Annual Report 2005-2006 - Gammon India

GAMMON INDIA LIMITED
2. DIVIDEND :
Your Directors recommend a Dividend of 30% absorbing Rs. 524.82 lacs.
3. SHARE CAPITAL :
During the period under review, the Company issued 1,05,59,600 Global Depository Receipts by way of international
offering, priced at US $ 9.47 per depository receipt (approx. Rs. 420/- per share ) underlying equal number of
equity shares. The Depository Receipts were listed on Luxembourg Stock Exchange.
The issue proceeds aggregated to Rs 44,350 lacs, of which a sum of Rs. 37,481 lacs was utilised for repayment
of debt & meeting working capital requirements and the balance amount of Rs. 6,008 lacs has been kept in Fixed
Deposits and Mutual Funds temporarily.
During the period under review, the nominal value of equity shares of the Company of Rs. 10/- per share has been
sub-divided into that of Rs. 2/- per share as approved by the shareholders at the Extra-Ordinary General Meeting
held on 28th February, 2005.
4. FINANCE :
The Company has raised Rs. 50 Crores by issue of Non-Convertible Debentures on private placement basis to
banks and financial institutions. CRISIL has assigned AA rating for the same.
The following credit ratings from CARE continue:
(i) PR1+ for short-term commercial paper of Rs.175 crores
(ii) AA+ for Non-Convertible Debentures of Rs.140 crores
The Directors certify that the proceeds of debentures were utilised for the purpose for which they were raised.
Capital expenditure on plant and machinery during the year amounted to Rs. 7861 lacs.
5. FIXED DEPOSITS :
280 Deposits amounting to Rs. 40.15 lacs remained unclaimed as on 31 st March, 2006. Out of these 70 deposits
amounting to Rs. 12.16 lacs have since been repaid.
6. INVESTMENTS IN INFRASTRUCTURE ACTIVITIES :
Presence in infrastructure projects on Public Private Partnership (PPP) basis
Your Company is present in the development of infrastructure projects on PPP basis through its subsidiary
Gammon Infrastructure Projects Limited (GIPL)
GIPL has been one of the first companies in India to be modeled as an infrastructure development company. It
currently develops roads & expressways, bridges, ports, hydro power, non conventional energy resources and
special economic zones and has further identified the following sectors for future development and investment;
urban infrastructure, airports, water & waste water management, railways, power transmission and agricultural
infrastructure.
GIPL is present in the entire spectrum of ‘Project Development Process’ including development, investment,
advisory services and sector specific operations and maintenance services.
The current projects being developed by GIPL on PPP basis can be broadly categorized as:
1. Operational Projects
i. Rajahmundry Dharmavaram annuity road project, Andhra Pradesh (Project SPV- Rajahmundry Expressway Ltd.)
ii. Dharmavaram Tuni annuity road project, Andhra Pradesh
(Project SPV- Andhra Expressway Ltd.)
iii. Two multipurpose berths at Visakhapatnam Port, Andhra Pradesh (Project SPV-Vizag Seaport Private Ltd.)
iv. New Matancherry Bridge Project, Cochin, Kerala
(Project SPV- CBICL)
2. Projects under implementation
i. Four laning of Vadape-Gonde section of NH – 3 (Mumbai-Nasik road stretch), Maharashtra.
(Project SPV-Mumbai Nasik Expressway Ltd.)
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