MIRA
INFORM REPORT
|
Report Date : |
17.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GAMMON INDIA LIMITED |
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|
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Registered Office : |
Veer Saverkar
Marg, Prabhadevi, Mumbai – 400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.06.1922 |
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Com. Reg. No.: |
11 - 997 |
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CIN No.: [Company
Identification No.] |
L74999MH1922PLC000997 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG07937G |
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PAN No.: [Permanent
Account No.] |
AAACG3821A |
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Legal Form : |
Public Limited Liability Company The company’s
shares are listed on the Stock Exchanges |
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Line of Business : |
Construction engineers,
contractors and civil engineers |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 46010800 |
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|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed Civil Engineering and Construction Company having
fine track records. Directors are reported as experienced, respectable and
resourceful industrialists. Financial position
of the company is good. Business is active. Payments are usually correct and
as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
INFORMATION
DECLINED BY
|
Name : |
Mr. K B Shanbaug |
|
Designation : |
Finance Manager |
LOCATIONS
|
Registered Office : |
Gammon House,
Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India. |
|
Tel. No.: |
91-22-66614000, 24306761, 24301084 |
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Fax No.: |
91-22-24300529, 24300221, 66614025 |
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E-Mail : |
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Website : |
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Head Office : |
Hamilton
House, J. N. Heredia Road, Ballard Estate, Mumbai – 400 038,
Maharashtra, India. |
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|
Factory : |
v Parbati Hydro Electric Project, Village and
Post Office – Sainj, District Kullu, Himachal Pradesh, India v Teesta Head Race Tunnel, Makha Post
Singtam, District – East Sikkim – 737134 v Kaiga Nuclear Power Project, Unit 3 &
4 Kaiga, District – Uttar Kannada, Karnataka – 581400 v Chennai Water Supply Augmentation Project,
Plot No. 32, Chandran Nagar, CLC Works Road, Chromepet, Chennai – 600044,
Tamilnadu v Kalapakkam
Reactor Building, Salai Street, Meyyur, Sadras, Kalpakkam – 603 102,
Tamilnadu v New Brahmaputra
Bridge, Ward No. 1, Sadilapur – 781 012, Guwahati v Prabatri H. E.
Project – Stage – III, C/o. Bhagat Singh and Sons, VPO Larji, Dist. – Kullu,
Himachal Pradesh v Sewa
Hydroelectic Project Stage – II, Vill: Gatti, Po: Bani, Tehsil: Basoli,
Dist.: Kathua (Jammu and Kashmir) v Anji Khad Bridge
Project, Post Granmore, Gita Nagar, Dist. Reasi – 182 311, Jammu v DMRC Noida – BC
12 and BC 13, Adjacent to Noida Sarita Vihar Road, Plot No.4, Sector 94,
Noida, Uttar Pradesh v Bihar Corrindor
– Phase II, Camp Madhubani, At Village and Post: Madhubani, (12 KM From
Pratapganj, Via Pratapganj), Dist. Surpoul, Bihar |
DIRECTORS
|
Name : |
Mr. Abhijit Rajan |
|
Designation : |
Chairman & Managing Director |
|
Date of Birth/Age : |
46 years |
|
Qualification : |
B. Com L.S. E. |
|
Experience : |
27 years |
|
Date of Appointment : |
17.05.1991 |
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|
Name : |
Mr. Peter Gammon |
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Designation : |
Chairman Emeritus |
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|
Name : |
Mr. W Paul Harriman |
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Designation : |
Director |
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|
Name : |
Mr. Shobhit Rajan |
|
Designation : |
Director |
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|
Name : |
Mr. C C Dayal |
|
Designation : |
Director |
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|
Name : |
Mr. S K Guha Thakurta |
|
Designation : |
Director |
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|
Name : |
Mr. Atul Dayal |
|
Designation : |
Director |
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|
Name : |
Mr. Rajul A Bhansali |
|
Designation : |
Executive Director |
|
Age: |
51 Years |
|
Qualification: |
Graduate (Chartered Accountant) |
|
Experience: |
29 Years |
|
Date of Appointment: |
30.03.2003 |
|
|
|
|
Name : |
Mr. Himanshu Parikh |
|
Designation : |
Executive Director |
|
Age: |
47 Years |
|
Qualification: |
B.com |
|
Experience: |
27 Years |
|
Date of Appointment: |
02.08.2004 |
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|
Name : |
Mr. Kunal Shroff |
|
Designation : |
Additional Director |
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|
Name : |
Dr. Naushad Forbes |
|
Designation : |
Director |
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|
Name : |
Mr. Chandrahas C. Dayal |
|
Designation : |
Director |
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|
Name : |
Mr. Jagdish C. Sheth |
|
Designation : |
Director |
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|
Name : |
Mrs. Urvashi Saxena |
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Designation : |
Director |
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|
Name: |
Mr. Ram Mohan Nilkanth |
|
Designation : |
Sr. Vice President Finance |
|
Age: |
50 Years |
|
Qualification: |
B.com (LLB) |
|
Experience: |
25 Years |
|
Date of Appointment: |
21.04.2006 |
KEY EXECUTIVES
|
Name : |
Mr. P S Gupchup |
|
Designation : |
Company Secretary |
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|
Name: |
Mr. Virendra Kumar Sharma |
|
Designation : |
President – Operations |
|
Age: |
66 Years |
|
Qualification: |
B.SC (Mech. Engg.) |
|
Experience: |
43 Years |
|
Date of Appointment: |
03.03.2005 |
|
|
|
|
Name: |
Mr. C Bhattacharjee |
|
Designation : |
Chief Executive Nuclear and Heavy Engineering project |
|
Age: |
56 Years |
|
Qualification: |
BE - DFM |
|
Experience: |
35 Years |
|
Date of Appointment: |
08.02.1997 |
|
|
|
|
Name: |
Mr. R. K. Malhotra |
|
Designation : |
Chief Executive Bridges and Flyovers |
|
Age: |
54 Years |
|
Qualification: |
BE M.Tech |
|
Experience: |
29 Years |
|
Date of Appointment: |
08.01.1979 |
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|
|
|
Name: |
Mr. A B Desai |
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Designation : |
Chief Executive Power Structures |
|
Age: |
50 Years |
|
Qualification: |
BE |
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Experience: |
28 Years |
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Date of Appointment: |
01.09.1979 |
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|
Name: |
Mr. Subodh V. Kamat |
|
Designation : |
Chief Executive - Roads |
|
Age: |
52 Years |
|
Qualification: |
BE |
|
Experience: |
32 Years |
|
Date of Appointment: |
15.04.2004 |
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|
|
|
Name: |
Mr. A L Bhatia |
|
Designation : |
