Simplex Infrastructures Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

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 37,460 lakhs as on 31st March, 2022 (31st March, 2021: Rs 31,661 lakhs) will be billed and realised in due course.

2.Trade receivables aggregating Rs.11,867 lakhs as on 31st March, 2022 (31st March, 2021: Rs12,926 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 770 lakhs as on 31st March, 2022 (31st March, 2021: Rs 1,862 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 3,151 lakhs (31st March, 2021: Rs 3,704 lakhs) of certain completed contracts as on 31st March, 2022 are good and recoverable.

3.Loans and Advances Rs 33,478 lakhs as on 31st March, 2022 (31st March, 2021: Rs.8,022 lakhs) for which the Company is in active pursuit and confident of recovery/settlement of such advances within a reasonable period of time.

Note no. 5 additional disclosure attached with quick results

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

8.The Company is in discussion with a few customers on the impact of Goods and Services Tax on the contract terms and conditions for certain contracts and necessary adjustments to be made on completion of such discussions.

9.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.

10.Based on the valuation report of an independent valuer impairment loss as on 31st March, 2022 of Property, Plant & Equipment was recognised by an Associate Company.

Accordingly impairment in the carrying value of investment of the Company has been recognised as exceptional item during the year ended 31st March,2022.

11.Due to lockdown / restrictions as declared by Central and State Governments on account of further outbreak of Covid-19, time to time, operations in its many working sites/offices was slowed down which has an adverse impact on the normal business operations of the Company for the quarter and year ended 31st March, 2022. The Company has also taken various cost reduction measures and also made assessment of carrying value of its Assets. Based on such assessment no adjustment is required in these Financial Results at this stage.

12.The Company has incurred net loss of Rs 52,631 lakhs for the year ended 31st March, 2022 ( Rs 46,097 lakhs for the year ended 31st March, 2021) as also there was default in payment of financial debts, to its bankers and others amounting to Rs 358,131 lakhs as on 31st March, 2022 (31st March, 2021: Rs 225,229 lakhs). The Company is in the process of finalising 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 results on going concern basis.

13.The Company together with Swan Constructions Private Limited (Swan) is working on finalization of resolution plan with the Lenders of the Company under the regulatory framework for stressed asset resolution under the Reserve Bank of India Guidelines and once the resolution plan is implemented, the Company will allot 5,75,11,000 Equity Shares and 1,70,00,000 Warrants to Swan at a price of `Rs 56.61 and also approx. 10% of the Equity to Lenders.

14.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.

15.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 30th May, 2022. The Statutory Auditors of the Company have carried out an Audit of the results for the quarter and year ended 31st March, 2022 in terms of Regulation 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

16.The figures for the quarter ended 31st March, 2022 and 31st March, 2021 are the balancing figures between audited figures for the full financial year and the unaudited year to date published figures upto the quarter ended 31st December, 2021 and 31st December, 2020 respectively.

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