Simplex Infrastructures Ltd Management Discussions

Economic Overview

The global economy exhibited steady yet uneven growth across regions in FY 2024-2025. A notable trend was the slowdown in global manufacturing, especially in Europe and parts of Asia, due to supply chain disruptions and weak external demand. In contrast, the services sector performed better, supporting growth in many economies. Inflationary pressures eased in most economies. However, services inflation has remained persistent. Although commodity prices have stabilised, the risk of synchronised price increases persists. In this global context, India displayed steady economic growth. As per the first advance estimates of national accounts, Indias real GDP is estimated to grow by 6.4 per cent in FY25. Growth in the first half of FY25 was supported by agriculture and services, with rural demand improving on the back of favourable agricultural conditions. The manufacturing sector faced pressures due to weak global demand and domestic seasonal conditions. Private consumption remained stable, reflecting steady domestic demand. Fiscal discipline and strong external balance supported by a services trade surplus and healthy remittance growth contributed to macroeconomic stability. Together, these factors provided a solid foundation for sustained growth amid external uncertainties. Looking ahead, Indias economic prospects for FY26 are balanced. Headwinds to growth include elevated geopolitical and trade uncertainties and possible commodity price shocks. Domestically, the translation of order books of private capital goods sector into sustained investment pick-up, improvements in consumer confidence, and corporate wage pick-up will be key to promoting growth. Rural demand backed by a rebound in agricultural production, an anticipated easing of food inflation and a stable macro-economic environment provide an upside to near-term growth. Overall, India will need to improve its global competitiveness through grassroots-level structural reforms and deregulation to reinforce its medium-term growth potential.

India, the worlds_fourth-largest economy, has emerged as the fastest-growing major economy and is on track to become the worlds third-largest economy with a projected_GDP of $7.3 trillion by 2030. India is projected to be worlds fastest growing major economy (6.3% to 6.8% in 2025-26). This transformation is the result of a decade of_ decisive governance,_ visionary reforms, and_global engagement. Driven by robust domestic demand, a dynamic demographic profile, and sustained economic reforms, India is asserting its rising influence_ in global trade, investment, and innovation. At the core of this transformation is the vision of_ Aatmanirbhar Bharat, a movement that promotes_ innovation,_ entrepreneurship, and_ technological sovereignty. Strategic initiatives like the_Production Linked Incentive (PLI) schemes,firevitalisation of MSMEs, and the expansion of_ digital infrastructure_ have laid the foundation for a_ high-growth, high-opportunity economy. Equally central to this vision is_ inclusive and equitable growth. The governments policies have focused on_ job creation, support for_ small businesses, increased_public investment, and_financial empowerment_of the_middle class_and_entrepreneurs, ensuring that economic progress benefits every citizen. Today,_ India_ is a nation that is_ digital,_ green,_ aspirational, and_ future-ready, firmly advancing towards its goal of becoming a_global leader.

Industry Overview

Infrastructure is a key enabler in helping India become a US$ 26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. The governments focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. Infrastructure support to the nations manufacturers also remains one of the top agendas as it will significantly transform goods and exports movement making freight delivery effective and economical. The "Smart Cities Mission" and "Housing for All" programmes have benefited from these initiatives. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for Indias economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects.

To meet Indias aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour.

The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India and the Production-Linked Incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the countrys infrastructure spending has gone toward funding for transportation, electricity, and water, and_irrigation. While these_sectors still remain the key focus, the government has also started to focus on other sectors as Indias_ environment and demographics are evolving. There is a compelling need for enhanced and improved delivery across the whole infrastructure spectrum, from housing provision to water and sanitation services to digital and transportation demands, which will assure economic growth, increase quality of life, and boost sectoral competitiveness.

Business Review

The Company is a diversified company established in 1924 and executing projects in several sectors like Transport, Energy & Power, Mining, Buildings, Marine, Real Estate etc. The Company has been closely associated with the countrys infrastructure building with over 2600 completed projects spanning almost all the gamut of construction industry. During the year under review, the Company bagged new orders amounting to approx.C 6500 mns in various vertical it operates making the order book around C17000 mns as on 31st March 2025.