Vice President Marketing |
|
Age: |
61 Years |
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Qualification: |
BE |
|
Experience: |
39 Years |
|
Date of Appointment: |
01.12.1971 |
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|
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|
Name: |
Mr A D Alawani |
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Designation : |
Vice President Marketing |
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Age: |
62 Years |
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Qualification: |
BE |
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Experience: |
40 Years |
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Date of Appointment: |
13.08.1966 |
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|
Name: |
Mr. Ram Krishna L. Telang |
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Designation : |
Vice President Marketing |
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Age: |
60 Years |
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Qualification: |
B.Tech M.S. |
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Experience: |
35 Years |
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Date of Appointment: |
20.09.2000 |
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|
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|
Name: |
Mr. M V Jatkar |
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Designation : |
Vice President Construction Systems |
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Age: |
52 Years |
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Qualification: |
BEME |
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Experience: |
27 Years |
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Date of Appointment: |
01.07.1980 |
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|
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|
Name: |
Mr. P M Jakkal |
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Designation : |
President – Pipelines |
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Age: |
61 Years |
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Qualification: |
Dip. Civil Engg. |
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Experience: |
27 Years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Category |
No. of Shares |
Percentage of
Holding |
|
Promoters' Holdings |
|
|
|
Resident |
24126840 |
27.58 |
|
Non-Resident |
3086435 |
3.53 |
|
Non Promoter's Holdings |
|
|
|
Indian Public |
5667590 |
6.48 |
|
Institutional Investors |
|
|
|
Mutual Funds And UTI |
11999042 |
13.72 |
|
Corporate Bodies |
7744833 |
8.85 |
|
Banks, Financial
Institutions and State and Central Government |
878539 |
1.00 |
|
Foreign Institutional
Investors |
26952185 |
30.81 |
|
NRIs/ OCBs/
Foreign Nationals/ GDRs |
7015006 |
8.02 |
|
Grand Total |
87470470 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Construction
engineers, contractors and civil engineers |
|
|
|
|
Products : |
v Bridges v Tunnels v Dams |
GENERAL
INFORMATION
|
Customers : |
v Delhi Metro Rail
Corporation Limited v GAIL India
Limited v Godrej
Properties v Gorakhpur
Infrastructure Company Limited v Government of
Andhra Pradesh v Government of
West Bengal v Kosi Bridge
Infrastructure Company limited v Ministry of
Housing, Electricity and Water, Sultanate of Oman v Municipal
Corporation of Amritsar v National highway
Authority of India v National
Hydroelectric Power Corporation limited v Nuclear Power Corporation
of India v Sabarmati River
Front Development Corporation Limited v Satluj Jal
Vidhyut Nigam Limited |
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No. of Employees : |
6000 |
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Bankers : |
v Canara Bank, Mumbai, Maharashtra v Punjab National Bank, Mumbai, Maharashtra v Syndicate Bank, Mumbai, Maharashtra v Allahabad Bank, Mumbai, Maharashtra v IDBI Bank, Mumbai, Maharashtra v ICICI Bank, Mumbai, Maharashtra v ING Vysya Bank, Mumbai, Maharashtra |
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Facilities : |
Secured Loans
Unsecured Loans
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
Natvarlal Vepari & Company Chartered Accountants |
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Membership: |
v Confederation of Indian Industry |
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|
|
|
Associates: |
v Freyssinet Prestressed Concrete Company
Limited v Gammon information Technologies Limited v Equipment Management Company (India)
Limited v Gilcon Project Services Limited v Gammon Estates limited v Transrail Engineering Company Limited v Gammon Housing & Estate Developers
Limited v Spancrete (India) Limited v STFA Piling (India) Limited v Weltex Cables (India) Limited v Gammon Overseas Engineers Private Limited v Freyssinet (India) Limited v Associated Transrail Structures Limited v Alliance Agro India Limited v Pacific Energy Private Limited v Nikita Estate Developers Private Limited v Mayasor Enterprises Limited v Prospect Investments Limited v First Asian Capital Resources Private
Limited v Devyani Estate & Properties Private
Limited v Gammon Billimoria LLC v Gammon L & T Infra MRTS Limited v Gammon Cities Limited |
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Subsidiaries: |
v Gammon Turnkeys Limited v Gammon Nirman Limited v Cochin Bridge Infrastructure Company Limited v Gammon and Billimoria Limited v Gammon Cooling Towers Limited v Rajahmundry Expressway Limited v Andhra Expressway Limited v Mumbai Nasik Expressway limited v Sikkim hydro Power Ventures Limited v Gammon Projects Developers Limited v Gammon Realty Limited v Kosi Bridge Infrastructure Projects
Limited v Gorakhpur Infrastructure Company Limited v Gammon Infrastructure Projects limited v Vizag Seaport Private Limited v Marine Projects Services Limited |
|
|
|
|
Joint Ventures: |
v
Gammon
Progressive v
Gammon Delco v
Gammon
Rizzani v
Gammon – OSE v Gammon Soma v Gammon Atlanta v Gammon OAO Stroytransgaz v Gil Beb Ray v Gammon STG v Gammon Sadbhav v Gammon Srinivas v Gammon Ozaltin v Gammon Druk Sherig v Gammon Limak v Gammon and Sew v Ozaltin Gammon v Gammon Sadbhav Billimoria Consortium v Gammon AL Matar v Gammon BBJ v Gammon Limak v GIL Archirodon v GIL CEC v BBJ GIL v GIL EIL Consortium v Jaeger Gammon v Patel Gammon v Torno Gammon Dolsar v Torno Gammon Patel Dolsar Alston v Gammon KMC v Gammon JMC Project v Hyundai Gammon v Gammon Technofab v Gammon Ratnamani |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,00,00,000 |
Equity Shares |
Rs. 2/- Each |
Rs. 500.000 millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
8,83,25,210 |
Equity Shares |
Rs. 2/- Each |
Rs. 176.650 millions |
Subscribed and Paid-Up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
8,67,44,670 |
Equity Shares |
Rs. 2/- Each |
Rs. 173.489 millions |
|
Add : |
Share Forfeiture Account |
|
Rs. 3.400 millions |
|
|
Grand Total |
|
Rs. 176.889 millions |
Note:
(Of the above 2,64,000 Shares are issued for
consideration other than Cash 58,06,700 Shares are issued as fully paid Bonus
Shares by Capitalisation of Rs. 7.000 millions from Reserves and Rs. 4.500 millions
from Security Premium Account.)
