GAMMON INDIA LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
You should read the following discussion of our financial condition and results of operations together with
our consolidated financial statements as of and for the years ended March 31, 2007, 2008 and 2009,
including the notes thereto and reports thereon, each included in this Placement Document. You should
also read the sections titled “Risk Factors” and “Forward Looking Statements” included in this Placement
Document which discuss a number of factors and contingencies that could affect our financial condition
and results of operations. The financial statements included in this Placement Document are prepared in
accordance with Indian GAAP, which differs in certain material respects from U.S. GAAP and IFRS.
Our fiscal year ends on March 31 of each year. Accordingly, all references to a particular fiscal year are to
the twelve month period ended March 31 of that year.
Overview
We are the flagship company of the Gammon group and are one of the oldest civil engineering and
construction companies in India. We believe that we are one of the largest contractor and developer of
infrastructure projects in India. Our operations are divided into our engineering, procurement and
construction (“EPC”) and construction business, infrastructure development business and international
business. We provide construction services in areas such as transport engineering, power transmission and
distribution, energy, environment and pipelines, hydroelectric power structures, hydraulic and irrigation,
and industrial structures and buildings. Our Company was incorporated in 1922 by John C. Gammon and
was listed on the BSE in 1962 and the NSE in 1996. We undertake the development of projects as a
developer in addition to providing services as a contractor. For the year ended March 31, 2009, we had total
consolidated revenues and profit after tax of Rs.52,121.81 million and Rs.648.42 million, respectively.
Our EPC and construction business comprises the following areas:
transport engineering, where we undertake the design and construction of roads, bridges, metros,
flyovers, ports and airports;
power transmission and distribution, where we undertake the design, engineering, erection, testing
and commissioning of transmission and distribution lines, substation and overhead lines, project
electrification, rural electrification and system improvement projects;
energy, where we undertake the engineering and construction of nuclear power, thermal power,
hydro electric power and non-conventional power plants;
environment and pipelines, where we undertake the construction and design of water treatment
plants, cross-country oil and gas pipelines and water supply projects;
hydroelectric power structures, where we undertake the construction of structures for hydroelectric
power plants, such as dams, powerhouses, surge chambers, intake structures, and head race
tunnels;
hydraulic and irrigation, where we undertake the engineering, design and construction works for
dams, tunnels, irrigation pipes and hydraulic structures; and
our industrial structures and buildings, where we undertake the construction of multi-storey
buildings, residential, commercial and hospitality and other industrial structures.
We are also involved in the development of Build-Operate-Transfer (“BOT”) projects in infrastructure and
other infrastructure development projects through our subsidiary Gammon Infrastructure Projects Limited
(“GIPL”), of which we currently, directly and indirectly, hold 76.23%. GIPL, listed on the BSE and the
NSE, undertakes projects on a public private partnership (“PPP”) basis and its current portfolio of projects
consists of 19 projects in the roads, bridges, ports, hydroelectric power and biomass power sectors, of
which, four are in the operations phase, 10 are in the development phase and five are in the pre-
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