Simplex Infrastructures Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

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, the management believes that unbilled revenue of Rs.22,482 lakhs (31st March, 2019: Rs. 68,924 lakhs) as on 31st March, 2020 will be billed and realised in due course.

2.Trade receivables aggregating Rs.13,242 lakhs (31st March, 2019: Rs.15,583 lakhs) as on 31st March, 2020 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.2,079 lakhs (31st March, 2019: Rs.2,854 lakhs) as on 31st March, 2020 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.4,502 lakhs (31st March, 2019: Rs.5,354 lakhs) of certain completed contracts as on 31st March, 2020 are good and recoverable.

3. Loans and Advances Rs.13,860 lakhs (31st March, 2019: Rs.18,148 lakhs) for which the Company is in active pursuit and confident of recovery/settlement of such advances within a reasonable period of time.
Current Investment - amount is below the rounding off norm adopted by the Company.

5. In respect of classification of certain current assets into non-current assets, the Company provides expected credit loss (ECL) on these current assets. The company considers an average normal operating cycle for its operations though the operating cycle for all the projects are not uniform, the company has classified certain trade receivables, retention monies, unbilled revenue and statutory advances pending assessment by relevant authorities amounting to Rs.13,242 lakhs (31st March, 2019: Rs.11,963 lakhs), Rs. 4,502 lakhs (31st March, 2019: Rs. 3,373 lakhs), Rs. 22,482 lakhs, (31st March, 2019: Rs. 29,405 lakhs) and Rs.23,183 lakhs (31st March, 2019: Rs.24,162 lakhs) as current assets.

6. Cash Flow Statement enclosed with PDF File.

7. Additional disclosures as per Regulation 52(4) of SEBI (Listing obligation and disclosure Requirements) Regulations, 2015: Attach with PDF file.

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

9. The Company is in discussion with its customers on the impact of Goods and Services Tax on the contract terms and conditions for certain contracts and necessary adjustments, which in the opinion of the management will not be significant, would be made upon completion of such discussions.

10.The Company has adopted Ind AS 116 "Leases" with effect from 1st April, 2019 and the impact of the same is insignificant.

11.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.

12.During the quarter ended 31st December,2019, 3,007,261 convertible warrants were lapsed due to non-exercise of option for conversion of the said warrants into equity shares and an amount of Rs. 4,166 lakhs were forfeited by the Company.

13.Due to lockdown as declared by Central and State Government on March 23, 2020 on account of Covid-19 the Company temporarily suspended operations in all its working sites /offices which has an adverse impact on the normal business operations of the Company. The operations at our working sites and offices have gradually resumed from May, 2020 with a limited labour force. Based on internal assessment of the Company’s performance and on assessment of overall economic environment, Management is of the view that impact of Covid-19 will affect the Company’s operations in the current year which has not yet been assessed completely at this stage.

14.The Company has incurred net loss of Rs.31,747 lakhs during the year ended 31st March, 2020, as also there was default in payment of financial debts, to its bankers and others amounting to Rs. 90,842 lakhs. The Company is in the process of formulating a resolution plan with its lenders having underlying strength of the Company’s healthy order book position and future growth outlook. 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 statements on going concern basis.

15.The Non-convertible debentures issued by the Company are rated CARE D (Single D).

16.The Company continues to maintain 100% asset cover for the Non-convertible debentures issued by it.

17.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 31st July, 2020. The Statutory Auditors of the Company have carried out an Audit of the results for the quarter and year ended 31st March, 2020 in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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