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 (12 months) |
31.03.2006 (15 months) |
31.12.2004 (9 months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
176.900 |
176.900 |
155.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11325.800 |
9081.300 |
3787.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11502.700 |
9258.200 |
3943.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2303.200 |
1440.100 |
1555.800 |
|
|
2] Unsecured Loans |
1411.700 |
265.800 |
1475.100 |
|
|
TOTAL BORROWING |
3714.900 |
1705.900 |
3030.900 |
|
|
DEFERRED TAX LIABILITIES |
379.200 |
345.300 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15596.800 |
11309.400 |
6974.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6911.100 |
3697.300 |
3096.600 |
|
|
Capital work-in-progress |
103.700 |
73.100 |
128.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
1504.400 |
1161.900 |
896.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5290.000
|
4705.900 |
3543.800 |
|
|
Sundry Debtors |
3033.500
|
2380.200 |
2335.400 |
|
|
Cash & Bank Balances |
959.900
|
1342.600 |
728.000 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
5456.800
|
3316.400 |
2058.900 |
|
|
Interest Accrued Receivable |
64.200
|
20.800 |
0.000 |
|
Total
Current Assets |
14804.400
|
11765.900 |
8666.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6571.100
|
4970.300 |
5327.300 |
|
|
Provisions |
1155.700
|
418.500 |
485.500 |
|
Total
Current Liabilities |
7726.800
|
5388.800 |
5812.800 |
|
|
Net Current Assets |
7077.600
|
6377.100 |
2853.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15596.800 |
11309.400 |
6974.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 (12 months) |
31.03.2006 (15 months) |
31.12.2004 (9 months) |
|
|
Sales Turnover |
18647.400 |
14716.000 |
8666.800 |
|
|
Other Income |
66.400 |
21.500 |
105.500 |
|
|
Total Income |
18713.800 |
14737.500 |
8772.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1430.600 |
1111.600 |
515.900 |
|
|
Provision for Taxation |
447.000 |
83.300 |
86.900 |
|
|
Profit/(Loss) After Tax |
983.600 |
1028.300 |
429.000 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
369.400 |
399.900 |
|
|
|
Other Earnings |
39.800 |
0.000 |
|
|
Total Earnings |
409.200 |
399.900 |
0.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
63.000 |
314.900 |
|
|
|
Stores & Spares |
48.600 |
44.300 |
|
|
|
Capital Goods |
711.800 |
95.000 |
|
|
Total Imports |
823.400 |
454.200 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
Manufacturing Expenses |
16361.700 |
12386.400 |
3847.900 |
|
|
Administrative Expenses |
0.000 |
0.000 |
542.600 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
3338.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(856.700) |
|
|
Employees Cost |
433.600 |
397.500 |
464.400 |
|
|
Interest |
135.700 |
471.000 |
373.000 |
|
|
Insurance Expenses |
0.000 |
0.000 |
25.700 |
|
|
Power & Fuel |
0.000 |
0.000 |
357.000 |
|
|
Depreciation & Amortization |
352.200 |
371.000 |
164.500 |
|
Total Expenditure |
17283.200 |
13625.900 |
8256.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
5403.100 |
4603.200 |
5226.700 |
|
Other Income |
10.700 |
7.800 |
3.900 |
|
Total Income |
5413.800 |
4611.000 |
5230.600 |
|
Total Expenditure |
4826.100 |
4190.900 |
4758.900 |
|
Operating Profit |
587.700 |
420.100 |
471.100 |
|
Interest |
35.400 |
38.400 |
48.000 |
|
Gross Profit |
552.300 |
381.700 |
428.700 |
|
Depreciation |
108.400 |
113.100 |
114.200 |
|
Tax |
146.500 |
90.000 |
106.300 |
|
Reported PAT |
285.300 |
171.300 |
192.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 (12 months) |
31.03.2006 (15 months) |
31.12.2004 (9 months) |
|
Debt-Equity Ratio |
0.31
|
0.40 |
1.09 |
|
Long Term Debt-Equity Ratio |
0.28
|
0.24 |
0.32 |
|
Current Ratio |
1.84
|
1.52 |
0.99 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.33
|
2.74 |
3.19 |
|
Inventory |
3.69
|
2.83 |
3.71 |
|
Debtors |
6.87
|
4.98 |
5.70 |
|
Interest Cover Ratio |
3.95
|
2.65 |
2.38 |
|
Operating Profit Margin(%) |
12.20
|
14.68 |
12.15 |
|
Profit Before Interest And Tax Margin(%) |
10.31
|
12.16 |
10.26 |
|
Cash Profit Margin(%) |
4.29
|
9.63 |
8.85 |
|
Adjusted Net Profit Margin(%) |
2.39
|
7.10 |
4.95 |
|
Return On Capital Employed(%) |
16.68
|
17.23 |
23.74 |
|
Return On Net Worth(%) |
5.07
|
14.09 |
23.97 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
Talked to Mr. K B Shanbaug (Manager – Finance) who said his website would
have all details and you can Collect it from there. He said they have 7 banks
for the Company and Canara Bank is main.
History
Incorporated as J C Gammon (Bombay), Gammon India (GIL)
acquired its present name in 1956. The company specializing in Transport
Engineering, Energy Projects & Highrise Structures, Hydraulic Works &
Irrigation Projects, Tunnel Engineering, Bulk Storage Structures, Industrial
Structures, Marine Structures, Public Utility structures, Manufacture and
erection (i.e. Mechanical erection, testing and commissioning of Industrial
Structures, Power stations pipelines etc), consultancy services, Ground
Engineering and Environmental Protection, Prestressing Equipment and
rehabilitation. GIL also manufactures sulphuric acid and superphosphate.
The company, in association with Hanon Sabelco (UK),set up a joint venture to
manufacture cooling tower infill products with Hanon,subscribed 39.5% of the
capital while the company and others hold 49.5% and 11% respectively in the
joint venture.
In Sep.'91, Abijit Rajan took over as the managing director of Gammon India
from Subbha Rao. GIL has tied up with US-based General Electric and Epon,
Netherlands, to undertake power generation projects in the country, by floating
a new company -- Gammon Power -- with GE and Epon holding a combined 25% of the
total equity of the new company.
In October 1995, M R Chhabria sold his entire stake in Gammon India, thus
ending the seven-year-old takeover saga. Chhabria's 30% stake was taken up by
Peter Gammon (12%) and Abijit Rajan (18%).
During 1998-99, the company has secured projects for construction of flyovers
in Mumbai, Delhi and Chennai, besides securing projects for the construction of
bridges, tunnels, river valley projects etc.
