Annual Report 2010-2011 - Gammon India

2. DIVIDEND:
(a) The Board of Directors at its meeting held on 18th August, 2010, had declared an interim dividend of ` 0.40
paise (20%) per share of face value of ` 2/- each on the equity shares for the financial year 2010-11. The same was
paid to the shareholders on 4th September, 2010. Members are requested to confirm the declaration and payment
of the interim dividend at the Annual General Meeting of the Company.
(b) The Board of Directors at its meeting held on 12th August, 2011 has, subject to the Shareholder’s approval,
recommended a Final dividend of ` 0.40 paise (20%) per share of face value of ` 2/- each for the year 2011 on
the equity shares. The total dividend for the financial year 2010-2011 (including interim dividend of 20% paid)
aggregates to ` 0.80 paise (40%) per share. The dividend payout for the year under review is ` 10.63 Crores.
Dividend Distribution Tax aggregates to ` 1.74 Crores.
3. DEPOSITORY SYSTEM:
The Company’s equity shares are compulsorily tradeable in electronic form. As of 31st March, 2011, 90.90% of the
Company’s total paid-up capital representing 124,046,624 equity shares is in dematerialized form. In view of the benefits
offered by the depository system, members holding shares in physical mode are advised to avail the demat facility.
4. FINANCE:
During the year under review the Company did not raise any funds from the capital markets either by way of issue of
equity/ADRs/GDRs. The Company in its Board Meeting held on 9th July, 2009 had allotted 1,60,00,000 Equity Warrants
convertible into Equity Shares (after receipt of 25% consideration as upfront payment at the time of allotment) to
the Promoter Companies at a price of ` 90.20/- per warrant. During the year under review, the Promoter Companies
exercised their option for conversion of balance 82,50,000 Equity Warrants into Equity Shares by paying balance
75% of the consideration aggregating to ` 55.81 Crores. These proceeds were utilized for meeting the working capital
requirements, future expansion plans and CAPEX requirements.
The Company has also obtained financial assistance from its consortium bankers to meet its short term working capital
requirements. During the year, the Company tied up Long term debt by way of issue of Secured Non-Convertible
Debentures on private placement basis aggregating to ` 100 Crores. The total amount of outstanding Non-Convertible
Debentures as on date is ` 377.50 Crores. The proceeds of debentures were utilized for the purposes for which they were
raised.
CARE has assigned the following ratings:
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Facilities Amount
(` in Crores)
Ratings
Long Term Bank Facilities 1,100.00 CARE AA-
Long/Short Term Bank Facilities 10,400.00 CARE AA-/CARE A1+
Non-Convertible Debentures 500.00 CARE AA-
CP/STD 100.00 CARE A1+
CP/STD*
* Carved out of working capital limits
900.00 CARE A1+
5. PUBLIC DEPOSITS:
Your Company did not invite or accept deposits from public during the year under review. 82 deposits (pertaining
to previous year) aggregating to ` 790,000/- remained unclaimed as on 31st March, 2011. Out of these, 5 deposits
amounting to ` 1,05,000/- have since been claimed and paid.
6. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND:
During the year under review, the Company has transferred Fixed Deposits amounting to ` 452,000/- and Dividend
(for the year 2002-03) amounting to ` 212,876/- to Investor Education and Protection Fund (IEPF), which was due
and payable and remained unclaimed and unpaid for a period of seven years, as provided in Section 205C(2), of the
Companies Act, 1956.
7. EMPLOYEE STOCK OPTION SCHEME:
The erstwhile Associated Transrail Structures Limited (ATSL) had introduced an Employee Stock Option Scheme for
the benefit of its employees. Pursuant to the amalgamation of ATSL with the Company, effective from 7th July, 2009,
the said scheme has been taken over by the Company. Details of the stock options granted under the Employee Stock
A NNUAL R EPORT I 2010/11