simplex infrastructures ltd Auditors report

To the Members of

Simplex Infrastructures Limited

Report on the Audit of Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of Simplex Infrastructures Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Pro_t and Loss (including Statement of Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the Standalone Financial Statements including a summary of the signi_cant accounting policies and other explanatory information which includes 16 (sixteen) joint operations (hereinafter referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate _nancial statements and on the other _nancial information of the joint operations, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (‘the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of a_airs of the Company as at March 31, 2023, and its loss (including Other Comprehensive Income), changes in equity and its cash _ows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) speci_ed under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the ‘Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made there under, and we have ful_lled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence which we have obtained is su_cient and appropriate to provide a basis for our Audit Opinion on the Standalone Financial Statements.

Emphasis of Matter

a) We draw attention to the following matters:

1. The accompanying Standalone Financial Statements Note 41(a) regarding uncertainties relating to recoverability of unbilled revenue pending for certi_cation amounting Rs.41,584 lacs, Note 38 regarding trade receivables and retention monies amounting Rs.13,935 lacs and Rs.3,271 lacs, respectively, as at March 31, 2023, which represent receivables in respect of completed/ substantially completed/ suspended/ terminated projects. As explained to us the Company is at various stages of negotiation/ discussion with the clients in respect of the aforementioned receivables. Considering the contractual tenability, progress of negotiations/ discussions the management is con_dent of recovery of these receivables.

2. Note 38 to the accompanying Standalone Financial Statements regarding inventories aggregating Rs.887 lacs pertaining to certain completed projects in the view of management are good and readily useable. In the absence of any su_cient appropriate convincing audit evidence to support the signi_cant judgments and estimates relating to support the managements view on usability of such items, we are unable to comment whether the aforesaid inventories are usable.

3. Note 39 to the accompanying Standalone Financial Statements regarding loans and advances pertaining to earlier years amounting to Rs.35,063 lacs, as informed to us the company is in active pursuit and con_dent of recovery of these advances. In the absence of con_rmation or any su_cient appropriate convincing audit evidence to support the signi_cant judgments and estimates relating to managements view on the recoverability of such amount, we are unable to comment whether the aforesaid balances are recoverable at this stage.

4. Note 36 to the accompanying Standalone Financial Statement, regarding default in payment of revolving facility like Cash Credit, WCDL availed from various Banks total amount outstanding to Rs.3,85,175 lacs and also default in repayment of principal and interest aggregating to Rs.97,846 lacs due in case of Term Loan and payment to Debenture holders on the non-convertible debentures. Certain closing balances have not been con_rmed by the respective banks amounting to Rs.2,52,945 lacs, the management has recognized interest liabilities on bank balances on provisional basis as per last sanction letters.

5. The Company has recognized net deferred tax assets amounting to Rs.92,085 lacs as at March 31, 2023, which includes deferred tax assets on carried forward unused tax losses, unused tax credit and other taxable temporary di_erences on the basis of expected availability of future taxable pro_t for utilization of such deferred tax assets. The management is con_dent that the deferred tax assets will be set o_ against the future foreseeable pro_t by the Company.

Our opinion is not modi_ed in respect of these matters. b) The accompanying Standalone Financial Statements the Company has incurred net loss of Rs.50,624 lacs

(PY Rs. 52,631 lacs) during the year ended March 31, 2023, as also there is default in payment of _nancial debts, to its bankers and others amounting to Rs.4,83,021 lacs (PY Rs.3,58,131 lacs). As stated in Note 36 to the accompanying statement, thse _nancial statements are prepared by the management on going concern basis for the reasons stated therein.

Our opinion is not modi_ed in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most signi_cance in our audit of the Standalone Financial Statements for the _nancial year ended March 31, 2023. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report. For each matter below, our description of how our audit addresses the matter is provided in that context.

We have ful_lled the responsibilities described in the Auditors responsibilities for the audit of the Standalone Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedure designed to response to our assessment of the risks of material misstatement of the Standalone Financial Statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying Standalone Financial Statements.

Sr. No. Key Audit Matter	Auditors Response
Assessment of going concern basis of accounting (as described in Note 36 of the Standalone Financial Statements)
1 The company has incurred net loss of Rs.50,624 lacs during the year ended 31st March, 2023 and as of that date has accumulated losses aggregating Rs.1,08,980 lacs resulting in substantial erosion of its net worth.	Our audit procedures included but were not limited to, the following in relation to assessment of appropriateness of going concern basis of accounting:
During the year, the Company continued to default on payment to its lenders has overdue payments to operational creditors out of which certain operational creditors have also applied before the National Company Law Tribunal (NCLT) for debt resolution under the Insolvency and Bankruptcy Code, 2016, none of which has been admitted so far.	Obtained an understanding of the process followed by management for identifying events or conditions that could impact the Companys ability to continue as a going concern and process followed to assess the corresponding mitigating factors existing against such events or conditions.
	Also, obtained an understanding around the methodology adopted by the Company to assess their future business performance of a cash _ow forecast for the business;

 

Sr. No. Key Audit Matter	Auditors Response
While the above factors indicate doubt on the Companys ability to continue as a going concern, the company has taken into consideration the following mitigating factors in its assessment for going concern basis of accounting in preparation of the accompanying Standalone Financial Statements:	Evaluated the design and tested the operating e_ectiveness of key controls relating to managements assessment of going concern as above;
Expected successful implementation of the resolution plan with the lenders. Time bound monetization of certain non-core assets; and	Evaluated the managements assessment of the successful implementation of the resolution plan, current status of requisite approvals from lenders, reading of the minutes of the meetings held and understanding obtained from the management; and
We have considered the assessment of managements evaluation of going concern basis of accounting as a key audit matter due to the pervasive impact thereof on the Standalone Financial Statements and the signi_cant judgements and assumptions that are inherently subjective and dependent on future events, involved in preparation of cash _ow projections and determination of the overall conclusion by the management.	Assessed the appropriateness and adequacy of the disclosures made by the management in respect of going concern in accordance with the applicable accounting standards.

