gayatri projects limited - Edelweiss

ExpenditureOur expenditure consists of materials consumed and costs of goods sold, operating and administrative expenses, financialcharges incurred, depreciation and amortization charges and miscellaneous expenditure written off. Total expenditure isincreased by 21.93% from Rs. 25779.10 lakhs in the year ended 31 st March, 2005 to Rs. 31,433.81 lakhs in the year ended31 st March, 2006.Work ExpenditureWork expenditure relating to projects increased by 22.46% from Rs. 24200.99 lakhs in the year ended March 31, 2005 to Rs.29637.44 lacs in the year ended March 31, 2006 which was mainly on account of increase in the value of works done duringthe year 2005-06.Staff CostThe staff cost which consists of salaries, wages and bonus payment to employees, contribution to provident fund and otherfunds and expenses incurred in connection with workmen and staff welfare increased by 16.12% from Rs. 530.14 lacs in theyear 31 st March 2005 to Rs. 615.65 lacs in the year 31 st March, 2006 on account of increase in the manpower and emolumentpackages provided by the company.Administration ExpensesOur administration expenses include project related expenses, personnel related expenses and administrative andestablishment expenses. The administration expenses have increased marginally by 1.13% from Rs. 725.26 lacs in the yearended 31 st March, 2005 to Rs. 733.45 lacs in the year ended 31 st March, 2006 on account of increase in the travelingexpenses, project consultancy fee, tender expenses and other general administration expenses.Financial chargesExpenditure on account of financial charges comprising of bank/financial charges, paid for letters of credit, and performanceguarantees and other misc. financial transitions have increased by 38.60% from Rs. 322.71 lakhs in the year ended March31, 2005 to Rs. 447.27 lakhs in the year ended March 31, 2006 on account of additional exposure availed by the Companyin terms of Term Loans, bank guarantees and Letters of Credit.InterestInterest charges increased by 6.20% from Rs. 2267.04 lacs in the year ended March 31, 2005 to Rs. 2407.69 lacs in the yearended March 31, 2006, primarily due to increase in interest payable on working capital facilities, long term loans availedfrom the bank and interest paid in debentures.DepreciationDepreciation increased by 5.53% from Rs. 985.25 lakhs in the year ended March 31, 2005 to Rs. 1039.79 lakhs in the yearended March 31, 2006, primarily due to the acquisition of additional equipment.Profit before taxProfit before taxes increased by 108.24% to Rs. 2759.48 lacs in the year ended March 31, 2006 from Rs. 1325.13 lacs in theyear ended March 31, 2005.Provision for TaxesProvision for taxes includes current tax liabilities, fringe benefit taxes and deferred tax liabilities. Provision for taxes increasedby 143.49% to Rs. 951.51 lacs in the year ended March 31, 2006 from Rs. 390.79 lacs in the year ended March 31, 2005,primarily due to increase in our taxable profit.Year ended March 31, 2005 compared to year ended March 31, 2004Our results of operations in the year ended March 31, 2005 were affected by, amongst other factors, the following:The pace of development in the Infrastructure sector temporarily slowed down and led to delays in the award ofcertain contracts bid by us by several months. This resulted in materialization of fewer contracts and consequentweaker growth in our revenues during the year ended March 31, 2005. Many of the contracts that were delayed141