Notes to Accounts of Deccan Gold Mines Ltd.

Mar 31, 2024

(T) Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

(iii) Contingent Assets:

Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(U) Investments

On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except for those mutual fund for which the Company has elected to present the fair value changes in the Statement of Profit and Loss.

The company has accounted for its investments in Subsidiaries and Associates and Joint Venture at cost.

(V) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less provision for expected credit loss.

(W) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.

(X) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

(Y) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees Thoudands, unless otherwise stated as per the requirement of Schedule III (Division II).

5.1 Acquiring stake in Geomysore Services (India) Private Limited (GMSI) pursuant to a share swap:

In Lieu of acquisition of 6,89,521 equity shares in GMSI @ 1606.09 through swap of DGML Equity shares of 3,35,07,789 with a Face Value of Re. 1/- acquired at Rs.33.05 with premium of Rs. 32.05 per share accounted and balance of 30,852 equity shares of GMSI through swap of DGML 14,99,276 CCD with a Face Value of Re. 1/- acquired at Rs.33.05 with at premium of Rs. 32.05 per share. Accordingly, the Company had made an ‘in-principle approval application to the Bombay Stock Exchange Limited (BSE) for issue of 3,35,07,789 equity shares at an issue price of Rs. 33.05/- per share (including a premium of Rs. 32.05/-) and 14,99,276 Compulsorily Convertible Debentures (CCDs) at an issue price of Rs. 33.05/- per CCD (including a premium of Rs. 32.05/-) to acquire 720,373 equity shares of GMSI at an issue price of Rs. 1606.09/- per share (of face value of Re.1- each). The price per share of the Company and GMSI and the swap ratio were arrived at based on the Valuation Report noted above.

By way of background, GMSI is a multi-metal exploration company based in Bangalore, India and has got a portfolio of mineral prospects which include mineral concession applications over the Kolar Gold Belt and the key Jonnagiri Gold Project in Andhra Pradesh over which it holds a granted and executed Mining Lease (ML).

5.2 acquisition of 31.52% stake in Kalevala Gold Oy, Finland pursuant to a share swap:

During the year 2023-24, the Company acquired 31.52% stake in Kalevala Gold Oy, Finland ("Kalevala") under a share swap transaction. Valuation and share swap ratio were arrived at by an independent registered valuer. In terms of the same, for every 33 ordinary shares of Kalevala, the Company shall be issued 46,900 equity shares of face value of INR 1.00 each as fully paid-up at an issue price of INR 53.47/-per share.

Accordingly, the Company acquired 810 ordinary shares (31.52% stake) of Kalevala from Lionsgold India Holdings Limited, Mauritius and issued 11,51,181 equity shares of the Company at an Issue Price of INR 53.47 per share at a total consideration aggregating INR 6.15 crore.

Kalevala has the rights to acquire mining leases and prospecting licences for gold in the Northeastern part of Finland. The project has a potential of 4 tonnes of gold over the mediumterm which can be further enhanced through exploration. The Company is planning to do a drilling program and conduct a feasibility study in preparation for the mining activity.

acquisition of 60% stake in avelum partner LLC, Kyrgyzstan pursuant to a share swap:

During the year 2023-24, the Company acquired 60% stake in Avelum Partner LLC, Kyrgyzstan ("Avelum") under a share swap transaction. Valuation and share swap ratio were arrived at by an independent registered valuer. In terms of the same, for every 533 shares of Avelum, the Company shall be issued 94 equity shares of face value of INR 1.00 each as fully paid-up at an issue price of INR 53.47/- per share.

Accordingly, the Company acquired 68,250,000 shares of Avelum from Hira Infra Tek Limited, India and issued 1,20,36,585 equity shares of the Company at an Issue Price of INR 53.47 per share.

Similarly, the Company acquired 36,750,000 shares of Avelum from Med Edu Care Marketing Management, Dubai (represented by Dr Phani Bhushan Potu, Sole Proprietor) and issued 64,81,238 equity shares of the Company at an Issue Price of INR 53.47 per share.

Thus, the Company had acquired 105,000,000 shares of Avelum (60% stake) under a share swap transaction by issuing 1,85,17,823 equity shares of face value of INR 1/- each at an Issue Price of INR 53.47/- per share at a total consideration aggregating INR 99.01 crore.

