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Gammon Infrastructure Projects Ltd.

BSE: 532959 Sector: Engineering
NSE: GAMMNINFRA ISIN Code: INE181G01025
BSE 00:00 | 04 Mar 0.88 -0.02
(-2.22%)
OPEN

0.89

HIGH

0.97

LOW

0.85

NSE 00:00 | 04 Mar 0.90 0.05
(5.88%)
OPEN

0.85

HIGH

0.90

LOW

0.85

OPEN 0.89
PREVIOUS CLOSE 0.90
VOLUME 5579022
52-Week high 1.02
52-Week low 0.22
P/E
Mkt Cap.(Rs cr) 83
Buy Price 0.88
Buy Qty 4984.00
Sell Price 0.88
Sell Qty 5000.00
OPEN 0.89
CLOSE 0.90
VOLUME 5579022
52-Week high 1.02
52-Week low 0.22
P/E
Mkt Cap.(Rs cr) 83
Buy Price 0.88
Buy Qty 4984.00
Sell Price 0.88
Sell Qty 5000.00

Gammon Infrastructure Projects Ltd. (GAMMNINFRA) - Chairman Speech

Company chairman speech

Dear Shareholders

Thank you for your support even though FY2019 was another testing year at GammonInfrastructure Projects Limited (GIPL).

During the year the Indian economy faced testing times that had a particularly adverseeffect on the infrastructure sector as actual revenues were not in line with theestimated levels.

This mismatch was primarily caused by lapses in the delivery mechanism of the PPP modelwherein the public sector was unable to meet its commitments. Our inability to fulfilobligations came down to two overarching reasons: conditions that resulted in time andcost overruns; and the contractual provisions for the payment of claims and dues that werenot settled on time. These factors resulted in high levels of cash-flow mismatchesconcerning several of our projects. Our efforts to arrange for alternative funding in thecurrent investment climate also remained a challenge.

As a legacy organisation in the PPP segment we have also been facing problems due todelayed completion of our ongoing projects which has affected our revenues. The mainreasons behind the flattish performance of our PPP projects are disputes in existingcontracts; non-performance by our public sector partners; and onerous regulatory hurdles.Additionally the resultant mismatch in cash flows and building interest burden has madeit difficult to stabilise the business.

Furthermore due to the implementation of the IBC code bankers have become inflexibleand rigid resorting to a process-driven approach. Therefore the stressed infrastructureprojects were further deprived of finding sustainable solutions which is causing damageto the interest of all stakeholders.

The resistance of landlords to physically hand over their land — in spite ofreceiving payments from the Government; the environmentalists' constant hindrances byapproaching judiciary proceedings; and the outdated process followed by the authorities toapprove any resolution plans have increased the number of stressed or languishingprojects.

The solution lies in finding resolutions to the problems faced by our operationalprojects some of which have turned into NPAs with different lenders. We have put in ourbest efforts in offering resolution plans to the lenders which includes invitingstrategic investors and arranging for eguity as well as debt and offering compromisedsettlement proposals with lenders amongst others. Although we have not been able toconclude these proposals the resolution plans are in advanced stages of discussion andwe hope to bring them to a satisfactory conclusion shortly.

Going forward we are confident that with the resolution of our operational projectsthe Company's operations will stabilise leaving behind the testing times and movingtowards stability and growth in the future.

I would like to take this opportunity to thank our shareholders Board of Directorsbankers contractors business partners employees and Government agencies and lookforward to their continuous support.

Sincerely

K. K. Mohanty

Managing Director

.