Annual Report 2005-2006 - Gammon India

16. Earning per share:
Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period is adjusted for events of share split.
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and
weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.
17. Prior Period Items:
Prior period items are included in the respective head of accounts and material items are disclosed by way of notes to accounts.
B. NOTES TO ACCOUNTS:
1. Provident Fund:
The provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, have been implemented at the work
sites where code numbers have been allotted. In respect of the remaining work sites necessary applications have been made for
allotment of code numbers.
However, a provision of Rs.25 lacs is available to cover any liability arising therefrom.
2. 10.75% - Secured Redeemable Non Convertible Debentures of Rs.40 crores secured by hypothecation of specific Plant &
Machinery and mortgage of immovable property in Gujarat which were due for repayment at the end of 5th , 6th and 7th year from
the date of allotment i.e. 29th June, 2002 are prepaid on 29th June, 2005 by exercising call option as per terms of information
Memorandum.
8.75% - Secured Redeemable Non Convertible Debentures of Rs.29 crores are secured by hypothecation of specific Plant &
Machinery and pari passu charge by mortgage of immovable property in Gujarat. The Debentures are due for repayment at the
end of 8th , 9th and 10th year from the date of allotment. i.e. 30th March, 2003.
7.50% - Redeemable Non Convertible Debentures of Rs.15 crores and 7.25% - Redeemable Non Convertible Debentures of
Rs 6 crores are secured by hypothecation of specific Plant & Machinery and pari passu charge by mortgage of immovable
property in Gujarat with 8.75% Secured Redeemable Non Convertible Debentures of Rs 29 crores. The Debentures are due for
repayment at the end of 8th , 9th and 10th year from the date of allotment. i.e. 29th September, 2003. 7.50% - Redeemable Non
Convertible Debentures of Rs.38 crores and 7.25% - Redeemable Non Convertible Debentures of Rs 12 crores are secured by
hypothecation of specific Plant & Machinery with pari passu charge by mortgage of immovable property in Gujarat
with 8.75% Secured Redeemable Non Convertible Debentures of Rs 29 crores and 7.50% Secured Non convertible Debenture
of Rs. 15 crore and 7.25% Secured Non convertible Debenture of Rs. 6 crores. The Debentures are due for repayment at the end
of 8th , 9th and 10th year from the date of allotment i.e. 5th August, 2005.
3. After completion of jobs in Iraq and Libya, the Company has closed its Project Offices in these countries. Consequently,
realisability/mobility of Current Assets amounting to Rs.16.94 lacs and Plant & Machinery costing Rs.55.88 lacs (Written Down
value Rs. Nil) in Iraq and of Current Assets amounting to Rs.0.32 lacs and Plant & Machinery costing Rs.143.54 lacs (Written
Down value Rs. Nil) in Libya, in the immediate future is uncertain.
4. Issued Share Capital includes 7,25,800 (Previous Year 1,45,160 Equity Shares of Rs. 10/- each converted into 5 equity shares
of Rs. 2/- each in the Current Year) Equity Shares of Rs. 2/- each kept in abeyance.
5. Share Forfeited account includes Rs. 25.64 lacs (Previous Year Rs 25.64 lacs) of Share Premium collected on application in
respect of forfeited shares.
6. Pursuant to the amendment to Schedule VI of the Companies Act, 1956 in March, 1999 regarding disclosure of amount due to
creditors which are Small Scale Industries (SSIs) the process of collecting the information regarding the SSI status from creditors
by the Company is continuous. However, based on information available, SSI units to whom dues are outstanding for more than
30 days are Anupam Industries Ltd, Hebenkraft, Karveer Engineering Industry, Manta Metal Works, National Radiator, SRMB
Udyog Ltd, Structural Waterprofing, Truform Techno Pvt Ltd.
7. The Company has made following Purchases & Sales of units of Mutual funds during the period ended 31 st March, 2006.
CAN Liquid Fund – 10,25,79,424.3601 units purchased at Rs.10,300 lacs and 10,25,79,424.3601 units sold at
Rs 10,300 lacs.
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