gayatri projects limited - Edelweiss

10. Accounting for taxes on IncomeAs per Accounting Standard 22 on Accounting for Taxes on Income issued by the ICAI, the provision for DeferredTax Liability / Asset has been calculated and accounted. Details of the liability created for the year is give under:Particulars 2005-06 2004-05 2003-04 2002-03 2001-02$Deferred Tax Liability at the beginning 1,414.08 1,425.77 1,344.35 1,212.68 1,154.67of the year (Rs. In Lacs)Deferred Tax Liability at the end of the 1,829.94 1,414.08 1,425.77 1,344.35 1,212.68Year (Rs. In Lacs)Deferred Tax Liability for the Year 415.86 (11.69) 81.42 131.67 58.01$ The Provision for Deferred Tax Liability as on 31/03/2002 calculated and recasted in Balance Sheet and Profitand Loss Account of the respective year.11. Impairment of assetsIn the opinion of the management and based on the valuation Report, there are no impaired assets requiringprovision for impairment loss as per the accounting standard 28 on Impairment of assets issued by ICAI.12. Debenture redemption reserveThe company created debenture redemption reserve as per the provisions of section 117C of the Companies Act13. Proposed DividedProvision for dividend has been made in the books of account as proposed by Board of directors, pending forapproval at the ensuing annual general meeting.14. Secured Loans:14.1. The company issued a Non-Convertible Debentures of Rs. 1500 Lacs in the financial year 2001-02 which aresecured by way of exclusive specific first charge (hypothecation) on the Construction Equipment and PersonalGuarantees of the Promoter Directors and their relatives. During the year under report the Company hasredeemed debentures of Rs. 500 Lacs and subsequently in July 2006 a further sum of Rs. 500 Lacs wasredeemed. The balance of Rs. 500 Lacs is due for redemption in July 2007.14.2. Term Loan, Over Draft (including FCDL Loan), Bank Guarantee, Letter of Credit, Bill Discounting and DeferredPayment Guarantee facilities from Banks are secured by hypothecation of Plant and Machinery, Goods, BookDebts, Receivables of the Company and Equitable Mortgage of Immovable Properties of some of PromoterDirectors / their relatives and Companies in which the Directors are interested and further secured by PersonalGuarantees of all the Promoter Directors and their relatives in addition to the counter indemnity issued by thecompany to the equal amounts.14.3. Equipment and Vehicle Loans are secured by hypothecation of Plant and Equipment and Other Vehiclespurchased on such loans.15. Unsecured Loans:Unsecured Loans includes advances received against Bank Guarantees from Contractees towards Mobilization /Equipment / Material and Work advances etc and others.127