Annual Report 2005-2006 - Gammon India

4. As per original agreement with REL’s lenders, the sponsors (being the shareholders / joint venture partners of REL) had
contributed Equity Obligations by way of subscription to equity shares of the Company or by way of advances towards such
subscription amounting to Rs. 3,196.41 Lacs as at March 31, 2005.
Under the new refinancing done by the lenders, there is no requirement of Equity Obligation. The Group has refunded part of the
Equity Obligation of Rs. 2,695.36 Lacs and the balance of Rs. 501.05 Lacs has been disclosed as a current liability and would be
refunded in due course.
5. As per original agreement with AEL’s lenders, the sponsors (being the shareholders / joint venture partners of AEL) had
contributed Equity Obligations by way of subscription to equity shares of the Company or by way of advances towards such
subscription amounting to Rs. 2,403.78 Lacs as at March 31, 2005.
Under the new refinancing done by the lenders, there is no requirement of Equity Obligation. The Group has refunded part of the
Equity Obligation of Rs. 2,201.42 Lacs and the balance of Rs. 202.36 Lacs has been disclosed as a current liability and would be
refunded in due course.
6. CBICL has extended a Term Loan of Rs 800.00 Lacs (Rs 337.76 Lacs proportionate share of the Company in Joint Venture in the
form of jointly controlled entity) to VSPL, which is convertible at par into equity shares of Rs 10/- each on 1 st April, 2008.
7. 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 there from.
8. Security for loan availed by the Group :
GIL :
NCD -
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 5 th , 6 th and 7 th year from
the date of allotment i.e. 29 th June, 2002 are prepaid on 29 th 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 8 th , 9 th and 10 th year from the date of allotment. i.e. 30 th 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 8 th , 9 th and 10 th year from the date of allotment. i.e. 29 th 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 crore. The Debentures are due for repayment
at the end of 8 th , 9 th and 10 th year from the date of allotment. i.e. 5 th August, 2005.
Secured loan -
Short term loan secured by a charge over all the company’s assets in India (excluding Leasehold property, Freehold property
and Plant & Machinery hypothecated to the bankers and Financial Institutions under various Asset Financing Schemes.
Gammon Al Matar Joint Venture :
The banking facilities are in the name of a branch of a joint venture partner and are secured against a corporate guarantee of the
joint venture partner, assignment of contract receivables and joint registration and insurance of all equipment.
Gammon Bilimoria LLC :
The bank loans are secured by a charge on the trade accounts receivables, subordination of loan from shareholders and
corporate guarantees from related parties.
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