The Company has been under financial stress for the past few years and has defaulted on its payment obligations, including those owed to banks and financial institutions (the "Lenders") that had extended various credit facilities. Several debt restructuring proposals were presented by the Company under applicable RBI frameworks; however, these could not be implemented. Subsequently, the Lead Bank, Punjab National Bank, acting on behalf of all Lenders, approached the National Asset Reconstruction Company Limited (NARCL) with a request to acquire the Companys stressed assets. In response, NARCL offered C640 Crores for the assignment of the Companys fund-based and non-fund-based facilities, which aggregated to approximately C 5,650.37 Crores. The Lead Bank and a majority of the Lenders accepted this offer, and accordingly, their entire fund-based exposure, along with all related securities, rights, titles, and interests, was assigned to NARCL under an Assignment Agreement. Following this, the Company entered into a Master Restructuring Agreement (MRA) with NARCL on 15th January 2025 to facilitate the restructuring of its debt. The restructuring process is currently underway. As per the terms of the MRA, the Company is required to repay a sustainable debt amounting to C 1,250 Crores over a period of seven years. Additionally, NARCL has been allotted 15% of the Companys new equity shares through the conversion of the unsustainable portion of the debt.

Some of the key projects of the company during the year include: A few of the projects secured during the year

Execution of civil works and erection of prefab steel structures of balance of plant area for Raigarh Phase II ( 2X800 MW)

Construction of 2 Nos of Flyover on Omarpur Junction of NH 34 and on Dhulian junction of NRS.34 in West Bengal on EPC Mode

Construction of descoped portion of Binnaguri Bypass in Binnaguri Mouza of NH 27 Old NRS.31D from CH.17.500 to 23.000 of NRS.31D on EPC Mode

A few of the Projects completed during FY 2024-2025

Bijni To West Bengal Border Road Project, Srirampur, Assam

Gooda Thermal Power Project, Jharkhand

GWSSP Mapusa Goa Project (Goa Sewerage Project), Panaji, Goa

Raniganj Rehabilitation Housing Project, Asansol

NTPC Tandwa (Barrage & Intake water system), Jharkhand

Opportunities

The governments focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. Infrastructure support to the nations manufacturers will significantly transform goods and exports movement making freight delivery effective and economical. The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country.

Indias journey towards becoming a developed nation by 2047 hinges significantly on improving its infrastructure, a cornerstone for fostering liveable, climate-resilient, and inclusive cities that drive economic growth. The governments commitment is evident through its allocation of 3.3% of GDP to the infrastructure sector in the fiscal year 2024, with particular focus on the transport and logistics segments. Amidst strong demand and positive market conditions, the Company will have enormous opportunities and is expected to experience substantial growth in near future.

Urban Infrastructures

As India enters 2025, the landscape of its urban centers is not just expanding but transforming. This change, driven by an amalgamation of rapid urbanization, technological innovation, and environmental consciousness, paints a vivid picture of the future of urban living. The transformation is both a challenge and an opportunity, shaping cities into crucibles of growth and sustainability. The Smart Cities Mission, a visionary initiative by the Indian government, embodies the nations stride towards urban modernisation. It harnesses technology to forge cities that are not only livable and sustainable but also inclusive. While significant progress has been made, with advancements in areas like sewerage, waste management, and public transportation, the journey is fraught with challenges. India is urbanizing rapidly. Providing the necessary urban infrastructure is a big challenge: 70 to 80 per cent of the infrastructure that will be needed by 2050 has not been built yet, and the estimated investment gap amounts to approximately 827 billion US dollars.

The Company plays a pivotal role in shaping Indias urban landscape—delivering critical metro, transport, and civic infrastructure through its technical expertise. Despite some execution challenges, its deep resources, historical legacy, and engineering strength make it a key player in Indias push toward modern urban development. The share in order book from this sector is 13 percent.

