GAMMON INDIA LIMITED

Type of Indebtedness
51
Outstanding as of March 31, 2009
(Rs. in millions)
Subtotal 24,608.20
B) Unsecured Loans
Short term loans from banks 14,424.35
Other loans:
- From banks 1,775.30
- From others 2,465.65
4,240.95
Subtotal 18,665.30
Total 43,273.50
In addition, as of March 31, 2009, our guarantees given to banks and financial institutions were
Rs.57,058.00 million.
Capital Expenditures
We incurred Rs.2,160.40 million on capital expenditure for the year ended March 31, 2009, primarily on
additional plant and machinery of Rs.1,620.00 million.
We believe that we will have sufficient capital resources from our operations, net proceeds of this Issue and
other financings from banks, financial institutions and other lenders to meet our capital requirements for at
least the next 12 months.
Contingent Liabilities
From time to time, we grant security over certain of our assets as collateral guarantees as well as issue
corporate guarantees in respect of debt incurred by us. In addition, we also provide bank guarantees in
respect of our obligations under various contracts and have pledged our shares in our subsidiaries or SPVs
as security. As of March 31, 2009, we had contingent liabilities, on a consolidated basis, of Rs. 87,347.47
million.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with
unconsolidated entities that would have been established for the purpose of facilitating off-balance sheet
arrangements.
Transactions with Related Parties
We have engaged in the past, and may engage in the future, in transactions with related parties, including
with our subsidiaries and our affiliates on an arm‘s lengths basis. Such transactions could be for provision
of services, lease of assets or property, sale or purchase of equity shares or entail incurrence of
indebtedness. For details of our related party transactions, see note B-34 to our audited consolidated
financial statements.
Unusual or Infrequent Events or Transactions
Except as described elsewhere in the Preliminary Placement Document, there have been no events or
transactions to our knowledge which may be described as ―unusual‖ or ―infrequent‖.
Quantitative and Qualitative Disclosure about Market Risk
Commodity Price Risk
We are exposed to market risk with respect to material and components used in our projects. These
commodities include steel, cement, and other direct and indirect materials. The costs for these raw materials