GAMMON INDIA LIMITED

y Busi Group. By an Agreement dated 2 nd March 2009, Busi Group agreed to give PVAN
50% stake in lieu of its stake in Sadelmi for a consideration of Euro 1 and convert the S.r.L.
status into an S.p.A. to facilitate the same. Consequently PVAN will cease to be a shareholder
of Sadelmi from that date and will become a shareholder of Busi Power. Pending the approval
of the courts in Italy for the composition no effects have been given in these accounts. Busi
Group has also agreed to bring cash of Euro 2,500,000 into Busi S.r.L in order to capitalize
Sadelmi India Pvt. Ltd. a wholly owned subsidiary in India as earlier contemplated by the
shareholders of Sadelmi S.p.A. and has also permitted it to freely draw upon the references to
undertake future Projects. Consequent upon this arrangement, Busi Group will be wholly
responsible for the operations and all future funding of Busi Power S.r.L and Gammon will be
wholly responsible for the operations and future funding of the Indian subsidiary for the
projects undertaken by them in the territories identified respectively for them. Each party will
however share 50% of the profits of the respective Busi Power and the Indian Subsidiary. The
results of these operations will be consolidated in the Company with effect from FY 2010.In
the absence of the results of operations of Sadelmi Spa for the year ended December 2008, the
same has not been consolidated in the financial statements of the group. The investment in
Sadelmi Spa of Rs. 506.4 Millions has therefore been accounted in accordance with AS-13
“Accounting for Investment”, at cost.
e) The proportionate share of assets, liabilities, income and expenditure of the Joint Ventures
consolidated in the accounts is tabulated as below:-
(Rs. in Millions)
As at 31.3.2009 As at 31.3.2008 As at 31.3.2007
ASSETS
Fixed Assets: 6,260.20 1456.60 1,316.90
Less : Depreciation 2,524.00 3,736.20 162.60 1,294.00 111.20 1,205.70
Capital WIP 0.10 146.00 95.50
Advance for Capital Expenditure
Current Assets:
322.50 26.50 1.30
Inventories 2,945.20 225.70 1,166.00
Sundry Debtors 8,105.60 1,288.40 860.60
Cash & Bank Balances 1,682.80 46.90 22.00
Loan & Advances 2,243.90 37.00 28.70
Total Current Assets (A) 14,977.60 1,598.00 2,077.30
Current Liabilities (B) 12,185.70 348.30 506.00
Net Current Assets (A-B) 2,791.90 1,249.70 1,571.30
Preliminary & Share Issue Exp
1.90 0.30 0.20
Total Assets 6,852.60 2,716.50 2,874.00
LIABILITIES
Loan Funds:
Secured Loans 7,381.10 1,473.90 1,889.60
Unsecured Loans 44.50 826.50 590.70
Deferred Tax Liability (350.10) 7,075.50 56.50 2,356.90 36.70 2,517.00
Reserves & Surplus: (406.20) (319.50) 79.00
Total Liabilities 6,669.30 2,037.40 2,596.00
(Rs. in Millions)
REVENUE ITEMS 2008-09 2007-08 2006-07
Turnover 9,650.00 1,966.60 2,523.60
Less : Expenditure
Contract & other expenditure 7,693.60 1,851.40 2,226.90
Port Operation Expenses - - -
Administration Expenses 923.40 32.10 15.90
F
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