Building & Housing

In FY 2024–2025, the Government of India significantly accelerated its building and housing efforts under flagship schemes aimed at ensuring affordable and inclusive housing. Under the Pradhan Mantri Awas Yojana – Gramin (PMAY-G), the government approved the construction of 2 Crore additional pucca houses between FY 2024–25 and 2028–29, with a target of 84 Lakh homes across priority states for the current year. Similarly, in the urban sector, the government continued to strengthen the Pradhan Mantri Awas Yojana

– Urban (PMAY-U), having sanctioned around 1.18 Crore homes to date, with 6 Lakh additional homes approved in FY 2024–25 under PMAY-U 2.0. The Smart Cities Mission marked substantial progress, with 7,479 out of 8,058 projects completed by March 2025, enhancing urban infrastructure and sustainability. Complementary programs such as AMRUT 2.0 and the Swachh Bharat Mission – Urban expanded access to water, sanitation, and waste management services across cities. Together, these initiatives reflect a holistic approach by the government, combining affordable housing, infrastructure development, and civic services to drive Indias vision of "Housing for All" and livable urban-rural environments.

The Company plays a prominent role in Indias building and housing landscape through its dedicated Building & Housing division. With a rich legacy since the 1950s in constructing high-rise residential towers, mass housing complexes, institutional buildings, hospitals, hotels, and apartments, Simplex brings nearly a century of engineering and construction expertise. The company has delivered significant turnkey housing projects—such as the 576-unit Dwelling Units complex in Rajarhat, Kolkata (via tunnel shuttering) and multi-storeyed complexes. Beyond residential buildings, it has erected institutional edifices educational campuses, spanning over a million square feet . The share in order book from this sector is 24 percent.

Power – Transmission

In FY 2024–2025, Indias power sector achieved remarkable milestones through capacity expansion, digital transformation, and policy innovation. Total installed capacity surged to nearly 475 GW. Renewables saw record addition of 25 GW (including 21 GW solar)—driven by strong domestic manufacturing growth and initiatives like the Production Linked Incentive (PLI) for solar modules. Transmission and distribution saw major reforms under the Revamped Distribution Sector Scheme (RDSS) to integrate renewable energy. The power system also met an all-time peak demand of 250 GW, with shortages reduced to a mere 0.1%, reflecting near-universal electrification and significant rural–urban supply improvements.Government schemes like PM Surya Ghar Muft Bijli Yojana for rooftop solar, PM-KUSUM, and support for hydro projects underlined the push toward sustainability and clean energy goals. Together, these efforts underline Indias strategic move towards a greener, smarter, and more resilient energy future—even as coal remains part of the transition strategy.

The Company is a cornerstone in Indias power sector, offering end-to-end solutions from civil groundwork and structural construction to precision fabrication and high-voltage transmission infrastructure—underpinned by strong technical expertise and modern equipment. Simplex has delivered EPC works for high-voltage transmission lines as well as civil foundations for special transmission towers across major corridors. The company efficiently executes deep piling and foundation work essential for massive power structures and transmission infrastructures. The share in order book from this sector is 20 percent.

Industrial Structures

In FY 2024–2025, India witnessed significant advancements in industrial infrastructure development, driven by strategic government initiatives aimed at enhancing manufacturing capabilities and fostering economic growth. The Union Budget 2024-25 allocated substantial investments to bolster industrial infrastructure. A key highlight was the sanctioning of 12 new industrial parks under the National Industrial Corridor Development Programme, designed to enhance industrial infrastructure and foster economic activity across key regions. Additionally, the government proposed the development of 100 "plug and play" industrial parks across the country, offering complete infrastructure and a hassle-free environment for businesses to set up operations quickly. These initiatives underscore Indias commitment to developing robust industrial infrastructure, attracting investments, and fostering sustainable economic growth. The Company has been a key player in the development of industrial structures across India, leveraging its expertise in heavy civil construction, structural steel fabrication, and foundation engineering. The company has executed large-scale industrial projects including factories, manufacturing units, refineries, and warehouses for sectors like steel, cement, chemicals, and automotive. With its robust capabilities in piling, deep foundations, RCC framed structures, and pre-engineered buildings, Simplex delivers turnkey solutions that meet stringent industrial standards. Its integrated approach—from design to execution—ensures timely and cost-efficient delivery of complex industrial facilities. The share in order book from this sector is 22 percent.

