Annual Report 2006-2007 - Gammon India

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Annual Report 2006-2007
(x) The Company does not have any accumulated losses and has not incurred cash losses in current year and
the previous year.
(xi) In our Opinion and according to the information and explanation given to us by the Management the Company
has not defaulted in repayment of dues to a financial institution or bank or debenture holders.
(xii) On the basis of the audit procedures followed, the test checks of the transactions during the course of our
audit and the representations from the management, the Company has maintained adequate records for
loans granted on the basis of security by way of pledge of shares.
(xiii) The Company is not a nidhi/ mutual benefit fund/societies and accordingly clause (xiii) is not applicable.
(xiv) The Company has maintained proper records of securities and other investments, which it has traded in and
also in respect of shares and other securities, held as investments and the said investments are in the name
of the company except in case of certain shares where the company holds beneficial interest as mentioned
vide note 37 to the notes to accounts.
(xv) According to the information and explanations the company has given corporate guarantee for loans taken
by companies in the group from banks or financial institutions for which it has obtained counter guarantee
from the other entities. The other terms and conditions are not prejudicial to the interest of the company.
(xvi) The term loans taken during the year have been applied for the purpose for which the loans were obtained.
(xvii) According to the information and explanation given to us, on an over all examination of the Balance sheet of
the company and the necessary representations from the management including those represented to the
bankers and lenders in the Credit Monitoring Arrangement Statement, we report that no short term funds
have been applied towards long term application.
(xviii) The Company has not made preferential allotment during the year to parties and companies other than those
covered in the Register maintained under section 301 of the Act. Accordingly clause (xviii) of the Companies
(Auditors’ Report) Order, 2003 is not applicable.
(xix) The Company has not raised any debenture and accordingly clause (xix) of Companies (Auditors’ Report)
Order, 2003 is not applicable.
(xx) The Company had in the previous year raised money by way of Global Depository Receipts on the Luxemburg
Stock Exchange. The management has disclosed the use of proceeds for the issue vide note 9 of the notes
to accounts.
(xxi) Based on the audit procedures performed and the information and explanation given by the management
we report that no fraud on or by the company has been noticed or reported during the year.
Mumbai, Dated : June 30, 2007
For NATVARLAL VEPARI & CO.
Chartered Accountants
N. Jayendran
Partner
M. No. 40441