GAMMON INDIA LIMITED

(c) Transactions of Oman Branch and the accounting effect of the Gammon Al Matar Joint Venture
profits are accounted on the basis of the accounts prepared specially for this purpose and which is
duly audited by the company‟s auditor.
(d) Disputed liquidated damages in the years 2007-08 and 2006-07 pertain to amounts paid by the
VSPL, under dispute to Visakhapatnam Port Trust (VPT). VSPL during the period ended December
31, 2004 received a claim from VPT for liquidated damages aggregating Rs 20 million, on account
of a delay in completion of East Quay (EQ) 8. VSPL is disputing the liquidated damages claim and
has paid the claim under protest. The amount paid has been included in „advances recoverable in
cash or kind or for value to be received‟ under „loans and advances‟.
Discussions between VSPL and VPT are ongoing. The management expects to resolve the dispute
amicably and obtain a refund of the amount paid. Pending the outcome of the dispute, significant
uncertainties exists vis-à-vis the ultimate Discussions between VSPL and VPT are ongoing. The
management expects to resolve the dispute amicably and obtain a refund of the amounts paid under
protest. Hence the management has not considered a provision for the amounts paid and included
the same under advances recoverable in these financial statements.
37. (a) As the figures disclosed in the financial statements are extracted from the audited Indian
Accounts for the years ended 31st March 2007, 2008 and 2009 approved by the Board of Directors
on 31 st July, 2007, 31 st July, 2008 and 9 th September, 2009 respectively, and on which the auditors
have issued their opinions dated 31 st July, 2007, 31 st July, 2008 and 9 th September, 2009
respectively, any event subsequent to the said date has not been considered / adjusted.
(b) These financial statements have been prepared on the basis of financial statements for the year
2008-09. The financial statements of 2006-07 and 2007-08 have been reformatted to conform to
2008-09 presentation.
38. Since Kosi Bridge Infrastructure Company Limited (KBICL), Gorakhpur Infrastructure Company
Limited (GICL), Mumbai Nasik Expressway Limited (MNEL), Haryana Biomass Power
Ltd.(HBPL), Tidong Hydro Power Ltd.(THPL), Punjab Biomass Power Limited (PBPL), Indira
Containers Terminal(P) Ltd. (ICTPL), Sikkim Hydro Power Ventures Ltd.(SHPVL), and SEZ
Adityapur are in project implementation stage, no profit and loss account is prepared. All the
expenses incurred are capitalized to project expenses pending allocation, which will be allocated to
the various fixed assets on completion of the project.
39. Figures pertaining to the subsidiary companies and joint venture acquired during the year and the
other companies have been reclassified wherever necessary to bring them in line with the
company‟s financial statements. Figures for the years, 2007-08 & 2006-07 do not include the results
from operations of the overseas acquisitions and amalgamation of ATSL, hence the results for these
periods are not comparable with that of the year 2008-09.
40. Previous period figures are regrouped and rearranged wherever necessary to facilitate limited
comparability with that of current period.
41. Annexure I forms an integral part of these financial statements.
F
56