Roads & Bridges

In FY 2024–2025, Indias road and bridge infrastructure development experienced a strategic shift towards enhancing existing networks and completing critical expressway projects, reflecting a balanced approach to expansion and modernization. The National Highways Authority of India (NHAI) constructed 5,614 km of national highways, surpassing its target of 5,150 km. This achievement was supported by a capital expenditure exceeding C 2.5 Lakh Crore and the generation of C 28,724 Crore through asset monetization methods like toll-operate-transfer (TOT) and Infrastructure Investment Trusts (InvIT). Under the Interim Budget 2024-25, the Government of India has allocated C 2.78 Lakh Crore (US$ 33.46 billion) to the Ministry of Road Transport and Highways.

The Company has been a prominent contributor to Indias road infrastructure development, delivering end-to-end solutions encompassing civil construction, earthworks, and bridge building. The company specializes in executing complex highway projects, including expressways, national and state highways, flyovers, bridges, leveraging its expertise in piling, foundation works, and heavy civil engineering. With a strong fleet of specialized machinery and skilled workforce, Simplex efficiently handles challenging terrains and large-scale projects. Their involvement often spans from initial site preparation to final structural works, ensuring quality, safety, and timely completion. Through collaborations with government bodies like NHAI and state PWDs, Simplex supports Indias ambitions to enhance road connectivity and reduce travel times, playing a vital role in the nations infrastructure growth. The share in order book from this sector is 20 percent.

Railways

Indian Railways have embarked on a transformative journey to modernize its infrastructure, enhance safety, and improve passenger experience, with a record budget allocation of C2.52 Lakh Crore.Infrastructure development included laying 2,000 kilometers of new tracks, doubling single lines to boost capacity, and accelerating electrification efforts aimed at achieving 100% electrification of the broad gauge network by July 2024. The Amrit Bharat Station Scheme advanced the redevelopment of over 1,300 stations, enhancing passenger amenities, while the new RailOne app streamlined ticketing and other services for travelers. One major development is the launch of the "Vande Bharat Express", Indias first semi-high speed train. Indian railways plan to market semi-high-speed ‘Vande Bharat trains by 2025-26 to European, South American, and East Asian markets for exporting ‘Made in India trains.

The Company has played a significant role in Indias railway infrastructure development, contributing to various metro and railway projects across the country. A pioneer of automatic track-laying used for high speed trains, the Company have been a part of establishing the majority of metro and light railway projects in all major cities within India including Mumbai, Delhi, Kolkata and Bangalore. However, the share in order book of the Company from this sector is insignificant for the year under review.

Marine

The Indian maritime sector experienced significant growth, driven by strategic government initiatives aimed at enhancing infrastructure, sustainability, and global connectivity. The Sagarmala Programme continued to be a cornerstone, focusing on port modernization, coastal development, and improved connectivity through rail, road, and inland waterways. Under this initiative, over 279 projects were undertaken, including the construction of coastal berths, fish harbors, and cruise terminals, to bolster port infrastructure and logistics efficiency. Additionally, the Maritime India Vision 2030 outlined a comprehensive roadmap with over 150 initiatives across ten key maritime sectors, aiming to position India among the top 10 shipbuilding nations globally by 2030. Furthermore, the establishment of the Maritime Development Fund with an allocation of C 25,000 Crore provided long-term financing to modernize ports and shipping infrastructure, encouraging private investment and enhancing operational capabilities. Collectively, these initiatives underscore Indias commitment to strengthening its maritime sector, fostering economic growth, and enhancing its position in global maritime trade.

The Company has been a significant contributor to Indias marine infrastructure development, leveraging its extensive experience in civil engineering and construction. Since its foray into marine construction in 1968, the company has been associated with building many of Indias major ports, including Goa, Haldia, Vizag, Kochi, Mundra, Mumbai, Paradip, Adani, and Dahej. The company specializes in constructing marine structures such as ports, jetties, wharves, terminals, lighthouses, breakwaters, quays, and shipyards. With its comprehensive expertise and successful track record, the Company continues to play a vital role in advancing Indias marine infrastructure, supporting economic growth and enhancing maritime connectivity. However, the share in order book of the Company from this sector is insignificant for the year under review.

