GAMMON INDIA LIMITED

Profit After Tax. Our profit after tax decreased by 20.40% to Rs.648.42 million for the year ended March
31, 2009 from Rs.814.64 million for the year ended March 31, 2008.
Minority interest. Profit after tax attributable to minority interest increased by 74.49% to Rs.139.11 million
for the year ended March 31, 2009 from Rs.79.72 million for the year ended March 31, 2008. This minority
interest represents the shareholdings of other shareholders in our subsidiary companies. The increase is
mainly attributable to the increase in net profit of GIPL and other factors, including an increase in the
number of subsidiaries, which were not wholly owned by us, from 10 as of March 31, 2008 to 14 as of
March 31, 2009.
Net profit After Prior Year Tax Charge. Our net profit after prior year tax charge decreased by 21.00% to
Rs.563.16 million for the year ended March 31, 2009 from Rs.712.90 million for the year ended March 31,
2008.
Year Ended March 31, 2008 compared to Year Ended March 31, 2007
Income. Our total income increased by 12.30% to Rs.26,591.38 million for the year ended March 31, 2008
from Rs.23,679.70 million for the year ended March 31, 2007.
Sales and Turnover. Our turnover increased by 12.18% to Rs.26,434.56 million for the year ended March
31, 2008 from Rs.23,564.75 million for the year ended March 31, 2007. The increase was primarily
attributable to better performance in our EPC and construction business.
Other Operating Income. Our other operating income decreased by 23.98% to Rs.53.97 million for the year
ended March 31, 2008 from Rs.71.00 million for the year ended March 31, 2007.
Other Income. Our other income increased by 134.01% to Rs.102.85 million for the year ended March 31,
2008 from Rs.43.95 million for the year ended 2007. This was primarily attributable to an increase in profit
on sale of investments to Rs.45.19 million for the year ended March 31, 2008 from Rs.10.08 million for the
year ended March 31, 2008 and an increase in miscellaneous income to Rs.51.95 million for the year ended
March 31, 2008 from Rs.23.98 million for the year ended March 31, 2007.
Expenditure. Our total expenditure increased by 13.69% to Rs.25,283.43 million for the year ended March
31, 2008 from Rs.22,238.25 million for the year ended March 31, 2007.
Expenditure on Contracts and Direct Costs. Our expenditure on contracts and direct costs increased by
10.70% to Rs.22,334.65 million for the year ended March 31, 2008 from Rs.20,175.78 million for the year
ended March 31, 2007. The increase in operational expenditure on contracts and direct costs was primarily
attributable to increase in subcontracting expenses and other cost by 22.97% to Rs.12,715.72 million for the
year ended March 31, 2008 from Rs.10,340.37 million for the year ended March 31, 2007 partly
compensated by decrease in consumption of material by 12.09% to Rs. 8,110.20 million for the year ended
March 31, 2008 from Rs. 9,225.36 million for the year ended March 31, 2007. As a percentage of our total
gross sales, our expenditure on contracts and direct costs decreased slightly to 84.49% for the year ended
March 31, 2008 from 85.62% for the year ended March 31, 2007.
Establishment Expenses. Our establishment expenses increased by 73.59% to Rs.1,095.37 million for the
year ended March 31, 2008 from Rs.631.00 million for the year ended March 31, 2007. This increase was
primarily attributable to the agency commission of Rs.136.08 million for the year ended March 31, 2008 as
compared to nil for the year ended March 31, 2007, the increase in exchange loss to Rs.124.55 million for
the year ended March 31, 2008 from Rs.2.93 million for the year ended March 31, 2007 and the increase in
salaries (including provision for commission and bonus) to Rs.373.44 million for the year ended March 31,
2008 from Rs.264.48 million for the year ended March 31, 2007. As a percentage of our total income, our
establishment expenses increased to 4.14% for the year ended March 31, 2008 from 2.68% for the year
ended March 31, 2007.
Financial Costs. Our financial costs increased by 53.43% to Rs.970.24 million for the year ended March 31,
2008 from Rs.632.36 million for the year ended March 31, 2007. Interest paid on other loans increased by
33.99% to Rs.393.65 million for the year ended March 31, 2008 from Rs.293.78 million for the year ended
March 31, 2007. Interest paid on fixed period loans increased by 6.24% to Rs.681.02 million for the year
ended March 31, 2008 from Rs.641.00 million for the year ended March 31, 2007. In addition, we
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