GAMMON INDIA LIMITED

equirement to publish un-audited financial statements on a quarterly basis, and is required to inform stock
exchanges immediately regarding any stock price-sensitive information.
The Companies Act further requires mandatory compliance with accounting standards issued by the ICAI. The ICAI
and SEBI have implemented changes which require Indian companies to account for deferred taxation, consolidate
their accounts (subsidiaries only), and provide segment-wise reporting and disclosure of related party transactions
from April 1, 2001 and accounting for investments in affiliated companies and joint ventures in consolidated
accounts from April 1, 2002.
As of April 1, 2003, accounting of intangible assets is also regulated by accounting standards set by the ICAI and as
of April 1, 2004 accounting standards set by the ICAI will regulate accounting for impairment of assets. The ICAI
has recently announced that all listed companies and public interest entities have to comply with International
Financial Reporting Standards from 1 April 2011.
Indian Stock Exchanges
There are currently 23 recognized stock exchanges in India. Most of the stock exchanges have their own governing
board for self regulation. The BSE and NSE together hold a dominant position among the stock exchanges in terms
of the number of listed companies, market capitalization, and trading activity.
BSE
The BSE is one of the stock exchanges in India on which the Company‗s Equity Shares are listed. Established in
1875, it is the oldest stock exchange in India. It was the first stock exchange in India to have obtained permanent
recognition in 1956 from the Government of India under the SCRA. Pursuant to the BSE (Corporatisation and
Demutualisation) Scheme 2005 of SEBI, the BSE has been corporatised and demutualised and is now a company
under the Companies Act. The BSE has switched over to an on-line trading network since May 1995 and has today
expanded this network to over 350 cities in India.
Derivatives trading commenced on the BSE in 2000. The BSE has a wholesale and retail debt trading categories.
Retail trading in government securities commenced in January 2003. The BSE Sensitive Index, or Sensex, consists
of listed shares of 30 companies. The companies are selected based on market capitalization, liquidity and industry
representation. Sensex was first compiled in 1986 with the Fiscal Year ended March 31, 1979 as its base year. The
BSE 100 Index (formerly the BSE National Index), introduced in January 1989, contains listed shares of 100
companies including the 30 in Sensex with Fiscal Year 1984 as the base year.
As of October 31, 2009 the BSE had 1,004 members comprising 173 individual members, 808 Indian companies
and 23 FIIs. As of October 31, 2009 there were 4,951 companies trading on the BSE and the estimated market
capitalisation of stocks trading on the BSE was Rs. 53,745.59 billion. The average daily turnover on the BSE as of
October 31, 2009 was Rs. 57.00 billion.
NSE
The NSE is one of the stock exchanges in India on which the Company‘s Equity Shares are listed. The NSE was
established by financial institutions and banks to serve as a national exchange and provide nationwide on-line
satellite-linked screen-based trading facilities with electronic clearing and settlement for securities including
government securities, debentures, public sector bonds and units.
On its recognition as a stock exchange under the SCRA in 1993, the NSE commenced operations in the wholesale
debt market segment in 1994 and operations in the derivatives segment commenced in 2000. NSE launched the NSE
50 Index, now known as S&P CNX NIFTY, on April 22, 1996 and the Mid-cap Index on January 1, 1996. The
securities in the NSE 50 Index are highly liquid. NSE trading terminals are situated in over 300 cities across India.
As of October 31, 2009 there were 1,291 companies trading on the NSE and the estimated market capitalisation of
stocks trading on the NSE was Rs. 50,248.30 billion. The average daily turnover on the NSE as of October 31, 2009
was Rs. 181.48 billion.
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