Threats, Risks and Concerns

The civil engineering construction industry faces multiple challenges that can impact project success and business sustainability. Key risks include project delays and cost overruns due to unforeseen site conditions, labor shortages, or supply chain disruptions. Regulatory and compliance risks arise from evolving environmental laws, safety standards, and local permits, requiring constant vigilance and adaptation. Financial risks such as cost over-runs, funding shortages, fluctuating raw material prices, poor cash flow management, and client payment delays can strain resources. These may also stall or delay the projects. Additionally, safety hazards on construction sites pose significant risks to workers and can result in legal liabilities or reputational damage. Market competition, technological changes, and geopolitical factors can also threaten profitability. Finally, climatic and environmental concerns, such as extreme weather events or sustainability pressures, increasingly influence project planning and execution, demanding more resilient and eco-friendly construction practices. Regulatory and policy uncertainties, including changes in government priorities, environmental regulations, and land acquisition issues, can create delays and increase costs. Technical risks involve engineering challenges, outdated technology, and quality control problems. Additionally, social concerns—like communityoppositionandecologicalimpact,posesignificant challenges requiring careful management. Operational risks include contractor performance, labor disputes, and supply chain disruptions. Security threats, such as vandalism or terrorism, may also impact critical infrastructure. Finally, market competition and political instability can influence investment confidence and project viability.

The major identified risk areas for Simplex are tendering, project execution, and procurement of materials, finance-liquidity related issues, foreign exchange transactions, market, interest rate & credit risk, personnel and IT. Moreover, the risks to the Companys businesses can arise from changes in technologies, evolution in business models as well as intensified competition. The Company recognizes that risk is an inherent part of the infrastructure and construction industry and has adopted a structured approach to manage its key risk areas effectively. In the area of tendering, the Company follows a rigorous pre-bid evaluation process to assess project viability, financial feasibility, and associated contractual risks before committing resources. During project execution, robust project management systems, timely resource allocation, and periodic reviews help mitigate delays and cost overruns. To address procurement risks, Simplex maintains a diversified supplier base and long-term vendor relationships, along with strategic sourcing practices to manage material availability and cost fluctuations. The Company remains agile in adapting to technological changes, evolving business models, and increasing competition by continuously upgrading its systems and exploring innovation in engineering solutions. While residual risks may persist, Simplex maintains a proactive and dynamic risk management culture to address them on an ongoing basis.

Internal Control System and their Adequacy

The Company has in place an internal control system commensurate with the size, nature, and complexity of its operations. These controls operate at both the entity and process levels and are designed to ensure the achievement of business objectives in a reliable and consistent manner. The internal control framework is aligned with the Companys strategic direction and is responsive to the dynamic business environment and evolving regulatory landscape. The system of internal controls facilitates the integrity of operations, safeguards Company assets, ensures the accuracy and completeness of accounting records, and supports the timely preparation of reliable financial information. It also provides mechanisms for the prevention and detection of frauds and errors through the implementation of detailed policies, procedures, and monitoring tools.

Executive management is primarily responsible for the establishment, operation, and continuous improvement of internal controls, supported by an independent Internal Audit function. Regular internal audits defined Standard Operating Procedures (SOPs), and periodic management reviews ensure that control systems remain effective and relevant. The internal control framework is also geared towards ensuring compliance with applicable laws and regulations, operational efficiency, and the reliability of financial reporting. Based on the review and evaluations conducted during the year, the Board is of the opinion that the Companys internal control systems are adequate and operating effectively.

Human Resource Development

Human capital plays a vital role in the civil engineering construction business, where timely project execution, safety, and quality heavily depend on workforce capability and coordination. At Simplex Infrastructures Limited, HR is a strategic enabler that ensures the right talent, skills, and safety culture are embedded across all levels of the organization. The Company places strong emphasis on workforce planning, training, and employee engagement to meet the dynamic demands of complex infrastructure projects.A dedicated team identifies skill gaps and provides targeted upskilling initiatives, including safety training, equipment handling, and on-site professional development. Safety remains a top organizational priority. The HR department works in close coordination with project managers and safety officers to implement comprehensive health and safety programs that comply with occupational safety regulations and project-specific requirements.

The Company has also adopted technology-driven learning methods such as simulation-based training to prepare workers for handling advanced machinery and unfamiliar terrains. These initiatives not only enhance operational efficiency but also promote a culture of continuous learning and adaptability. Simplex is proud of its low employee attrition rate, with many employees having been associated with the Company for an average tenure of 15 years—a testament to the organizations strong people practices and inclusive work culture. As of 31st March 2025, the Company had a diverse and committed workforce of 726 employees on its rolls, comprising regular employees, The Companys HR initiatives are guided by a people-first philosophy, where employee welfare, career development, and work-life balance are integral to our organizational ethos. Going forward, Simplex remains committed to investing in its people, recognizing that a motivated and skilled workforce is fundamental to delivering project excellence and sustaining competitive advantage.

