Annual Report 2006-2007 - Gammon India

GAMMON INDIA LIMITED
(c) During the year, pursuant to the retrospective amendment of proviso to Section 80IA the Company has reviewed its claim in
respect of Section 80IA and has decided to provide for income tax of earlier years without considering the benefits available
u/s 80IA. The amount of short provision including interest amounting to Rs. 50.09 crores is being debited to the profit and loss
account as short provision of earlier years.
25. The Company has deposited customs duty of Rs. 2.20 crores (Previous Year Rs. 2.20 crores) under protest in respect of certain
machineries imported for the project in Sikkim. The Company contends that the import of machinery is duty free as per the Project
Import regulations prevailing then. The Company has preferred an appeal against the levy of Custom Duty. Pending outcome of the
appeal, the said amount is carried under Advances recoverable in cash or in kind.
26. Unpaid dividend includes Rs. 0.03 crores (Previous year Rs. 0.01 crores) to be transferred to the Investor Education & Protection
Fund.
Unpaid dividend also includes the interim dividend declared on 21 st March, 2007 remaining unpaid at the end of the year.
Unpaid matured Fixed Deposits includes Rs. Nil (Previous Year Rs. 0.001 crores) to be transferred to the Investor Education &
Protection Fund.
27. On a further assessment of the impairment of Fixed Assets of the Company as at the Balance Sheet date as required by Accounting
Standard AS 28 – “Impairment of Assets” issued by the Institute of Chartered Accountants of India, Company is of the view that no
further provision for impairment of Fixed Assets is required.
28. The balance with The Freyssinet Prestressed Concrete Company Limited is as per books of accounts and subject to reconciliation.
29. CONTINGENT LIABILITIES :
66
As at
31.03.07
(Rs. in Crores)
As at
31.03.06
(Rs. in Crores)
(a) Liability on contracts remaining to be executed on Capital Accounts 51.92 59.42
(b) Counter Guarantees given to Bankers for Guarantees
given by them and Corporate Guarantees, on
behalf of subsidiary, erstwhile subsidiary, associate
Companies stand at 1148.67 696.01
(c) Corporate Guarantees and Counter Guarantees given to
Bankers towards Company’s share in the Joint Ventures
for guarantees given by them to the Joint Venture Project clients 417.53 374.55
(d) Disputed Sales Tax liability for which the Company has
gone into Appeal is 13.81 13.07
(e) Claims against the Company not acknowledged as debts 46.14 45.75
(f) Claim against the Company by Al Manara International
LLC not acknowledged as debt –
– Towards commission and related costs 14.21 19.05
– Towards damages – 116.23
(g) Counter claims in arbitration matters referred by
the Company – liability unascertainable. – –
(h) Disputed Excise Duty liability 0.19 0.16
(i) Disputed Customs Duty liability 0.32 0.32
(j) Disputed Service Tax Liability 3.66 –
(k) Contingent Liability on partly paid shares – –
(l) Disputed Income Tax –
Demand for which the Company Appeals are pending
before Appellant Authority – 1.16 –
(m) There is a disputed demand of UCO Bank pending since 1986, of US$ 436251 i.e. Rs. 1.72 crores. Against this, UCO Bank has
unilaterally adjusted the Company’s Fixed Deposit of US$ 30584 i.e. Rs. 0.12 crores, which adjustment has not been accepted
by the Company.
(n) In respect of Joint Venture and operations in Oman, Gammon India Limited – AL Matar JV, refer note no. 35.
30. Disclosure pertaining to Accounting Standard – 29 is as below.
(Rs. in Crores)
Account Head Opening
Balance
Provisions
made during
the year
Paid/Utilized
during the
year
Closing
Balance
Gratuity 1.62 1.03 0.95 1.70
Leave Encashment 3.35 0.39 Nil 3.74
Taxation 28.50 95.18 12.82 110.86
Proposed Dividend 5.25 0.87 5.25 0.87