 

Correctness of Project Revenue recognition – Construction Contracts (as described in Note 1.14(i) and 32(i) of the Standalone Financial Statements)
2 Revenue from construction contracts is recognised over a period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers.	Our procedures included: Testing of the design and implementation of controls involved for the determination of the estimates used as well as their operating e_ectiveness;
Revenue recognition involves usage of percentage of completion method which is determined based on proportion of contract costs incurred to date compared to estimated total contract costs, which involves signi_cant judgments, reliable estimation of total project cost, identi_cation of contractual obligations in respect of Companys rights to receive payments for performance completed till date, estimation of period of recovery of receivables, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/ onerous obligations.	Testing the relevant information technology systems access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard;
Project revenue recognition is signi_cant to the _nancial statements based on the quantitative materiality and the degree of management judgment required to apply the percentage of completion method. Management has also considered this area to be a key accounting estimate as disclosed in the ‘critical estimates and judgements Note 1A to the Standalone Financial Statements. We therefore determined this to be a key audit matter.	Testing a sample of contracts for appropriate identi_cation of performance obligations;
	For the sample selected, reviewing for amendments of orders and the impact on the estimated costs to complete; analytical procedures for reasonableness of Performed revenues disclosed by type and service o_erings.

 

Sr. No. Key Audit Matter	Auditors Response
Unbilled Revenue balance, Trade Receivables and Retention Money relating to construction contracts of the Company (as described in Note 7(b) and Note 9 of the Standalone Financial Statements)
3 Unbilled Revenue balance, Trade Receivables and Retention Money of the Company aggregates Rs. 6,04,662 lacs (PY Rs. 5,97,806 lacs) as at March 31, 2023.	As part of our audit procedures:
The collectability of above balances is a key element of the Companys working capital management. In assessing the recoverability of the aforesaid balances, managements judgment involves consideration of status of the project, the likelihood of collection based on the terms of the contract and evaluation of litigations, if any.	Testing of the design and implementation of controls involving managements assessment of recoverability of Unbilled Revenue balance, Trade Receivables and
We considered this as key audit matter due to the materiality of the amounts and signi_cant estimates and judgments as stated above.	Retention Money relating to construction contracts. We performed test of details and tested relevant contracts and documents on the basis of materiality for Unbilled Revenue, Trade Receivables and Retention Money balances.
	We also carried out additional test procedures, in respect of long outstanding balances, i.e. tested subsequent documents with customers with respect to recoverability of the same.
	We tested contracts to determine the provisioning requirement for loss making contracts/onerous obligations, if any.
Pending litigations (as described in Note 34 of the Standalone Financial Statements)
4 The Company is subject to number of claims and litigations including arbitrations, mainly with customers and tax authorities. The assessment of the likely outcome of these matters can be judgmental due to the uncertainty inherent in their nature.	Principal Audit Procedures:
This area is signi_cant to our audit, since the accounting and disclosure of claims and litigations are complex and judgmental, and the amounts involved are, or may be, material to the Standalone Financial Statements.	Our audit approach was a combination of test of internal controls and substantive procedures including:
	Assessing the appropriateness of the design and implementation of the Companys controls over the assessment of litigations and completeness of disclosures.
	Supporting documentations are tested to assess the status of Arbitration/legal proceedings with reference to related counselors views for likely outcome of these matters.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the preparation of other information. The other information comprises the information included in the Report of the Board of Directors, Management Discussion and Analysis Report, Report on CSR activities, Business Responsibility Report, Corporate Governance Report and other annexure to Directors Report including Shareholders Information, but does not include the Standalone Financial Statements and our auditors report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements during the course of our audit or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we will read the other information on availability of the same to us and if there is anything to report in this regard as required under SA 720 "The Auditors Responsibilities Relating to Other Information", we will communicate accordingly.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the "Act") with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the _nancial position, _nancial performance including other comprehensive Income, changes in equity and cash _ows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards speci_ed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal _nancial controls, that were operating e_ectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys _nancial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in_uence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is su_cient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal _nancial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal _nancial controls system in place and the operating e_ectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi_cant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial

Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be in_uenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the e_ect of any identi_ed misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signi_cant audit _ndings, including any signi_cant de_ciencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most signi_cance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest bene_ts of such communication.

Other Matters

a) We have been appointed as joint auditors of the Company along with M/s Chaturvedi & Co., Chartered Accountants (the other ‘Joint Auditor). We are issuing a separate audit report in accordance with the requirements of SA 299 "Responsibility of Joint Auditors" in view of the di_erence of opinion with the other joint auditor regarding the matters reported under "Emphasis of Matter" paragraph. b) We did not audit the _nancial statements and other _nancial information, in respect of 13 (thirteen) joint operations whose annual _nancial statements and other

_nancial information re_ect total assets of Rs.8,251 lacs as at March 31, 2023 and total revenues of Rs. 3,720 lacs, total net pro_t/(loss) after tax of Rs.77 lacs and total comprehensive income of Rs.77 lacs for the year ended on that date and net cash out_ows of Rs. 50 lacs for the year ended March 31, 2023, as considered in the _nancial Statement which have been audited by the other auditors.

The _nancial information of this joint operation have been audited by the other auditor whose report have been furnished to us by the Companys management and our conclusion in so far as it relates to the amounts and disclosures included in respect of this joint operation, is based solely on the report of such other auditor. c) We have audited the _nancial statements and other _nancial information, in respect of 3 (three) joint operations whose annual _nancial statements and other _nancial information re_ect total assets of Rs.6,478 lacs as at March 31, 2023 and total revenues of Rs.1,833 lacs, total net pro_t/(loss) after tax of (Rs.24 lacs) and total comprehensive income/(loss) of (Rs. 24 lacs) for the year ended on that date and net cash out_ows of Rs.19 lacs for the year ended March 31, 2023, as considered in the _nancial Statement.

Our opinion on the Statement is not modi_ed in respect of above matter with respect to our reliance on the work done by the other auditor and report thereon.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act based on our audit and on the consideration of report of the other auditor on separate _nancial statement and the other _nancial information of joint operations, as noted in the "Other Matters" paragraph, we give in "Annexure A", a statement on the matters speci_ed in paragraphs 3 and 4 of the Order, to the extent applicable.

