gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDOUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTSExcept as described below, there are no outstanding litigations, suits or civil proceedings or criminal or prosecutions,proceedings or tax liabilities against the Company, and there are no defaults, non payment of statutory dues, overdues tobanks/financial institutions, defaults against banks/financial institutions, defaults in dues payable to holders of any debentures,bonds or fixed deposits, and arrears on preference shares issued by the Company, defaults in creation of full security as perterms of issue/other liabilities, proceedings initiated for economic/civil/ and other offences (including past cases where penaltiesmay or may not have been awarded and irrespective of whether they are specified under paragraph (i) of part 1 of ScheduleXIII of the Companies Act) that would result in a material adverse effect on our consolidated business taken as a whole.Outstanding LitigationsFiled by Gayatri Projects LimitedCivil Cases1. M/s Gayatri Engineering Co. vs. State of Andra Pradesh [YLMC] (E.P. No. 125/2003 in O.P 113/1992 and E.P.No.126/2003 IN , O.P. NO.112/199 and E.P. No.127/2003 IN O.P. NO.114/1992.) at 1st Senior Civil Judge, CityCivil Court, HyderabadThe Company commenced work at Yeluru Left Main Canal in Jan. 1987 and completed the same by April 1990except for a small quantity of 2000 cum of excavation of hard rock. However, on 5th May 1990 due to cyclonicstorm the canal under construction stood inundated with water resulting in major destruction. The same was dulyintimated to the Employer who acknowledged the damage and accordingly, agreed to bear the expenses fordewatering @ Rs.5/- per hour and Rs. 90/- for desilting. Backed by aforesaid assurance from the Employer, theCompany continued with the execution of work thereof. However, the Employer refused to pay the bills agreed asaforesaid. Consequently, the company submitted the claims to Superintending Engineer (SE) which were rejectedby the Employer. As a result of which the company referred the aforesaid dispute to arbitration. The arbitratorpassed the Award in favour of the company. The same was confirmed by the Additional Senior Civil Judge,Visakhapatnam. Consequently, the petitioner preferred the present Executive Petition (EP)The amount involved isRs. 131.63 lakhs with interest @ 6% P.A, Rs. 6.68 lakhs with interest @6% P.A and Rs. 6.30 lakhs with interest@6% P.A.All the three cases are linked and the Hon’ble High court has granted conditional stay in favour of the JudgmentDebtor. The judgment debtors complied the condition imposed by the court by depositing 50% of the decretalamount. Consequently, the matter has been stayed. The appeal is pending for adjudication before the Hon’bleJudge.2. Gayatri Engineering Co. vs. Govt. of A.P (O.P. No.33/1987) at Sr.C.J, Sub-Court, Markapur, Prakasham District.Gayatri Projects Limited executed the works project Earth Work Excavation of N.S.R.C. (Canal Work) from: M.115/0 to 118/0 and from M.124-7-222 to M.126-0-186 including structures located at Kurichedu, Prakasham District,Andhra Pradesh with effect from February 6, 1978 and completed the same on December 31, 1979. Duringexecution of the above works project, Gayatri Engineering Co. made certain claims of around Rs.2.79 Lakhs whichwere rejected by the Executive Engineer, Q.C. & I Division, Vinukonda, Prakasham Dist., A.P (Employer) and as aresult of the same the matter was referred to arbitration. The arbitrator gave award in favour of Gayatri EngineeringCo. and accordingly, the State of A.P. deposited Rs.2.64 Lakhs. Govt. of A.P. deposited the Decreed amount of Rs.2.79 lakhs. Gayatri Engineering Co. has filed petition for permission to withdraw the said amount which is pendingfor adjudication.3. Gayatri Engineeging Co. vs. M/s Rashtriya Ispat Nigam Ltd. (EP No. 102 of 1999) at Senior Civil Judge,Gajuvaka.The Gayatri Engineering Co. executed civil engineering works in Medium Merchant Structural Mill Part-II located atVisakhapatnam, Andhra Pradesh.In the said work the Gayatri Engineering Co. submitted the claims:Claim No.1: Price variation due to changes in labour, wages (Rs. 5.02 lakhs). Claim No. 2: Payment of Pricevariation (full escalations) due to revision of daily minimum wages of unskilled worker. Amount of Claim of Rs.42.41146