MIRA INFORM REPORT

 

 

Report Date :

16.05.2007

 

IDENTIFICATION DETAILS

 

Name :

SIMPLEX INFRASTRUCTURE LIMITED

 

 

Formerly Known As :

SIMLEX CONCRETE PILES INDIA LIMITED

 

 

Registered Office :

‘SIMPLEX HOUSE’ 27 Shakespeare Sarani, Kolkata-700017, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

19.12.1924

 

 

Com. Reg. No.:

21-4969

 

 

CIN No.:

[Company Identification No.]

L99999WB1924PLC004969

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALS00978F

 

 

PAN No.:

[Permanent Account No.]

AAECS0765R

 

 

Legal Form :

A public limited liability company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

The subject is Civil Engineering Company doing mainly the Contractors Business.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 9250000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial position of the company is good. Trade relations are fair. Payments are usually correct and as per commitments. The company is doing very well.

 

It can be considered good for any normal business dealings at usual trade terms and conditions

 

LOCATIONS

 

Registered Office :

‘SIMPLEX HOUSE’ 27 Shakespeare Sarani, Kolkata-700017, West Bengal

Tel. No.:

91-33-22839953/5967

Fax No.:

91-33-22835964/65/66

E-Mail :

simplexcal@simplexindia.com

calpersonnel@simplexindia.com

calpurchase@simplexindia.com

calaccts@simplexindia.com

Website :

http://www.simplexconcrete.com

 

 

Branches :

Vaikunth, 82-83, Nehru Place, New Delhi – 110019

 

Tel No. : 91-11-26432515/6818/26473300

Fax No.: 91-11-26465869

Email : delpersonnel@simplexindia.com

delpurchase@simplexindia.com

delaccts@simplexindia.com

 

New No.57 (Old No.38) Pantheon Road, Egmore, Chennai – 600008

 

502/A Poonam Chambers, 'A' Wing, 5th Floor Dr. Annie Besant Road

Worli, Mumbai-400018

Tel No.: 91-22-24922064/ 24929034/ 24913481/ 8397/ 1849/ 3537

Fax No.: 91-22-24912735

Email : bompersonnel@simplexindia.com

bompurchase@simplexindia.com

bomaccts@simplexindia.com

 

Doha Office

Post Box No. 22472, Doha, Qatar

 

Dubai Office

Post Box No. 124748, Dubai, U.A.E.

 

21,Casa Major Road, Egmore, Chennai - 600 008, India

Tel. No.: 91-44-8584802/03/04

Fax No. :91-44-8584802/05

E-Mail : chenpersonnel@simplexindia.com

chenpurchase@simplexindia.com

chenaccts@simplexindia.com

 

DIRECTORS

 

Name :

Mr. B.D. Mundhra

Designation :

Chairman and Managing Director

Email :

bdm@simplexindia.com

 

 

Name :

Mr. H.B. GuhaBiswas

Designation :

Director

Email :

hguhabiswas@simplexindia.com

 

 

Name :

Mr. A.D. Mundhra

Designation :

Director

Email :

adm@simplexindia.com

 

 

Name :

Mr. A. Mukherjee

Designation :

Director

Email :

amukherjee@simplexindia.com

 

 

Name :

Dr. R. Natarajan

Designation :

Director

 

 

Name :

Mr. B. Sengupta

Designation :

Director

 

 

Name :

Mr. S. Dutta

Designation :

Director

 

 

Name :

Mr. P.K. Nandy

Designation :

Director

 

 

Name :

Mr. Rajiv Mundhra

Designation :

Director

Email :

rajivmundhra@simplexindia.com

 

 

Name :

Mr. N.N. Bhattacharyya

Designation :

Director

 

 

Name :

Mr. Sheokishan Damani (w.e.f. 6.10.05)

Designation :

Director

 

 

Name :

Mr. Ashish Dhawan (w.e.f. 6.10.05 upto 19.05.06)

Designation :

Director

 

 

Name :

Mr. Kunal Shroff (w.e.f. 19.05.06)

Designation :

Director

 

 

Name :

