Quarterly AccountsMarch 31, 2016

(Un-audited)

BIBOJEE GROUP

GAMMON PAKISTAN LIMITED

Independent

Muhammad Salah uddin - FCA

Muhammad Salah uddin - FCA

Shares are traded on Pakistan Stock Exchange

2

DIRECTOR’S REPORT

On behalf of the Board of Directors, I am pleased to place before the Board, the (Un-audited)financial results for the Nine months ended March 31, 2016.

OPERATING PERFORMANCE The Company’s financial performance during nine months (Un-audited)

is given below;-March 31,

2016

(Rupees)

March 312015

(Rupees)

Contract Income

338,510,146

270,370,614

Contract Expenditure

319,585,165

254,871,062

Operating Profit

18,924,981

15,499,552

Profit before taxation

12,496,694

7,744,662

Taxation

(4,940,548)

(3,743,676)

Profit after taxation

7,556,146

4000,986

The revenue for the nine months has increased by Rs.68.139 million as compared to same periodlast year. Increase in revenue is due to work on mixing plant building project at Karachi. The project has contributed revenue of

Rs.220.69

million during the period under review.

The work at Housing Directorate Project at DHA

Islamabad is in full swing and revenue booked

during the nine months under review

is Rs.91.386 million. The finishing works on block 4 & 5 have almost been completed.

Dhalkot Bridge Project

is in the completion phase

and it is

hoped

that the project will be handed over to the department by April

2016. The revenue amounting to Rs.16.89

million has been contributed by the project during the nine months ended March 31, 2016.

After the successful settlement of technical disputes

with the department of Maritimes Technology, we are awaiting the

letter for recommencement of work.

The balance work at MES

Rawalakot project has been

restarted and we are very hopeful to complete the remaining work in the current financial year.

By completing this building, the performance bond valuing Rs.8.162 will be released.

FUTURE PROSPECTS

The award of new bridge by Housing Directorate has been delayed due to change in design.

The joint venture with Jaffer Brothers for Lahore Airport extension project is still being pursuedfor prequalification which was delayed due to appointment of consultant by the Civil

3

Aviation Authority. Similarly another project which is also a joint venture of Gammon – JBL –Thelis package of 4A Airport Master system Integration (AMSI) of new Islamabad International Airport shall come up for bidding in near future.

We have also signed

a

MOU with Diqing oil field Construction Company Ltd.

for a pipe line project.

The Company is exploring to get into the hydro power project and it is expected to arrive at the understanding with a Chinese company which has completed six hydro projects successfully in Pakistan and AJK.

ACKNOWLEDGMENT

We appreciate the hard work and dedication of the Company’s Management, engineers and employees during the period under review.

We would also like to express our gratitude to our bankers, clients and suppliers for their co-operation, support and trust reposed in the Company.

For and on behalf of Board of Director’s

Muhammad Salahuddin-FCA Chief Executive Officer

4

GAMMON PAKISTAN LIMITEDCONDENSED INTERIM BALANCE SHEET (UN-AUDITED)AS AT MARCH 31, 2016

Un-audited AuditedMarch, 31 June, 30

Note 2016 2015Rupees Rupees

ASSETSNON CURRENT ASSETSProperty, plant and equipment

Operating fixed assets 98,505,687

99,654,042Investment property 223,463,403

223,463,403Long term investments 1,172,893

1,119,023Long term security deposits 3,623,394

3,623,394326,765,377

327,859,862CURRENT ASSETSStores, spares and loose tools 53,200,580

49,682,029Contract receivables 126,405,835

139,811,644Cost and estimated earnings in excess of billings 45,621,627

53,819,433Loans and advances 14,713,397

12,089,609Other receivables 2,479,409

263,000Short term prepayments -

275,862Tax refunds due from Government 58,738,297

43,845,786Taxation - net 13,642,210

14,892,511Cash and bank balances 32,363,678

17,516,430

347,165,033

332,196,304

TOTAL ASSETS 673,930,410 660,056,166EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVESShare capital 7 282,662,310

282,662,310Share premium reserve 15,380,330

15,380,330Accumulated loss (85,357,339)

(93,885,442)212,685,301

204,157,198

224,752,357

225,724,311

NON-CURRENT LIABILITIESDeferred liability 8,984,905

7,572,987Deferred taxation 9,764,085

10,221,47518,748,990

17,794,462CURRENT LIABILITIESTrade and other payables 11 187,684,220 164,855,613Joint venture partner's advances 30,059,542 30,059,542Material received from customers/secured advances - 17,465,040

217,743,762 212,380,195CONTINGENCIES AND COMMITMENTS 10 - -

TOTAL EQUITY AND LIABILITIES 673,930,410 660,056,166

The annexed notes form an integral part of these condensed interim financial information.