In 2000-01, GIL has put it's house in order by it's policy of increasing it's
stake in it's subsidiary thus making it as a wholly owned subsidiary and
forming 100% subsidiary for a special purpose job. As per this policy the
company has increased it's holding in it's subsidiaries Gammon Nirman Ltd,
Gammon Turnkeys Ltd, Cochin Bridge Infrastructure Company Ltd to 100%, thus
making these three companies become wholly owned subsidiary of GIL. Due to this
GIL has also become the holding company for the subsidiary of GNL M/s Nouveaw
Exports Pvt. Ltd. GIL has also formed two new 100% subsidiary(Public Ltd)
companies viz. M/s Gammon Infrastructure Projects and Investment Ltd, for
carrying on the business of executing and financing infra projects involving
private participation eithere directly or indirectly through promotion of
subsidiary/ group companies for each specific project and M/s Vizag Seaport Ltd
for execution of the job of construction, equipping, operation, management of
multipurpose berths at Vizag Port for handling bulk/general cargoes or
containers or liquid bulk cargos on BOT basis.
In September 2000, GIL got the certification of ISO 9001-1994 and thus became
the first multifunctional Civil Engineering company to get certified for ISO
9001 for its entire spectrum of EPC activities. A rights issue of 63,20,572
Equity shares of Rs.10/- each at a premium of Rs.20/- per share in the ratio of
1:1 to the extent of Rs.189.617 millions.
The company has invested Rs.258.30 millions for Rajahmundry-Dharmavaram Road
Project on BOT basis. The Dharmavaram-Tuni Road project is making good progress
by completing 52% of the project. In 2002-03 the company has secured the Jammu
& Kashmir Hydroelectric project.
Gammon Nirman Ltd and Gammon Turnkeys Ltd have ceased to be subsidiaries of the
company with effect from April 2004.
The company along with its subsidairy Gammon Infrastructure Projects Ltd has
acquired certain holding in Punj Lloyd Ltd. Consequently Andhra Expressway Ltd
and Rajahmundry Expressway Ltd have become subsidiaries of the company with
effect from 07.02.2005.
Vizag Seaport Private Ltd has ceased to be the subsidiary of Gammon India with
effect from March 2005.
Profile
Gammon India Limited, the only Indian Construction Company to have been accredited with ISO 9001 certification for all fields of Civil Engineering Works including design, stands out as gateway for Technological and Engineering excellence in Civil Engineering fields. Gammon's dedicated and experienced team of planners, designers and construction engineers are ever ready to contribute their expertise together and turn vision into reality. This has led us to the position of one of the leading engineering and construction companies in India, who have been rewarded with award and acclaims.
Striving for excellence and perfection, the company has many firsts to its
credit. They introduced prestressed concrete in India as early as in 1941
followed by the first prestress concrete bridge in 1949.
They have to the credit the longest river bridge in the world across the mighty
Ganges at Patna. The tallest bridge in Asia, the longest span cantilever bridge
in India across river Jadukata., the longest road bridge in India across the
open sea and first cable stayed bridge in India. They pioneered cantilever
construction, pre-cast segmental bridge construction.
"Necessity is usually the Mother of Invention." They believe that today's solution will not be adequate tomorrow. This quest has led us to pioneer various civil engineering techniques and many more. Gammon today can be rightly referred to as "Builders to the Nation.
Gammon India is not only the largest civil engineering construction company in India, but can lay claim for the largest number of bridges built in the whole of Commonwealth. With over seventy years of tradition in the field of construction. Gammon is a name that is inextricably woven into the fabric of India.
As builders to the nation, Gammon has made concrete contributions by designing and constructing bridges, ports, harbours, thermal and nuclear power stations, dams, high-rise structures, chemical and fertilizer complexes environmental structures, cross country water, oil and gas pipelines. Gammon has accomplished this by fusing tremendous engineering knowledge with innovative skills, harnessing men and materials to build structures.
Structures that stand out as living testimonies to the victory of man over nature. Structures conceived and built by minds in constant search of new methods, ideas, applications and solutions. Because Gammon believes that today's solutions will not be adequate tomorrow.
This insatiable quest has led Gammon to pioneer Reinforced and Prestressed Concrete, Long span bridges, Under water concreting using the Colcrete process, Thin shell structures, Non-Shrinking concrete, Aluminium trusses for launching precast, prestressed beams and many more.
These resounding achievements have won Gammon the status of an R&D Institution - an unequalled honour for an unmatched Performance.
The planners, designers and construction specialists at Gammon have proved their competence and innovative skills here and abroad. And driving them to seek, to build and not to yield, is a team of professionals at the Head Office led by the Chairman & Managing Director, Mr. Abhijit Rajan.
Financial Performance:
The Company achieved a Turnover of Rs. 18448.400 millions (excluding company's share of turnover in Joint Venture aggregating to Rs. 2394.900 millions) during the year ended 31st March, 2007 as compared to a Turnover of Rs. 14544.400 millions (excluding company's share of turnover in Joint Venture aggregating to Rs. 1912.500 millions) for the previous period ended 31st March, 2006 (of 15 months) thereby registering an increase of 57% on annualized basis.
Profit before tax (after providing for deprecation) for the year ended 31st
March, 2007 stood at Rs. 1430.600 millions compared to Profit before tax of
Rs.1111.600 millions in the previous period indicating an increase of 60.87% on
an annualized basis.
FINANCE:
The company has not raised any funds from the capital markets either by way of
issue of equity shares/ ADRs/GDRs. However to meet its working capital
requirements it has obtained financial assistance from its consortium
bankers.
As on 31st March, 2007, total amount outstanding towards issue of
Non-Convertible Debentures on private placement basis to banks and financial
institutions stood at Rs. 1000.000 millions
CRISIL has assigned AA rating for the same.
The following credit ratings from CARE continue:
(i) PR1 + for short-term commercial paper of Rs. 2250.000 millions(ii) AA+ for
Non-Convertible Debentures of Rs. 1400.000 millions
The proceeds of debentures were utilised for the purposes for which they were raised.
Capital expenditure on plant and machinery during the year amounted to Rs.1472.500 millions which was financed from internal accruals, short term funding and External Commercial Borrowings.
BUSINESS
PROSPECTS:
There is a strong linkage between infrastructure development
on one hand and economic growth on the other hand. If the Growth rate of the
economy is to be maintained at 9% or higher, the emphasis will certainly be on
infrastructure. This has induced governments to increase its spending on
infrastructure activities within the country.
