Annual Report 2005-2006 - Gammon India

ii. Rangit-II hydroelectric project (60-80 MW), Sikkim.
(Project SPV-Sikkim Hydro Power Ventures Ltd)
iii. Biomass fuel based power project, Punjab
(Project SPV-Punjab Biomass Power Ltd.)
3. Projects recently awarded
i. Gorakhpur bypass annuity road project, Uttar Pradesh
( Project SPV- Gorakhpur Insfrastructure Company Ltd.)
ii. Kosi bridge annuity road project, Bihar
(Project SPV -Kosi Bridge Infrastructure Company Ltd)
iii. Adityapur Special Economic Zone, Jharkhand
(Project SPV under incorporation)
During the period under review, GIPL made a preferential allotment of 1,60,00,000 equity shares of the face value
Rs. 10 each at a premium of Rs. 65.88 totaling to Rs. 121.408 crores, to AMIF I Ltd. (an affiliate of U.S.A. based
asset management firm OZ Management L.L.C.).
Looking at the roadmap for infrastructure development on PPP basis over the next 3-5 years, GIPL is in the
process of exploring certain avenues of raising further capital. Towards this end, GIPL is in talks with various
prospective institutional investors for raising capital. GIPL has also filed its Draft Red Herring Prospectus with
SEBI to offer upto 31,224,225 equity shares of face value of Rs. 10 each, to the public. The issue would
constitute 17.5% of the fully diluted post issue paid up capital of the Company assuming no exercise of green
shoe option and upto19.61% assuming that the green shoe option is exercised in full.
7. BUSINESS PROSPECTS :
Infrastructure Sector continues to grow at a rapid pace and it is expected that current year also would offer
number of opportunities across the entire strength of your Company. Main focus has been on the Road and
Bridge Projects especially for National Highways Authority of India [NHAI] and other State Highway Projects. In
addition your Company continues to get more projects in Chimneys & Cooling Tower Sector as well as Hydro
Power Sector. In coming years Hydro Sector is expected to grow at a faster pace compared to other infrastructure
projects due to the Prime Minister’s Policy decision to concentrate more on the Power Sector and to ensure
electricity for all by 2012. Your Company would continue to concentrate on Hydro & Thermal Power Sector on
BOOT Basis.
Your Company has secured Rs.324 Crores contract to construct Underground Power House for National
Hydroelectric Power Corporation [NHPC] at their Parbati Project - Stage II Lot 3. In the Road Sector, your
Company has secured contracts cumulatively valued at Rs. 945 Crores. Oil & Gas Pipeline Division of your
Company has secured Rs.200 Crores contract from Gas Authority of India Limited [GAIL] for their Dahej Uran
Pipe Line Project. The order book position as on 31st March, 2006 stands at Rs. 5,568 Crores.
8. SUBSIDIARY COMPANIES :
During the period under review, two Special Purpose Vehicle Companies (SPVs) were incorporated viz. Mumbai
Nasik Expressway Limited and Sikkim Hydro Power Ventures Limited which became subsidiaries of your Company
with effect from 6th August, 2005 and 22nd September, 2005 respectively. Also Gammon Projects Developers
Limited and Gammon Cooling Towers Limited became the subsidiaries with effect from 22nd March, 2006 and
31st March, 2006 respectively.
A statement pursuant to Section 212 (3) of the Companies Act, 1956 relating to subsidiary companies is attached.
The Company has been granted exemption by the Central Government pursuant to the provisions of Section
212(8) of the Companies Act, 1956, from attaching the Balance Sheet and Profit & Loss Account of its Subsidiaries
and hence the same have not been attached to your Company’s accounts for the period ended 31st March, 2006.
However information such as capital, reserves, assets etc. about each subsidiary as on 31st March, 2006 has
been separately disclosed.
The Annual Accounts of subsidiary companies and the detailed related information are available to the investors
of your company as well as to those of respective subsidiaries, seeking such information at any point of time.
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