Annual Report 2006-2007 - Gammon India

2. DIVIDEND:
GAMMON INDIA LIMITED
The Board of Directors at its meeting held on June 30, 2007 has, subject to the shareholders’ approval
recommended a final dividend of 5% (Rs. 0.10 per share of Rs. 2/- each) for the year 2006-07. The total dividend
for the year under review together with the interim dividend of 20% (Rs. 0.40 per share) paid on 30 th March,
2007 works out to 25%, amounting to Rs. 4.37 crores. Dividend Distribution Tax aggregates to Rs. 0.64 crores.
3. FINANCE:
Your company has not raised any funds from the capital markets either by way of issue of equity shares/
ADRs/GDRs. However to meet its working capital requirements it has obtained financial assistance from its
consortium bankers.
As on 31 st March, 2007, total amount outstanding towards issue of Non-Convertible Debentures on private
placement basis to banks and financial institutions stood at Rs. 100 crores. CRISIL has assigned AA rating for
the same.
The following credit ratings from CARE continue:
(i) PR1+ for short-term commercial paper of Rs. 225 crores
(ii) AA+ for Non-Convertible Debentures of Rs. 140 crores
The proceeds of debentures were utilised for the purposes for which they were raised.
Capital expenditure on plant and machinery during the year amounted to Rs. 147.25 crores which was financed
from internal accruals, short term funding and External Commercial Borrowings.
4. FIXED DEPOSITS:
Your Company did not invite or accept deposits from public during the year under review. 174 deposits
(pertaining to previous year) aggregating to Rs. 0.22 crores remained unclaimed as on 31 st March, 2007.
5. BUSINESS PROSPECTS:
There is a strong linkage between infrastructure development on one hand and economic growth on the other
hand. If the Growth rate of the economy is to be maintained at 9% or higher, the emphasis will certainly be on
infrastructure. This has induced governments to increase its spending on infrastructure activities within the
country.
Indian cities as well as the Middle East and Africa continue to grow at a fast pace. Transportation projects,
Metro projects, Hydro and Thermal Power Projects, Water Supply projects and Real estate development will
continue to offer good business prospects. Your company has already made a mark in the Middle-East and
hopes to expand in West Africa and North in its areas of expertise. By way of diversification, the Company
has entered into a Joint Venture with Joshi Technologies Inc., U.S.A. for hydrocarbon exploration in India and
overseas.
Your Company being involved in practically all fields of Civil Engineering will continue to bid for and construct
larger and complex projects in the years to come.
6. INVESTMENTS IN INFRASTRUCTURE ACTIVITIES:
Your Company enhanced its presence in the development of infrastructure projects on Public Private Partnership
(PPP) basis, through its subsidiary, Gammon Infrastructure Projects Limited (“GIPL”).
GIPL continues to be one of the leading infrastructure development companies in the country. Currently, four
of its Special Purpose Vehicles (SPVs) are in operation while five others are under implementation, two of
which, viz. Gorakhpur Infrastructure Company Ltd. and Kosi Bridge Infrastructure Company Ltd., have recently
achieved financial closure. In addition, the prestigious project for implementation of the Mumbai Container
Terminal has been awarded to GIPL and its Consortium Partner.
Today, GIPL is hollistically present in the ‘Project Development Process’, including development, investment,
advisory services and sector specific operation and maintenance services.
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