2) As required by Section 143(3) of the Act, we report that: a) We have sought and obtained, except for the matter(s) described in the "Emphasis of Matters" paragraph all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. c) The Balance Sheet, the Statement of Pro_t and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account. d) Except for the matter(s) described in the Emphasis of Matters paragraph. In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS speci_ed under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended. e) In view of the matter(s) described in the Emphasis of Matter paragraph above, we are unable to comment whether these may have an adverse e_ect on the functioning of the company.

The Company has defaulted in redemption of debentures on the due date or payment of interest due thereon and such failure to pay or redeem had continued for more than one year. Consequently, reappointment of a director of the Company is not in accordance with the provision of Section 164(2)(b) of the Act. f) With respect to the adequacy of the Internal Financial Controls over _nancial reporting of the Company and the operating e_ectiveness of such controls, refer to our separate Report in "Annexure B". g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended: The remuneration provided by the company to its whole-time director & chief _nancial o_cer amounting to Rs. 37 lacs during the year is not in accordance with the provisions of Section 197 of the Act, as prior approval from the lenders/_nancial institutions/non-convertible debenture holders or any other secured creditors has not yet received. h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,

2014, as Amended, in our opinion and to the best of our knowledge & belief and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its _nancial position in its Standalone Financial Statements– [Refer Note No. 34 to the accompanying Standalone Financial Statements]. ii. The Company has made provision as required under applicable law or accounting standards for material foreseeable losses. The Company did not have any long-term derivative contracts. iii. There has been no delay in transferring amounts which were required to be transferred to the Investors Education and Protection Fund by the Company. iv. a. The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall: • whether, directly or indirectly lend or invest in other persons or entities identi_ed in any manner whatsoever by or on behalf of the Company ("Ultimate Bene_ciaries") or • provide any guarantee, security or the like to or on behalf of the Ultimate Bene_ciaries. b. The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall: • whether, directly or indirectly, lend or invest in other persons or entities identi_ed in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Bene_ciaries") or • provide any guarantee, security or the like from or on behalf of the Ultimate Bene_ciaries; and c. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The Company has not declared any dividend during the year.

ANNEXURE ‘A

TO THE INDEPENDENT AUDITORS REPORT

{Referred to in Paragraph (1) of "Report on Other Legal and Regulatory Requirements" section of our Independent Auditors Report}

I. In respect of the Companys property, plant and equipment, right-of-use assets and intangible assets: (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situations of Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangible assets. (b) As per the information and explanations provided by the management and on the basis of our examination of the records of the Company, there is a programme of physical veri_cation of all the Property, Plant and Equipment of the company which has to be completed in the span of every three years. However we observed that all Property, Plant and Equipment have not been physically veri_ed by the management during the stipulated span, moreover Property, Plant and Equipment lying at the Oman Branch was not physically veri_ed by the management for several years. However, a portion of the Property, Plant and Equipment has been physically veri_ed by the management during the year and no material discrepancies have been noticed on such veri_cation. Further, while going through the physical veri_cation report of sites it is noticed that the reports items cannot be tracked back to Fixed Assets Register, hence the physical veri_cation report should contain a primary information which can be tallied from Fixed Assets Register.

(c) According to the information and explanations given to us, the records examined by us and based on the Title deeds provided to us, we report that, the title deeds, comprising all the immovable properties (including leased assets where the Company is a lessee) of land and building, are held in the name of the Company as on the balance sheet date except for the following where the title deeds are not in the name of the Company:

Relevant line item in the Balance Sheet	Description of Property	Gross Carrying Value (D in Lacs)	Held in the name of	Whether promoter, director or their relative or employee	Property held – indicate range, where appropriate	Reason for not being held in the name of Company
Property, Plant and Equipment	Flat No. 207 in Vaikunth Building, 82-83 Nehru Place, Delhi	2	Shri K. L. Bhatia	-	1984	Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property, Plant and Equipment	Flat No. 209 in Vaikunth Building, 82-83 Nehru Place, Delhi	2	Mrs. Sunita Bhan	-	1992	Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property, Plant and Equipment	Flat No. 204 in Vaikunth Building, 82-83 Nehru Place, Delhi	5	Shri Bhuvan Chawla	-	1997	Purchase agreement and Mutation is endorsed in the name of the Company. Municipal taxes are paid by the Company.
Property, Plant and Equipment	Flat at Sector-29, Vashi, Navi Mumbai	5	Amitabh Das Mundhra	-	2000	Flat being acquired in a co- operative society was required to be registered in the name of a non- corporate.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) or Intangible assets or both during the year.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

II. (a) As informed, the inventories of the Company have been physically veri_ed by the management during the year except for one of the contract, inventory valuing Rs. 2,815 lacs which is under the custody of third party (contractee) and is under arbitration. In our opinion and according to the information and explanations given to us, the frequency of such veri_cation is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on veri_cation between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory. Minor discrepancies noticed during physical veri_cation were properly dealt within the books of account.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of _ve crore rupees, in aggregate, from banks on the basis of security of current assets. In our opinion, the quarterly returns or statements _led by the Company with such banks are in agreement with the books of account of the Company.

III. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any investments in subsidiaries and provided guarantee or security which are characterized as loans secured or unsecured to LLPs, _rms or companies or any other person during the year. Accordingly, provisions of clause

3(iii)(a), 3(iii)(b), 3(iii)(c), 3(iii)(d), 3(iii)(e) and 3(iii)(f) of the Order are not applicable to the Company.

IV. In our opinion and according to information and explanations given to us the Company has, in respect of loans, investments, guarantees, and security, complied with the provisions of section 185 and 186 of the Act. V. The Company has not accepted any deposits or amounts which are deemed to be deposits from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Act. In respect of overdue earnest money deposits and security deposits, Management is of the view that overdue earnest money deposits and security deposits of suppliers/contractors appearing in the books are in the nature of retention money for performance of contracts for supply of goods and services and accordingly, not to be treated as deemed deposits by virtue of amendment in rule 2, sub rule (1), clause (c) of the Companies (Acceptance of Deposits) Amendment Rules 2016.