Indian cities as well as the Middle East and Africa continue to grow at a fast
pace. Transportation projects, Metro projects, Hydro and Thermal Power
Projects, Water Supply projects and Real estate development will continue to
offer good business prospects. The company has already made a mark in the
Middle-East and hopes to expand in West Africa and North in its areas of
expertise. By way of diversification, the Company has entered into a Joint
Venture with Joshi Technologies Inc., U.S.A. for hydrocarbon exploration in
India and overseas.
The Company being involved in practically all fields of Civil Engineering will
continue to bid for and construct larger and complex projects in the years to
come.
INVESTMENTS IN INFRASTRUCTURE
ACTIVITIES:
The Company enhanced its presence in the development of infrastructure projects
on Public Private Partnership (PPP) basis, through its subsidiary, Gammon
Infrastructure Projects Limited ('GIPL').
GIPL continues to be one of the leading infrastructure development companies in
the country. Currently, four of its Special Purpose Vehicles (SPVs) are in
operation while five others are under implementation, two of which, viz.
Gorakhpur Infrastructure Company Ltd. and Kosi Bridge Infrastructure Company
Ltd., have recently achieved financial closure. In addition, the prestigious
project for implementation of the Mumbai Container Terminal has been awarded to
GIPL and its Consortium Partner.
Today, GIPL is hollistically present in the 'Project Development Process',
including development, investment, advisory services and sector specific
operation and maintenance services.
TRADE MARK:
The Company greatly values the 'Gammon' brand, which is the hallmark of quality
construction. With a view to protecting its brand, the Gammon Logo and the word
'Gammon' with the Logo, have been registered with the Registrar of Trade Marks,
Mumbai, on 5th October, 2006 and 11th October, 2006, respectively.
SUBSIDIARY COMPANIES:
At the commencement of the year the Company had 9 (Nine) subsidiaries. It has
further incorporated the following subsidiaries during the year:
(1) Gorakhpur Infrastructure Company Limited (2) Kosi Bridge Infrastructure
Company Limited (3) Gammon Realty Limited (4) Marine Projects Services
Limited
Pursuant to the approval granted by the Government of India vide its letter No. 47/323/2007-CL-III dated July 09, 2007 the Company has been granted exemption under Section 212(8) of the Companies Act, 1956 from attaching the Balance Sheet and Profit & Loss Account of its Subsidiaries and hence the same have not been attached to the company's accounts for the year ended 31st March, 2007.
However information such as capital, reserves, assets etc. about each
subsidiary as on 31st March, 2007 has been separately disclosed.
The Annual Accounts of subsidiary companies and the detailed related
information are available for inspection by the shareholders at the registered
office of the Company and at the offices of the respective subsidiary
company.
MANAGEMENT DISCUSSION
AND ANALYSIS
1. Industry Structure and
Development:
The Indian Economy is in the fulcrum of an increasing growth curve with
positive indicators of 9% GDP, rising foreign exchange reserves, a booming
capital market and increased FDI inflows in all sectors of the economy.
This high rate of economic growth in India and parts of the world especially the Middle East has lead to overall growth in the Construction Industry/infrastructure projects. Further Infrastructure development in India has set off in a major way in the last two years and is witnessing impressive growth across various segments. This has lead to high standards of execution of work, fast track completion, quality and safety. Road Projects and Hydro Projects continue to be on private sector participation and is an integral part of the business model of the Company for continuing growth.
2. Opportunities and
Threats:
The growth in the infrastructure sector is being driven by a host of factors,
which include political will and policies to enhance the quantum of investments
in the infrastructure segment. Multi-lateral agencies such as the World Bank
and the Asian Development Bank (ADB) are funding various infrastructure
projects on a large scale in India. Various State Governments are mobilising
funds from these agencies to support the various projects. To encourage private
sector participation in the sector, the Government has announced several tax
breaks for investments. It has also devised return schemes that are attractive
for the private participants, such as annuity payments and capital grants for
road projects. Laws have been enacted to improve the finances of utilities and
make their management more transparent, so as to improve returns on these
facilities.
The Company is one of the leaders in the Construction
Industry involved in practically all fields of Civil Engineering projects of
large magnitude and continues to bid for larger and complex projects in the
years to come.
Indian cities as well as the Middle East and Africa continue to grow at a fast
pace. Transportation projects, Metro Projects, Hydro and Thermal Power Projects
and Water Supply projects continue to offer major opportunities.
The Company has a strong presence and possesses the experience, expertise and resources and is well equipped to tap the same.
The Company already has a presence in the Middle East and hopes to expand its presence
in the African countries. However with the emphasis on infrastructure
development both in India as well as globally and the increasing opportunities
in almost all sectors of construction and civil engineering, the Company has
been facing competition. There is strong competition not only from Indian
construction companies but also from foreign construction companies thereby
putting pressure on profit margins.
The future outlook in infrastructure will also depend on Government policy framework as well as how investment in infrastructure is facilitated.
3. Spectrum of Activity and Review
of Performance:
a. Transportation Engineering;
India has one of the largest Road Networks in the world consisting of Expressways, National and State Highways and other District Roads. The Company has successfully completed a novel extra dosed bridge for Delhi Metro Rail Corporation (DMRC), which is a new technique and first of its type to have been implemented in India. The Company has been awarded a contract valued at Rs. 1730.000 millions the Design and Construction of elevated road at Golden Temple for the Municipal Corporation of Amritsar.
The Roads Directorate, Government of West Bengal has awarded Gajol Hilli Road Works valued at Rs. 2250.000 millions. During the financial year 06-07, they have successfully completed the concrete road project at Gaya, Bihar for Rs. 1330.000 millions. Further, Khurda-Bhubaneshwar Road project has also been completed. The Total turnover achieved by the road project division is Rs.2260.000 millions.
Once again, the Company has been awarded two contracts of elevated viaducts by
Delhi Metro Rail Corporation cumulatively valued at Rs. 1950.000 millions. The
Company has also secured construction of Gurupriya Bridge valued at Rs. 480.000
millions and Vynetheya Project at Rs. 560.000 millions.
b. Hydro Electric Projects:
The Hydro Sector continues to grow at a much faster pace, since the Government
has announced an ambitious plan of completing 50000 MW Hydropower Projects by
2012. In addition to conventional contracting various state governments have
also announced hydropower projects on BOT Basis. This Financial year they have
been
awarded two contracts for civil works at Rampur for Sutlej Jai Vidyut Nigam Limited valued at Rs. 8000.000 millions in Joint Venture with Patel Engineering Limited, Mumbai. The Company has secured two hydropower projects on BOT Basis through its subsidiary company. Some of the Hydro Power projects being executed by Gammon include
1. Teesta HRT:
This is a long and large diameter tunnel for Teesta V Project of NHPC having
installed capacity of 510 MW. The 14 km long with 9.5m diameter horse shoe
shaped tunnel is nearing completion.