SURPLUS ON REVALUATION OF PROPERTY, PLANTAND EQUIPMENT

5

GAMMON PAKISTAN LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)FOR THE PERIOD ENDED MARCH 31, 2016

2015 2015

Note

Contract income from:

Own projects 338,510,146

270,370,614

127,003,468

94,692,599

Contract expenditure from:

Own projects 319,585,165

254,871,062

115,302,150

89,572,328

Net contract profit/(loss) 18,924,981

15,499,552

11,701,318

5,120,271

Operating expenses

Depreciation (1,040,326)

(965,298)

(350,580)

(323,672)

Administrative expenses (17,828,675)

(15,582,312)

(7,306,412)

(5,715,018)

Operating (loss)/profit 55,980

(1,048,058)

4,044,326

(918,419)

Other operating expenses -

(305,731)

-

Other income 12,959,806

9,748,229

4,233,736

2,568,533

Finance cost (555,092)

(682,528)

(10,012)

(73,847)

36,000

32,750

12,000

8,000

Profit/(loss) before taxation 12,496,694

7,744,662

8,280,050

1,584,267

Taxation:

Current (5,397,938)

(4,431,099)

(1,926,448)

(1,141,814)

Deferred 457,390

687,423

152,463

279,871

(4,940,548)

(3,743,676)

(1,773,985)

(861,943)Profit/(loss) after taxation 7,556,146

4,000,986

6,506,065

722,324

Other Comprehensive income -

-

-

-

Total 7,556,146

4,000,986

6,506,065

722,324

Earning / (loss) per share - -basic and diluted 0.27 0.14 0.23 0.03

The annexed notes form an integral part of these condensed interim financial information.

Allocation of loss to joint venture

partners

---------------------------------Rupees----------------------------

Nine months endedMarch 31,

Quarter endedMarch 31,

2016 2016

6

GAMMON PAKISTAN LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2016

2016 2015

Rupees Rupees

Profit / (loss) before taxation 12,496,694 7,744,662 CASH FLOWS FROM OPERATING ACTIVITIES

Adjustment for non cash charges and other items :

Depreciation 2,105,458

2,023,627

Loss on disposal of fixed assets 0 270,146

Staff retirement benefits - gratuity (net) 1,411,918

360,283

Allocation of loss to joint ventures (36,000)

(32,750)

Profit on investments (53,870)

(298,895)

Finance cost 555,092

682,528

3,982,598

3,004,939Profit / (Loss) before working capital changes 16,479,292

10,749,601

Effect on cash flow due to working capital changes:

Stock of materials, stores and spares (3,518,551)

(14,623,665)

Contract receivables 13,405,809

(21,952,206)

Cost and estimated earnings in excess of billings 8,197,806 (7,721,449)

Loans and advances (2,623,788) (1,684,768)

Long term security deposits -

2,875,591

Other receivables (2,216,409)

(813,000)

Prepayments 275,862

3,683,089

Net Change in Current Assets 13,520,729

(40,236,408)Increase / (decrease) in current liabilities

Material received from customers / secured advances (17,465,040)

16,565,246

Billing in excess of cost and estimated earnings 150,542Trade and other payables 22,864,607

18,787,054

Net Change in Current Liabilities 5,399,567

35,502,842

Net cash inflow /(outflow)from operating activities: 35,399,588

6,016,035

Income tax paid (19,040,148)

(17,488,858)

Net cash inflow/(outflow) after tax from operating activities 16,359,440

(11,472,823)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of fixed assets (957,100) (264,500)

Net cash inflow/(outflow) from investing activities (957,100) (264,500)

CASH FLOWS FROM FINANCING ACTIVITIES

Financial charges paid (555,092) (682,528)

Net cash inflow/(outflow) from financing activities (555,092) (682,528)

Net (decrease) / increase in cash and cash equivalents 14,847,248 (12,419,851)

Cash and cash equivalents -At the beginning of the period 17,516,430 27,171,141Cash and cash equivalents -At the end of the period 32,363,678 14,751,290

The annexed notes form an integral part of these condensed interim financial information.

Nine months endedMarch 31,

-

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6.

Un-audited Audited7. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

Rupees Rupees(30 June, 2015: 22,627,320) ordinary shares of Rs.10 each fully paid in cash 226,273,200 226,273,200

(30 June, 2015: 2,562,845) ordinary shares of Rs.10each issued as fully paid bonus shares 25,628,450 25,628,450

(30 June, 2015: 3,076,066) ordinary shares of Rs.10each issued by conversion of the directors' loans 30,760,660 30,760,660

282,662,310 282,662,310

2,562,845

3,076,066

28,266,231

The accounting policies and methods of computation, which have been used in the preparation of these

financial statements are the same as those applied in the preparation of the financial statements as at and

for the year ended 30 June, 2015.

