Annual Report 2008-2009 - Gammon India

Annual Report 2008-2009
Standards (AS)-23 “Accounting for Investments in Associates in Consolidated Financial Statements” and
Accounting Standard (AS)-27 “Financial Reporting of Interests in Joint Ventures” as notified under the Companies
(Accounting Standards) Rules, 2006.
7. Without qualifying our report, we draw attention to
a) Note B 16 (a) to the notes to accounts regarding the Early Completion Bonus accrued by two subsidiary
Companies in earlier years and included in sundry debtors at March 31, 2009. The outcome of the matter
cannot be presently determined and hence no provision for any liability has been made in the financial
statements.
b) Note B 16(c) to the notes to accounts relating to recognition of contract revenue of Rs. 94.54 Crores
including Previous year Rs.57.04 Crores in which the Company has received arbitration awards in its
favour in respect of which the client has preferred an appeal for setting aside the said arbitration awards.
Recoverability of the said amount under sundry debtors is dependent upon the final outcome of the
appeals getting resolved in favour of the Company.
c) Note B 2(d) to the notes to accounts relating to the investments of Rs. 50.64 Crores in one of the joint
ventures of a wholly owned subsidiary which has applied for creditors’ protection in a Court in Italy. The
final outcome and the resultant investment would be dependent upon the approval of the courts to the
composition scheme pending which no effects have been taken in these accounts. Pending the availability
of the financial statements of the Joint Venture Company, the investment in the JVC is accounted in
accordance with (AS) 13 – “Accounting for Investments”.
8. Based on our audit and on consideration of reports of other auditors on separate financial statements and on
the other financial information of the components, and to the best of our information and according to the
explanations given to us, we are of the opinion that the attached consolidated financial statements subject to
our comments in para 4 above read together with Note B 2(b) and Note 19(c) regarding non provision for Mark
to Market losses of Rs 15.93 Crores on outstanding forward contract outstanding as on 31st March, 09 which
is not in accordance with Accounting Standard - 1 and announcement made by the ICAI on 29th March, 08
and further read with Note B-29 relating to the joint venture in Oman and the other notes thereon give a true and
fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Consolidated Balance Sheet of the state of affairs of the GIL Group as at 31st March
2009;
(b) in the case of the Consolidated Profit and Loss Account of the profit of the GIL Group for the year ended
on that date; and
(c) in the case of the Consolidated Cash Flow Statement of the cash flows of the GIL Group for the year
ended on that date.
Mumbai, Dated : September 9, 2009.
For Natvarlal Vepari & Co.
Chartered Accountants
N Jayendran
(Partner)
M. No. 40441
117