gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDAUDITORS’ REPORTFINANCIAL STATEMENTS OF THE COMPANYDate: 1 st September 2006The Board of Directors,Gayatri Projects Ltd.,Hyderabad.We have examined the following financial information of Gayatri Projects Limited (“the Compnay”) as attached to this reportstamped and intialed by us for identification and as approved by the Board of Directors which has been prepared in accordancewith Paragraph B-1 of Schedule II of the Companies Act, 1956 (“the Act”) and the Securities and Exchange Board of India(Disclosure and Investor Protection) Guidelines 2000 (“the Guidelines”) issued by the Securities and Exchange Board ofIndia (“SEBI”) on January 19, 2000 ,as amended from time to time, in pursuance to Section 11 of the Securities and ExchangeBoard of India Act, 1992 and related clarifications and in accordance with the terms of reference received from the companyvide their letter dated 30 th August 2006, requesting us to carryout the work, proposed to be included in the Offer Documentof the Company in connection with its proposed Initial Public Offer.Annexure I : Statement of restated Assets and Liabilities as at 31 st March 2006, 31 st March 2005, 31 st March2004, 31 st March 2003, and 31 st March 2002.Annexure II : Statement of restated Profit and Loss Account for thet period ended 31 st March 2006, 31 st March2005, 31 st March 2004, 31 st March 2003, and 31 st March 2002.Annexure II-A : Consolidated Siginificant Accounting Policies and Notes on Accounts as per the auditedaccounts.Annexure III : Statement of rate of Dividend for the last five years.Annexure IV : Statement of Accounting Ratios.Annexure V : Capitalization Statement.Annexure VI : Tax Shelter Statement.Annexure VII : Details of Other Income.Annexure VIII : Statement showing Age-wise analysis of Sundry Debtors.Annexure IX : Details of Loans and advances.Annexure X : Analysis of Outstanding unsecured loans taken by the Company.Annexure XI : Analysis of Outstanding secured loans taken by the Company.Annexure XII : Details of related party transactions.Annexure XIII : Details of quoted investments.Annexure XIV : Statement of Cash Flows for the F.Y 2005-06, 2004-05, 2003-04, 2002-03 and 2001-02Based on examination of the above statements with the respective audited financial statements and on the basis of informationand explanations given to us, we report as under:(i) The Statements referred to as Annexure I to XIV read with the respective Significant Policies and read together thenotes thereon and after making such adjustements, regroupings and disclusres as were, in our opinion, appropriateand required have been prepared out of audited financial statements for the years.(ii) We confirm the calculations of (a) Accounting ratios in Annexure IV; (b) Long-term Debt / Equity ratios mentioned inAnnexure V; and (c) Tax Shelter Statement in Annexure VI.This report is intended solely for use for your information and for inclusion in the Red Herring Prospectus / Prospectus inconnection with the Proposed Initial Public Offer of Equity Shares of the Company and is not to be used, referred to ordistributed for any other purpose without our prior written consent.For C.B. Mouli & AssociatesCharted AccountantsMANI OOMMENPartnerMembership No. 24046120