2. Parbati Stage II:
Gammon is executing package - 3 of Parbati Hydroelectric Project, Stage II
which is valued at Rs. 6035.000 millions. The work is in advanced stage of
construction and about 70% of the work has been completed. An outstanding
feature of this project are the two inclined pressure shafts at 30' having
excavated diameter of 4.8m are bored by Double Shield Tunnel Boring Machine
(TBM) with precast segmental lining and the inclined tunnel of this length has
been done for the first time in India.
3. Parbati Stage III:
The work at Parbati Stg. III for installed capacity of 540 MW was started last
year and is progressing well. The major components of this project are HRT
having 7.25m finished diameter and length of 2 km having underground
powerhouse, underground transformer cavern, tail race tunnel of 8.1 m diameter
and 2.7 km length, two vertical pressure shafts of 300m depth each having
finished diameter of 4.5m and a surge shaft of 134m deep and diameter of
13m.
4. Sewa HEP:
Sewa HEP is for 120 MW installed capacity. The work on the dam is nearing
completion and tunnel boring is almost 72% complete.
5. Kol Dam:
The work at Kol Dam is having installed capacity of 800 MW and is in progress
and 60% of the work has been completed.
6. Rampur HEP:
The Project has river diversion 224m long and 10m dia horseshoe shaped
Diversion Tunnel and Cofferdams, Head Race Tunnel 12900m long and 10.5m dia
circular including 43m long cut and cover at river crossing, spill tunnel 335m
long and 10.1 5m dia horse shoe shaped, surge tunnel 400m long and 10m dia
horse shoe shaped and Adit Plug 3 numbers and 1 number of Bulkhead Gate,
7. Karbi Langpi Dam:
The Company has successfully completed another major project i.e. the Karbi
Langpi Dam in the state of Assam for Assam State Electricity Board.
c. Nuclear Power Plants:
Construction of Nuclear Power Plants appears uncertain due to an acute shortage of nuclear fuel and uncertainty of imports. However the Government has planned to produce 60000 MW by the year 2020. The Government of India is also in talks with several countries such as Russia, France, Japan and USA for its nuclear power programme. Though these countries have shown interest in getting associated, it is characterized by uncertainty due to delay in clearance of Indo-US agreement on Nuclear energy. However it is expected that this issue is likely to be sorted out some time in October 2007 after which it is expected that the Nuclear Supply group will start supplying India's requirement and this will create and give a fillip to the activity in this segment.
Presently the Company has successfully completed the civil works for a value of Rs. 4200.000 millions. for NPCIL - Kaiga Power Plant - Units 3 & 4. The Company is also doing the major part of the work for the first fast breed Reactor Unit at Kalpakkam where the work is going on in full swing with the satisfaction of the Atomic Energy Dept. Though Gammon has the experience and expertise in this area, there is dearth of skilled manpower in this segment. Hence there is an need to train manpower in this segment.
d. Chimneys & Cooling Towers:
Cooling Tower industry is technology sensitive and highly specialized. Very few
companies in the world possess this technology and Gammon is one of them, Today
the Company is a leading player in this industry with expertise in Natural
Draft towers and in Mechanical Draft Towers. Almost 90% of the Natural Draft
Cooling Towers contracts in India have been executed by Gammon. The Company is
executing various large size contracts for refineries, power plants and steel
plants in India and abroad.
e. Irrigation Projects:
The Company has also undertaken several irrigation projects. Progress on
Irrigation projects being executed by the Company in Andhra Pradesh continues
to be satisfactory. During this year, the Company has participated in other
irrigation Projects and will continue to participate as and when they are
announced.
f. Tunnel Engineering:
At Teesta Hydroelectric project, the tunnel works awarded to the Company have
been substantially completed. The Clients have increased the scope of tunneling
works and They expect to complete this by September 2007. At Parbati II, the
Company has successfully completed the second inclined pressure shaft of diameter
4.88 meters and of length 1540 meter (inclination 30 degrees to horizontal)
using Tunnel Boring Machine (TBM).
This is first of its kind in Asia and steepest inclination in the World.
Tunneling works at Parbati II, Parbati III, Sewa and Kol Dam continue to progress satisfactorily.
g. Bridges & Flyovers:
During the year under review the Company has secured Projects worth Rs.1100.000
millions (Approx) for Bridges and Flyovers. India's first Extra dosed Bridge
was completed for the Delhi Metro Project at Indraprasth.
Construction of Extra dosed bridge was a very challenging job, due to fact that execution was required to be carried out over one of the busiest sections of Northern Railways having five tracks with nearly 200 trains passing every day and work was carried out successfully without any disruption to train movements.
During the year the Company completed a job of Major River Bridge (750 Meter
long) over river Bidyadhary at Chaital Ghat, West Bengal, constructed for West
Begal PWD worth Rs. 28.81 Crores. It also completed the job of constructing
longest balance cantilever bridge over river Balason for Darjeeling Gorkha Hill
Council worth Rs. 227.000 millions.
h. Underground Works:
The Company has bagged the project for construction of Diaphragm Wall on Sabarmati River from Sabarmati River Front Development Corporation Limited, Ahmedabad worth Rs. 948.300 millions. The project is planned to be completed by March 2008. The total length of the wall is 15 kms out of which approximately 7 kms have been completed; which is the longest underground Diaphragm Wall work done by the Company as of date.
i. Water and
Environment:
The Government of India is according high priority to water supply Sector in
the country. Under the Jawaharlal Nehru Urban Renewal Mission (JNURM) scheme,
funds aggregating more than Rs. 40000.000 millions have already been sanctioned
and several other projects are under active consideration, Besides this, under
other schemes also a massive outlay has been provided for this sector. The
future of this sector seems to be promising. During the year under review, the
Company has successfully completed the project for 3 MLD Water Supply Scheme at
Guwahati, Assam. Further Surendranagar Dist. Water Supply is nearing
completion. It is under
Commissioning and shall be completed in this Financial Year.
j. Pipelines:
The Company has been awarded the prestigious Dahej Uran Gas Pipeline work for
Gas Authority of India Limited ('GAIL') valued at Rs. 1960.000 millions. Other
Pipeline projects like Sohar Water Transmission line project, the Numaligarh
Pipeline Project and the Koyali-Ratlam Project continue to progress
satisfactorily.
k. Multistoried Buildings:
There has been an overall increase in the housing and commercial building
works. The Company has secured Knowledge Park building works in Bangalore
valued at Rs. 1010.000 millions. Progress on works for Godrej Properties,
Neelkanth Realty continues to be satisfactory
l. Overseas Projects/Ventures:
The Company has already undertaken several projects in the Middle-East and
other countries and is seeking out new business opportunities overseas.
