Annual Report 2010-2011 - Gammon India

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(d) Effect of acquisition of subsidiaries during the year on Financial Statements.
A NNUAL R EPORT I 2010/11
(` in Crores)
Name of the Company Current Year Previous Year Current Year Previous Year
Effect on Group Profit/(Loss)
after Minority Interest
Net Assets
Vizag Seaport Pvt. Limited — 14.14 — 285.92
Metropolitan Infrahousing Pvt. Limited 123.53 — 122.05 —
SAe Transmission India Limited 0.06 — 0.05 —
Franco Tosi Hydro Pvt. Limited (0.00) — 0.01 —
Franco Tosi Turbines Pvt. Limited 0.02 — 0.03 —
Preeti Townships Pvt. Limited (0.00) — 0.02 —
Ansaldocaldaie Boilers India Pvt. Limited 0.63 — 57.28 —
Gammon Holdings (Mauritius) Limited (0.04) — (0.08) —
(e) MNEL, a subsidiary of GIPL, had received provisional completion certificate for a chainage of 50 Kms for the purposes of tolling vide
certificate dated 23 rd December, 2009 and a further provisional certificate for additional chainage of 14 Kms vide certificate dated
11 th May, 2010. MNEL has also received the tolling notification issued by Government of India dated 21 st April, 2010 for the entire stretch
which enables MNeL to open the road to traffic and putting it for its intended use. Pursuant to this, the first stretch of road was opened
for toll collection on 29 th May, 2010 after adherence to the requirements of the concession agreement and the cost attributable to it was
capitalised as “Toll Concession Rights” on that date. The balance cost pertaining to the balance portion is being continued as a Capital work
in progress and would be capitalised on completion.
(f) As per the terms of the concession agreement MNEL is required to make a cash payout (‘Negative Grant’) of ` 120 Crores in the last year
of the concession period. The same is capitalised as Toll Concession Rights and Capital work in progress on a proportionate basis and is
represented as Deferred Payment Liability in the financial statements..
(g) During the year, KBICL, a wholly owned subsidiary of GIPL, the Independent consultant jointly appointed by NHAI and KBICL has, as per
the terms of the concession agreement, determined an extension of project completion date by 631 days. The original scheduled project
completion date of the project was 1 st April, 2010, however the project due to reasons beyond the control of KBICL has been delayed and
now is expected to the completed by 31 st December, 2011.
(h) Under the Concession Agreement with NHAI, the Scheduled Project Completion Date for completion of construction of the GICL’s Project
Road was 4 th September, 2009. The completion of construction has been delayed beyond this date. GICL believes this delay is not on
account of any default by it and is in discussions with the NHAI for extension of this date to January 2012. Pending the outcome of the
discussions, management believes no adjustments are required to be made to the financial statements in respect of this matter.
2. Jointly Controlled Entities
The following Jointly Controlled Entities have been considered applying AS-27 on the basis of audited accounts (except stated otherwise) for the
year ended 31st March, 2011.
(a) Details of Joint Ventures entered into by the Company:
Name of the Joint Venture % of Interest
As at
31 st March, 2011
% of Interest
As at
31 st March, 2010
Blue Water Iron Ore Terminal Pvt. Limited (‘BWIOTPL’)# 28.14% 28.31%
Haryana Biomass Power Limited (‘HBPL’)# 37.72% 37.95%
Indira Container Terminal Pvt. Limited (‘ICTPL’)# 37.72% 37.95%
Punjab Biomass Power Limited (‘PBPL’)# 37.72% 37.95%
SEZ Adityapur Limited (‘SEZAL’)*# 28.67% 28.84%
Gammon Al Matar (GALM) 85.00% 85.00%
Gammon encee Rail (Consortium) 51.00% 51.00%
Sofinter S.p.A. 50.00% 50.00%
Gammon - Cons - Tensaccia – JV (GCT)* 60.00% —
Gammon – Ojsc Mosmetrostroy – JV (GOM)* 51.00% —
Jaeger Gammon (JG)* 90.00% 90.00%
* –As per unaudited management accounts
# Shareholding is through subsidiary Gammon Infrastructure Projects Limited