GAMMON INDIA LIMITED

Particulars As at 31st
March,2009
As at 31st
March,2008
As at 31st
March,2007
Net Profit After Taxation (Rs. In Millions) 563.20 712.90 350.70
Preference Dividend (incl. Dividend Distribution Tax) 73.70 - -
Net profit attributable to the Equity Share holders 489.50 712.90 350.70
Weighted Number of Shares during the period – Basic 10,68,50,776 8,67,44,670 8,67,44,670
Weighted Number of Shares during the period – Diluted 11,37,48,742 8,74,70,470 8,74,70,470
Earning Per Share – Basic (Rs.) 4.58 8.22 4.04
Earning Per Share – Diluted (Rs.) 4.58 8.15 4.01
For the purposes of computation of Earning Per Share the equity shares to be issued against the Equity
Share Suspense account pursuant to the scheme of amalgamation in 2008-09, preference dividend on
preference share suspense account and the options granted to the employees of the erstwhile ATSL
have been considered in the weighted average shares during the period. Similarly 7,25,800 equity
shares kept in abeyance from earlier equity offerings have also been considered for dilution. Since the
further shares to be issued have an anti-dilutory effect, the diluted EPS is the same as basic for the year
2008-09.
22. SUNDRY DEBTORS/ LOANS AND ADVANCES:
a) BONUS RECOVERABLE FROM THE NHAI
Sundry debtors also includes Rs. 153.94 million (Year 2007-08 Rs 153.94 million; Year 2006-07
153.94 million) of early completion bonus receivable from National Highways Authority of India
('NHAI') accrued in earlier years by AEL and REL under the Contract which has been disputed
by the NHAI. AEL and REL have initiated arbitration proceedings for recovery of the bonus. As
the companies believe that the bonus is fully recoverable, no provision has been considered
necessary for any amounts not recoverable.
b) ANNUITY RECEIVABLE BY CBICL
Under the Concession Agreement dated October 27, 1999, executed between Cochin Bridge
Infrastructure Co. Ltd.(CBICL), Government of Kerala (GOK), Greater Cochin Development
Authority (GCDA) and Gammon India Limited dated January 6, 2001; the entire project has been
assigned to CBICL as a Concessionaire for the purpose of developing, operating and maintaining
the infrastructure facility on BOT basis for 13 years and nine months. Subsequently a
Supplementary Concession Agreement is being worked out as per the Government of Kerala‟s
Order Nos. G.O. (M.S.) No. 11/2005/PWD dated January 24, 2005 and G.O. (M.S) No.
16/2005/PWD dated March 1, 2005 between the Government of Kerala, Greater Cochin
Development Authority and CBICL. In terms of the order, the period of concession has been
increased by 6 years and CBICL is entitled to yearly annuity receipts which it is accounting as
revenue. CBICL has since not made any provision against the said receivables.
c) In respect of the road projects undertaken by the company, in furtherance to the recommendation
of the Dispute Resolution Board (DRB), the company has been awarded claims by the Arbitration
Tribunal for an aggregate amount of Rs. 945.40 Millions. The Company contends that such
awards has reached finally for the determination of the amounts of such claim and are reasonably
confident of recovery of such claims although the client has moved the court for set aside of the
award.
Considering the fact that the Company has received favorable awards from the DRB and the
arbitration tribunal, the Management is reasonably certain that the claims will get favorable
verdict from the courts.
Accordingly the company has recognized contract revenue upto year 2008-09 of Rs. 945.40
Millions from such awards including Rs. 570.40 Millions recognized in the year 2007-08 on the
basis of the DRB recommendation and opinion of experts on the matter.
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