Simplex Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2019

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 22.10.2019. The Statutory Auditors of the Company have carried out an "Audit" of the results for the quarter and year ended 31st March, 2019 in terms of Regulation 33 of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. 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.

3. 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. 258.55 Lakh (previous year RS.286.51 Lakh) relating to the machineries deployed there, have been considered as work-inprogress. 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.

4. The Company's account with Bank of Baroda, DBSBank, IClCI Bank, IDBI Bank, State Bank of India, Yes Bank, UCOBank, 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 amounting to Rs.8423.411akh approximately for the year ended March, 2019. No further provision of interest has been made on term loan from Kotak Mahindra Bank.

5. Sundry Debtors include overdue amount aggregating to Rs. 12948.42 Lakh (Previous Year - Rs.10053.17 Lakh) & Work In Progress (for work done) RS.3680.67 Lakh (Previous Year - Rs. 1679.28 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.

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

7. Site Working Progress amounting to Rs. 6987.28 Lakhs and uncertified sales amounting to Rs. 2109.19 Lakhs 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.

8. 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.

9. There are advances to suppliers, sub-contractors & staffs related to certain projects amounting to Rs. 4367.39 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. 1088.16 Lakhs under the head of advance against project is hundred percent recoverable as it is given to the subsidiaries.

10. The impact of Ind AS 115 'Revenue from Contracts with Customers' does not have material impact on the financial results for the quarter and year ended 31st March, 2019.

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

12. 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, 2019 as aforesaid have been accounted for at transactional value.

13. The figures for the quarter ended 31st March, 2019 and 31st March, 2018 are the balancing figures between audited figures for the full financial year and the unaudited year to date published figures up to the quarter ended 31st December, 2018 and 31st December, 2017 respectively.

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

Balkishna Das Mundhra
Chairman & Director