VI. We have broadly reviewed the books of accounts maintain by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(i) of the companies Act, 2013, related to its product/services, and are of the opinion that prima facie, the speci_ed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

VII. In respect of statutory dues:

(a) Based on the information and explanations given to us and according to the records maintained by the Company, in our opinion, there is delays in depositing dues in respect of Provident Fund, Employees State Insurance (ESI), Pension Fund and Professional Tax during the year, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including Goods and Service Tax, Cess, Value Added Tax and other material statutory dues applicable to it.

According to the information and explanations given to us, the extent of the arrears of statutory dues outstanding as at March 31, 2023 for a period of more than six months from the date they became payable are as follows :

Statement of Arrears of Statutory Dues outstanding for more than Six months

Name of the statute	Nature of dues	Amount (D In Lacs)	Period to which amount relates	Due date	Remarks
The Employees Provident Fund &	Provident Fund	7.18	June, 2019	15/07/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	15.22	July, 2019	15/08/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	14.79	August, 2019	15/09/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	18.95	September, 2019	15/10/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	7.82	October, 2019	15/11/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.45	November, 2019	15/12/2019	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.08	December, 2019	15/01/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	3.61	January, 2020	15/02/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.56	February, 2020	15/03/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.06	March, 2020	15/04/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.67	April, 2020	15/05/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.15	May, 2020	15/06/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.77	June, 2020	15/07/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.37	July, 2020	15/08/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.02	August, 2020	15/09/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.78	September, 2020	15/10/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.92	October, 2020	15/11/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.90	November, 2020	15/12/2020	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.87	December, 2020	15/01/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.77	January, 2021	15/02/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.61	February, 2021	15/03/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.71	March, 2021	15/04/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.34	April, 2021	15/05/2021	-
Miscellaneous provisions Act,1952

 

Name of the statute	Nature of dues	Amount (D In Lacs)	Period to which amount relates	Due date	Remarks
The Employees Provident Fund &	Provident Fund	1.41	May, 2021	15/06/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.84	June, 2021	15/07/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	5.60	July, 2021	15/08/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	6.65	August, 2021	15/09/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	6.70	September, 2021	15/10/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	3.17	October, 2021	15/11/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	2.40	November, 2021	15/12/2021	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	3.57	December, 2021	15/01/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.19	January, 2022	15/02/2022	Rs. 0.75 lacs paid
Miscellaneous provisions Act,1952					on 05/05/2023
The Employees Provident Fund &	Provident Fund	3.40	February, 2022	15/03/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.27	March, 2022	15/04/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.18	April, 2022	15/05/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	4.47	May, 2022	15/06/2022	Rs. 0.36 lacs paid
Miscellaneous provisions Act,1952					on 13/05/2023
The Employees Provident Fund &	Provident Fund	1.43	June, 2022	15/07/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.33	July, 2022	15/08/2022	Rs. 0.60 lacs paid
Miscellaneous provisions Act,1952					on 13/05/2023
The Employees Provident Fund &	Provident Fund	1.38	August, 2022	15/09/2022	-
Miscellaneous provisions Act,1952
The Employees Provident Fund &	Provident Fund	1.11	September, 2022	15/10/2022	-
Miscellaneous provisions Act,1952
The Employees State Insurance Act, 1948	ESI	1.73	March, 2019	15/04/2019	-
The Employees State Insurance Act, 1948	ESI	0.72	April, 2019	15/05/2019	-
The Employees State Insurance Act, 1948	ESI	0.43	May, 2019	15/06/2019	-
The Employees State Insurance Act, 1948	ESI	0.17	June, 2019	15/07/2019	-
The Employees State Insurance Act, 1948	ESI	0.40	September, 2021	15/10/2021	-
The Employees State Insurance Act, 1948	ESI	0.16	October, 2021	15/11/2021	-
The Pension Fund Regulatory and	Pension Fund	3.56	September, 2021	15/10/2021	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	4.79	October, 2021	15/11/2021	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	3.07	November, 2021	15/12/2021	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.99	December, 2021	15/01/2022	-
Development Authority Act, 2013

 

Name of the statute	Nature of dues	Amount (D In Lacs)	Period to which amount relates	Due date	Remarks
The Pension Fund Regulatory and	Pension Fund	3.08	January, 2022	15/02/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.73	February, 2022	15/03/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.68	March, 2022	15/04/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.49	April, 2022	15/05/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.21	May, 2022	15/06/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	1.94	June, 2022	15/07/2022	-
Development Authority Act, 2013
The Pension Fund Regulatory and	Pension Fund	2.10	July, 2022	15/08/2022	Rs. 0.23 lacs paid
Development Authority Act, 2013					on 26/04/2023
The Pension Fund Regulatory and	Pension Fund	2.00	August, 2022	15/09/2022	Rs. 0.21 lacs paid
Development Authority Act, 2013					on 26/04/2023
The Pension Fund Regulatory and	Pension Fund	2.95	September, 2022	15/10/2022	Rs. 0.26 lacs paid
Development Authority Act, 2013					on 26/04/2023
Maharashtra Professional Tax	Professional Tax	0.16	April, 2022	21/05/2022	-
Maharashtra Professional Tax	Professional Tax	0.15	May, 2022	21/06/2022	-
Maharashtra Professional Tax	Professional Tax	0.15	June, 2022	21/07/2022	-
Maharashtra Professional Tax	Professional Tax	0.17	July, 2022	21/08/2022	-
Maharashtra Professional Tax	Professional Tax	0.17	August, 2022	21/09/2022	-
Maharashtra Professional Tax	Professional Tax	0.17	September, 2022	21/10/2022	-
Assam Professional Tax	Professional Tax	0.27	July, 2022	21/08/2022	-
Assam Professional Tax	Professional Tax	0.25	August, 2022	21/09/2022	-
Assam Professional Tax	Professional Tax	0.24	September, 2022	21/10/2022	-
Odisha Professional Tax	Professional Tax	0.30	April, 2022	21/05/2022	-
Odisha Professional Tax	Professional Tax	0.29	May, 2022	21/06/2022	-
Odisha Professional Tax	Professional Tax	0.30	June, 2022	21/07/2022	-
Odisha Professional Tax	Professional Tax	0.25	July, 2022	21/08/2022	-
Odisha Professional Tax	Professional Tax	0.24	August, 2022	21/09/2022	-
Odisha Professional Tax	Professional Tax	0.24	September, 2022	21/10/2022	-
Tamilnadu Professional Tax	Professional Tax	1.05	April, 2022	21/05/2022	-
Jharkhand Professional Tax	Professional Tax	0.14	April, 2022	21/05/2022	Rs. 0.14 lacs paid
					on 14/04/2023
Jharkhand Professional Tax	Professional Tax	0.14	May, 2022	21/06/2022	Rs. 0.14 lacs paid
					on 14/04/2023
Jharkhand Professional Tax	Professional Tax	0.15	June, 2022	21/07/2022	Rs. 0.15 lacs paid
					on 14/04/2023
Jharkhand Professional Tax	Professional Tax	0.14	July, 2022	21/08/2022	Rs. 0.14 lacs paid
					on 14/04/2023
Jharkhand Professional Tax	Professional Tax	0.14	August, 2022	21/09/2022	Rs. 0.14 lacs paid
					on 14/04/2023
Jharkhand Professional Tax	Professional Tax	0.14	September, 2022	21/10/2022	Rs. 0.14 lacs paid
					on 14/04/2023

