GAMMON INDIA LIMITED

DESCRIPTION 31/12/2008 31/12/2007
PROFIT AND LOSS ACCOUNT 0
0
A) Revenue 5.240.391.127 5.601.049.409
B) Expenses (4.423.803.652) (4.590.641.171)
C) Financial income and costs (139.967.603) (171.686.215)
D) Value adjustments to financial assets
E) Extraordinary income and costs
Taxes on income for the year 238.556.136 291.825.035
Profit (loss) for the year 438.063.736 546.896.988
Major events occurred during the company’s fiscal year
It is highlighted that
On 30 th April 2008 the transfer of all shares from Sae Power Limited to Associated Transrail Structures ltd was
completed
On 30 th April 2008 the registered office was transferred from via Alessio Baldovinetti, 86 Rome to Viale
Edison, 50 Sesto San Giovanni.
In the shareholding meeting held on 30th April 2008 the shareholders decided to cover prior year losses
amounting to Euro 3.500.000 by reduction of the Share Capital and consequently decided to increase of the
same amount within 31st December 2008.
On 17th September 2008 such increase was done and the Share Capital at year end is Euro 5.000.000.
Layout criteria
These financial statements have been drawn up in accordance with arts. 2423 ff of the Italian Civil Code, as appears
from these Notes, which have been prepared pursuant to art. 2427 of the Italian Civil Code and are an integral part
of the financial statements within the meaning and for the purposes of art. 2423.
Valuation criteria
The criteria used for drawing up the financial statements ended 31/12/2002 have been applied consistently with the
prior year, except for the changes made as a result of the application of the new principles introduced by legislative
decree no. 6/2003, containing the reform of company law. The financial statements items have been prepared on a
prudential, accruals and going-concern basis, taking into account the economic function of the asset or liability
considered.
The prudential basis of accounting has resulted in the valuation of the single components of each asset or liability to
avoid offsets between losses that should have been reported and profits that should not have been recognised as they
have not been realised.
Under the accruals method, the effect of transactions and other events has been reflected on the accounts and
attributed to the fiscal year to which the transactions and events refer, and not to that in which the relevant changes
to cash in hand and at bank (collections and payments) have taken place.
The consistent application of accounting principles ensures the comparability of the company’s financial statements
drawn up in different fiscal years.
The fact that valuations take into account the economic function of the asset or liability considered, which implies
application of the principle of substance over the form - mandatory where not conflicting with other specific rules
governing financial statements – allows the representation of transactions in line with the economic reality
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