The Company is executing an Independent Water and Power Project at Sohar - Water Transmission System Project for Ministry of Housing, Electricity and Water, Sultanate of Oman.
In continuing with its overseas ventures, the Company has entered into Joint
Venture with a U.S. Company for hydrocarbon exploration in India and
overseas.
The Company has also incorporated 'Gammon International LLC., Oman in joint
venture with Oman Holdings International Company. S.A.O.G. (OHI) (Gammon - 69%
and OHI - 31%) for undertaking and executing constructions contracts in the
Sultanate of Oman. Further the Company is also in the process of setting up a
Company in Nigeria and another Wholly-owned subsidiary Company 'Gammon
International FZE' in the Hamriyah Free Zone at Sharjah.
4. Presence in Public Private
Partnership Projects
The Government is actively pursuing Public Private Partnerships (PPPs) to
bridge the infrastructure deficit in the country. Several initiatives have been
taken during the last three years to promote PPPs in sectors like Ports,
highways, power, roads, bridges etc. Having been in the field of Infrastructure
project contracting for a number of years, it was natural that Gammon group
moved into the business of Infrastructure Projects Development. The resources
constraint with the Government and an immediate need of developing
Infrastructure in the Country were the primary drivers in Gammon group reaching
this logical conclusion. Gammon Infrastructure Projects Limited (GIPL), a
subsidiary Company of Gammon India Limited, has been leading Gammon Group's
forays into development of infrastructure projects on Public Private Partnership
(PPP) format. GIPL is among the first companies in India to be modeled as an
infrastructure development company and currently develops roads, bridges, ports
and hydro power and have also identified the following areas for project
development and infrastructure investment; urban infrastructure; airports;
special economic zones; water and waste water management; railways; power
transmission lines; and agricultural infrastructure. GIPL also offers services
in other areas of project development, such as project advisory services and
sector specific O&M activities.
The present BOT project basket of GIPL consists of the following Thirteen
(13) projects wherein GIPL has been awarded or is the preferred bidder:
a. Two multipurpose berths at Visakhapatnam
Port:
A joint venture of Gammon and a reputed International Port Operator, Portia
Management Services, UK has been awarded the concession by Visakhapatnam Port
Trust (VPT) for developing, constructing, operating and managing two multi
purpose berths in the Northern arm of the inner harbour at Visakhapatnam Port
on a Build Operate and Transfer (BOT) basis. A special purpose vehicle company
- Vizag Seaport Private Limited (VSPL) has been formed to implement the
project. The total project cost is about Rs. 3250.000 millions.
b. Rajahmundry - Dharmavararn
Annuity Road Project:
A Special Purpose Vehicle 'Rajahmundry Expressway Limited' has been set up for
development and maintenance of this project. The project includes widening of a
53 kms of two-lane road into four lanes and strengthening of the same. The
project cost is about Rs. 2560.000 millions. The project has concession period
of 17.5 years which includes 2.5 years of construction period. The Project has
achieved its Commercial Operations Date notification well ahead of schedule and
is operational since the last 3 years.
c. Dharmavaram - Tuni Annuity, Road
Project:
A Spatial Purpose Vehicle Andhra Express way Limited has been set up for
development and maintenance of this project which is a 47 km long road project
that involves four laning of existing two lane project and strenghening of the
same. Total cost of this project is about Rs. 2480.000 millions and the
concession period is 17.5 years including 2.5 years of construction period. The
project is well ahead of schedule and is operational since the last 3
years.
d. New Mattancherry Bridge Project in
Kerala:
The first BOT project in the state of Kerala this bridge connects Fort Kochi
(the heritage town and a famous tourist place) to Willingdon island in Cochin
Port Trust area and has completed 3 years of stable operation& This 700
meter long bridge provides a two-lane link across the Mattancherry Channel. The
project has a concession period of 13 years and nine months, including 28
months of construction period. Gammon, with; its civil engineering excellence,
completed the construction in 18 months, i.e. 10 months ahead at scheduLe,
which has resulted in early commencement of toll revenues. In addition to the
tolls, the project company is also entitled to receive income in form of
annuity from Government of Kerala.
e. Rangit it Hydroelectric project in
Sikkim:
This is a 40 year concession wherein the project company is developing a 60 MW
hydro-power project in the north eastern Indian state of Sikkim. The estimated
project cost is about Rs. 3500.000 millions.
f. Mumbai-Nasik Expressway
Project:
This Project is for the four laning of the Mumbai-Nasik section of National
Highway 3 under the National Highways Development Project Phase III. This is
amongst the most important gateways to connect Mumbai to northern, central
& eastern part of India. It is the largest BOT road project in India with
the total project cost estimated at over Rs. 7500.000 millions. The concession
period for the project is 20 years including 3 years o,f construction. The
project has achieved its Financial Closure and is currently under
implementation.
g. Bio-mass based, Power project
in Punjab:
Gammon has secured alongwith its 50% consortium partner a right to set up
biomass fuel based power projects in the state of Punjab. Each of the projects
would be in the range of approximately 12 MW each. Currently, it is in the
process of setting the first 2 such projects through an SPV 'Punjab Biomass
Power Limited.' Each of these projects is expected to cost about Rs. 500.000
millions. Land acquisition has already been completed & Financial Closure
is underway. The construction is expected to begin shortly.
h. Gorakhpur By-pass road
project:
This project involves design, construction, finance, operation and maintenance
of km 0.00 to km 32.27 of Gorakhpur Bypass on NH-28 in the State of Uttar
Pradesh, India on Annuity Basis on behalf of the National Highways Authority of
India (NHAI). The concession period is 20 years (including Construction Period
of 30 months). The project is presently under implementation.
i. Kosi river bridge
project:
The project involves design, construction, finance, operation and maintenance
of 4-lane bridge across river Kosi including its approaches, and Guide Bund
& Afflux Bund from km 155.00 to km 165.00 on NH-57 in the State of Bihar,
India on Annuity Basis. The total length of the project stretch is 10.635 Km.
The concession period is 20 years (including Construction Period of 3 years).