(b) Based on information and explanations given to us and according to the records maintained by the Company, the dues in respect of sales tax, service tax, income tax, professional tax, duty of excise and value added tax, entry tax that have not been deposited on account of any dispute, are as follows:

Name of the statute	Nature of dues	Period to which the amount relates	Forum where the dispute is pending	Amount involved (D in Lacs)	Amount Unpaid (D in Lacs)
Central Excise Act, 1944	Excise Duty	2007-08	Customs, Excise & Service Tax	149.67	84.42
			Appellate Tribunal
Central Excise Act, 1944	Excise Duty	2009-10 to	Customs, Excise & Service Tax	30.00	30.00
		2010-11	Appellate Tribunal
Central Excise Act, 1944	Excise Duty	April 2009 -	CESTAT, Bangalore	36.10	34.30
		December 2009
Central Excise Act, 1944	Excise Duty	April 2014 –	CESTAT, Delhi	37.17	36.15
		December 2015
Central Excise Act, 1944	Excise Duty	March 2013 –	Karnataka High Court	179.12	172.44
		February 2016
Central Excise Act, 1944	Excise Duty	January 2012 –	CESTAT, Bangalore	175.71	175.71
		March 2016
Central Excise Act, 1944	Excise Duty	January 2013 –	CESTAT, Bangalore	252.00	242.93
		February 2016
Central Excise Act, 1944	Excise Duty	2013-14 to	Commissioner Appeal	70.75	70.65
		2015-16
Foreign Trade Policy 2015-2020	SEIS Bene_t	2015-2020	DGFT, KOLKATA	641.09	641.09
Finance Act,1994-Service Tax	Service Tax	June 2007 -	CESTAT, Kolkata	340.85	340.85
		May 2008
Finance Act,1994-Service Tax	Service Tax	August 2008 -	CESTAT, Kolkata	1,786.19	1,786.19
		September 2011
Finance Act,1994-Service Tax	Service Tax	10-09-2004 to	CESTAT, Delhi	525.36	485.96
		30-09-2008
Finance Act,1994-Service Tax	Service Tax	2007-08 &	Commissioner of Central Excise	1.26	1.26
		2008-09	(Appeals)
Finance Act,1994-Service Tax	Service Tax	Oct15 to Jun17	Commissioner (Appeals)	177.99	-
Andhra Pradesh Value Added Tax Act, 2005	VAT	2007-08	Andhra Pradesh High Court	128.40	128.40
Andhra Pradesh VAT Act, 2005	VAT	2008-09	Andhra Pradesh High Court	372.57	372.57
Andhra Pradesh VAT Act, 2005	VAT	2009-10	Andhra Pradesh High Court	397.32	397.32
Andhra Pradesh VAT Act, 2005	VAT	2010-11	Andhra Pradesh High Court	114.27	114.27
Andhra Pradesh VAT Act, 2005	VAT	2011-12	Andhra Pradesh Taxation	27.87	27.87
			Tribunal
West Bengal VAT Act, 2003	VAT	2006-07	High Court of Calcutta	3.93	3.93
West Bengal VAT Act, 2003	VAT	2010-11	Taxation Tribunal	118.81	118.81
West Bengal VAT Act, 2003	VAT	2011-12	Taxation Tribunal	3,550.05	3,545.05
West Bengal VAT Act, 2003	VAT	2013-14	Taxation Tribunal	2,293.95	2,293.95
West Bengal VAT Act, 2003	VAT	2015-16	Appellate forum-CD-2, West	271.74	231.06
			Bengal
Maharashtra VAT Act, 2002	VAT	2012-13	Joint Commissioner of Sales Tax	5,539.05	5,332.80
Maharashtra VAT Act, 2002	VAT	2013-14	Maharashtra State Tribunal	407.12	375.54
Maharashtra VAT Act, 2002	VAT	2014-15	Joint Commissioner Sales Tax	55.06	51.88
Chhattisgarh VAT Act, 2005	VAT	2006-07	Sales Tax Tribunal, Raipur	132.71	-
Chhattisgarh VAT Act, 2005	VAT	2007-08	Sales Tax Tribunal, Raipur	86.56	-

 

