ind AS and Schedule III (Division II) of the Companies Act, 2013 applicable to Companies that are required to comply with Ind AS.



4. The operation 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 depreciation of Rs. 286.51 Lakhs (previous year Rs.386.57 Lakh) relating to the machineries deployed there, have 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.



5. 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. 10,017.29 lakh approximately for the year ended March, 2018. No further provision of interest has been made on term loan from Kotak Mahindra Bank.



6. Sundry Debtors include overdue amount aggregating to Rs. 10053.17 Lakh (Previous Year - Rs. 560.92 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.



7. Capital work in progress consists of office building at Delhi under construction amounting of Rs. 78.11 lacs and materials lying outside amounting to Rs. 1894 lacs which includes Rs.465.29 lakhs pertaining to materials imported and kept at port.



8. 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 (included in Debtors) and unbilled revenue not due for collection under the respective contracts (in form of work in progress) and retention money liability which are not due for payment to subcontractors (as the respective contracts are in progress) at the balance sheet date in absence of any authoritative clarification/ interpretation from any statutory authorities, professional bodies, etc. Pending such clarifications, the outstanding retention money, unbilled revenue and retention money liability as at 31st March, 2018 as aforesaid have been accounted for at transactional value.









9. The reconciliation of net profit reported in accordance with previous Indian GAAP for the quarter and year ended 31st March,2017 to Total Comprehensive Income in accordance with Ind AS is given below:

PARTICULARS Three Months Ended Year Ended (Audited)

31st March, 2017

in Lakhs 31st March, 2017

in Lakhs

Net Profit as per Indian GAAP 2985.98

273.71

Impact of certain receivables at fair value 37.19 99.04

Re-measurement of post-employment benefit Obligations (19.23) (19.23)

Changes in Fair value of equity Instrument 0.36 0.76

Adjustment for translation of Foreign operations (559.81) (559.81)

Total Comprehensive Income as per Ind AS 2444.49 (205.53)



10. Reconciliation between total equity previously reported (referred to “Previous GAAP”) and Ind AS for the year presented are as under:

PARTICULARS Total Equity as on 31st March,2017 in Lakhs

Total Equity as per the Previous GAAP 11,557.53

Impact of measurement of retain receivables at fair value (205.58)

Impact of measurement of Quoted Equity Instrument at Fair value 2.24

Total Equity as per Ind AS 11,354.19



11. The figures for the quarter ended 31st March, 2018 and 31st March, 2017 are the balancing figures between audited figures for the full financial year and the year to date published figures up to the quarter ended 31st December, 2017 and 31st December, 2016.


Refer notes 1 to 11 of financial results for the quarter and year ended 31st March,2018