Financial Performance

During the year under review, on standalone basis, revenue from operations were C7,313 mns as against C 10,109 mns in the previous year. The Company reported profit before exceptional items and tax of C47 mns as against loss of C1,035 mns in the previous financial year and net profit for the year was C97 mns as against loss of C 719 mns in previous financial year. Other Comprehensive loss for the year (net of tax) is C 33 mns as against income of C37 mns in the previous year. After considering other comprehensive income, total comprehensive income stood at C 64 mns as against loss of C682 mns in the previous year.

On a consolidated basis, the revenue from operations was C 10,756 mns as against C13,885 mns in the previous year. Profit before tax was C 74 mns as compared to loss of C1,034 mns in the previous year and profit for the year was C121mns as against loss of C 723 mns in the previous year. Other Comprehensive loss for the year (net of tax) is C35 mns as against profit of C 35 mns in the previous year. After considering other comprehensive income, total comprehensive income stood at C86 mns as against loss of C688 mns in the previous year.

Financial Ratios

In accordance with SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector–specific financial ratios. There have been significant changes in following key sector–specific financial ratios.

The reason for such variance is as follows:

(i) Current Ratio: Change in ratio resulted primarily for decrease in Current Liabilities during the year.

(ii) Net-Debt Equity Ratio: Change in ratio resulted primarily for decrease in borrowings and increase in equity during the year.

(iii) Debt service coverage ratio (DSCR): Change in ratio resulted due to Increase in Profit before Interest & Tax.

(iv) Return on equity ratio: Change in ratio resulted from increase in net profit during the year

(v) Net Capital Turnover Ratio: Change in ratio resulted from decrease in Revenue from Operations and increase in average Working capital.

(vi) Net Profit Ratio: Change in ratio resulted from decrease in net loss and in revenue form operation during the year.

Future Outlook

The future outlook for the construction industry in India is highly promising and closely aligned with the countrys broader economic growth trajectory. As one of the largest contributors to Indias GDP and employment, the sector is expected to expand significantly, driven by rapid urbanization, government-led infrastructure initiatives, and rising demand for residential and commercial spaces. Projects like the Smart Cities Mission, Bharatmala, PMAY (housing for all), and the National Infrastructure Pipeline are fueling sustained investment, while the growing emphasis on green buildings and sustainable construction reflects Indias commitment to environmental goals. The adoption of advanced technologies such as Building Information Modeling (BIM), prefabrication, and digital project management is enhancing efficiency, though challenges remain, including regulatory bottlenecks, skilled labor shortages, and rising input costs. Additionally, the rise of Tier II and Tier III cities as new growth hubs signals a broader and more inclusive development model. As India aims to become a $5 trillion economy, the construction sector will play a critical role in building not just infrastructure, but also economic resilience and future-ready urban ecosystems.

Simplex has played a pivotal role in advancing Indias urbanization and industrialization journey. By leveraging its in-house engineering capabilities, cutting-edge construction equipment, and robust project management expertise, the Company actively supports key government initiatives such as Smart Cities, Bharatmala, and the National Infrastructure Pipeline. These efforts not only contribute to GDP growth but also generate employment, improve regional connectivity, and lay the foundation for resilient infrastructure—critical to realizing Indias vision of becoming a $5 trillion economy. To ensure long-term, sustainable performance, Simplex is prioritizing improvements in cash flow management, optimizing its project portfolio, and reducing debt. Strengthening financial transparency and accelerating debt reduction will be central to restoring investor confidence and securing the Companys future growth trajectory.

Cautionary Statement

Statements in the Management Discussion and Analysis report concerning our future growth prospects are forward looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements. Neither our company, nor our Directors, nor any of their respective affiliates have any obligation to update or otherwise revise any statements reflecting circumstances arising after this date or to reflect the occurrence of underlying events even if the underlying assumptions do not come to fruit.