Annual Report 2010-2011 - Gammon India

23. The Company is engaged mainly in only one reportable segment viz., ”Construction and Engineering”. Additionally the Company has revenue
from Windmills which is not significant and accounts for less than 10% of the total revenue and total assets of the Company. Therefore no
disclosure of separate segment reporting as required in terms of Accounting Standard AS – 17 is done. The Company also primarily operates
under one geographical segment namely India.
24. Disclosure of transactions with Related Parties, as required by Accounting Standard – 18 ‘Related Party Disclosures’ has been set out in a
separate statement – 1 annexed to this Schedule.
25. Disclosure under Accounting Standard – 19 “Leases”, issued by the Institute of Chartered Accountants of India.
The Company has taken various residential/godowns/offices premises (including Furniture and Fittings if any) under lease and license agreements
for periods which generally range between 11 months to 3 years. These arrangements are renewable by mutual consent on mutually agreed
terms. Under some of these arrangements the Company has given refundable security deposits. The lease payments are recognized in Profit and
Loss Account under Rent, Rates and Taxes.
26. Earning per Share (EPS):
Earnings Per Share (EPS) = Net Profit attributable to shareholders/Weighted Number of Shares Outstanding
Particulars As at
31 st March, 2011
A NNUAL R EPORT I 2010/11
As at
31 st March, 2010
Net Profit After Taxation (` In Crores) 118.45 125.72
Preference Dividend (incl. Dividend Distribution Tax) — 7.08
Net profit attributable to the Equity Share holders 118.45 118.64
Outstanding equity shares at the end of the year 135,739,182 127,438,698
Weighted Number of Shares during the period – Basic 129,365,956 110,624,017
Weighted Number of Shares during the period – Diluted 130,169,428 115,609,343
Earning Per Share – Basic (`) 9.16 10.72
Earning Per Share – Diluted (`) 9.10 10.26
Reconciliation of weighted number of outstanding during the year:
Particulars As at
31 st March, 2011
As at
31 st March, 2010
Nominal Value of Equity Shares (` per share)
For Basic EPS:
2 2
Number of Equity Shares at the beginning 127,438,698 106,850,776
Add: Issue of shares under ESOP’s 50,484 28,522
Add: Issue of shares under QIP — 12,809,400
Add: On conversion of warrants 8,250,000 7,750,000
Number of Equity Shares at the end 135,739,182 127,438,698
Weighted average of equity shares at the end
For Dilutive EPS:
129,365,956 110,624,017
Weighted average no. of shares in calculating basic EPS 129,365,956 110,624,017
Add: Shares kept in abeyance 725,800 725,800
Add: On grant of stock option under ESOP’s 77,671 131,099
Add: On account of convertible warrant — 4,128,427
Weighted average no. of shares in calculating dilutive EPS 130,169,428 115,609,343
For the purposes of computation of earning per shares the equity shares issued against the options granted to the employees of the erstwhile
ATSL have been considered in the weighted average shares during the period. Similarly 725,800 equity shares kept in abeyance from earlier
equity offerings have also been considered for dilution. The weighted shares have been determined with reference to the respective dates of
allotment of the shares issued under ESOP’s and the Warrants respectively.
27. During the year an amount of ` 13.33 Crores has been transferred from Foreign Currency Translation Reserves Account to the Profit & Loss
Account on retirement of certain portion of the long term loans from the subsidiaries.
28. Pursuant to the scheme of amalgamation, the Company owns 5,804,620 equity shares of itself through Gammon India Trust which was allotted
the shares against the Company’s holding in erstwhile ATSL in terms of the order of the Hon’ble High Court of Mumbai and Gujarat.
29. Diminution in the Value of Investments:
A. The Company through its Special Purpose Investment Vehicle holds the following stakes:
(1) Franco Tosi Meccanica S.p.A., Italy
(2) Sofinter S.p.A., Italy
(3) Sadelmi S.p.A., Italy
(4) SAE S.r.l., Italy
91