GAMMON INDIA LIMITED

PVAN:
Term Loans from ICICI Bank are secured by charge over all the assets / investments of the company.
The Parent Company has also pledged its entire shareholding of the company with the Bank and
Corporate Guarantee by ultimate Parent Company.
ii) During the year 2008-09 the total amount of borrowing cost capitalized was Rs. 986.4 Millions
(2007-08 Rs. 268.60 Millions ; 2006-07 – Nil)
6. Loans and advances include Rs. 500 Millions (2007-08 Rs. 110.40 Millions ; 2006-07 500.00 Millions)
which are secured by pledge of equity shares of a private company. The security value is adequate to
recover the amount advanced.
7. Issued Share Capital includes 7,25,800 (2007-08 7,25,800 ; 2006-07- 7,25,800) Equity Shares of Rs.
2/- each kept in abeyance. Share Forfeited account includes Rs. 2.60 Millions (2007-08 Rs. 2.60
Millions ; 2006-07 Rs.2.60 Millions) of Share Premium collected on application in respect of forfeited
shares.
8. Gammon Infrastructure Projects Limited (GIPL) 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:-
COMPANY NAME NO. OF EQUITY SHARES RATE(Rs.)
March, 2009 March, 2008 March, 2007
Andhra Expressway Ltd. 9,135,010 9,135,010 10,225,560 10/-
Rajahmundry Expressway Ltd. 14,266,318 9,135,010 10,429,560 10/-
Mumbai Nasik Expressway 161,20,000 161,20,000 16,120,000 10/-
Gorakhpur Infrastcture Projects
Ltd.
9,593,233 9,593,233 - 10/-
Kosi Bridge Infra. Co. Ltd. 6,281,730 6,281,730 - 10/-
Punjab Biomass Power Ltd. 15,250,000 - - 10/-
Vizag Seaport Private Ltd. 20,589,729 - - 10/-
9. One of the Subsidiary had charged to Profit & Loss Account, Capital expenditure incurred on Property
Development in the year 2007-08. However, during the year 2008-09, the management is of view that
the chances of developing the property are materializing and hence the capital expenses incurred in the
year 2007-08 are now pertaining to the cost of acquisition of the potential property. Hence the expenses
have been shown as an Asset by reversal of Rs. 50.10 Millions reducing the previous year‟s loss of Rs.
59.30 Millions.
10. Exploration and evaluation of potential mineral reserve is recognised as part of capital Work in
progress under intangible assets when such costs are expected to be either recouped in full through
successful exploration and development of the area of interest or by its sale or when exploration and
evaluation activities in the area of interest have not yet reached a stage which permit a reasonable
assessment of the existence or otherwise of economically available reserves and active and significant
operations in relation to the area are continuing or are planned for the future. Exploration assets are
reassessed on a regular basis and these costs are carried forward provided that at least one of the
conditions outlined above is met.
11. The Company, from time to time, has been setting aside some amounts into Special Contingency
reserves to meet any possible contractual losses/liabilities/claims following the principles of
conservatism and prudence. During the year 2007-08 an amount of Rs. 200 Millions (2008-09 Nil;
2006-07 Rs. 100 Millions) has been transferred to the Special Contingency Reserve
12. The depreciation for the year 2006-07 is net of write back of depreciation of assets in Oman Branch of
the Company. Hitherto, the Company was charging depreciation on the assets lying in Oman as per the
rates specified in the Omani laws, which were higher than the schedule XIV rates. During the year
2006-07, Oman branch has changed the method of depreciation to bring it in line with the rates and in
the manner specified in the schedule XIV. The excess depreciation charged during previous years
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