1. Working Capital Loan from Banks are secured by hypothecation of stocks, work-in-progress and book debts and also charges of certain moveable plant & machinery ranking pari-passu with the banks.
2. Term Loan from Banks are secured by Hypothecation of specific assets comprising of Plant & Machinery, Construction Equipment and Vehicles acquired out of the said Loans repayable in EMIs along with Interest ranging from 8% to 12% p.a.at a specified date for specific assets. Average tenure of each loan is 36 months.
3. Foreign Currency term loan from banks carry rate of interest ranging from 6 month USD LIBOR 1% to 6month USD LIBOR 2.65% and 6 months Euro Libor 1% to 6 months Euro Libor 3.50%.
4. Payment against supplies from small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue as on 31.03.2016.
5. Based on the available information with the Company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, there are no dues to micro and small enterprises.
6. Trade payable have been shown net of advances of Rs.7,977.95 Lakh (Previous Year Rs. 9,295.13 Lakh) paid to suppliers and sub contractors.
7. Decline, if any, in the market value of long term quoted investments, considered by management not of permanent nature, has not been provided for.
8. Part of Investment in Simpark Infrastructure Pvt Ltd. disposed and profit on disposal of Rs. 37.20 lakh is recognized in the Profit and Loss account. As a result of disposal the remaining investment in Simpark Infrastructure Pvt Ltd has been reclassified and shown under the head 'Investment in equity instruments of associates'.
9. Investments in National Savings Certificate and Kisan Vikas Patra amounting to Rs. 1.78 lakh have matured in earlier years and are not in possession of the company has been written off as there is no ascertain ability of its receivable.
10. The Company has a co-operative incorporated under the laws of Netherland, by the name of Simplex Projects (Netherlands) Cooperative U.A., in partnership with M/s Simplex fiscal Holdings Pvt. Ltd. The profit and loss sharing of the co-operative between the company and its partner is in the ratio of 99:1. As the co-operative is yet to commence its business, the entire expenses have been taken as pre-operative expenses.
Sundry Debtors include overdue amount aggregating to Rs. 560.92 Lakh (Previous Year - Rs. 581.25 Lakh) that 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.
Trade Receivable include an amount of Rs. 8,332.66 Lakh on account of bills submitted but not certified as on the Balance Sheet date.
11. Fixed Deposits Rs. 4,217.15 Lakh (Previous Year - Rs. 3,783.86 Lakh) are not in possession of the company as they have been lodged as security deposit with clients / Banks.
12. Fixed Deposits with maturity of more than 12 months shown under 'Other noncurrent assets’
13. Employee advance have been shown net of credit balance of Rs. 3.73 Lakh.
14. Other advances are shown net of Rs. 8.34 Lakh advance received.
Work-in-progress include overdue amount aggregating to Rs. 1,528.36 Lakh (Previous Year - Rs. 148.50 Lakh) that 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.
Gross Billing includes Rs. 8,332.66 Lakh on account of bills submitted but not certified as on the Balance Sheet date.
15. The Company is yet to receive the Balance confirmations in respect of certain Sundry Creditors, Sundry Debtors and Loans & advances. The balances are, therefore, as per the books of account only.
16. The Company's account with Bank of Baroda, DBS Bank, Yes Bank and Uco Bank for working capital facilities and Kotak Mahindra Bank for Term Loan facilities have been classified as Non Performing assets and accordingly then provision for interest has been made as per the prevailing rates.
17. Capital Work-in-progress includes an unfinished commercial outlet purchased by the Company from its subsidiary for which the lease deed is yet to be executed. It also includes Rs. 465.29 lakh pertaining to materials imported and kept at port.
18. The Company has entered into an agreement dated 08.11.1999 with The Kolkata Municipal Corporation (KMC) for installation, development and maintenance of Multilevel Computerized Car Parking System (hereinafter referred to as 'Project' ) at Rawdon Street, Kolkata. The Company with the consent of KMC has nominated M/s Simpark Infrastructure Pvt. Ltd. (SIPL) to carry out the said project, which is on Built-Own-Operate-Transfer (BOOT) basis for a period of 20 years. KMC has given a deposit of Rupees Three crore to the Company as interest free deposit , to be refunded to them only out of the profits to be earned under a joint venture with KMC to develop commercial complex on a land to be allotted by the KMC. The same has been adjusted by the company against civil and other work of the project undertaken by it from SIPL. The company has, accordingly adjusted the deposit on completion of execution of civil and other works.
Similarly, the Company has entered into another agreement dated 21/10/2002 with the KMC for installation, development and maintenance of another Multilevel Underground Car Parking System at New Market, Lindsay Street, Kolkata, which in accordance with its earlier agreement, has been nominated to the said SIPL to carry out the construction of said project, to lease out commercial outlets and also to enter into Lease Agreement with the prospective lessee with a right to collect all receivable against Lease Premium. The company, however, acts as a Confirming Party to all the lease agreements entered into by the said SIPL with the allottee’s of the commercial outlets.