The project is presently under implementation.
j. Adityapur SEZ Project:
The consortium of Gammon alongwith Jamshedpur Utilities & Services Company
Limited (JUSCO) (a TATA Group Company) has received the Letter of Intent for
Development of Adityapur SEZ in Jharkhand from Adityapur Industrial Area
Development Authority. The project involves design, construction, finance,
operation and maintenance of SEZ Adityapur Limited. this SEZ will provide state
of the art industrial infrastructure including utilities and logistic
infrastructure and maintained by developers for 90 years. The project cost is
Rs. 1500.000 millions.
k. Bio-mass based Power project in
Haryana:
Gammon in a consortium with Bermaco Energy Systems Limited has been awarded 8
biomass based Power Projects in various districts in Haryana state. Each of
these projects involve the development of approximately 12 MW power projects
based on biomass fuel of rice straw. The total, project installed capacity
would be in the range of 55-60 MW and the total project cost for all 8 projects
together would be about Rs. 4500.000 millions.
l. Mumbai Offshore Container
Terminal:
Gammon in consortium with Dragados S.P.L. (a port operator from Spain) is the
preferred bidder for the container terminal project involving operations and
management of the existing Mumbai Port container terminal for initial 5 years
and development, including construction, equipping, operations and management
of the offshore container terminal, comprising at least two berths. The
estimated Project cost is about Rs. 8000.000 millions in the initial phase of 3
years and another possible Rs. 4000.000 millions subsequently, thus aggregating
about Rs. 12000.000 millions. The Project is on a BOT basis for 30 years,
including 3 years of construction & equipping period. This is the first
container privatisation at the Mumbai Port and the single largest privatization
project bagged by Gammon.
m. Tidong II Hydropwer generation
project in Himachal Pradesh:
This is a 40 year concession excluding construction wherein Gammon is the
preferred bidder and has received the LOI recently for developing a 60 MW
hydro-power project in the state of Himachal Pradesh. The estimated project
cost is about Rs. 350 crores. The project is in partnership with Torrent
Power.
5. Financial and Operational
Performance:
The Turnover of the Company stood at Rs. 20843.300 millions for the year ended
31st March, 2007. Operating profit (PBDIT) amounted to Rs. 1918.500 millions (Rs.
1953.600 millions). After providing Rs. 352.200 millions (Previous Year -
Rs.371.000 millions) towards Depreciation and Rs. 447.000 millions (Previous
Year - Rs. 83.300 millions) towards tax for current and deferred taxation, the
net profit amounted to Rs. 983.600 millions (Rs. 1028.300 millions). The
annualised percentage increase in net profit over previous year amounted to
20%. The order book position of the company as on 31 s' March, 2007 was over,
Rs.70000.000 millions.
Technology
Upgradation:
The company views IT as a strategic tool to enhance its business values and enable new ways of doing business. The company has continued to leverage information technology for business values and to create capabilities for the future.
The company is in the midst of strengthening it's IT
infrastructure in terms of WAN (VSAT & Broadband). It has successfully
implemented a VSAT Network as a CUG (closed user group) to bring IT to the most
remote of project sites. The Company now has a core virtual private network
using high bandwidth VSATs supplemented by MPLS technology for the remote
locations.
Facilities:
Cash and bank Balances include Rs. 31.500 millions (Previous Year Rs.
20.000 millions) with Bank Branches in foreign countries relating to certain
foreign projects which are not readily available for use by the Company and are
subject to exchange control regulation of the respective countries. The Fixed
Deposit related interest and principal account as at the year end are as per
ledger and are subject to reconciliation which is under progress.
(b) The Banking Facilities including fund and other non-fund based
borrowings utilized by the Joint Venture entity 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. The
total of such borrowings as at 31.03.2007 is RO 19035026 (Rs. 2154.000
millions) [Previous Year RO 6770790 ( Rs. 787.000 millions)] and Non fund based
RO 2447535 (Rs. 276.900 millions) [Previous Year RO 12309117 (Rs. 1430.700
millions)]. However, the term loan for equipments provided to the joint venture
entity by the Company has been considered in these financial statements.
(c) 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.
The Company had in the past acquired voting rights and other beneficial
interests in two Companies Rajahmundry Expressway Limited and Andhra Expressway
Limited in respect of 4360500 equity shares and 4564500 equity shares respectively
from its Joint Venture Partner in these entities in consideration of payment of
deposit for the acquisition of shares of Rs. 56.600 millions. Subsequently, the
Company transferred its voting rights and other beneficial interests so
acquired along with the voting rights and beneficial interests in respect of
11092500 equity shares of Rajmundry Expressway Limited and 11092500 equity
shares of Andhra Expressway Limited to its then wholly owned subsidiary Gammon
Infrastructure Projects Limited against receipt of consideration being deposit
for sale of equity shares in these Companies of Rs. 328.400 millions from the
subsidiary. The deposit made and deposit received as aforesaid are reflected
under the Investment Schedule. In respect of these shares where the voting
rights and beneficial rights are so transferred the holder continues to be the
original allotees as per the records of the respective Companies.
Contingent Liabilities
|
|
31.03.2007 |
31.03.2006 |
|
Liability on contracts
remaining to be executed on Capital Accounts |
519.200 |
594.200 |
|
Corporate Guarantees and Counter Guarantees given to Bankers towards
Company’s share in the joint Ventures for guarantees given by them to the
Joint Venture Project Clients. |
4175.300 |
3745.500 |
|
Disputed Sales Tax Liability for which the Company has gone into
Appeal is |
138.100 |
130.700 |
|
Claims against the Company not acknowledged as debts |
461.400 |
457.500 |
|
Claim against the Company by Al Manara International LLC not acknowledged
as debt towards commission and related costs |
142.100 |
190.500 |
|
Towards damages |
-- |
1162.300 |
|
Disputed Excise Duty Liability |
1.900 |
1.600 |
|
Disputed Custom Duty Liability |
3.200 |
3.200 |
|
Disputed Service Tax Liability |
36.600 |
-- |
|
Disputed income Tax Demand for which the Company Appeals are pending
before Appellant Authority |
11.600 |
-- |
There is a dispute
demand of UCO Bank pending since 1986, of US$436251 i.e. Rs. 17.200 millions, against
UCO Bank has unilaterally adjusted the Company’s Fixed Deposit of US$30584 i.e.
Rs. 1.200 millions which adjustment has not been accepted by the Company.
Fixed Assets
v Freehold Property
v Leasehold Land
v Plant & Machinery
v Motor Cars
v Office Equipments.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.64 |
|
UK Pound |
1 |
Rs. 83.00 |
|
Euro |
1 |
Rs. 66.00 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|