Mr. A. K. Chatterjee

Designation :

Director

Email :

akchatterjee@simplexindia.com

 

KEY EXECUTIVES

 

Name :

Mr. B.L. Bajoria

Designation :

Company Secretary

 

 

Name :

Mr. S. Ray

Designation :

Chief Technical Manager

Email :

sray@simplexindia.com

 

 

Name :

Mr. D. N. Basu

Designation :

General Manager

Email :

dnbasu@simplexindia.com

 

 

Name :

Mr. S. Guha

Designation :

Technical Director

Email :

shankarguha@simplexindia.com

 

 

Name :

Mr. C. N. Raman

Designation :

Joint General Manager

Email :

cnraman@simplexindia.com

 

 

Name :

Mr. J. S. Raghavan

Designation :

Chief Commercial Manager

Email :

jsraghavan@simplexindia.com

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters and Directors

3983935

46.46 %

UTI and Mutual Funds

247214

2.88 %

Banks and FIs

1321849

15.42 %

NRI/OCBs

107939

1.26 %

Corporates

1834875

21.40 %

Individuals

1078654

12.58 %

Total

8574466

100.00 %

 

BUSINESS DETAILS

 

Line of Business :

The subject is Civil Engineering Company doing mainly the Contractors Business.

 

GENERAL INFORMATION

 

Customers :

       Private Sector

Ř       Alsthom Export

Ř       G.K.W. Limited

Ř       Piramal Group

Ř       Apeejay Group

Ř       General Electric Technical Services Company Inc.

Ř       RPG Group

Ř       Asea Brown Boveri Limited

Ř       Hindusthan Lever Limited

Ř       Siemens AGUB KWU

Ř       Backau Wolf India Limited

Ř       ICI Limited

Ř       Siemens Limited

Ř       Bajaj Auto Limited

Ř       Indian Aluminium Company Limited

Ř       Spic Capag - NKK - Toyo Consortium

Ř       Bata India Limited

Ř       ITC Limited

Ř       SPIC Fine Chemicals Limited

Ř       Bausch and Laumb (India) Private Limited

Ř       Jenson and Nicholson Limited

Ř       Tata Chemicals Limited

Ř       Bindal Agro Chem. Limited

Ř       Larsen and Toubro Limited

Ř       Tata Consultancy Engineering

Ř       Bira Jute

Ř       LML Limited

Ř       Tata EBASCO

Ř       Birla Bros Limited

Ř       Lupen Chemicals Limited

Ř       Tata Electric Company Limited

Ř       Birla Carbide factory

Ř       Mallya Group

Ř       Tata Iron and Steel Company

Ř       Birla Industrial and Technological Museum

Ř       Mcnally Bharat Engineering Limited

Ř       Tata Ore Bin

Ř       Birla Linoleum Factory

Ř       Mitsubishi Heavy Electrical Limited

Ř       Tata Power Company Limited

Ř       Birla Textile Machinery Corporation

Ř       Modi Group

Ř       Tata Projects Limited

Ř       Chhabria Group

Ř       MRF Limited

Ř       Tata Robins Fraser Limited

Ř       DCM Group

Ř       Nagarjuna Fertilisers and Chemicals Limited

Ř       The Associated Cement Company Limited

Ř       Dodsal Limited

Ř       Nippon Denro Ispat Limited

Ř       Toyo Engineering (India) Limited

Ř       EID Parry Limited.

Ř       Orient Cement

Ř       TVS Group

Ř       Elcon Engineering Company Limited

Ř       Orient Paper Mills

Ř       Walchand Group

Ř       Essar Construction

Ř       Peerless Group

 

