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Gammon India Ltd.

BSE: 509550 Sector: Infrastructure
NSE: GAMMONIND ISIN Code: INE259B01020
BSE 00:00 | 10 Sep Gammon India Ltd
NSE 05:30 | 01 Jan Gammon India Ltd
OPEN 1.40
PREVIOUS CLOSE 1.45
VOLUME 142636
52-Week high 1.54
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 54
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.40
CLOSE 1.45
VOLUME 142636
52-Week high 1.54
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 54
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gammon India Ltd. (GAMMONIND) - Chairman Speech

Company chairman speech

I am pleased to present the 100th Annual Report of GammonIndia Limited for the Financial Year ended 31st March 2022.

Gammon has travelled a long journey of hundred years wherein it hasseen succession of waxing and waning times. 100 years ago Mr. J.C. Gammon left hisemployment to execute the construction of the iconic monument of the Country "theGateway of India'.

Gammon has a rich history of completing over 2000 projects of allscales which averages to 20 projects per year. Gammon had imposed a mark of constructionof civil engineering projects in all types of structures like bridges tunnels roadsjetties ports dams canals all types of power plants chimneys silos water towersresidential projects industrial projects like cement and steel plants cooling towersreligious structures etc.

With the economic slow-down impacted the order booking of the companyduring 2011-2012 which resulted in a slow-down on the execution of some of the projects.Sluggish growth in order book lower production and turnover significantly leading tocontinued losses during 2012-13. As a result of various factors internal and externalGammon posted a loss for the first time in several decades. The working capital cycle ofGammon was also stretched due to non-achievement of milestones and delayed recovery ofreceivables leading to restructuring of Gammon.

RESTRUCTURING OF GAMMON:

• An Inter-creditor Agreement (ICA) was executed in July 2019wherein the ground rules for finalsation and implementation of the resolution plan inrespect of borrowers with credit facilities from more than one lender was be provided;

• The Company submitted a draft resolution plan to the consortiumof lenders. Pursuant to the submission of the resolution plan Seven lenders including thelead monitoring institution provided their in-principle sanction to the company and thecompany is pursuing for the approval with other lenders as well.

• Due to delay in approval of resolution plan by other Bankers thefund through which Everstone (Investor) was intended to invest was closed. HoweverEverstone has shown a keen desire to invest with next available fund.

• Due to time constraint Gammon has proposed an alternateinvestor with the same terms and conditions for the revival of the Company which isaccepted by the Bankers. The lenders discussed the above matter at the Joint Lendersmeeting dated 5th March 2022 and while accepting the offer were willing to take up withtheir higher management for resolution plan of the Company.

During these challenging times Gammon focus was to retain the value ofthe Company interest of the lenders comfort of the clients and at the same time tomaintain the employees' first policy. To meet this Company has vigorously pursuedarbitration matter and also progress on the on-going projects without any outsidefinancial support. The Company has been making every effort in settling the outstandingSecured lenders dues.

GOING FORWARD

The Company is in its advanced stage of resolution process and isconfident to receive the majority sanction of the consortium of lenders shortly. Furtherpost sanction of resolution plan and subsequent to the investor infusing further funds inthe company the company is sure to revive as an EPC Company. Although realization of thearbitration awards continues to remain a big challenge the company and its managementstrives its best to obtain the awards proceeds expeditiously to enable the lenders and itsother customer endeavour its faith back in the company.

PERFORMANCE REVIEW

The year under review is a period of 12 (twelve) months commencing from1st April 2021 and ending on 31st March 2022. During the Financial Year under review theTurnover of the Company on a Standalone basis stood at ' 27.66 crores as compared to '52.84 crores during the previous F.Y. ended 31st March 2021. The Company posted a NetLoss after Tax of ' 1085.75 crores during the year ended 31st March 2022 as against aNet Loss after Tax of ' 716.85 crores during the previous FY ended 31st March 2021.

On a Consolidated basis the Turnover of Gammon Group during the yearunder review stood at ' 27.85 crores as compared to ' 54.52 crores for the previousfinancial year ended 31st March 2021. The Group posted a Net Loss after Tax of ' 1180.51crores during the F.Y ended 31st March 2022 as against a Net Loss after Tax of ' 794.72crores during the previous F.Y ended 31st March 2021. Interest and finance costs continueto be high. The turnover/income is from the residual EPC business post carve out of theoperating business. During the year under review the finance cost which includes theinterest costs was ' 721.90 crores.

ACKNOWLEDGEMENTS

I would like to extend my heartfelt gratitude to all our stakeholdersour lenders and bankers suppliers employees and shareholders for their continuedsupport and the faith reposed in us.

We look forward to better times ahead and will continue to focus onachieving our stated goals with sincerity and dedication.

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