Annual Report 2010-2011 - Gammon India

13. In respect of the road projects undertaken by the Company, in furtherance to the recommendation of the Dispute Resolution Board (DRB), the
Company has been awarded claims by the Arbitration Tribunal for an aggregate amount of ` 94.54 Crores which has been recognized as revenue
& included in Sundry Debtors. The Company contends that such awards have reached finality for the determination of the amounts of such
claims and are reasonably confident of recovery of such claims although the client has moved the court to set aside the awards.
Considering the fact that the Company has received favorable awards from the DRB and the arbitration tribunal, the Management is reasonably
certain that the claims will get favorable verdict from the courts.
14. Earnings in Foreign Currency:
Particulars Year ended
31 st March, 2011
A NNUAL R EPORT I 2010/11
(` in Crores)
Year ended
31 st March, 2010
Revenue from Overseas Project and receipts from World Bank aided projects in Foreign
Currency 32.66 46.14
Earnings in foreign currency – FOB 119.09 253.87
Others 1.83 1.02
TOTAL 153.58 301.03
15. (a) Remittance of Dividend in Foreign Currency:
Pertaining to Non resident No. of shares Amount (Net)
Shareholders
(` in Crores)
2010-2011 (Interim Dividend) 10 7,933,205 0.32
2009-2010 (Final Dividend) 10 7,933,205 0.48
2008-2009 (Final Dividend) 11 7,933,400 0.48
(b) Expenditure in Foreign Currency:
Particulars Year ended
31 st March, 2011
Year ended
31 st March, 2010
(i) Expenditure at Foreign Sites/Foreign Branches:
Commission paid 0.30 4.73
Others 25.06 38.11
(ii) Other Expenditure:
Books and Periodical/Membership and Subscription 0.12 0.09
Travelling 0.66 0.31
Royalty and Technical/Professional fees 3.61 3.09
Interest paid 2.45 4.77
Bought out materials, stores & spares 24.04 14.14
Others 1.62 1.54
TOTAL 57.86 66.78
Note: Net of TDS and Service Tax
(c) C I F Value of Imports:
Particulars Year ended
(` in Crores)
31st Year ended
March, 2011 31st March, 2010
Capital goods 76.09 57.00
Material 27.71 11.35
Consumables, Components and Spares 8.45 9.62
TOTAL 112.25 77.97
16. Dividend income includes dividend of ` Nil (Previous Year ` 0.07 Crores) from trade investments. Dividend received from own investment held
through Gammon Trust is adjusted under appropriation ` 0.58 Crores.
17. Interest from Joint Stock companies includes accrued onetime non-recurring interest income of ` 182.39 Crores under contractual conditions
from one of the subsidiary of the Company.
18. Pursuant to the amalgamation of ATSL with the Company, the outstanding options of the employees of the erstwhile ATSL outstanding as on
1st April, 2008 have been taken up as an obligation by the Company in accordance with the Scheme approved by the court. Accordingly the
Company has accounted for the grant of 106,300 options to such employees at an exercise prize of ` 80 per share. The Company will issue two
equity shares against each option in terms of the scheme of amalgamation approved by the Courts.
The options were granted by the erstwhile ATSL on 27th March, 2007. The options vest in a graded manner over the period of four years and are
exercisable during a period of three years from the date of vesting thereof.
Since the assets and liabilities of the erstwhile ATSL has been accounted at the book value, the accounting effect in the accounts are continued
at the same value.
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