Annual Report 2008-2009 - Gammon India

Annual Report 2008-2009
10.80% - Redeemable Non Convertible Debentures of Rs. 100 Crores are secured by hypothecation of specific
Plant & Machinery with pari passu charge by mortgage of immovable property in Gujarat with 9.95 % Secured
Redeemable Non-Convertible Debentures of Rs. 50 Crores and 8.75% Secured Redeemable Non-Convertible
Debentures of Rs. 5 Crores and 7.50% Secured Non-convertible Debenture of Rs. 53 Crores and 7.25% Secured
Non convertible Debenture of Rs. 18 Crores. The Debentures are due for repayment at the end of 5th , 6th and 7th year
from the date of allotment being, 25th 3.
July, 2008.
Issued Share Capital includes 725,800 shares of Rs. 2/- each kept in abeyance.
4. Share Forfeited account includes Rs. 0.26 Crores of Securities Premium collected on application in respect of
forfeited shares.
5. As per the intimation available with the Company, there are no Micro, Small and Medium Enterprises, as defined in
the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of
principal amount together with interest and accordingly no additional disclosures have been made.
The above information regarding Micro, Small and Medium Enterprises have been determined to the extent such
parties have been identified on the basis of information available with the Company. This has been relied upon by
the Auditors.
6. The Company has made following Purchases & Sales of Investments during the period ended 31st March, 2009.
a) Mutual Fund:
(Rs. in Crores)
Particulars Units Purchase Sale
Cost Value
CAN Liquid Fund 10,16,46,660.97 102.00 102.06
Standard Chartered MF GMND GSSIF Medium Term
Standard Chartered MF G 50 Grindlays Floating Rate
39,78,120.34 4.00 4.00
Fund LT Ins. Plan 1,79,90,105.44 18.00 18.06
IDFC MF GCCD IDFC Cash Fund Super Inst Plan C 2,49,93,751.56 25.00 25.01
b) Investment:
During the year, the Company has subscribed & transferred to its subsidiary Gammon Infrastructure Projects Ltd.
50,000 Shares (Rs. 0.05 Crores) in Youngthang Power Ventures Ltd. a Subsidiary and 50,000 Shares (Rs. 0.05
Crores) in Rajahmundry Godavari Bridge Ltd. another Subsidiary.
During the year, the Company has also purchased 50,00,000 shares in SAE Power Lines S.r.l., a Subsidiary for
Rs. 31.21 Crores and sold subsequently for Rs. 31.97 Crores to its overseas wholly owned subsidiary.
During the year the Company also received Rs. 52.85 Crores as advance for transfer of beneficial interest of the
Company in its subsidiary Youngthang Power Ventures Limited from Gammon Infrastructure Projects Limited.
This advance was later returned back since the said Gammon Infrastructure Projects Limited directly invested in
Youngthang Power Ventures Limited on being permitted by the Client.
7. Loans and advances include Rs. 50 Crores (Previous Year Rs. 11.04 Crores) which are secured by pledge of equity
shares of a private company. The security value is adequate to recover the amount advanced.
8. (a) Foreign currency exposure un-hedged as at 31 st March, 2009 is Rs. 363.49 Crores (Previous Year Rs. 61.18
Crores) receivables and Rs. 250.46 Crores (Previous Year Rs. 128.44 Crores) payables.
(b) In respect of currency swap derivative contracts entered into by the Company, the Company has Marked to Market
loss of Rs. 7.15 Crores (Previous Year Rs. 4.60 Crores) as at 31st March, 2009 based on the valuation given by the
bankers. Following the principle of prudence and in accordance with the announcement of the ICAI, the Company
has made a provision for the same. Since the same was entered into to reduce the cost of borrowings, the said
MTM loss is included under Financial Costs.
(c) The company has entered into forward contracts for hedging the foreign currency receivables from its projects
which are in the nature of firm commitments and highly probable future transactions. The Company contends that
these are entered into to hedge the currency risks arising out of the firm commitments and that the announcement
of the ICAI on derivatives is not applicable to such transactions. The notional marked to market losses is expected
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