Annual Report 2010-2011 - Gammon India

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31. Joint venture and operations in Oman:
(a) There are claims against the Joint venture not acknowledged as debts of OR ` 0.84 Million (` 9.85 Crores) in respect of which the lower
courts have ruled in favour of the claimant. The Management is hopeful of obtaining relief from the higher courts in the matter.
(b) The joint venture has carried out certain works including operations and maintenance of the project based on work instructions received
from the consultant/client which is subject to certification and acceptance by the client on account of certain disputes with the client
which the management is hopeful of resolving in favour of the Joint venture. The total value of such works being carried as part of the job
estimates is OR 0.91 Million (` 10.67 Crores).
(c) The banking facilities including fund and other non-fund based borrowings utilized by the Joint Venture entity which are in the name of the
Company but have been accounted in the books of Joint Venture. The borrowings have been guaranteed by the Company and are secured
by assignment of the Joint Venture contract receivable and Joint registration and insurance of all equipments and corporate guarantees of
Gammon India Limited of RO 1.25 Million (` 14.66 Crores). The total of such borrowings as at 31st March, 2011 is RO 169,337 (` 1.99 Crores)
[Previous year RO 4,002,265 (` 46.99 Crores)] which consists of Fund based (RO 208,554) (` 2.44 Crores) [Previous year RO 3,628,768
(` 42.61 Crores)] and Non-fund based RO 377,890 (` 4.43 Crores) [Previous year RO 373,498 (` 4.39 Crores)].
(d) Transactions of Oman Branch and the accounting effect of the Gammon Al Matar Joint Venture profits are accounted on the basis of the
accounts prepared specially for this purpose and which is duly audited by the Company’s auditor.
(e) During the year the Assets held by the Oman Branch have been transferred to India. The related Foreign Currency Translation Reserve has
been reversed.
32. The Company is engaged in three segments – ”Construction and Engineering, Oil exploration and Realty Development” including businesses
acquired on account of new acquisitions. The revenue from oil exploration and realty development are less than threshold limit of 10% and
hence no disclosure of separate segment reporting is made in terms of Accounting Standard (AS-17).
The Group although operates on a worldwide basis across the globe, they operate in two principal geographical areas of the world in India and
the other countries. The following table presents the break-up of the revenues and assets regarding the geographical.
Particulars Amount (` in Crores) Percentage (%)
Domestic Overseas Total Domestic Overseas
Segment Revenue 5,995.50 2,848.14 8,843.64 67.79 32.21
(4,758.21) (2,309.42) (7,067.63) (67.32) (32.68)
Segment Asset 9,910.32 3,442.63 13,352.95 74.22 25.78
(7,577.92) (4,034.24) (11,612.16) (65.26) (34.74)
Capital Expenditure 4,455.23 1,010.16 5,465.39 81.52 18.48
(Previous period figures in brackets)
(3,359.07) (1,264.47) (4,623.54) (72.65) (27.35)
33. The Related Party Disclosure pertaining to the group related parties as required by Accounting Standard (AS) 18 ‘Related Party Disclosures’ is
annexed to these Notes as Annexure-1.
34. Figures pertaining to the subsidiary companies and joint venture acquired during the previous year and the other companies have been reclassified
wherever necessary to bring them in line with the Company’s financial statements.
35. Previous period figures are regrouped and rearranged wherever necessary to facilitate limited comparability with that of current period.
36. Annexure I forms an integral part of these financial statements.
As per our attached report of even date
For Natvarlal Vepari & Co.
Chartered Accountants
Firm Registration No. 106971W
N. JAYENDRAN
Partner
M. No. 40441
A NNUAL R EPORT I 2010/11
For and on behalf of the Board of Directors
ABHIJIT RAJAN ROHIT MODI
Chairman & Managing Director Deputy Managing Director
C. C. DAYAL D. C. BAGDE
Director Executive Director
GIRISH BHAT GITA BADE
Chief Financial Officer Company Secretary
Mumbai, Dated : 19 th August, 2011 Mumbai, Dated : 19 th August, 2011