GAMMON INDIA LIMITED

Further, during the year 2008-09, the Compensation Committee of the Board of Directors of GIPL at its
meeting held on December 5, 2008, allotted 500,000 stock options under the “GIPL Employees Stock
Options Scheme 2008” to its Managing Director enabling him to apply for 500,000 equity shares at par
on completion of the vesting period of one year. The market price on the date of grant was Rs 43.45 per
equity share.
27. The market value of investments does not consider the market value of the Company‟s share which is
part of the shares to be issued to the proposed trust to be created for the issue of equity shares of the
company in lieu of the shares held by the company in ATSL pursuant to the amalgamation of the
company with ATSL.
28. Unpaid dividend includes Rs. 0.50 Millions in the year 2007-08 (2006-07 – Rs. 0.30 Millions) to be
transferred to the Investor Education & Protection Fund.
29. CONTINGENT LIABILITIES :
i. Liability on contracts remaining to be executed on capital
accounts
ii. Counter Guarantees given to Bankers for Guarantees given by
them and Corporate Guarantees, on behalf of subsidiary, erstwhile
subsidiary, associate companies stand at
iii. Corporate Guarantees and Counter Guarantees given to Bankers
towards Company‟s share in the joint Ventures for guarantees given
by them to the Joint Venture Project Clients
iv. Corporate Guarantees and Counter Guarantees given to Bankers
by a step down subsidiary & Joint Venture for their Projects
v. Disputed Sales Tax liability for which the Company has Gone
into Appeal
As at As at
(Rs. in Millions)
As at
31.03.09 31.03.08 31.03.07
28,336.90 33,935.30 26,047.80
33,409.80
5,042.90
18,605.30
222.30
23,962.90
4,089.30
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14,369.40
4,175.30
258.60 138.10
vi. Claims against the Company not acknowledged as debt 476.90 460.20 461.40
vii. Disputed Excise Duty liability 0.30 0.30 1.90
viii. Disputed Customs Duty liability 3.20 3.20 3.20
ix. Disputed Service Tax Liability 152.40 47.20 36.60
x. Contingent Liability on partly paid shares
xi. Disputed Income Tax - Demand for which the Company
- - -
Appeals are pending before Appellant Authority
566.60 55.10 11.60
xii. Claim against the Company by Al Manara International LLC
not acknowledged as debt - for Commision Charges
xiii. Counter claims in arbitration matter referred by the company –
liability unascertainable
(a) There is a disputed demand of UCO Bank pending since 1986, of US$ 436251 i.e. Rs.17.20
Millions. Against this, UCO Bank has unilaterally adjusted the Company‟s Fixed Deposit of
US$ 30584 i.e.Rs.1.20 Millions which adjustment has not been accepted by the Company.
(b) In respect of Joint Venture and operations in Oman, Gammon India Limited-AL Matar JV,
refer note no. 36
(c) An amount of Rs 177.70 Millions claimed by the Collector and District Registrar, Rajahmundry,
pursuant to and Order dated March 15, 2005, as deficit stamp duty payable on the Concession
Agreement entered into between REL and National Highway Authority of India („NHAI‟),
classifying the Concession Agreement as a „lease‟ under Article 31(d) of the Indian Stamp Act.
REL has impugned the Order by way of a writ petition before the High Court of Andhra Pradesh
at Hyderabad. No provision is considered necessary in respect of the said demand, as the
management believes that there is no contravention of the Indian Stamp Act
F
52
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142.10