Simplex Infrastructures Limited Simple solutions for complex structures Rising to the Challenge Annual Report 2012-13 Simplex Infrastructures Ltd. has long been one of the top 1 construction companies, closely associated with the country’s infrastructure development. Today our expanding expertise spans the complete range of construction activities Airports Bridges Buildings Industrial Structures Sewerage & Water Systems Railways Infrastructures Limited Infrastructures Roads Marine ports Towers Limited Infrastructures Tunnels Power Plants Simplex Simplex 2 We have the Vision to lead and Win 4 Corporate Information 6 An Enduring Expertise 8 Growing with India 10 Historic Landmarks 12 Of the Ground 14 Over the Water Annual Report 2012-13 Report Annual Annual Report 2012-13 Report Annual 15 On the Land CONTENTS 16 Urban Transporation 18 On the Tracks 19 For the Industry 20 Inside the Country Construction of 8 KM Long Four Lane Jatrabari Gulistan Flyover in Bangladesh 21 Across the Globe 22 Chairman Message 24 Directors’ Report 32 Management Discussion & Analysis 42 Report on Corporate Governance 52 Auditors’ Report 60 Financial Statement 109 Auditors’ Report on Consolidated Financial Statement 112 Consolidated Financial Statement 158 Summary of Financial Information of Subsidiary Companies The magnificent night view of 11.23 KM Long Eastern Freeway in Mumbai 2 3 Infrastructures Limited Infrastructures Infrastructures Limited Infrastructures Simplex Simplex Vision is the art of seeing what is Annual Report 2012-13 Report Annual Annual Report 2012-13 Report Annual invisible to others – Jonathan Swift The Vision The Leadership The Winning Edge To execute projects with To sustain the position To promote the culture of sharing consistent quality assurance, as a leader in foundation rich and varied experience with cost control and adherence to technology, general civil staff members, as also with clients milestones in a safe engineering and And thereby benefit and help the environment as per customer construction. growth of the construction fraternity WE HAVE THE VISION TO VISION THE HAVE WE WIN AND LEAD requirements. and society at large. 4 5 Construction of 400KV DC QUAD Transmission line from Siliguri to Bongaigaon Board of Directors Company Secretary State Bank of Travancore Mumbai The Hongkong and Shanghai 502-A, Poonam Chambers, Shri B.D. Mundhra Shri B.L. Bajoria Banking Corporation Ltd Shiv Sagar Estate, ‘A’ Wing, (Chairman) Bankers The Federal Bank Ltd Dr. Annie Besant Road, Worli, Shri A.D. Mundhra The Royal Bank of Scotland Mumbai - 400018, Maharashtra (Vice Chairman and Whole-time Director) Allahabad Bank The Karur Vysya Bank Ltd Vadodara Shri Rajiv Mundhra Axis Bank Ltd Union Bank of India Offtel Tower No. 2 (3rd Floor) (Whole-time Director) Bank of Baroda United Bank of India R. C. Dutta Road Shri S. Dutta Bank of India Yes Bank Ltd Vadodara - 390005, Gujarat (Whole-time Director) Canara Bank DBS Bank Ltd Shri A.K. Chatterjee Auditors Bangalore Development Credit Bank Ltd (Whole-time Director w.e.f. 30.05.2013) Price Waterhouse Brigade Plaza, Unit - C, # 71/1 Infrastructures Limited Infrastructures Exim Bank Limited Infrastructures Dr. R. Natarajan Chartered Accountants Near Anandrao Circle, S.C. Road HDFC Bank Ltd (Non-Executive Director) Plot No Y – 14 Bangalore - 560009, Karnataka Simplex ICICI Bank Ltd Simplex Shri B. Sengupta Block – EP, Sector – V, IDBI Bank Ltd (Non-Executive Director) Salt Lake Electronic Complex Branches (Overseas) Indian Bank Bidhan Nagar, Kolkata – 700 091 Qatar Shri N.N. Bhattacharyya IndusInd Bank Ltd HBK Tower (Home Centre Building) (Non-Executive Director) ING Vysya Bank Ltd H.S. Bhattacharjee & Co. 1st Floor, Room No. 1 Shri Sheokishan Damani Oriental Bank of Commerce Chartered Accountants P.O. Box 22472, Doha, Qatar (Non-Executive Director) Punjab National Bank Kamalalaya Centre Shri Asutosh Sen Standard Chartered Bank 3rd Floor, Room No – 316 Dubai (Non-Executive Director w.e.f. 30.05.2013) State Bank of India 156A, Lenin Sarani P.O. Box 124748 Kolkata – 700 013 Room No. 312, Pinnacle Building, Sheikh Zayed Road, Dubai, U.A.E Registered Office Oman CORPORATE INFORMATION CORPORATE Annual Report 2012-13 Report Annual ‘SIMPLEX HOUSE’ 2012-13 Report Annual 2nd Floor, Bldg No. 1915 27, Shakespeare Sarani Way No. 2137, Nizwa House, M.Q. Kolkata - 700017 P.O. Box-1797, P.C.