      Public Sector

Ř       Bhaba Atomic Research Centre

Ř       India Tourism Development Corporation Limited

Ř       National Aluminium Corporation Limited

Ř       Bharat Electronics Limited

Ř       Indian Aluminium Company Limited

Ř       National Thermal Power Corporation Limited

Ř       Bharat Heavy Electricals Limited

Ř       Indian Farmers and Fertilizer Co-operative Limited

Ř       Nippon Denro Ispat Limited

Ř       Bharat Petroleum Limited

Ř       Indian Iron and Steel Company Limited

Ř       Oil and Natural Gas Commission Limited

Ř       Bindal Agro Chem. Limited

Ř       Indian Oil Corporation Limited

Ř       Port Trusts of Calcutta, Bombay, Madras Central and State PWDs

Ř       Director Gen. Naval Projects

Ř       Indian RailwaysIndian Railways

Ř       SPIC Fine Chemicals Limited

Ř       Fertilizers and Chemicals Travancore Limited

Ř       Jenson and Nicholson Limited

Ř       State Bank of India

Ř       Food Corporation of India Limited

Ř       Larsen and Toubro Limited

Ř       State Electricity Boards

Ř       Gujrat State Fertilizer Corporation Limited

Ř       Madras Refineries Limited

Ř       Steel Authority of India Limited

Ř       Hindustan Paper Corporation Limited

Ř       Military Engineering Services

Ř       Indian Aluminium Company Limited

Ř       Hindustan Steelworks Construction Company Limited

Ř       MRF Limited

Ř       Hindusthan Petroleum Limited

 

 

Bankers :

Ř       United Bank of India

Ř       Standard Chartered Bank

Ř       UCO Bank

Ř       ING Vysya Bank Limited

Ř       The Federal Bank Limited

Ř       ICICI Bank Limited

Ř       UTI Bank Limited

Ř       Induslnd Bank Limited

Ř       HDFC Bank Limited

Ř       Allahabad Bank

Ř       IDBI Bank Limited

Ř       Canara Bank

Ř       Centurion Bank of Punjab Limited

Ř       Punjab National Bank

Ř       Indian Bank

Ř       Central Bank of India

Ř       Oriental Bank of Commerce

Ř       Exim Bank

 

 

Facilities :

Secured Loans

Rs In Millions

Rupee Term Loan from Banks

(Term Loan from The Federal Bank Limited 31 ,543 (2005 - 34,484) is secured by way of Mortgage by deposit of title deed of an immovable property and term loans from other Banks 1 ,41 ,304 (2005 - 74,31 8) are secured by an exclusive charge on Plant and Machinery purchased under the Schemes. Term loans from ICICI Bank Limited, ABN Amro Bank and Citi Bank 1 ,01 ,1 03 (2005 - 39,731 ) are also covered by personal guarantee by Managing Director of the Company)

172.847

Term Loans from Financial Companies

(Term loans are Secured / to be Secured by exclusive charge on Plant and Machinery purchased under the Schemes of individual companies and such Loans from Citicorp Finance India Limited 77,097 (2005 - 1 16,039) and Infrastructure Leasing 8. Financial Services Limited 27,778 (2005 - 50,000) are also covered by personal guarantee by Managing Director of the Company)

212.445

Corporate Loan from State Bank of Patiala

(Secured by hypothecation of certain movable Plant and Machinery and by personal guarantee by Managing Director of the Company.)

176.250

Foreign currency loans

Term Loans from Bank at Qatar

(Secured/ to be secured against equipments acquired at Qatar out of Foreign currency loans and through assignment of receivables at Qatar.)

131.418

Term Loan from Exim Bank

(Secured by an exclusive charge on Plant and Machinery purchased and covered by personal guarantee by Managing Director of the Company.)

52.336

Bank Loans / Overdrafts

[Secured by hypothecation of stocks, stores, book debts and movable Plant and Machinery (except movable items in case of one bank), etc. ranking pari passu amongst the Banks on the point of security, as also by second charge on certain immovable properties by deposit of title deeds/ documents (except in case of two banks) subject to exclusive first charge on certain specified machinery purchased out of the proceeds of above corporate loans / term loans. Such Loans from certain banks are also covered by personal guarantee by Managing Director and a Wholetime Director of the Company.]