Name of the statute	Nature of dues	Period to which the amount relates	Forum where the dispute is pending	Amount involved (D in Lacs)	Amount Unpaid (D in Lacs)
Chhattisgarh VAT Act, 2005	VAT	2008-09	Sales Tax Tribunal, Raipur	103.79	-
Chhattisgarh VAT Act, 2005	VAT	2014-15	Additional Commissioner,	35.37	28.29
			Commercial Tax, Bilaspur
Chhattisgarh VAT Act, 2005	VAT	2015-16	Additional Commissioner,	61.46	52.24
			Commercial Tax, Bilaspur
Jharkhand VAT Act, 2005	VAT	2006-07	As represented by the	80.31	80.31
			management, the appeal is
			yet to be _led due to pending
			receipt of certi_ed copy of order.
Kerala VAT Act, 2003	VAT	2007-08	DC (Appeal) Ernakulum	15.72	12.58
Kerala VAT Act, 2003	VAT	2009-10	AC (Works Contract) Ernakulum	9.24	4.30
Kerala VAT Act, 2003	VAT	2011-12	DC (Appeal), Ernakulum	35.94	-
Haryana VAT Act, 2003	VAT	2009-10	Haryana VAT Tribunal	12.18	12.18
Haryana VAT Act, 2003	VAT	2012-13	Haryana VAT Tribunal	22.43	22.43
Haryana VAT Act, 2003	VAT	2013-14	Haryana VAT Tribunal	34.07	34.07
Haryana VAT Act, 2003	VAT	2014-15	Haryana VAT Tribunal	58.79	58.79
Haryana VAT Act, 2003	VAT	2015-16	Haryana VAT Tribunal	32.51	32.51
Haryana VAT Act, 2003	VAT	2016-17	Appeal _led with Tribunal	164.72	164.72
Haryana VAT Act, 2003	VAT	2017-18	Jt. Commissioner, Appeal	441.22	441.22
Uttar Pradesh VAT Act, 2008	VAT	2017-18	Deputy Commissioner	158.45	158.45
Karnataka VAT Act, 2003	VAT	2016-17	Karnataka High Court	41.29	41.29
Karnataka VAT Act, 2003	VAT	01.04.2017 to	Karnataka High Court	14.38	14.38
		30.06.2017
Orissa VAT Act, 2004	VAT	2015-16	Joint Commissioner of Sales Tax	68.19	64.04
			(Appeal) Cuttack - II Circle
Andhra Pradesh General Sales Tax Act,1957	Sales Tax	2003-04	Appellate Tribunal in Vizag	8.59	7.71
Goa Sales Tax Act, 1964	Sales Tax	2004-05	Additional CCT(Appeal), Margao	64.36	64.36
Orissa Sales Tax Act, 1947 [For Sambalpur]	Sales Tax	1985-86, 1988-89	Sales Tax Appellate Tribunal	2.58	2.58
		& 1989-90
Bombay Sales Tax Act,1959	Sales Tax	2003-04 &	Bombay High Court	144.34	144.34
		2004-05
Goa - Central Sales Tax Act, 1956	CST	2003-04	Additional CCT(Appeal), Margao	7.12	7.12
Goa - Central Sales Tax Act, 1956	CST	2006-07	Sales Tax Appellate Authority	0.50	0.50
WB - Central Sales Tax Act, 1956	CST	2010-11	West Bengal Commercial Taxes	8.94	8.94
			Appellate and Revisional Board
West Bengal - Central Sales Tax Act, 1956	CST	2011-12	Taxation Tribunal	149.51	136.83
West Bengal - Central Sales Tax Act, 1956	CST	2013-14	West Bengal Commercial Taxes	30.14	6.76
			Appellate and Revisional Board
West Bengal - Central Sales Tax Act, 1956	CST	2014-15	West Bengal Commercial Taxes	32.58	15.21
			Appellate and Revisional Board
Orissa Central Sales Tax Act, 1957	CST	2013-14 &	Additional CCT (Appeal) Cuttack	1.95	1.56
		2014-15
Kerala CST Act, 1957	CST	2014-15	Sales Tax O_ce(WC) Ernakulum	0.72	0.72
Uttar Pradesh Central Sales Tax Act, 1956	CST	2017-18	Deputy Commissioner	2.00	2.00
Tamil Nadu General Sales Tax Act, 1959	Sales Tax	2000-2001	Sales Tax Appellate Tribunal	320.86	320.86
			(STAT)

 

Name of the statute	Nature of dues	Period to which the amount relates	Forum where the dispute is pending	Amount involved (D in Lacs)	Amount Unpaid (D in Lacs)
Chhattisgarh Commercial Tax Act, 1994	Sales Tax	2003-04	The Under Secretary,	5.49	-
			Commercial Tax Department
			Government of Chhattisgarh
Chhattisgarh Commercial Tax Act, 1994	Sales Tax	2004-05	The Under Secretary,	4.16	-
			Commercial Tax Department
			Government of Chhattisgarh
Chhattisgarh Commercial Tax Act, 1994	Sales Tax	2005-06	Taxation Tribunal	42.98	-
Goods & Service Tax Act, 2017	GST	October 2019 to	High Court in Ranchi,	1,038.31	1,038.31
		March 2020	Jharkhand
Goods & Service Tax Act, 2017	GST	July 2017 to	High Court in Bangalore,	1,179.35	1,179.35
		March 2018	Karnataka
Goods & Service Tax Act, 2017	GST	July 2017 to	Pending appeal _ling before	55.34	55.34
		March 2018	CGST commissioner(A), Patna
Goods & Service Tax Act, 2017	GST	2022-23	Commissioner CGST CX,	18.53	18.53
			West Bengal
Goods & Service Tax Act, 2017	GST	April19-March20	Commissioner (Appeal),	1.87	-
			Chhattisgarh
Goods & Service Tax Act, 2017	GST	April18-March19	Commissioner (Appeal),	19.97	17.98
			Telangana
Goods & Service Tax Act, 2017	GST	April18-March19	Allahabad High Court	288.03	288.03
Goods & Service Tax Act, 2017	GST	April19-March20	Allahabad High Court	420.69	420.69
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2005-06 to	High Court	78.85	-
		2008-09
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2009-10	CG Taxation Tribunal	51.73	35.17
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2010-11	CG Taxation Tribunal	25.24	21.45
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2011-12	Addl CCT Bilaspur	39.97	39.97
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2012-13	CG Taxation Tribunal	23.24	23.24
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2013-14	Addl CCT Bilaspur	33.84	28.41
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2014-15	CG Taxation Tribunal	24.08	20.47
Chhattisgarh Entry Tax Act, 1976	Entry Tax	2015-16	Addl CCT Bilaspur, Divn - 1	19.89	16.91
Orissa Entry Tax Act, 1999	Entry Tax	2013-14 &	Addl CCT (Appeal) Cuttack	10.51	9.81
		2014-15
WB- Entry Tax Act, 2012	Entry Tax	2015-16	Taxation Tribunal	100.03	100.03
Uttar Pradesh Entry Tax Act, 2000	Entry Tax	2006-07	Supreme Court	64.74	64.74
Uttar Pradesh Entry Tax Act, 2000	Entry Tax	2007-08	Supreme Court	47.97	47.97
Uttar Pradesh Entry Tax Act, 2000	Entry Tax	2008-09	Supreme Court	61.88	61.88
Uttar Pradesh Entry Tax Act, 2000	Entry Tax	2010-11	Supreme Court	59.79	59.79
Uttar Pradesh Entry Tax Act, 2000	Entry Tax	2017-18	Deputy Commissioner	25.00	25.00
Income-Tax (80IA Matter)	Income Tax	2005-06	High Court	268.48	268.48
Income-Tax (80IA Matter)	Income Tax	2006-07	High Court	413.93	413.93
Income-Tax (80IA Matter)	Income Tax	2008-09	High Court	379.51	379.51
Income-Tax (80IA Matter)	Income Tax	2009-10	High Court	257.74	257.74
Income-Tax (80IA Matter)	Income Tax	2009-10	CIT(A)	66.74	66.74
West Bengal State Tax on Professions, Trades,	Professional	1981-82 to	Honorable Asst. Commissioner	4.34	4.34
Callings and Employments Act, 1979	Tax	1994-95	of Professional Tax

