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GAMMON INDIA LIMITED

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SOFINTER S.p.A.<br />

Consolidated Cash Flow Statement - December 31, 2008<br />

(in units of Euro)<br />

31/12/2008<br />

31/12/2007<br />

Net loss before taxes -40.131.766 -49.528.409<br />

Depreciation of property, plant and equipment 4.127.116 3.020.743<br />

Amorisation and write off intengible assets 2.446.482 3.042.175<br />

Share of loss/profit from associates 484.589 507.111<br />

Net finance costs 15.910.144 13.274.803<br />

Change in inventories -782.859 -1.240.727<br />

Change in trade receivables and trade payables -91.194.683 -54.183.465<br />

Change in construction contracts - amounts due from custumers and<br />

amounts due to customers 92.667.242 83.940.966<br />

Change in other receivables and other payables 43.090.991 -21.352.392<br />

Changes in derivates 1.790.113 -903.434<br />

Taxes paid -2.141.010 -3.577.980<br />

Utilisation of provisions (including employee benefit liability) -3.592.538 -1.295.644<br />

Accruals of provisions (including amployee benefit liability) 6.766.358 1.177.118<br />

A - Net cash flow from operating activities 29.440.179 -27.119.135<br />

Net investments in property, plant and equipment -4.907.663 -3.630.460<br />

Net investments in intangible assets -1.972.262 -1.156.867<br />

Investments in associates 198.982 -2.519.527<br />

B - Net cash flow from investing activities -6.680.943 -7.306.854<br />

Capital contribution and other changes in shareholders' equity 49.200.000 0<br />

Interest and other financial income received 1.530.536 -12.851.516<br />

Interest and other financial cherges paid -17.440.680 -12.851.516<br />

Net changes in short and long term borrowings -71.300.880 68.357.368<br />

C - Net cash flow from financing activities -38.011.024 55.505.852<br />

D - Total cash flow provided/ (used) in the year (A+B+C) -15.251.788 21.079.863<br />

E - Cash and cash equivalents at the beginning of the year 63.676.664 42.596.801<br />

F - Cash and cash equivalents at the end of the year (D+E) 48.424.876 63.676.664<br />

F<br />

67

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