304.759

Auto Loan

From Banks

(Secured by hypothecation of the vehicles acquired)

21.761

Interest Accrued and Due on Bank loans / overdrafts

Overdrafts

1.642

 

 

Unsecured Loan

 

Temporary Overdraft from Banks

0.524

Commercial Paper

1200.000

Term Loan from Banks

(Repayable within one year - 1 8,87,490; 2005 - 1 ,1 07,000) (Such Loans from certain banks 2,037,490 (2005 - 1 ,232,000) covered by personal guarantee by Managing Director and Wholetime Director of the Company)

2087.490

Inter Corporate Deposits (Short Term)

0.500

Public Fixed Deposits

(Repayable within one year - 52,293; 2005 - 70,707)

81.499

 

Interest Accrued and Due on Term loans. lnter Corporate Deposits and Public Fixed Deposits (Net of tax deductible at source)

8.067

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountant

 

 

Associates/Subsidiaries :

Nil

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

24,980,000

Equity Shares

Rs. 10/- each

Rs. 249.800 Millions

25,000,000

Redeemable Cumulative Preference Shares

Rs. 10/- each

Rs. 250.000 Millions

20,000

15% Cumulative Preference

Rs. 10/- each

Rs. 0.200 Millions

 

Total

 

Rs. 500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8,574,466

Equity Shares

Rs. 10/- each

Rs. 85.745 Millions

 

Add: Shares forfeited

 

Rs. 0.386 Millions

 

Total

 

Rs. 86.131 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

86.131

73.281

73.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2246.053

990.693

776.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2332.184

1063.974

849.700

LOAN FUNDS

 

 

 

1] Secured Loans

1073.458

1016.324

1411.600

2] Unsecured Loans

3378.080

2526.602

851.700

TOTAL BORROWING

4451.538

3542.926

2263.300

DEFERRED TAX LIABILITIES

122.661

104.844

0.000

 

 

 

 

TOTAL

6906.383

4711.744

3113.000

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2222.622

1332.501

1144.700

Capital work-in-progress

47.503

111.070

49.500

 

 

 

 

INVESTMENT

3.069

0.176

0.700

DEFERREX TAX ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1800.529

1561.378

918.900

 

Sundry Debtors
5441.510

4011.651

2597.800

 

Cash & Bank Balances
444.859

231.625

148.200

 

Other Current Assets
420.798

291.749

0.000

 

Loans & Advances
890.078

585.765

562.500

Total Current Assets
8997.774

6682.168

4227.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
4315.701

3376.766

2297.000

 

Provisions
48.884

37.405

12.300

Total Current Liabilities
4364.585

3414.171

2309.300

Net Current Assets
4633.189

3267.997

1918.100

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6906.383

4711.744

3113.000

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [including other income]

1744.371

1187.485

6432.500

 

 

 

 

Profit/(Loss) Before Tax

581.027

344.047

142.400

Provision for Taxation

164.583

92.285

45.500

Profit/(Loss) After Tax

416.444

251.762

96.900

 

 

 

 

Export Value

1200.638

433.384

NA

 

 

 

 

Import Value

676.567

212.227

NA

 

 

 

 

Total Expenditure

1163.344

843.438

5965.400

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2006 (1st Quarter)

30.09.2006 (2nd Quarter)

31.12.2006 (3rd Quarter)

 Sales Turnover

3519.800

3563.000

4256.700

 Other Income

11.100

11.600

33.200

 Total Income

3530.900

3574.600

4289.900

 Total Expenditure

3203.300

3232.400

3804.300

 Operating Profit

327.600

342.200

485.600

 Interest

121.300

148.300

160.400

 Gross Profit

206.300

193.900

325.200

 Depreciation

85.800

94.300

104.400

 Tax

12.300

17.300

38.800

 Reported PAT

104.200

70.600

172.900

 

