Annual Report 2006-2007 - Gammon India

GAMMON INDIA LIMITED
(b) Details of Income & Expenditure and Assets & Liabilities of Joint Venture Gammon India Limited – AL Matar JV as per the audited
accounts of the Joint venture entity are as under.
(Rs. in Crores)
Income & Expenditures
68
Year ended
31.03.07
Period ended
31.03.06
Contract Revenue 239.49 191.25
Contract Costs (217.79) (179.24)
Interest Income – 0.25
Finance Cost (6.27) (2.08)
Administration Expenses – (1.89)
Income Tax Expenses (1.52) (0.96)
Assets & Liabilities
Fixed Assets
Current Assets
5.40 6.79
Inventories 116.50 40.15
Contract Work-in-Progress – 23.26
Account receivable and prepayments 85.27 86.94
Bank balances and cash
Current Liabilities
0.10 5.93
Accounts payables and accruals (43.30) (97.58)
Short term loans – (66.89)
Income tax payable (1.44) 157.13 (0.97) (9.18)
162.53 (2.39)
Represented by – JV partner’s account 2.97 (2.57)
Non-Current Liability – 0.18
Secured Loan 104.69 –
Unsecured Loan 54.87 –
162.53 (2.39)
34. The Company has pledged the following shares in favour of the lenders to the projects as part of the terms of financial closure of the
respective Companies:
i. Rajahmundry Expressway Limited – 6,732,000 (Previous Year 6,732,000) Equity shares of Rs. 10/- each
ii. Andhra Expressway Limited – 6,528,000 (Previous Year 6,528,000) Equity shares of Rs. 10/- each
iii. Cochin Bridge Infrastructure Company Limited – Nil (Previous Year 3,264,056) Equity shares of Rs. 10/- each
35. Joint venture and operations in Oman :
(a) The Company’s share of profit under Joint Venture is accounted under other income as per the audited accounts of the Joint
Venture. In respect of the contract under execution with MHEW, the Joint Venture has exceeded the contractual time of completion
i.e. 26 th August, 2006 as extended upto 11 th March, 2007. The client has not accepted any bills or made any payments after
that date. The Joint Venture has requested for further extension of the time which is pending approval. The Joint Venture has
nevertheless completed substantial portion of work by the Balance sheet date and is hopeful of receiving the extension of time
sufficient to cover the period of the delay, thereby obviating the contractual penalty of RO 40000 (Rs. 0.46 crores) per day. The
Joint Venture’s stand in this regard is further re-inforced by the client who has since the balance sheet date issued variation
orders and has given additional work as part of the original contract thereby indirectly extending the original contract period.
However the official EOT letter is under process and is awaited. Pending the receipt of the same, the job has been assessed
considering that the EOT will ultimately be received and profit is determined accordingly. On the basis of Joint Venture profit and
loss account, the Company has recognized its share of Rs. 13.28 crores in their financial statements.