GAMMON INDIA LIMITED

Particulars Amount (Rs. in Millions) Percentage (%)
Domestic Overseas Total Domestic Overseas
Segment Revenue 35919.50 16868.60 52788.10 68.04 31.96
Segment Asset 64203.70 39914.80 104118.50 61.66 38.34
Capital
Expenditure
26948.70 12198.00 39146.70 68.84 31.16
34. The Related Party Disclosure pertaining to the group related parties as required by Accounting
Standard (AS) 18 „Related Party Disclosures‟ is annexed to these Notes as Annexure - 1 .
35. Disclosure under Accounting Standard – 19 “Leases”, issued by the Institute of Chartered
Accountants of India.
The Company has taken various residential/godowns/offices premises (including Furniture and
Fittings if any) under lease and license agreements for periods which generally range between 11
months to 3 years. These arrangements are renewable by mutual consent on mutually agreed terms.
Under some of these arrangements the Company has given refundable security deposits. The lease
payments are recognized in Profit and Loss Account under Rent, rates and Taxes.
Vizag Seaport Private Limited (VSPL) leases land from VPT under non-cancellable operating lease
agreements and temporary housing from others under cancelable operating lease agreements. Total
rental expense under non-cancellable operating leases was Rs. 7.20 Millions (2007-08 Rs. 7.20
Millions ; 2006-07 Rs. 8.50 Millions) and under cancelable operating leases was Rs. 0.30 Millions
(2007-08 Rs. 0.30 Millions; 2006-07 Rs. 0.30 Millions) which has been disclosed as lease rentals in
the profit and loss account.
A detailed break up of amount payable to leasing companies for the year 2008-09 is as follows-
(Rs. in Millions)
Particulars Amount payable to
Leasing Companies
Within 1 Year 44.70
Between 1 and 5 Years 195.90
Beyond 5 Years 1060.80
36. Joint venture and operations in Oman :
a) The company‟s share of profit under Joint Venture is accounted under other income as per the
audited accounts of the Joint Venture. In respect of the contracts under execution with MHEW, the
Joint Venture has exceeded the contractual dates of completion as extended. The Joint Venture has
requested for further extension of the time which is pending approval. The Joint Venture has
nevertheless completed substantial portion of work by the Balance sheet date and is hopeful of
receiving the extension of time sufficient to cover the period of the delay, thereby obviating the
contractual penalty of RO 40000 (Rs. 5.30 Millions) per day However the official EOT letter is
under process and is awaited. Pending the receipt of the same, the job has been assessed considering
that the EOT will ultimately be received and profit is determined accordingly. On the basis of joint
venture profit and loss account, the company has recognized its share of profit/ (loss) of Rs. (34.60)
Millions (2007-08 Rs. (112.80); 2006-07 Rs. 132.80 Millions) in their financial statements.
(b) The banking facilities including fund and other non-fund based borrowings utilized by the Joint
Venture entity which are in the name of the company but have been accounted in the books of Joint
Venture. The borrowings have been guaranteed by the company and are secured by assignment of
the Joint Venture contract receivable and Joint registration and insurance of all equipments. The
total of such borrowings as at 31st March, 2009 is RO 2,442,181 (Rs. 321.20 Millions) [2007-08
RO 13,602,266 (Rs. 1415.10 Millions); 2006-07 RO 19,035,026 (Rs. 2154 Millions] which consists
of Fund based RO 802,720 (Rs. 105.6 Millions) [2007-08 RO 9,784,630 (Rs. 1017.90 Millions);
2006-07 RO 1,65,87,491 (Rs. 1877.10 Millions)] and Non-fund based RO 1,639,461 (Rs. 215.60
Millions) [2007-08 RO 3,817,636 (Rs. 397.20 Millions); 2006-07 RO 2,447,535 (Rs. 276.90
Millions)]
F
55