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GAMMON INDIA LIMITED

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Franco Tosi Meccanica S.p.A.<br />

As previously discussed (Note 13) sanctions and interests thereof have been allocated in the<br />

provisions for future risks and expenses.<br />

INCOME STATEMENT<br />

Note 18. PRODUCTION VALUE<br />

12.31.2008 12.31.2007<br />

Total Total<br />

Sales Italy 26,846,109 86,628,215<br />

Sales abroad 25,685,315 9,184,705<br />

Changes in inventories of work in progress and semifinished<br />

products 41,028,134 (11,936,498)<br />

Increase of assets for<br />

In-house production 221,905 162,734<br />

Other income 8,558,397 2,562,050<br />

Total production value 102,339,860 86,601,207<br />

The production value records an 18% increase.<br />

In other words, it is worth noting that said increase is even more significant when compared<br />

exclusively to the power generation sector, which production value in 2007 was € 45 million. Said<br />

increase confirms the fact that the choice to focus on exclusively this business area proved to be<br />

extremely correct.<br />

Changes in inventories of work in progress and semifinished products<br />

Original as of 01.01.2008<br />

Final as of 12.31.2008<br />

94,049,240<br />

135,077,374<br />

Original as of 01.01.2007<br />

Final as of 12.31.2007<br />

105,985,738<br />

94,049,240<br />

Change 41,028,134 Change<br />

(11,936,498)<br />

23/26<br />

F<br />

96

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