Annual Report 2005-2006 - Gammon India

(b) In respect of GDRs issued during December, 2004 of Rs. 5,267.17 Lacs, the utilization of the net proceeds of GDR after
adjusting GDR issue expense of Rs. 19.51 Lacs is as below.
Rs. in Lacs
Objects of issue Actual Deployment
Towards BOT business model & variants 3,935.88
Funding growth in EPC business 1,311.78
Total 5,247.66
However, pending deployment of funds for meeting Working Capital requirements, the same were temporarily utilized for
repaying debt.
14. During the year, GIPL has made preferential issue of shares for an aggregate amount of Rs. 12,781.00 Lacs including share
premium of Rs. 10,541.00 Lacs to Minority share holders. The share premium so collected is part of the Group’s Security
premium account. The expenditure in connection with the preferential issue of the proposed IPO of GIPL are debited to the Share
premium account.
15. Balances in Foreign Bank Accounts are as per ledger.
16. Deferred Taxation
a) Credit for deferred tax assets are not provided in cases where the management is of the opinion that the same are not likely
to be recovered in future following the prudent accounting practice.
b) The break up of deferred Tax liability and Assets are as follows.
Rs. In Lacs
Particulars As at As at
31st March, 31st December,
2006 2004
Deferred Tax liability-On Account of Depreciation 3,830.60 3,963.78
Deferred Tax Assets-On Account of Gratuity/Leave Encashment Provision 109.64 81.50
-On Account of Interest on NCD 20.87 56.35
-On Account of Unabsorbed Depreciation 84.39 –
-On Account of Unabsorbed Losses – 166.70
-On Account of delay in payment of TDS 33.66 –
Net Balance 3,582.04 3,659.23
17. Hitherto, the company was considering the market value of material supplied by the client as part of its Turnover to reflect
the actual value of work done, including in all the interim financial statements prepared up to 31st December 2005. Subsequently,
company has decided to discontinue the said practice and accordingly in the preparation of these financial statements no
effect has been taken for such Turnover. On account of this change, the Turnover and expenditure on contracts is lower by
Rs.988.54 Lacs including Rs.604.35 Lacs considered in the interim financial statements. There is however no effect on the
profits of the company. In the previous period, the Turnover and Expenditure on contracts as per the earlier practice was
Rs. 227.53 Lacs.
18. Hitherto, the company was writing off the Goodwill on consolidation in the first year since the Goodwill amounts were not
significant requiring amortization over a period. From the current year, the company has decided to amortize Goodwill on
consolidation over a period of 5 years.
Accordingly, the Goodwill charged to the profit & loss account is lower by Rs. 588.85 Lacs and consequently net profit for the
period is higher by the same amount.
19. Earning per Share (EPS) :
Earnings Per Share (EPS) = Net Profit attributable to shareholders / Weighted Number of Shares Outstanding
Particulars As at As at
31 st March, 31 st December,
2006 2004
Net Profit After Tax for the period (Rs.in Lacs) 14,458.71 2,663.82
Weighted Number of Shares during the period-Basic 7,76,37,190 6,44,38,290
Weighted Number of Shares during the period-Diluted 7,83,62,990 6,51,64,090
Earning Per Share – Basic (Rs.) 18.62 4.13
Earning Per Share – Diluted (Rs.) 18.45 4.09
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