gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITED34. Some of our projects are not insured.Under our contracts/ sub- contracts, we are required to take insurance for each project undertaken by us.We may not have taken adequate insurance cover for some of our projects. Consequently, loss if anyarising out of uncovered risks would have to be borne by us.35. Our Company has delayed in deposit of Provident Fund and TDS amount.We could not deposit in time provident fund for our employees and tax deducted at source with the appropriateauthorities which could expose us and our officers for criminal prosecution or penalties.36. Our inability to obtain, renew or maintain the statutory and regulatory permits and approvals reuiredto operate our business could have a material adverse affect on our business.We require certain statutory and regulatory permits and approvals for our business. There can be no assurancethat the relevant authorities will issue such permits or approvals in the time frame anticipated by us or atall. Failure by us to renew, maintain or obtain the required permits or approvals may result in the interruptionsof our operations and may have a material adverse affect on our business, financial conditions and resultsof our operations. We have yet to renew our Certificate of Registration issued by the District Labour Officerunder the Motor Transport Workers Act, 1861 which has expired on December 12, 2005. For further information,please refer to the section “Government and Other Approvals” on page no. 163 of this Prospectus. If we areunable to obtain the requiste Licenses in a timely manner, or at all our operations may be affected.37. Our clients have the right to unilaterally terminate our contracts for convenience and contracts areexposed to penal clauses.One of the standard conditions in contracts awarded by the Government (Client) is that the Client has theright to terminate the contract for convenience, without any reason, at any time after providing us withnotice. In the event that a contract is so terminated for convenience, our revenues may be adverselyaffected. Further, the contracts executed by us contain penal clauses which gets attracted in case of anydelay in execution of contracts.38. The Unsecured loans taken by our company can be recalled at any time.Our Company has taken unsecured loans from the promoter group companies amounting to Rs. 9.47 lakhsas on March 31, 2006, which can be recalled at any time and in the event, may affect the financialoperations of our company to that extent.39. No annual maintenance contract for equipments.Our Company does not have any annual maintenance contract for maintenance of its equipments. If ourcompany is unable to maintain its plant, machinery and equipment properly, it may adversely affect theoperations of our company.40. The purposes for which the proceeds of the Issue are to be utilized have not been appraised by anindependent entity.The purposes for which the proceeds of the Fresh Issue are to be utilized have not been appraised by anyindependent entity and are based on our own estimates.41. We do not currently own nor have leased the premises at which our registered office and otheroffices are located.We do not currently own or have a lease for the premises at which our registered office and other officesare located. The registered office is owned by Gayatri Capital Limited, one of our promoter group companies,xiv