200606 Quarter 1  - Expenditure Includes Staff Cost Rs 1074.30 million (Salaries & Wages including payment to sub contractors) Other Expenses Rs 405.50 million Stores Consumed Rs 1723.50 million Tax Includes Provision for Current Tax Rs 10.30 million Deferred Tax Rs 4.00 million Fringe Benefit Tax Rs 2.00 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Committee of Directors at its meeting held on July 31, 2006. 2. The Statutory Auditors have commented on the accounts of the company for the year ended March 31, 2006 regarding certain overdue debts, which are common to the industry, aggregating Rs 61.80 million ultimate recovery of which is not determinable. However, best efforts have been / are being initiated to recover these debts as also adequately covered by General Reserve of the Company. 3 Deferred tax liability of the previous years up to March 31, 2001 has not been considered in these accounts as a stay has been granted in favour of the Company by the Hon'ble Court of Calcutta against the retrospective operation of the related Accounting Standard (AS-22) issued by The Institute of Chartered Accountants of India. The matter is subjudice. Accordingly. year end deferred tax liabilities/ assets include timing difference on items arising after March 31, 2001. 4. The figures of previous periods have been regrouped / rearranged wherever considered necessary.

 

200609 Quarter 2 - The above results have been reviewed by the Audit ommittee and taken on reaord by the Committee of Directors at its meeting held on 31 at October, 2006. 2. The Statutory Auditors have commented on the accounts of the Company for the year ended 31st March, 2006 regarding certain overdue debts, which are common to the industry, aggregating Rs. 618 lacs ultimate recovery of which is not determinable. However, best effort have been I are being Initiated to recover these debts as also adequately covered by the General Reserve of the Company. 3. Deferred tax liability of the previous years up to 31 at March, 2001 has not been considered in these accounts as a stay has been granted in favour of the Company by the Hon'ble High Court of Calcutta against the retrospective operation of the related Accounting Standard (AS22) issued by the Institute of Chartered Accountants of India. The matter is subjudice. Accordingly, year end defered tax liabilities l assets include timing difference on items arising after 31 at March, 2001. 4. Pursuant to the approval of the Shareholders at the 88th Annual General Meeting of the Company held on August 18, 2006, the Equity Shares of the Company of face value of Rs. 101- each were sub-divided into Equity Shares of Rs. 2!- each, record date of which was fixed by the Board of Directors on September 20, 2006. Accordingly, the Eaming Per Share for the Corresponding Quarter and half-year ended September 30, 2005 and year ended March 31, 2006 have been recast to make them comparable with EPS of the current quarter. 5. During the 2nd quarter ended 30th September, 2006 no investor complaint was received. No complaints were pending for redressal either at the beginning or at the end of the quarter. 6. The Accounting Standard (AS)-15 (Revised) on 'Employee Benefits' issued by The Institute of Chartered Accountants of India has become applicable with effect from 1st April, 2006 and the Company is in the process of ascertaining impact on certain accrued employee costs in terms of said AS. This will be accounted for on completion of aforesaid process. 7. The quarter to quarter results are not comparable inter-se and not indicative of the annual results due to. seasonality of the construction industry. 8. The figures f previous periods have been recast, regrouped 1 rearranged wherever considered necessary.

 

200612 Quarter 3  - Expenditure Includes Consumption of Material (Stores) Rs 1996.80 million Employees Cost Rs 1270.40 million Other Expenses Rs 537.10 million Tax Includes Provision for Current Tax Rs 36.30 million Fringe Benefit Tax Rs 2.50 million Deferred Tax Rs 9.10 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006. Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and taken on record by the Committee of Directors at its meeting held on January 29, 2007. 2. The Statutory Auditors have commented on the accounts of the company for the year ended March 31, 2006 regarding certain overdue debts, which are common to the industry, aggregating Rs 61.80 million ultimate recovery of which is not determinable. However, best efforts have been / are being initiated to recover these debts as also adequately covered by General Reserve of the Company. 3. Deferred tax liability of the previous years up to March 31, 2001 has not been considered in these accounts as a stay has been granted in favour of the Company by the Hon'ble High Court of Calcutta against the retrospective operation of the related Accounting Standard (AS-22) issued by The Institute of Chartered Accountants of India. The matter is subjudice. Accordingly, year end deferred tax liabilities/ assets include timing difference on items arising after March 31, 2001. 4. Pursuant to the approval of the Shareholders at the 88th Annual General Meeting of the Company held on August 18, 2006, the Equity shares of the Company of face value of Rs 10/- each were sub-divided in the Equity Shares of Rs 2/- each record date of which was fixed by the Board of Directors on September 20, 2006. Accordingly, the Earning Per Share for the Corresponding Quarter and nine months ended December 31, 2005 and year ended March 31, 2006 have been recast to make them comparable with EPS of the current quarter. 5. The Accounting Standard (AS 15) (Revised) on Employee Benefits issued by The Institute of Chartered Accountants of India has become applicable with effect from April 01, 2006 and the Company is in the process of ascertaining impact on certain accrued employee costs in terms of the said AS. This will be accounted for on completion of aforesaid process. 6. The quarter to quarter results are not comparable inter-se and not indicative of the annual results due to seasonality of the Construction Industry. 7. The figures of previous periods have been regrouped / rearranged wherever considered necessary.

