GAMMON INDIA LIMITED

interest and voting rights in respect of 25,500 (Year 2007-08 Nil, Year 2006-07 Nil) equity shares
from GIL.
ii) During the year 2008-09, its subsidiary Company GIPL acquired 50,000 (Year 2007-08 Nil,
Year 2006-07 Nil) equity shares in the joint venture company Gammon L & T Infra MRTS Ltd
(„GLTIML‟) from L & T Infrastructure Projects Limited. Due to this acquisition, GLTIML became
a wholly owned subsidiary of the Company. The name of GLTIML was subsequently changed to
Gammon Metro Transport Limited (GMTL).
iii) During the year 2008-09, BSL, GHL, JPDL, PREL, and YPVL (Year 2007-08 GLL, GICL,
HBPL, KBICL, MPSL, THPL; Year 2006-07 Nil) were incorporated by its subsidiary company
GIPL by subscribing to the memorandum.
f) Warrant Issued to Investor
Pursuant to the approval of the members of CBICL at an EGM, a Warrant Subscription
Agreement between the CBICL, Gammon India Ltd and AMIF I Ltd („the investor‟) has been
executed on 30th November, 2005. Based on the agreement CBICL has issued an Optionally
Convertible Warrant on a preferential basis, which gives the investor an option to subscribe to
25% of the issued and paid share capital of CBICL on a fully diluted basis, on a preferential
allotment basis, at any time after 1st January, 2011 but before 31st March, 2011, by paying the
CBICL fair value therefore. As per put and call option of the said agreement, CBICL has
exercised the option for repurchasing the warrant. However, during the year 2007-08 these
warrants were cancelled and are not outstanding as at 31st March 2009.
2. JOINT VENTURES
a) The following Jointly Controlled Entities are consolidated applying Accounting Standard
(AS) – 27 “Financial Reporting of Interests in Joint Venture”:
Name of Jointly Controlled Entities % of Interest % of Interest % of Interest
as at March 31,
2009
as at March 31,
2008
as at March 31,
2007
Vizag Seaport Private Ltd („VSPL‟)* 47.52% 42.22% 42.22%
Punjab Biomass Power Ltd („PBPL‟)* 50.00% 50.00% 50.00%
Indira Container Terminal Private Ltd
(„ICTPL‟)*#
50.00% 50.00% -
SEZ Adityapur Ltd. (“SEZAL”)*# 38.00% 38.00% 38.00%
Haryana Biomass Power Limited („HBPL‟)* 50.00% - -
Gammon Al Matar (GALM) 85.00% 85.00% 85.00%
Gammon Encee Rail (Consortium) 51.00% 51.00% -
Sofinter S.p.A.# 50.00% - -
Gammon L & T Infra MRTS Ltd* - 50.00% 50.00%
* Shareholding is through subsidiary Gammon Infrastructure Projects Ltd.
# As per unaudited Management Accounts.
b) During the year 2008-09 the group has acquired 50% equity stake in Sofinter S.p.A, a joint
stock company incorporated in Italy through its SPV Gammon International BV. Since the
group has joint control over the operations and the management of Sofinter group the same are
being consolidated as a Joint Venture. The company has been subjected to audit by their
statutory auditors for the year ended December 2008 and approved by the board of Directors.
Statutory auditors are expected to release their report on receipt of the report from the bankers
who are examining the facilities needed by the Group Sofinter, in accordance with Sofinter‟s
business plans and its fund requirements. Pending the issuance of the Auditors Report the
accounts of Sofinter is consolidated as unaudited financial statements on the basis of the
financial statements which have been the subject of audit by the Statutory Auditors On the
principles of prudence and conservatism, the Management of Gammon Group has made
provision of Euro 7.5 million under provision for risks and contingencies, in these consolidated
Accounts.
F
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