Annual Report 2010-2011 - Gammon India

existing at the date of preparation of the financial statements about the occurrence of certain future events that
may affect the joint venture’s ability to operate as a going concern, as well as the considerations that led them
to conclude that the going concern basis of accounting was appropriate for the preparation of their consolidated
financial statements as at 31 st December, 2010.
(b) Note 7 to the notes to accounts regarding deficit in one of the subsidiaries of the company engaged in oil exploration
and any adjustments that would be required or classification that would be required to the recognised amounts or
assets if the entity is not able to continue as a going concern.
(c) Note no. 17(b) to the notes to accounts relating to recoverability of an amount of ` 94.54 Crores under sundry
debtors in respect of recognition of contract revenue in previous years where 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.
The recoverability is dependent upon the final outcome of the appeals getting resolved in favour of the Company.
(d) Note no. 25C to the notes to accounts relating to the investments 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..
(e) Note no. 31(b) to the notes to accounts relating to recognition of variation claims and revenue in respect of works
carried out by the joint venture in Oman, where the final outcome of the project is dependent on the resolution of the
disputes and settlement of the claims by the client
10. 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
subject to para 8 mentioned hereinabove, we are of the opinion that the attached consolidated financial statements and
read with the 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 31 st March 2011;
(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 : 19 th august, 2011.
For Natvarlal vepari & Co.
Chartered Accountants
Firm Registration No. 106971W
N jayendran
Partner
M. No. 40441
A NNUAL R EPORT I 2010/11
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