 

KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio

2.35

3.03

2.50

Long Term Debt-Equity Ratio

0.48

1.03

1.32

Current Ratio

1.09

1.13

1.25

TURNOVER RATIOS

 

 

 

Fixed Assets

5.60

5.69

4.32

Inventory

7.99

8.06

8.18

Debtors

2.84

3.02

2.61

Interest Cover Ratio

2.37

2.01

1.57

Operating Profit Margin(%)

8.45

7.74

7.28

Profit Before Interest And Tax Margin(%)

7.48

6.85

6.11

Cash Profit Margin(%)

4.06

3.41

2.69

Adjusted Net Profit Margin(%)

3.10

2.52

1.51

Return On Capital Employed(%)

17.64

17.72

13.87

Return On Net Worth(%)

24.53

26.32

12.00

 

 

STOCK PRICES

 

Face Value

Rs.10.00/-

High

Rs.348.00/-

Low

Rs.320.00/-

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets

 

Ř       Freehold Land

Ř       Leasehold Land

Ř       Buildings

Ř       Plant and Machinery

Ř       Furniture and Fittings

Ř       Motor Vehicles

Ř       Computers

Ř       Electrical Equipment

Ř       Motor Vehicles

Ř       Plant and Machinery

 

History

 

Incorporated in Calcutta in 1924, as a British-owned firm, Simplex Concrete Piles (India) pioneered the introduction and development of the latest foundation engineering practices in India and south-east Asia. Since the 1930s, it has proved its competence in civil engineering, catering primarily to the core sector.  
 
In 1947, the year of independence, the company was taken over by M D Mundhra. Its earlier achievements include significant projects like steel plants at Jamshedpur and Burnpur, K G Dock in Calcutta, piling for Bally and Howrah Bridge Approaches. Simplex was also involved in the foundation construction of a number of landmarks all over India. Supreme Court in New Delhi, Tata Centre and the Salt Lake Stadium in Calcutta, Alexander Docks in Bombay and Tata Power Station at Trombay are a few of the landmarks.

 
The company also designed and constructed the first and highest reinforced concrete frame skyscraper (18 stories) -- The National Tower - in Calcutta. With such a varied background, it is today, one of the foremost construction companies in India. International giants like Mitsubishi, Siemens, ABB, Davy Mcker, GEC Aslthom have given preference to Simplex for turnkey construction projects. 

 
The company during 1996, issued Rs 247 Millions fresh equity shares and 17% secured partly optionally convertible debenture through Rights-cum-Public Issue to meet capital expenditure requirements. 
 
During the year 1999-2000, the activity in the housing and power sector was slow and the company had to take more infrastructure projects like bridges, port work etc.

 
In the year 2000-01, has concluded a Joint Venture Agreement with a foreign company possessing necessary know-how and expertise in Road Work to enhance its expertise in the high value Roads and Highway projects for which the Government is giving large thrust now.

 

Review of Operations

 

Income during the financial year under review showed a healthy growth of 34.41 percent at Rs. 13427.39 Millions as against Rs. 9990.11 Million in 2004-5.

 

Profit before tax witnessed a substantial growth of 68.88 percent at Rs. 581.02 Million as against Rs. 344.05 Million in 2004-5.

