GAMMON INDIA LIMITED

Italian Exchange Rates Office (U.I.C.).
In particular, assets and liabilities not included among fixed assets and non-current financial accounts receivable are
recorded at the spot exchange rate ruling at the year-end. The gains or losses arising from the conversion of accounts
receivable and accounts payable have been respectively credited and debited to the Profit and Loss Account under
item 17 Part 2 “Exchange gains and losses”.
Any net gain deriving from the adjustment of the items in foreign currency to the year-end exchange rates is
included in the result for the year and, at the time of the financial statements approval and appropriation of the
operating result to the legal reserve, the part which is not absorbed by the loss for the year, if any, is apportioned to a
reserve not distributable until the gain is realised.
Non-current assets in foreign currency are recorded at the exchange rate ruling at the time of purchase or, if lower,
to that in force at the year-end if negative changes have resulted in impairment of these assets.
There are significant effects of the changes to the exchange rates which occurred between the year-end and the
financial statements preparation date in USD. To cover this effect an allowance covering this currency risk of 94.863
Euro has been accrued.
Guarantees, engagements, third parties’ assets and risks
Any risks in connection with guarantees, either personal or real, given for third parties, have been included among
memo accounts in an amount equal to the guarantee offered.
Engagements have been included among memo accounts at their nominal value (as inferred from the relevant
documentation).
Employee information
Compared to the previous year the personnel broken down by category has changed as shown below:
Staff 31/12/2008 31/12/2007 Change
Executives 10 12 -2
Employees 35 34 1
Expatriates 23 18 5
Third country nationality 80 78 2
TOTAL 148 142 6
The applicable national collective labour agreement is that of the industry of the iron sector. The international
employees (TCN) are employed in the different work sites with temporary contract.
Assets
B) Fixed assets
I. Intangible assets
Balance at 31/12/2008 Balance at 31/12/2007 Changes
68.703 25.604 43.099
F
112