gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITED2. Contingent Liabilities not provided for:(Rs. In Lacs)Particulars 2005-06 2004-05 2003-04 2002-03 2001-021. Guarantees given by Banks towards 15,633.06 19,100.54 10,444.97 6,198.06 11,327.22performance & contractual commitments:a) To the company in the normal courseof Business.b) Guarantees given to related parties 23,365.44 11,071.26 8,322.56 9,351.13 6,104.292. Corporate guarantees given to Group 12,909.00 4,934.00 4,934.00 4,934.00 NILcompanies3. Letter of Credits taken 1,345.68 NIL 843.90 968.33 2,111.894. Estimated amount of contracts NIL NIL NIL NIL 279.02remaining to be executed on Capital A/c.5. Disputed Sales/Entry Tax Liability 416.82 383.39 585.82 NIL NIL3. Wholly owned Subsidiary Companies:M/s. Gayatri Lease-fin Private Limited, a wholly owned subsidiary company since the financial year 1994-95 till thefinancial year 2000-01. During this period the Losses of the Subsidiary Company Rs. 19.77 Lakhs have not beenaccounted in the books of Gayatri Projects Limited. In the financial year 2001-02, the shares of the said subsidiarywere sold off and it ceased to be the subsidiary of the Company.4. Company has not provided for diminution in the value of investments till the financial year 2003-04. However forthe financial year 2004-05, value of the investment is at par or above the book value. In the opinion of theManagement the change is temporary.5. Investment amounting to Rs.30,81,000/-, which is in the name of the Gayatri Engineering Co., was sold off duringthe financial year 2003-04.6. Retirement benefitsRetirement benefits in the form of Provident Fund are charged to the Profit & Loss Account of the year when thecontributions to the respective funds are due. Provision for Gratuity to employees is provided for on accrual basis,which is in conformity with AS – 15 issued by ICAI.7. Segment ReportingAccounting Standard 17 on “Segment reporting” issued by ICAI is not applicable to the company since it isengaged in only one segment i.e. construction activities124