Annual Report 2006-2007 - Gammon India

GAMMON INDIA LIMITED
B. NOTES TO ACCOUNTS
1. (a) The following Subsidiary Companies have been consolidated in the Financial Statements:
Name of Subsidiaries
94
Country of
Incorporation
Proportion of
ownership
Interest
Effective
Interest of
Parent Co.
Gammon Infrastructure Projects Ltd.(GIPL) India 82.50% 82.50%
Gammon Cooling Towers Ltd India 99.86% 99.86%
Gammon & Billimoria Ltd. India 50.94% 50.94%
Rajahmundry Expressway Ltd.(REL) India 93.50%* 77.14%
Andhra Expressway Ltd.(AEL) India 93.50%* 77.14%
Cochin Bridge Infrastructure Co. Ltd.(CBICL) India 97.66%* 80.57%
Mumbai Nasik Expressway Ltd.(MNEL) India 79.90%* 66.32%
Sikkim Hydro Power Ventures Ltd.(SHPVL) India 100.00%* 82.50%
Gammon Projects Developers Ltd.(GPDL) India 100.00%* 82.50%
Gammon Realty Limited (GRL) India 75.06% 75.06%
Kosi Bridge Infrastructure Company Ltd.(KBICL) India 100.00% 91.43%
Gorakhpur Infrastructure Company Ltd.(GICL) India 100.00% 91.43%
* Shareholding is through subsidiary Gammon Infrastructure Projects Ltd.
Gammon & Billimoria Limited holds 49% of the equity of Gammon & Billimoria (LLC), a limited liability Company
registered in Dubai hereafter referred as G&B LLC. Since the Management and Operational control of G&B LLC is with
Gammon & Billimoria Limited, G&B LLC is being consolidated as a subsidiary under Accounting Standard (AS) – 21 issued by
the Institute of Chartered Accountants of India.
The Company had in the past acquired voting rights and other beneficial interests in two companies Rajahmundry Expressway
Limited and Andhra Expressway Limited in respect of 43,60,500 equity shares and 45,64,500 equity shares respectively from
its Joint Venture partner in these entities in consideration of payment of deposit for the acquisition of shares of Rs. 5.66 Crores.
Subsequently the Company transferred its voting rights and other beneficial interests so acquired along with the voting rights
and beneficial interests in respect of 1,10,92,500 equity shares of Rajahmundry Expressway Limited and 1,10,92,500 equity
shares of Andhra Expressway Limited to its then wholly owned subsidiary Gammon Infrastructure Projects Limited against
receipt of consideration being deposit for sale of equity shares in these companies of Rs. 32.84 Crores from the subsidiary. The
deposit made and deposit received as aforesaid are reflected under the Investment Schedule. In respect of these shares where
the voting rights and beneficial rights are so transferred, the holder continues to be the original allotees as per the records of the
respective companies.
Mumbai Nasik Expressway Ltd. and Sikkim Hydro Power Ventures Ltd. are SPVs for projects where the shares are held through
subsidiary GIPL.
GPDL is a 100% subsidiary of GIPL for the purpose of developing infrastructure projects on a BOT, BOOT or Build Operate Lease
and Transfer (‘BOLT’) basis.
(b) The following Jointly Controlled Entities are consolidated applying Accounting Standard (AS) – 27 “Financial Reporting of
Interests in Joint Venture.”
Name of Jointly Controlled Entity
Country of
Incorporation
Proportion of
ownership
Interest
Effective
interest of
Parent Co.
Gammon L & T Infra MRTS Ltd. India 50.00%* 41.25%
Punjab Biomass Power Ltd. India 50.00%* 41.25%
Vizag Seaport Pvt. Ltd. India 42.22%* 34.83%
Gammon Al Matar (GALM) Oman 85.00% 85.00%
SEZ Adityapur India 38.00% 31.35%
* Shareholding is through subsidiary Gammon Infrastructure Projects Ltd.