VIII. According to the information and explanations given to us and on the basis of our examination of the records of the Company, there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

IX. (a) The Company has defaulted in repayment of principal and interest thereon which are due on cash credit, WCDL, Term loan etc. obtained from banks/_nancial institution and non-convertible Debenture Holders as set out below:-

Nature of borrowing, including debt securities	Name of lender	Amount not paid on due date (D in lacs)	Whether principal or interest	Default in repayment of principal and interest (			Remarks, if any
				Upto 180 days	From 181 Days to 365 Days	D in lacs) Above 365 Days
Secured Non-	Axis Bank Ltd	7,757	Both	337	337	7,083	-
Convertible debentures	Bank of Baroda	5,209	Both	222	662	4,325	-
	Bank of Baroda (Employees)	775	Both	34	34	707	-
	Pension Fund
	Bank of Baroda Provident Fund	776	Both	34	34	707	-
	Trust
	Bank of India	11,279	Both	1,571	413	9,296	-
	Bank of Maharashtra Tibd	1,464	Both	62	62	1,340	-
	Canara Bank	8,273	Both	352	793	7,128	-
	Canara Bank-Mumbai	3,080	Both	128	128	2,824	-
	General Insurance Corporation	2,110	Both	753	52	1,305	-
	of India
	HDFC Trustee Company Ltd A/C	19,560	Both	904	907	17,749	-
	HDFC Credit Risk Debt Fund
	Indian Bank	1,552	Both	68	69	1,415	-
	Indian Overseas Bank	7,425	Both	314	1,413	5,698	-
	Prathama U P Gramin Bank	2,237	Both	96	96	2,045	-
	Punjab And Sind Bank	2,256	Both	747	51	1,458	-
	United India Insurance	1,406	Both	60	61	1,285	-
	Company Limited
Secured Rupee Term	Karnataka Bank Limited	170	Both	6	7	157	-
Loan from Bank	HDFC Bank Limited	2,623	Both	147	294	2,182	-
	ICICI Bank Limited	157	Both	24	23	110	-
	Axis Bank Ltd.	33	Both	-	-	33	-
	The Federal Bank Ltd.	1,139	Both	37	67	1,035	-
Secured Rupee Term	Sundaram Finance Limited	74	Both	5	9	60	-
Loan from Financial	Tata Capital Financial Services	85	Both	-	-	85	-
Companies	Limited
	SREI Equipment Finance Limited	4,612	Both	133	708	3,771	-
	Kotak Mahindra Prime Limited	28	Both	1	6	21	-
	Mahindra & Mahindra Financial	289	Both	49	51	189	-
	Services Limited
	Hinduja Leyland Finance	904	Both	105	109	690	-
	Limited
	IFCI Limited	403	Both	-	53	350	-

 

				Default in repayment of principal and interest (			Remarks, if any
Nature of borrowing, including debt securities	Name of lender	Amount not paid on due date (D in lacs)	Whether principal or interest	Upto 180 days	in lacs) From 181 Days to 365 Days	D Above 365 Days
Secured Foreign	Bank Muscat	4,720	Both	189	251	4,280	-
Currency Term Loan	IndusInd Bank Ltd.	7,450	Both	1,392	1,395	4,663	-
from Bank
Rupee Working Capital	Axis Bank Ltd	2,652	Both	-	1,119	1,533	-
Loans repayable on	Bank of Baroda	13,161	Both	1,687	3,432	8,042	-
demand from Bank
	Bank of India	13,616	Both	1,268	1,078	11,270	-
	Bank of Maharashtra	1,461	Both	121	241	1,099	-
	Canara Bank	10,352	Principal	1,282	1,153	7,917	-
	Syndicate Bank	13,962	Principal	1,797	4,070	8,095	-
	Central Bank of India	6,084	Both	477	459	5,148	-
	DCB Bank Ltd.	1,355	Both	328	651	376	-
	HDFC Bank Ltd	5,147	Both	655	714	3,778	-
	ICICI Bank Ltd	8,699	Both	1,402	511	6,785	-
	IDBI Bank	5,100	Both	443	468	4,189	-
	Indian Bank	14,636	Both	1,934	5,687	7,015	-
	Allahabad Bank	60,933	Both	8,014	15,149	37,770	-
	IndusInd Bank	3,632	Both	1,405	691	1,536	-
	Karnataka Bank Ltd	5,178	Both	756	763	3,659	-
	Karur Vysya Bank Ltd	6,348	Principal	677	526	5,145	-
	Punjab National Bank	25,865	Principal	2,021	6,260	17,584	-
	Oriental Bank of Commerce	3,756	Both	783	948	2,025	-
	United Bank of India	67,128	Principal	13,342	8,282	45,504	-
	RBL Bank Ltd	7,380	Both	1,723	874	4,783	-
	Standard Chartered Bank	2,983	Both	2,712	13	258	-
	State Bank of India	78,321	Both	11,172	7,063	60,086	-
	The Lakshmi Vilas Bank Ltd	677	Both	106	100	471	-
	UCO Bank	2,630	Both	345	347	1,938	-
	Union Bank of India	21,100	Both	2,501	2,059	16,540	-
	Andhra Bank	1,908	Both	271	485	1,152	-
Rupee Working Capital	J C Flowers Assets	1,111	Interest	-	366	745	-
Loans repayable on	Reconstruction Private Limited
demand from Financial
Company

