GAMMON INDIA LIMITED

Maritime Services
Pvt. Ltd*
Modern Tollroads
Ltd*
09
2007-
08
2006-
07
2008-
09
2007-
08
2006-
07
25.36% 21.40 5.50 (6.60) -
14.30
27.47% 21.40 5.50 - -
(0.50)
(6.60) 14.80
37.32% 0.20 - - - - 0.20
37.32% 0.20 - - - - 0.20
- - - - - - -
Total 2008-
09
216.80 81.20 (6.50) - (4.10) 206.20
2007-
08
234.00 88.30 198.10 (2.90) 151.10 580.20
2006-
07
240.10 88.30 124.20 (62.60) 129.90 431.60
(*) Shareholding is through subsidiary Gammon Infrastructure Projects Ltd. (GIPL).
In respect of FINEST S.p.A, the accounting of profit as per AS - 23 is carried out on the basis of
audited accounts for the period Jan‟08 to Dec‟08 and based on the management accounts for the period
Jan‟07 to Dec‟07, being the date upto which the said company has prepared its financial statements
under local laws. The above does not include disclosure information in respect of associates of one of
the overseas joint ventures in the absence of details required for the disclosure being available in the
Consolidated Financial Statements of the JVC. The share of loss from such associates recognised in
these Consolidated Financial Statements is Rs. 14.60 Millions and the carrying value of such
investments is Rs. 58.70 Millions which is included under associates.
4. A. In accordance with the scheme of amalgamation between Associated Transrail Structures Ltd.
(ATSL) and the Company approved by the Honourable High Court of Mumbai vide their order dated
18 th June 2009 and the Honourable High Court of Gujarat at Ahmedabad vide their order dated 2 nd July
2009 which has been filed with the Registrar of Companies on 7 th July 2009 to make the scheme
effective, under section 391 to 394 of the Companies Act 1956, all the assets, liabilities and the
business of ATSL, stand transferred to and vested in the Company, as a going concern , with effect
from 1 st April ,2008.
The said ATSL is in the business of “Construction and Engineering” and is specifically engaged in the
business of Design, Supply, Erect and Commission Power Transmission Lines and Rural Electrification
Schemes.
Accordingly, in terms of the scheme approved
a) The Company has accounted for the amalgamation as per the Accounting Standard 14 –
“Accounting for Amalgamations” as stated in the Companies (Accounting Standards) Rules,
2006 under the Purchase method.
b) All the assets and liabilities of ATSL as on 1 st April ,2008 have been accounted in the books
of the Company at the value appearing in the books of ATSL including the Employees
Stock option deferred compensation cost and the Employees stock option outstanding.
c) In consideration of the transfer of the business as a going concern, the company shall issue 2
equity shares of Rs.2 each for each equity share of ATSL to the equity shareholders of
ATSL. Pending allotment the outstanding equity shares to be issued aggregating to Rs.40.20
Millions is shown as Equity Share Suspense account under Share Capital.
d) The company shall issue one 6% optionally convertible Preference share of Rs. 350 each to
the holders of the 6% optionally convertible preference shares in ATSL for each such
convertible preference share held by them. Pending allotment the outstanding preference
share to be issued aggregating to Rs. 1050 Millions is shown as Preference Share Capital
Suspense account under Share Capital.
e) In exchange for the 29,02,340 equity shares of ATSL held by the Company as investments,
58,04,680 equity shares of the Company shall be issued in favour of a proposed trust to be
created whose sole beneficiary shall be the company. Pending the formation of the trust and
F
40