GAMMON INDIA LIMITED

Franco Tosi Meccanica S.p.A.
The item “INPS – payables paid in instalments” represents the payables from INPS concerning
contributions accrued but not yet paid and for which an instalment plan has been obtained.
Said payables include sanctions and interests accrued as of December 31 st , 2008.
The subdivision between current and non-current portion of the payables from INPS has taken place
based on the obtained instalment plan.
The item “other payables” include the amount of €4.056.800 associated with a financial lease contract,
of which €3,774,104 classified as non-current asset.
Other payables include also deferred charges related to revenues achieved in the financial year, but
corresponding to the following financial years.
Note 13. PROVISION FOR FUTURE RISKS AND EXPENSES
Provision for future risks and expenses is analysed as follows:
Nota 13.PROVISIONS FOR FUTURE RISKS AND EXPENSES
12.31.2008 12.312007
Total Non-current Current Total Non-current Current
Provisions for risks 13,525,662 13525,662 13,163,527 13,163,527
Provisions for tax risks 7,826,892 5,959,717 1,867,175 7,625,004 0 7,625,004
Total 21,352,554 19,485,379 1,867,175 20,788,531 13,163,527 7,625,004
Provision for work orders has been allocated in provisions for future risks and expenses. As a
precautionary measure, it has been earmarked to cover potential liabilities derived from a possible
diseconomy in the work area over the course of the works (claims and penalties for late deliveries)
besides the precautionary provisions allocated for controversies which might arise with the personnel.
Provision for tax risks refers to sanctions and interests accrued as of December 31 st , 2008, in relation
to the non paid tax payables.
20/26
F
93