Simplex Infrastructures Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2023

1.Certification of unbilled revenue by customers and acceptance of final bills by customers often takes significant period of time and varies from project to project. At this stage, based on discussions with concerned customers / on the basis of legal action initiated, the management believes that unbilled revenue of Rs.53,881 lakhs as on 31st December, 2023 (31st March, 2023: Rs. 41,584 lakhs) will be billed and realised in due course.



2.Trade receivables aggregating Rs.16,913 lakhs as on 31st December, 2023 (31st March, 2023: Rs. 13,935 lakhs) from customers in respect of various project sites are outstanding for a long period of time. At this stage, based on discussions and communications with customers, the management believes the above balances are good and recoverable.

Inventories aggregating Rs.861 lakhs as on 31st December, 2023 (31st March, 2023: Rs. 887 lakhs) pertaining to certain completed project sites are readily usable.

Retention monies due from customers are receivable only after clearance of final bill by customers and after expiry of defect liability period after execution of contracts. In the opinion of the management, such retention amounts aggregating Rs.3,650 lakhs (31st March, 2023: Rs.3,271 lakhs) of certain completed contracts as on 31st December, 2023 are good and recoverable.



3. Loans and Advances Rs.35,457 lakhs as on 31st December, 2023 (31st March, 2023: Rs.35,063 lakhs) for which the Company is in active pursuit and confident of recovery/settlement of such advances within a reasonable period of time.



5.Other Comprehensive Income that will be reclassified to profit or loss represents Exchange (Loss) / Gain on translation of foreign operations.



6.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.



7.The Company has incurred loss of Rs.23,870 lakhs for the nine months ended 31st December, 2023 (Rs. 50,624 lakhs for the year ended 31st March, 2023) as also there was default in payment of financial debts, to its bankers and others amounting to Rs.529,293 lakhs as on 31st December, 2023 (31st March, 2023: Rs.483,021 lakhs). The Company is in the process of finalising a resolution plan with its lenders. The Company is confident of improving the credit profile including time bound realization of its assets, arbitration claims, etc. which would result in meeting its obligation in due course of time. Accordingly, the Management considers it appropriate to prepare these financial results on going concern basis.



8.The Company has defaulted in servicing of its Debts (including interest) to various Lenders. Majority of them stopped charging interest in their respective statements on facilities given to the Company. Accordingly the Company has decided not to recognise any such interest provision on fund based borrowing facilities and other facilities provided by various Lenders for the nine months ended 31st December, 2023 amounting to Rs.34,230 lakhs. However, the Company has provided for Rs.31,519 lakhs towards Interest debited by various Lenders in their respective statements for the nine months ended 31st December, 2023. The Company is in the process of finalising a resolution plan with its lenders. The adjustment of the Interest will be given effect in the financial statement of the respective period, once the resolution plan will be finalised.



9.Deferred Tax Asset will be adjusted against future projected current tax liability. The Company is confident that the Resolution Plan which is under process of finalisation will be approved by the Lenders and the said projected profit and current tax liability will be adjusted against the Deferred Tax Asset.



10.The Company together is working on finalization of resolution plan with the Lenders of the Company under the regulatory framework.

11. Asset cover for the Non-convertible debentures issued by the Company is not in line with LODR requirement as also as per terms of Debenture Trust Deed.



12. 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 13th February, 2024. The Statutory Auditors of the Company have carried out a Limited Review of the results for the quarter and nine months ended 31st December, 2023 in terms of Regulation 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

13. The figures for the previous period's relating to results have been regrouped / rearranged wherever necessary to conform to current period.



Note:-Due to Validation error we cannot put the value of Debt equity ratio 120.43 in proper column for the quarter ended and nine month ended 31st December,2023 Therefore mentioned in this note.