The significant judgment, estimates and assumptions used by the management in preparation of these

financial statements are the same as those applied to the annual financial statements as at and for the year

ended 30 June, 2015.

31 Mar,

2016

30 June,

2015

22,627,320

The comparative balance sheet for the year ended 30 June 2015 is presented in this condensed interim

financial statements , whereas the comparative condensed interim profit and loss accounts, condensed

interim statement of cash flow and condensed interim statement of changes in equity are extracted from

the unaudited interim financial statements for the nine months ended March 31, 2015.

These financial statements do not include all the information required for full financial statements and

should be read in conjunction with the annual financial statements of the company for the year ended 30

June, 2015.

GAMMON PAKISTAN LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2016 (UN-AUDITED)

Gammon Pakistan Limited (the Company) was incorporated under the Companies Act,1913 (now the

Companies Ordinance, 1984) on 12 August, 1947 as a Private Company limited by shares and was

converted into Public Company quoted on the Stock Exchanges in Pakistan in 1956. It is principally

engaged in execution of civil construction works. The registered office of the Company is situated at

Gammon House, 400/2 Peshawar Road, Rawalpindi. The Company is Subsidiary of the Bibojee

Services(Pvt)Limited.

These financial statements have been prepared in accordance with the requirements of international

Accounting Standard 34 (Interim Financial Reporting) and are being submitted to the shareholders as

required by section 245 of the Companies Ordinance, 1984 and the Listing Regulations of the Stock

Exchange of Pakistan.

9

8. TRANSACTIONS WITH RELATED PARTIES

2016 2015 2016 2015

Rupees Rupees Rupees Rupees

Nature of transaction

Gandhara Nissan Limited

Rental income 1,500,000 1,125,000 750,000

375,000

Payment received (1,250,000) (500,000) (675,000) (500,000)

Rental income 1,500,000 1,125,000 750,000

375,000

Payment received (1,250,000) (750,000) (500,000) (625,000)

Rental income - 525,000

- 75,000Payment received - (525,000) - (75,000)

Rental income 150,000

- 150,000

-

Payment received (150,000)

- (150,000)

Rental income 300,000

- 300,000

-

Payment received (300,000)

- (300,000)

-

Contract income 220,691,480 - 86,256,713 -

Payment received 210,770,247

-

(89,803,090)

-

Mobilization advance received (72,317,233) - - -

Mobilization advance adjusted 44,039,654 - 17,704,279 -

9. TAXATION

Universal Insurance Co

Babri Cotton Mills Limited

Bannu Woollen Mills Limited

General Tyre & Rubber

Company Ltd

The provision for taxation for the nine month and quarter ended March 31, 2016 has been made

using the estimated effective tax rate applicable to expected total annual earnings.

The related parties and associated undertakings of the Company comprise of group companies,

other associate companies. Transactions with related parties and associated undertakings during

the period are as follows :

Nine Months Ended March 31,

Quarter EndedMarch 31,

Relation with the Company

Gandhara Industries Limited

Associated Company

10

10. CONTINGENCIES AND COMMITMENTS

11. TRADE AND OTHER PAYABLES

Un-audited Audited

Rupees Rupees

Sundry creditors 49,702,300

43,721,570

Mobilization advance 28,277,579

-

Advance payments 922,508

3,527,072

Due to sub-contractors 46,347,596

46,854,139

Accrued expenses 11,885,699

17,967,405

Due to customers -

1,337,962

Due to employees and others 10,207,784

10,646,885

Taxes payables 798,145

477,829

Unclaimed dividend 1,442,230

1,442,230

Joint venture partner's share of profit 2,977,879

3,758,021

Other provisions 11.1. 35,122,500

35,122,500

187,684,220 164,855,613

11.1.

12. DATE OF AUTHORISATION FOR ISSUE

13. GENERAL

CHIEF EXECUTIVE DIRECTOR

These financial statements were authorised for issue by the Board of Directors of the Company

in its Meeting held on 28th April,2016.

Figures in the financial statements have been rounded-off to the nearest Rupee except when

stated otherwise.

Corresponding figures have been re-arranged or re-classified wherever necessary in these

financial statements.

31 Mar., 2016

30 June,

2015

These represent provisions made for the potential liability,in respect of borrowings of

Saudi Riyals 2.500 million and Saudi Riyals 5.000 million during the year 1986 for the

Saudi Operations of the Company, that the Company may have to incur as a result of

settlement of overseas dues of National Bank of Pakistan in accordance with the incentive

Scheme under the State Bank of Pakistan's Circular No.19 of 05 June,1997 .

There has been no significant change in the status of contingencies and commitments since the

date of preceding published financial statements of the Company for the year ended 30

June,2015.

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