19. The operation of the company’s branch at Libya, which 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 provision thereof are required at this stage. The expenses incurred during the year in respect of its said branch amounting to Rs. 680.27 Lakh (Previous year Rs. 1,695 lakh) and the depreciation of Rs. 386.57 Lakh (Previous year Rs. 401.72 Lakh) relating to the machineries deployed there, have been considered as work-in-progress. 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. Accordingly no provision for charges has been made after the stay of extension.
20. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011 vide GSR 914(E) dated 29.12.2011, the Company has exercised option of adjusting the cost of assets arising on exchange differences, in respect of accounting period commencing from 1st April, 2011 on long term foreign currency monetary items resulting out of trade credits/ overseas borrowings, which were hitherto recognized as income or expenses in the period in which they arose. As a result, such exchange differences so far as they relate to the acquisition of depreciable capital assets have been adjusted with the cost of such assets, to be depreciated over the balance useful life of the respective assets. In case of other long term foreign currency monetary items resulting out of trade credits/overseas borrowings, the exchange difference have been transferred to Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term assets/liabilities but not beyond accounting period ending on or before March 31, 2020. The unamortized balance in this account as at March 31, 2016 is Rs. 911.64 Lakh (Previous year Rs. 1,139.55 Lakh).
21. Contingent Liabilities:
22. There are outstanding guarantees amounting to Rs. 1,11,610 Lakh (Previous Year - Rs. 1,04,110.60 Lakh) and outstanding letters of credit amounting to Rs. 6,085.86 Lakh ( Previous Year - Rs. 9,468.10 Lakh) given on behalf of the Company by Banks. The receipts of term deposits are also held by Banks towards margin money against the guarantees / letters of credit given by them on Company’s behalf, besides the counter indemnity by the Company for such guarantees/letters of credit.
23. The Companies claims of certain deduction under the provisions of the Income Tax Act 1961 for the Assessment Year 2008-09 and 2009-10 was disallowed by the Income Tax Authority, the company has preferred an appeal with the CIT (A). The Company has also challenged the issue of claiming they said deduction in respect of assessment years 200809 and 2009-10 by a writ petition before the Hon’ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authority from enforcing any demand against the Company. The impact of tax in case of an adverse decision is estimated at Rs. 417.46 Lakh (Previous year Rs. 417.46 lakh). Moreover, the Income Tax Authority has filed an appeal before the Hon’ble Calcutta High Court against the order passed by the Appellate Tribunal Kolkata for the AY. 2006-07 and 2007-08, the impact of tax in case of an adverse decision is estimated at Rs. 377.92 Lakh.
24. Disputed Sales Tax / VAT under appeal with appropriate forum - Rs. 2,379.12 Lakh (Previous Year - Rs. 2,321.41 Lakh)
25. The Show cause cum demand Notice issued by the Service Tax Department is of Rs. 946.85 Lakh, the Appeal is still pending before The Hon’ble Customs Excise & service Tax Appellate tribunal, EZB, Kolkata.
26. Segment information for the year ended 31st March, 2016
The Company has disclosed Business Segment as the primary segment. The Segment has been identified taking into account the nature of activities, the differing risks and returns. The Company's operations relate to 'Construction activity1 and 'Trading activity'. As the Company is engaged in execution of work in overseas, the secondary segment reporting is prepared based on Geographical Segments.
The Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include respective amounts identifiable to each of the Segments and also amounts allocated on a reasonable basis.
In respect of Joint Venture the Company along with the JV partner is jointly & severally responsible for performance of the contract.
The amount of Rs. 87.49 Lakh (Previous Year - Rs. 87.49 Lakh) due from the joint venture has been included in Sundry Debtors. The investment in joint venture amounting to Rs. 0.20 Lakh (Previous Year - Rs. 0.20 Lakh ) are included under the head Other Advances.
27. Related Party disclosures pursuant to Accounting Standard (AS)-18 issued by Institute of Chartered Accountants of India.
28. The disclosures required under Accounting Standard 15 “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006, are given below:
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
29. Disclosure under regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements Regulations, 2015)
The Company has given interest free advance to Simplex Agri-Infra Services Pvt Ltd, (subsidiary), having no repayment schedule and outstanding balance is Rs. 1,913.51 Lakh ( Previous Year Rs. 2,552.80 Lakh). The Company has taken interest free advance from Simpark Infrastructures Pvt Ltd, (its wholly owned subsidiary) having no repayment schedule and advance balance is Rs. 289.44 Lakh on the Balance sheet date. ( Previous Year Loan Given Rs. 337.99 Lakh)
30. Site cost for executing contract work charged off to Profit & Loss Account includes Rs. 2.19 Lakh (Previous year Rs. 13.75 Lakh) relating to previous period.
31.. Amount in the financial statements are presented in INR lakhs, unless otherwise stated.
32. Comparative financial information (i.e. the amounts and other disclosure for the year ended as on 31st March 2015) presented above, is included as an integral part of the current year’s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
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