Simplex Projects Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 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 22.01.2021. The Statutory Auditors of the Company have carried out an Audit of the results forthe quarter and year ended 31st March, 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 of Rs. 225.57 Lakh (previous year Rs.2S3.S5 Lakh) 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'bie 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 iMR 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. 267S.94 Lakh approximately for the quarter ended March, 2020 and Rs, 9201.96 Lakh approximately for the year ended March, 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. 1894.01 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 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,

8. Trade Receivables include overdue amount aggregating to Rs. 9746.90 Lakh (Previous Year - Rs. 12948.42 Lakh) & Work In Progress (for Unbilled Revenue) Rs. 4587.87 Lakh (Previous Year - Rs. 3680,67 Lakh) are under arbitration. However, the same is considered good by the management, based on the opinfon obtained and the earlier experiences on realization. No provision in this regard is considered necessary by the management.

9. GSTR -1 & GSTR SB is not yet filed In the states of Meghalaya, Assam & Uttar Pradesh for the FY 20192020. Moreover, GST Audit for the year ended March, 2018 and March, 2019 is still pending.

10. Company has defaulted in repayment of interest and principal amounting to Rs. 421.36 lakh payable to SREI Equipment Finance Limited up to 31.03,2019 and the interest for the year ended March 31, 2020 has not been ascertained and booked on account of legal proceedings.

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

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

13. On account lockdown declared by Central Government and State Government on 23'd 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. Based on overall assessment of economic environment, Management is of the view that impact of Covid-19 will affect the Company's operations in the FY: 2020-21 which has not yet been assessed.

14. The Company has generated negative cash flow from its operating activities amounting to Rs. 9,787.69 lakhs for the year ended March 31, 2020, there was also default in payment of financial debts, to its bankers and others. The reason for such operational loss is due to:

a. Delay in realization of trade receivables & Unbilled Revenue in tune of Rs. 9,746.90 lakhs a Rs. 4587,87 lakhs respectively, for which arbitration is going on.

b. On account of civil unrest (in the year 2011) the company's operation at Libya was stopped due to which our assets and receivables are "stand still". However, the Company has filed a claim of IMR 770.00 Crores against State of Libya in International Arbitration.

Company is confident of improving the credit profile including time bound realization of its assets, arbitration claims etc, which wouid result in meeting its obligations on time, Accordingly, the Management considers it appropriate to prepare these financial statements on going concern basis.

15. Revenue from operation includes Rs.190S.78 lakhs on account of bills submitted but not certified as on the Balance Sheet date, Revenue from operation also includes an amount of Rs.13,048.67 lakhs against certified work done on "debitable basis" for the year ended March 31, 2020. Thus, liability for GST does not arise on us on this work.

16. Finance Cost includes Rs.132,22 Jakhs on unsecured borrowing for the period from 01.04.2019 to 31.03.2020 has been booked in the quarter ended March 31, 2020.

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