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not been declared a willful defaulter by any bank or _nancial institution or other lender.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, term loans were applied for the purpose for which the loans were obtained.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, funds raised on short term basis have, prima facie, not been used during the year for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the _nancial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or joint ventures. Accordingly, clause 3(ix)(e) of the Order is not applicable.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries or joint ventures. Accordingly, clause 3(ix)(f) of the Order is not applicable.

X. (a) In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public o_er or further public o_er (including debt instruments) during the year. Accordingly, clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly or optionally convertible debentures during the year. Accordingly, clause 3 (x)(b) of the Order is not applicable to the Company. XI. (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Companies Act, 2013 has been _led by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) According to the information and explanations given to us, no whistle blower complaints have been received by the company during the year. XII. The Company is not a Nidhi Company. Hence, reporting under clauses 3(xii)(a), (b) and (c) of the Order is not applicable to the Company.

XIII. According to the information and explanations given to us by the management and based on our examination of books of accounts, transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable and the details of such transactions have been disclosed in the Note No. 30 to the Standalone Financial Statements as required by the applicable accounting standards. XIV. (a) The company is having Internal Audit Department responsible for carrying out the internal audit of various contracts/project sites and process (i.e. Sales, Pay roll etc.) at periodical intervals as per the approved audit plan. The internal audit system adopted by the internal audit department is commensurate with the size and nature of the business of the company.

(b) We have considered the internal audit reports for the year under audit, submitted by Internal Audit Department to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

XV. According to the information and explanations given to us and as represented to us by the management and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clauses 3(xv) of the Order are not applicable.

XVI. According to the information and explanations given to us and based on our examination of the records of the Company, (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. (b) The company has not conducted any Non- Banking Financial or Housing Finance activities during the year.

(c) The Company is not a Core Investment Company (CIC) as de_ned in the regulations made by the Reserve Bank of India.

(d) The Group does not have any CIC.

Accordingly, clauses 3(xvi) (a), (b), (c) and (d) of the Order are not applicable.

XVII. The Company has incurred cash losses in current and in the immediately preceding _nancial year to the extent of Rs. 70,701 lacs and Rs. 64,772 lacs respectively.

XVIII. There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

XIX. According to the information and explanations given to us and on the basis of the _nancial ratios, ageing and expected dates of realization of _nancial assets and payment of _nancial liabilities, other information accompanying the Standalone Financial Statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, the company has incurred net loss Rs. 50,624 lacs for the year (P.Y. Rs. 52,631 lacs) and also there was default in payment of _nancial debts, to its bankers and other amounting to Rs. 4,83,021 lacs as on March 31, 2023 (P.Y. Rs. 3,58,131 lacs). The Company is in the process of _nalizing a resolution plan with its lenders. The payment of _nancial liabilities depends on successful completion of resolution plan and improving credit pro_le of the company and in time bound realization of its assets, arbitration claims etc as mentioned note no. 36 of Standalone Financial Statements. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due, will get discharged by the Company.

XX. In our opinion and according to the information and explanations given to us, the company has negative average net pro_t of three immediately preceding _nancial years; the company was not required to spend any amount towards corporate social responsibilities under the provision of Section 135 of the Companies Act, 2013. Accordingly, reporting under clause 3(xx) of the Order is not applicable to the Company.

ANNEXURE ‘B

TO THE INDEPENDENT AUDITORS REPORT

{Referred to in Paragraph (2)(g) of "Report on Other Legal and Regulatory Requirements" section of our Independent Auditors Report}

To The Independent Auditors Report of even date on The Standalone Financial Statement of Simplex Infrastructures Limited

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal _nancial controls over _nancial reporting of Simplex Infrastructures Limited (hereinafter referred as "the Company") as of March 31, 2023 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal _nancial controls based on the internal control over _nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal _nancial controls that were operating e_ectively for ensuring the orderly and e_cient conduct of its business, including adherence to respective companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable _nancial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the internal _nancial controls over _nancial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section

143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal _nancial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal _nancial controls over _nancial reporting was established and maintained and if such controls operated e_ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal _nancial controls over _nancial reporting and their operating e_ectiveness. Our audit of internal _nancial controls over _nancial reporting included obtaining an understanding of internal _nancial controls over _nancial reporting with reference to these Standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating e_ectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the _nancial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is su_cient and appropriate to provide a basis for our quali_ed audit opinion on the internal _nancial controls system over _nancial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal _nancial control over _nancial reporting is a process designed to provide reasonable assurance regarding the reliability of _nancial reporting and the preparation of _nancial statements for external purposes in accordance with generally accepted accounting principles. A companys internal _nancial control over _nancial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly re_ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of _nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material e_ect on the _nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal _nancial controls over _nancial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal _nancial controls over _nancial reporting to future periods are subject to the risk that the internal _nancial control over _nancial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditor on internal _nancial controls with reference to Standalone Financial Statements of the joint operation, the Company has, in all material respects, an adequate internal _nancial controls with reference to Standalone Financial Statements and such internal _nancial controls with reference to Standalone Financial Statements were operating e_ectively as at March 31, 2023, based on the criteria for internal _nancial control with reference to Standalone Financial Statements established by the respective Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls with reference to Standalone Financial Statements issued by the Institute of Chartered Accountants of India.