 

Profit after tax increased by 65.41 percent to Rs. 416.44 Million compared to Rs. 251.76 Million in 2004-5. Apart from registering a significant growth in the Indian construction Industry, the Company increasingly focused on projects in foreign countries particularly the Middle East and is now contemplating joint ventures with renowned global construction companies. In view of this, it established offices in Dubai (UAE), Manama (Bahrain) and Doha (Qatar) and registered itself in Libya and Yemen to cater to the infrastructure development in those countries.  

 

Change of Name and Shifting of Registered Office

 

The Company changed its name from Simplex Concrete Piles (India) Limited to Simplex Infrastructures Limited bearing testimony to its expanded scope beyond piling and concreting to roads, bridges, highways, flyovers, marine, industrial construction, urban utilities, power plants and high rise buildings etc. as well as its extension from the Indian to the global market. The Company also shifted its Registered Office from 12/1, Nellie Sengupta Sarani, Kolkata - 700087 to 'Simplex House', 27, Shakespeare Sarani, Kolkata - 700017, a more spacious house with modern facilities to support growth efforts. Both changes became effective from 8th November 2005.

 

Simplex has worked in major projects in India, thus its credentials are well-established with government undertakings in every state. Its clientele comprises of public works, railways, electricity boards and health departments. Due to its professional competence and expertise, Simplex has tie-ups with technocrats, consultants, architects and engineers in both public and private sector organization. Simplex is quite renowned in India in regard to its quality assurance, project monitoring, realistic time schedules, adherence to milestones, and straightforward approach in solving contractual problems.

 

Trade Terms with

 

Canada
ND Lee Associates
Sandweil International Inc.         

 

Denmark
Haldor Topsoe A/S

 

France
Alsthom Export
Technip

 

Germany
Dr C Otto Limited
Walter-Bau AG
Siemens Limited
Lurgi

 

Holland
Stork Contractors
Aarding Group  

 

Italy
Snam-Progetti
Ansaldo
Spie CAPAG
Technimont

 

Japan
Taisei Corporation
TOYO Engineering
Mitsui and Company
Mitsubishi Heavy Industries        

 

Korea
Hyundai Corporation
Daelim
Daewoo Engineering Company

 

Sri Lanka
Hidelsi Investments Limited
A.M. Oreta and Company (Philippines)
International Construction Consortium
Trans Asia Hotel
M Peterson and Company Hamburg (Germany) In Colombo

 

Sweden
Asea Brown Boveri Limited

 

USA
Hewitt Robins
Tarmac Black and Veatch Raytheon
Kaiser Corporation
General Electric Technical Services Inc.  

 

UAE
Al Qusaliy Building and Construction, Abu Dhabi

 

UK
Davy Mckee Stockton
Rolls Royce
Foster Wheeler Inc.
General Electric Company
Balfour Beatty Limited
Tarmac

 

Simplex is one of the top few construction companies in India with an excellent turnover of more than Rupees 10 billion annually. The Company has been registered for engineering works of unrestricted value with most of the Government Departments and Public and Private Sector Organizations. It is a tribute to the Company’s outstanding performance that world-renowned International Constructors are vying for its partnership on equal-footing in mega-size projects.

 

Apart from latest methods and techniques, the Company has introduced computerization in its working. Use of QA / QC methods, Project Management and Control Tools, Safety Manuals are hallmarks of the company’s operations. Simplex is always on the move to improve its productivity further by resorting to new management of tools as they become available.

 

Its construction activities comprise of :

Ř       Huge industrial projects 

Ř       Piling jobs 

Ř       Marine constructions of ports and bridges 

Ř       Ground strengthening 

Ř       Soil investigations 

Ř       Power projects 

Ř       Processing plants 

Ř       Commercial and residential complexes and many others. 

 

Objectives :

The Company does not rest on the past laurels. The Company’s cherished objective is to continue always at the peaks of the engineering professions viz., Excellence, Expediency and Economy. The Company is proud to say that it can carry out the construction works in keeping with these three E’s.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.40.84

UK Pound

1

Rs.80.73

Euro

1

Rs.55.23

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions