MIRA INFORM REPORT

Report Date :

13.09.2008

IDENTIFICATION DETAILS

Name :	GAMMON INDIA LIMITED
Registered Office :	Veer Saverkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	15.06.1922
Com. Reg. No.:	11 – 00997
CIN No.: [Company Identification No.]	L74999MH1922PLC000997
TAN No.: [Tax Deduction & Collection Account No.]	MUMG07937G
PAN No.: [Permanent Account No.]	AAACG3821A
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges
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 62000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
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 / 6744 4000 (Extn : 4050)
Fax No.:	91-22-24300529 / 24300221 / 66614025
E-Mail :	gammon@gammonindia.com bv@gammonindia.com
Website :	www.gammonindia.com
Corporate Office :	Hamilton House, J. N. Heredia Road, Ballard Estate, Mumbai – 400 038, Maharashtra, India.
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 and 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
Investors Correspondence :	In time Spectrum Registry Limited, C-13 Pannalal Silk Mills Compound, LBS Road , Bhandup (west), Mumbai- 400 078, Maharashtra, India
Tel No.:	91-22-25963838
Fax No.:	91-22-25946969
E-Mail:	isrl@intimespectrum.com

DIRECTORS

Name :	Mr. Abhijit Rajan
Designation :	Chairman and Managing Director
Date of Birth/Age :	46 years
Qualification :	B. Com L.S. E.
Experience :	27 years
Date of Appointment :	17.05.1991
Name :	Mr. Peter Gammon
Designation :	Chairman Emeritus
Name :	Mr. W Paul Harriman
Designation :	Director
Name :	Mr. Shobhit Rajan
Designation :	Director
Name :	Mr. C C Dayal
Designation :	Director
Name :	Mr. S K Guha Thakurta
Designation :	Director
Name :	Mr. Atul Dayal
Designation :	Director
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
Name :	Mr. Kunal Shroff
Designation :	Additional Director
Name :	Dr. Naushad Forbes
Designation :	Director
Name :	Mr. Chandrahas C. Dayal
Designation :	Director
Name :	Mr. Jagdish C. Sheth
Designation :	Additional Director
Name :	Mrs. Urvashi Saxena
Designation :	Additional Director
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
Name:	Mr. Ajit Kumar Gupta
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Gita Bade
Designation :	Company Secretary and compliance
Tel No.:	91-22-6661 4050
E-Mail:	gsb@gammonindia.com
Name :	Mr. P S Gupchup
Designation :	Company Secretary
Name :	Mr. K J Daruwalla
Designation :	Company Secretary
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
Name:	Mr. A B Desai
Designation :	Chief Executive Power Structures
Age:	50 Years
Qualification:	BE
Experience:	28 Years
Date of Appointment:	01.09.1979
Name:	Mr. Subodh V. Kamat
Designation :	Chief Executive - Roads
Age:	52 Years
Qualification:	BE
Experience:	32 Years
Date of Appointment:	15.04.2004
Name:	Mr. A L Bhatia
Designation :	Vice President Marketing
Age:	61 Years
Qualification:	BE
Experience:	39 Years
Date of Appointment:	01.12.1971
Name:	Mr A D Alawani
Designation :	Vice President Marketing
Age:	62 Years
Qualification:	BE
Experience:	40 Years
Date of Appointment:	13.08.1966
Name:	Mr. Ram Krishna L. Telang
Designation :	Vice President Marketing
Age:	60 Years
Qualification:	B.Tech M.S.
Experience:	35 Years
Date of Appointment:	20.09.2000
Tel No.:	91-22-66614101
E-Mail:	rlt@gammonindia.com
Name:	Mr. M V Jatkar
Designation :	Vice President Construction Systems
Age:	52 Years
Qualification:	BEME
Experience:	27 Years
Date of Appointment:	01.07.1980
Name:	Mr. P M Jakkal
Designation :	President – Pipelines
Age:	61 Years
Qualification:	Dip. Civil Engg.
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

No. of Employees :

6000

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

Facilities :

Secured Loans

Particulars	31.03.2007	31.03.2006
	(Rs. in millions)	(Rs. in millions)
Non Convertible Debentures placed With Banks and Financial	1000.000	1000.000
From Canara Bank Led Consortium: Short term loan secured by a charge over all the Company’s Assets in India (excluding Leasehold Property, Freehold Property and Plant and Machinery hypothecated to the bankers and Financial Institutions under various asset financing schemes)	1302.500	338.100
Loans (Secured by hypothecation of assets purchased under various financing schemes): Ford Credit Kotak Mahindra Limited	0.300	1.200
Kotak Mahindra Primus Limited	0.400	0.500
ICICI Bank Limited (Out of the above loans Rs. 0.700 millions are due for repayment within one year, Previous Year Rs. 1.300 millions.)	---	----
Term Loan from Bank Muscat secured by assets financed under the facility (Amount repayable within one year NIL, Previous Year Rs. 100.100 millions)	----	100.100
Total	2303.200	1439.900

Unsecured Loans

Particulars	31.03.2007	31.03.2006
	(Rs. in millions)	(Rs. in millions)
External Commercial Borrowings (Secured by Guarantees of Consortium Bankers) (Amount repayable within one year Rs. 911.700 millions, Previous Year Rs. 265.800 millions)	911.700	265.800
Other Short Term Loans from Banks	500.000	---
Total	1411.700	265.800

Banking Relations :

Good

Auditors :

Name :

Natvarlal Vepari and Company

Chartered Accountants

Membership:

v Confederation of Indian Industry

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 and 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 and Properties Private Limited

v Gammon Billimoria LLC

v Gammon L and T Infra MRTS Limited

v Gammon Cities Limited

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

v Kosi Bridge Infrastructure Company 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
250000000	Equity Shares	Rs. 2/- Each	Rs. 500.000 millions

Issued:

No. of Shares	Type	Value	Amount
88325210	Equity Shares	Rs. 2/- Each	Rs. 176.650 millions

Subscribed and Paid-Up Capital:

No. of Shares	Type	Value	Amount
86744670	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 264000 Shares are issued for consideration other than Cash 5806700 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		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		176.900	176.900	176.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12109.700	11325.800	9081.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12286.600	11502.700	9258.200
LOAN FUNDS
1] Secured Loans		2439.900	2303.200	1440.100
2] Unsecured Loans		1330.700	1411.700	265.800
TOTAL BORROWING		3770.600	3714.900	1705.900
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16057.200	15217.600	10964.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7732.600	6911.100	3697.300
Capital work-in-progress		181.900	103.700	73.100
INVESTMENT		1607.800	1504.400	1161.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7082.600	5325.300	4762.300
	Sundry Debtors	5171.500	3033.500	2380.200
	Cash & Bank Balances	380.900	959.900	1342.600
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5159.400	5557.800	3353.700
Total Current Assets		17794.400	14876.500	11838.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9501.400	6987.100	5332.100
	Provisions	1758.100	1191.000	474.900
Total Current Liabilities		11259.500	8178.100	5807.000
Net Current Assets		6534.900	6698.400	6031.800
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16057.200	15217.600	10964.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006 (15 Months)
Sales Turnover		23560.400	18591.800	14679.400
Other Income		357.400	551.500	332.000
Total Income		23917.800	19143.300	15011.400
Profit/(Loss) Before Tax		1393.400	1430.600	1111.600
Provision for Taxation		532.100	985.800	69.200
Profit/(Loss) After Tax		861.300	444.800	1042.400
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	11619.300	7838.600	5903.700
	Administrative Expenses	1602.100	1242.000	923.500
	Raw Material Consumed	7445.200	6063.000	5609.900
	Increase/(Decrease) in Finished Goods	[1757.300]	[563.000]	[1218.500]
	Salaries, Wages, Bonus, etc.	1634.300	1468.900	903.700
	Interest	595.900	485.600	672.700
	Power & Fuel	827.700	778.000	688.400
	Depreciation & Amortization	462.100	352.200	371.000
	Other Expenditure	95.100	47.400	45.400
Total Expenditure		22524.400	17712.700	13899.800

QUARTERLY RESULTS

Year	30.06.2008
Type	1^st Quarter
Sales Turnover	5852.400
Other Income	392.700
Total Income	6245.100
Total Expenditure	5360.600
Operating Profit	884.500
Interest	121.000
Gross Profit	763.500
Depreciation	130.100
Tax	109.100
Reported PAT	524.300

KEY RATIOS

Year	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.40	0.31	0.40
Long Term Debt-Equity Ratio	0.36	0.28	0.24
Current Ratio	1.62	1.84	1.52
TURNOVER RATIOS
Fixed Assets	3.32	3.33	2.74
Inventory	3.80	3.69	2.83
Debtors	5.74	6.87	4.98
Interest Cover Ratio	3.34	3.95	2.65
Operating Profit Margin(%)	10.40	12.20	14.68
Profit Before Interest And Tax Margin(%)	8.44	10.31	12.16
Cash Profit Margin(%)	5.62	4.29	9.63
Adjusted Net Profit Margin(%)	3.66	2.39	7.10
Return On Capital Employed(%)	15.16	16.68	17.23
Return On Net Worth(%)	9.18	5.07	14.09

LOCAL AGENCY FURTHER INFORMATION

History

Incorporated as J C Gammon (Bombay), Subject acquired its present name in 1956. The company specializing in Transport Engineering, Energy Projects and Highrise Structures, Hydraulic Works and 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. Subject 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 Subject from Subbha Rao. Subject 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 the company, 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, Subject 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 Limited, Gammon Turnkeys Limited , Cochin Bridge Infrastructure Company Limited to 100%, thus making these three companies become wholly owned subsidiary of Subject . Due to this Subject has also become the holding company for the subsidiary of GNL M/s Nouveaw Exports Private. Limited . Subject has also formed two new 100% subsidiary(Public Limited ) companies viz. M/s Gammon Infrastructure Projects and Investment Limited , for carrying on the business of executing and financing infra projects involving private participation either directly or indirectly through promotion of subsidiary/ group companies for each specific project and M/s Vizag Seaport Limited 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, Subject 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 6320572 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 and Kashmir Hydroelectric project. 

Gammon Nirman Limited and Gammon Turnkeys Limited have ceased to be subsidiaries of the company with effect from April 2004. 

The company along with its subsidiary Gammon Infrastructure Projects Limited has acquired certain holding in Punj Lloyd Limited. Consequently Andhra Expressway Limited and Rajahmundry Expressway Limited have become subsidiaries of the company with effect from 07.02.2005.

Vizag Seaport Private Limited has ceased to be the subsidiary of Subject with effect from March 2005.

Profile

Subject 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. The copmanies 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 them 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 them to pioneer various civil engineering techniques and many more. Subject today can be rightly referred to as "Builders to the Nation.

Subject 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. Subject is a name that is inextricably woven into the fabric of India.

As builders to the nation, Subject 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. Subject 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 Subject believes that today's solutions will not be adequate tomorrow.

This insatiable quest has led Subject 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 Subject the status of Rand D Institution - an unequalled honour for an unmatched Performance.

The planners, designers and construction specialists at Subject 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 and 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 Limited and Kosi Bridge Infrastructure Company Limited, 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 and 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: 

Subject 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 and 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 subject 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 and Cooling Towers: 

Cooling Tower industry is technology sensitive and highly specialized. Very few companies in the world possess this technology and Subject 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 The company. 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 and 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 subject, 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 and 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 the company 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 strengthening 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 and 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. The company, 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 and 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 of construction. The project has achieved its Financial Closure and is currently under implementation. 

g. Bio-mass based, Power project in Punjab: 

The company 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 and 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 and 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 the company alongwith Jamshedpur Utilities and 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: 

The company 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: 

The company 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 and equipping period. This is the first container privatisation at the Mumbai Port and the single largest privatization project bagged by the company.

 m. Tidong II Hydropwer generation project in Himachal Pradesh: 

This is a 40 year concession excluding construction wherein The company 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 and 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 company 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.

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 and Machinery

v Motor Cars

v Office Equipments.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2008

[Rs. In millions]

Particulars	Three month Ended 30.06.2008 Reviewed	Corresponding Three months in the previous year 30.06.2007 Reviewed	Twelve Months for the year 31.03.2008 Audited
Net Sales / income from operations	5852.400	6494.700	25178.100
Less: Company’s shares of turnover in Joint Venture	0.000	[1091.600]	[1729.000]
Net sales / Income from operations excluding Joint venture	5852.400	5403.100	23449.100
Company’s share in profit / (Loss) of JV	0.000	0.000	[112.800]
Other income	386.400	10.700	45.200
Total Expenditure :
a) Consumption of materials	2143.900	2437.800	8276.900
b) (Increase) / Decrease in Work in Progress	[740.800]	[1322.700]	[1903.700]
c) Sub Contract Expenses and other site Expenses	3554.200	3213.100	12959.000
d) Staff Costs	340.800	441.100	1504.900
e) Other Expenditure	62.500	65.100	366.400
Earning Before Interests, Depreciation and Tax	878.200	579.400	2178.000
Foreign Exchange (Gain) / Loss	[6.300]	[8.300]	58.300
Finance Cost (Net)	121.000	35.400	264.100
Depreciation	130.100	108.400	462.100
Profit / (Loss) Before Taxation	633.400	443.900	1393.500
Tax Expenses (Including Deferred Tax and Fringe Benefit Tax)	109.100	158.600	510.200
Profit after Tax	524.300	285.300	883.300
Excess / (Short) provision of taxation for earlier years	0.000	0.000	[21.800]
Net profit for the year	524.300	285.300	861.500
Paid –up Equity Shares Share capital (Face Value Rs. 2/- per equity shares)	173.500	173.500	173.500
Reserves, excluding Revaluation Reserve (As per Balance Sheet)	0.000	0.000	9613.100
Earning Per share
Basic	0.607	0.329	0.993
Diluted	0.599	0.326	0.985
Aggregate of non – promoter shareholding
No. of Shares	60257195	60257195	60257195
Percentage of Shareholding	68.89%	68.89%	68.89%

WEBSITE DETAILS:-

History

In the beginning was a man and his vision a colossus throbbing with dynamism and pulsating with energy. A man born to build. A man whose very presence was a source of inspiration.

Mr. John C. Gammon. The founder of the company A Civil Engineer who can more aptly be called 'The Sculptor of Concrete in India'. A man who preached and practiced order and functional expression in structures - the enduring values that helped build the Gammon edifice.

From monuments and bridges to reservoirs and jetties, his innovative vision and engineering skill, his intuitive understanding of the materials and systems of construction sought and fought answers to some of the most challenging examples in civil engineering projects.

His abiding faith in people and their abilities inspired them to meet challenge after challenge.

Mr. Gammon had several firsts to his credit. The RCC pile foundations for the Gateway of India, the thin shell structures of the Meerut Garages, the colloidal grouting process at Mundali Weir, the hyperbolic cooling towers at Sabarmati - are but a few of his outstanding achievements. Bridges like Bonum and Patalganga, built by him have stood the test of time as monuments to his ingenious skill.

Today, subject not only carries his name and vision, but stands out as a Gateway for technological excellence in civil engineering.

Management team

The Management team at the company is led by the Chairman and Managing Director, Mr. Abhijit Rajan. He is assisted by his able executive directors Mr. Himanshu V. Parikh and Mr. Rajul A. Bhansali. The team is further enriched by the following directors:

Mr. Peter Gammon

(Chairman Emeritus)

Mr. Chandrahas C. Dayal

(Director)

Mr. Atul Dayal

(Director)

Dr. Naushad Forbes

(Director)

Mr. Jagdish C. Sheth

( Additional Director )

Mrs. Urvashi Saxena

( Additional Director )

Each segment of construction that the Company engages in is looked after executives with a deep commitment to quality, timeliness of completion and inherent expertise and skill sets that assist The company in being a leader in the construction arena.

AREAS OF SPECIALISATION

Transporation Engineering Projects

· Bridges - River/Creek Bridges, Special Bridges

· Flyovers

· Viaducts

· Aqueducts

· Roads

· Highways

· Railways

Power Projects

· Nuclear –

· Thermal - Thermal Power stations, Natural draft Cooling Towers, Counterflow Cooling Towers, Chimneys

· Hydro - River Valley/Irrigation Projects, Dams, Tunnels, Power House, TBM Tunneling

Major Buildings, Industrial and Commercial Structures

Marine Projects

· Jetties, Wharfs, Berths

Ground Engineering Works

· Piling works, Diaphragm wall

Environmental Projects

· Water Treatment Plant, Effluent Treatment Plant, Integrated Water Supply Project

Pipeline Projects

· Oil and Gas, Water Pipeline

Plant and Equipment

Subject possesses the following major plants and equipments required for execution of various activities involved in construction of a project.

· State - of - Art Rotary Rigs capable of boring piles of diameter varying from 600 mm to 2000 mm

· Excavators of capacity 0.3 cum to 1.9 cum

· Batching Plant of capacity 8 cum / hr to 120 cum / hr

· Concrete Pumps of capacity 13 cum / hr to 60 cum / hr

· Transit Mixers of capacity 1.5 cum/mix to 6 cum / mix

· Cable way with head mast, winch track rope etc of capacity 5 tonnes to 15 tonnes

· Tower Cranes of capacity 4 tonnes to 12 tonnes

· Crawler Cranes/ Derrick Cranes / Mobile Cranes of capacity 5 tonnes to 100 tonnes

· Crushers of capacity 5 tonnes / hr to 200 tonnes / hr

· Prestressing equipments of capacity 80 tonnes to 350 tonness

· Gantry Cranes of capacity 10 tonnes of 200 tonnes

· Tunnel Boring Machine of capacity 3.40 m to 4.20 m dia

· Shotcreting Machines of capacity 6 cum / hr to 20 cum/hr

· Rock Bolting Machine

· Wagon drills and Drill Jumbos of capacity 48 mm - 115 mm (Ax to Hx)

· Static Roller of capacity 4 tonnes and 10 tonnes

· Vibratory Roller of capacity 9 tonnes and 10 tonnes

· Hot Mix Plant of 160 tonnes / hr

· Asphalt Paver of capacity 4 m and 10 m

· Wet Mix Plant of capacity 100 tonnes / hr to 200 tonnes / hr

· Miscellaneous equipment required for construction activities

· A-State-of-Art facility for fabrication of steel structures in a modern workshop with built-up area of 46,891 sqm.

· Regional workshops at Kolkata, New Delhi, Navi Mumbai and Ranchi.

PRESS RELEASES :-

BROKERWATCH Gammon India raised to 'neutral' at Enam, price upped to 533 rupees

Monday, February 11, 2008; Posted: 02:53 AM

MUMBAI, Feb 11, 2008 (Thomson Financial via COMTEX) -- GAMIF | news | PowerRating | PR Charts –

Enam Securities upgraded its recommendation on Gammon India Limited to 'neutral' from 'underperformer' citing higher revenues in 2009 on the back of a strong order backlog, despite Gammon India's third quarter results, that were below expectations.

The broker also raised its price target on the construction company to 533 rupees a share from 419 rupees.

Enam said the listing of Gammon's build-operate-transfer subsidiary -- Gammon Infrastructure Projects Limited, which expects clearance from the market regulator by mid February -- will relieve funding pressure from Gammon India's balance sheet and could be a key re-rating trigger.

It said it valued Gammon Infrastructure Projects at about 16 bln rupees and added a higher valuation could lead to an upgrade in Gammon's target price.

Future Capital to be included on BSE-500 Index

11 Feb, 2008, 1939 hrs IST, PTI

MUMBAI: Kishore Biyani's Future Capital Holdings will be included in the BSE-500 Index from February 15.

Future Capital Holdings would be replacing Murli Industries Limited while Gammon India Limited would be replacing Ballarpur Industries Limited on the BSE-500 Index from February 29, according to information available on the Bombay Stock Exchange website. Further, Ballarpur Industries would be excluded from BSE-Mid -Cap Index from February 29. Meanwhile, from February 29 onwards, Colgate-Palmolive (India) Limited would be replacing Ballarpur Industries on the BSE-200 Index.

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. 45.77
UK Pound	1	Rs. 80.67
Euro	1	Rs. 64.20

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions