GAMMON INDIA LIMITED

underlying formal aspects.
Fixed assets
Intangible assets
These have been recorded at their historical purchase cost net of the relevant depreciation systematically calculated.
During the fiscal year start-up and expansion costs and research, development and advertising costs with multi-year
use have not been sustained.
Industrial patent and intellectual property rights, concessions, licenses, trademarks and similar rights are depreciated
at an average annual rate of 20%.
If, regardless of the amortization booked, a permanent loss of value occurs, the fixed assets are written down
accordingly. If the reasons for the write-down no longer exist in the following years, the original value is restored,
adjusted by amortization.
Tangible assets
These have been recorded at their purchase cost and are adjusted by the relevant accumulated depreciation.
The book value includes any ancillary costs and the costs incurred for the use of the asset, less any trade discounts
and any significant cash discounts.
The depreciation charged to profit and loss account has been calculated on the basis of the remaining useful life of
the assets, taking into account their use, destination and economic-technical life, and we believe that this is well
reflected by the following rates, unchanged compared to the previous fiscal year and halved in the year in which the
asset has entered operation:
- light constructions: 12.50%
- plants and machinery: 15.00 %
- equipment: 40.00 %
- trucks and vans: 20.00%
- office furniture: 12.00%
- computers: 20.00%
- vehicles: 25.00%
In the event that, regardless of the depreciation booked, a permanent loss of value occurs, the fixed assets are written
down accordingly. If the reasons for the write-down no longer exist in the following years, the original value is
restored, adjusted by depreciation.
Tangible assets have not been written up and discretional or voluntary write-ups have not been made.
Accounts receivable
These have been recorded at their presumed realisable value.
Accounts payable
Accounts payable have been recorded at their nominal value, adjusted by any returns of goods or credit notes.
Accrued liabilities/income – prepayments/deferred income
These have been determined on an accruals basis.
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