-114 Muscat, Sultanate of Oman Administrative Office Bangladesh 12/1, Nellie Sengupta Sarani Abu Dhabi 20 Comrade Moni Singha Road Kolkata - 700087 Mouza Mubarak Ali Ghanem Old: 62/1 Purana Paltan, Level - 4 Al Qubaisi Building Motijheel C/A, Dhaka - 1000 Branches (India) 2nd Floor, Room No. 207 Bangladesh Delhi Office No. 2 & 3, Sri Lanka Hemkunth Chambers, 4th Floor, P.O. Box 130764, Electra Street, 68 Davidson Road 89 Nehru Place, New Delhi - 110019 Abu Dhabi, U.A.E Colombo 4, Sri Lanka Chennai Ethiopia Saudi Arabia Simplex House Bole Subcity, Former Woreda 17 Jeddah, Madinah Road, Saudi 48, (Old 21) Casa Major Road Kebele - 21 & 12/13, Business Centre, Office No. 118 Egmore, Chennai-600008 New Woreda 6 House No. 316/3 P.O. Box – 133277, Jeddah-21382 Tamil Nadu Addis Ababa, Ethiopia Kingdom of Saudi Arabia Another view of Jatrabari Gulistan Flyover in Bagladesh 6 7 One of the top construction companies in India for nearly 90 years, Simplex is closely associated with the country’s infrastructure building with over 2600 completed projects spanning almost all the gamut of construction industry. Civil Work for Residential Sale Towers including Podium at Avighna, Mumbai A view of Joka Metro at Behala Chowrasta in Kolkata Infrastructures Limited Infrastructures Infrastructures Limited Infrastructures Simplex Simplex Annual Report 2012-13 Report Annual Annual Report 2012-13 Report Annual AN ENDURING EXPERTISE ENDURING AN The life work of the engineer consists in the systematic application Engineering Design Construction Planning of natural forces Project Engineering Fitting and Finishing – Harry Walter (H.W.) Tyler Electro-mechanical Fit-outs BOT/EPC Project Management Power Transmission Elevated Road & Rail Corridors Urban Infrastructures A view of 11.23 KM Long Eastern Freeway in Mumbai 8 9 A foundation of innovation Another major diversification occurred in the early 1980s Simplex was originally incorporated as a when Simplex entered new areas of engineering British Company in India in the year 1924, excellence such as road, bridge and railway construction the pioneer of the “Simplex system of piling” to make a mark in the transport sector. in India and South-East Asia. The new Growth is never by mere Seizing the Opportunities system became almost immediately popular Liberalization of the Indian economy gave a further fillip chance; it is the result of as it provided a quantum jump in building to growth of the entire infrastructure sector. Simplex stronger & safer structures. Soon the became a public listed company in 1993, crossing forces working together. Company was being called upon to do the Rs.3000 million in turnover before the turn of the ground engineering for many of India’s most – James Cash Penney millennium. Seizing opportunities as they arose, it prestigious buildings. In the 1930s, the forayed into the growth areas of construction activities. Infrastructures Limited Infrastructures company also moved into major industrial Limited Infrastructures Expanding capabilities in focus areas of urban renewal, construction, notably large steel plants and in the 1940s road and rail transport as well as hydro and nuclear the prestigious King George Docks (now Jawaharlal Simplex power saw Simplex grow rapidly. It initiated its own Simplex Nehru Port) in Mumbai was constructed, establishing ventures in mass housing and also set up Special Simplex’s credentials as one of the top Construction Purpose Vehicles for Build-Operate-Transfer (BOT) Engineers of India. projects. All this, along with a growing international Building an industrial nation footprint saw Simplex enjoy sustained growth through With India gaining independence in 1947, ownership of the twenty first century with turnover crossing the Simplex passed into the hands of the Mundhra family. landmark figure of Rs.60,000 million by 2011 – 2012 The Company began building ‘temples of modern India’ twenty fold rise in less than two decades. with civil and structural construction of industrial projects for the new republic. In time this included some of India’s largest steel plants for companies such as GROWING WITH INDIA Annual Report 2012-13 Report Annual Annual Report 2012-13 Report Annual SAIL, IISCO, Tata, Jindal, Essar, Bhushan, Usha Ispat, etc. During the 1960s Simplex had also commenced civil and structural construction of thermal power plants, another core industry. Expanding construction capabilities In 1958 Simplex again gained widespread acclaim by designing & erecting the first RCC framed structure in Asia – the 17- storey National Tower in Kolkata. In the years that followed it grew quickly not only with buildings and industrial structures but also urban utilities such as sewerage and water supply. In 1968, it successfully embarked into marine construction, leading to an enduring association with all major ports in India. Raked Steel Pile & Cap Foundation for 240M High Transmission Tower for 400KV DC Line across Hooghly River at Raichak to evacuate Power from CESC’s Haldia unit to Kolkata 5X800 MW Ultra Mega Power Plant for Tata Power at Mundra, Gujarat 10 Road Work at Al Ghubrah in Muscat - Oman 11 Infrastructures Limited Infrastructures