gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDQuality CertificationsWe have been awarded ISO 9001:2000 and Q9001-2000 Quality Certificate by AQA International, LLC, USA on May 10,2005 valid until May 10, 2008 for “Construction of Infrastructure Projects- Roadways, Highways, Bridges, Irrigation andStructures.We have no export obligations for any exports.InsuranceOur operations are subject to hazards inherent in providing engineering and/or construction services, such as risk of equipmentfailure, work accidents, fire, earthquake, flood and other force majeure events, acts of terrorism and explosion includinghazards that may cause injury and loss of life, severe damage to and destruction of property, equipment and environmentaldamage. We may also be subject to claims resulting from defects arising from engineering, procurement and/or constructionservices provided by us within the warranty periods extended by us, which range from 12 to 18 months from the date ofcommissioning.We obtain appropriate and specialized insurance for all construction risks, third party liabilities for projects, as required andspecified by our clients, for the duration of the project and the defect liability period. We maintain comprehensive insurancecovering our assets and operations at levels which we believe to be appropriate. Risks of loss or damage to project worksand materials are often insured jointly with our clients. Loss or damage to our materials, property and/or materials used inthe project, including contract works, whether permanent or temporary, and materials or equipment whether supplied by usor supplied to us by the client, are generally covered by “Contractors All Risks Policy” (CAR) insurance against materialdamage to property. Under the all risk insurance policy we are also provided cover for price escalation, debris removal andsurrounding properties. The aggregate coverage under the policies currently is Rs. 163811.03 lakhs as on December 31,2005 for various projects. The details are as underS. Policy Number Name of the Company Expiry Date Maintenance Policy Premium Nature ofNo. Period Amount Amount Policy(Rs.)1. OG-06-1801-0402-00000040 Bajaj Allianz General 20-02-2007 20.02.2009 3,013,000,000 6,516,518 CAR PolicyInsurance Co. Ltd.2 OG-06-1801-0402-00000053 Bajaj Allianz General 20.08.2007 20.08.2009 2,545,000,000 4,211,626 CAR PolicyInsurance Co. Ltd.3. 32007599 IFFCO-Tokio General 15.08.2007 15.08.2009 1,870,000,000 3,007,870 CAR PolicyInsurance Co. Ltd.4. 81WWWC 0506 CS 000012 IFFCO-Tokio General 12.09.2006 2,710,800 204,358 WorkmenInsurance Co. Ltd.Compensation5. 34502/41/05/00383 United India Insurance Co. Ltd. 30.09.2006 2,088,624 69,050 Ashpond WCPolicy6. 012000/44/03/70026 The Oriental Insurance Co. Ltd. 23.01.2007 23.01.2008 2,697,657,101 9,669,332 CAR Policy7. 432900/21/0/Engg/CAR/2004/72 The Oriental Insurance Co. Ltd. 27.09.2006 27.09.2007 2,809,355,472 5,813,803 CAR PolicyGRAND TOTAL: 16,381,103,503 3,79,80,776EmployeesAs of May 31, 2006, we employ 867 full-time employees including mechanical and civil engineers. In addition, we alsoemploy casual and temporary contract labor on our project sites on a need basis. The skills and diversity of our employeesgives us the flexibility to adapt to the needs of our clients by organizing our employees into multicultural and mobile teams.We are dedicated to the development of the expertise and know-how of our employees.We believe that we maintain good relationships with our employees. We have developed a structured incentive program,including a performance-linked variable pay structure for certain levels of employees, and we provide adequate trainingprograms. While we consider our current labor relations to be good, there can be no assurance that we will not experiencefuture disruptions to our operations due to disputes or other problems with our work force, which may adversely affect ourbusiness and results of operations. The number of contract laborers varies from time to time based on the nature and extentof work contracted to independent contractors. We enter into contracts with independent contractors to complete specifiedassignments.60