"Avelum is operating an existing gold mine located in the eastern part of Kyrgyzstan which requires considerable expansion and setting up of a processing plant to reach its full capacity. The Mine has a potential resource of 6 tonnes of gold which can be extracted over the next 8 - 10 years with a potential to enhance the resource base. Avelum is planning to expand the mining and production capacity in the shortterm."

32 Fair Value Measurement

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values :

i. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

ii. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

iii. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by valuation technique Level 1: Quoted (unadjusted) price in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

33 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company''s business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures in accordance with the Company''s policies as approved by the board of directors.

i. Market Risk:

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of financial instruments. The value of a financial instrument may change as a result of changes in the liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. The Company does, time to time, evaluate the recoverability of its financial assets and liabilities and provides the estimated loss in the same financial year of recognition. The Company is not an active investor in equity markets.

ii. Equity price risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company''s investments exposes the company to equity price risks. At the reporting date, the company do not held any quoted equity securities.

iii. Credit Risk

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Trade receivables consist of a Goverenment/Institutionals & Other customers, spread across India. Outstanding customer receivables are regularly monitored. The average credit period is in the range of 0 - 180 days. However in select cases credit is extended which is backed by security deposit/bank guarantee/ letter of credit and other firms. The Company''s Trade receivables consist of a large number of customers, across India hence the Company is not exposed to concentration risk.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates.

iv. Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds from debt markets through commercial paper programs and short term working capital loans.

v. Interest Rate Risk Management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. Currently the company has no exposure to interest rate risk.

vi. Foreign Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction has more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar and Euro, against the respective functional currencies (INR). The Company does not have any foreign currency trade payables and receivables.

The foreign exchange risk management policy of the Company requires it to manage the foreign exchange risk by transacting as far as possible in the functional currency. The Company does not use derivative financial instruments for trading or speculative purposes. No Forward contracts were entered into by the company either during the year or previous years since the company has very minimum exposure to foreign currency risk.

34 Capital management

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s Risk Management Committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.

Note:

The related party relationships and transactions have been determined by management of the Company on the basis of the requirements of the Ind AS 24 “ Related Party Disclosures” and the same have been relied upon by the auditors.

The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year.

Related parties have been identified by the Management. Actual re-imbursement of expenses/taxes paid on behalf of related parties is not considered as a related party transactions for disclosure purpose.

39 Contribution to political parties during the year 2023-24 is Rs. Nil (previous year Rs. Nil).

40 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

41 Disclosure pertaining to Immovable properties

i) As the company doesn''t own any immovable properties the disclosure regarding the title deeds not held in the name of the company, Valuation and revaluation of assets and others disclosure which are need to be reported under Revised Schedule III, as amended by the Companies Act, 2013 are not applicable.

ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year.

42 Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

43 Compliance related to number of layers prescribed under clause (87) of Section 2 of the Act is has been complied by the Company.

44 Utilisation of Borrowings availed from Banks and Financial Institutions

The company has not obtained any borrowings from banks and financial institutions have been applied for the purposes for which such loans were taken.

45 Crypto Currency / Virtual Currency

The company has not done any transaction in Crypto or Virtual currency.

46 The company has not entered into any Scheme''s of arrangements with the competent authority in terms of Sec. 230 to 237 of the Companies Act, 2013.

47 Details of pending charge creation / satisfaction registration with ROC.

The Company does not have any charges or satisfaction which are yet to be registered with ROC beyond the statutory period.

48 Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

51 No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

52 Disclosure on transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961, is not applicable to the Company, since no such event occurred during the year.

53 Segmental Reporting

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining & Exploration. hence, there are no separate reportable segments as per Ind AS 108.

54 Utilization of borrowed funds and share premium:

A) The company has not granted/advance/invested funds in any entities or to any other person including foreign entities during the year with the understanding that the:

i) Intermediary shall directly or indirectly lend or invest in any manner whatsoever by or on behalf of the company (Ultimate beneficiaries).

ii) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries."

B) The company has not received any funds during the year from any person''s entities including foreign entities with the understanding that the company shall

i) Directly or indirectly lend or invest in any manner whatsoever by or on behalf of the funding entity (Ultimate beneficiaries).

ii) Provide any gurantee, security or the like to or on behalf of the ultimate beneficiaries.

55 Relationship with Struck off Companies

There are no companies which are struck off in MCA.

56 rule 11(g) of Companies (Audit and Auditors) rules, 2014

The Company has used accounting softwares for maintaining its books of account for the financial year ended March 31,2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares.

57 In the opinion of the Board :

i) The current assets, loans and advances will realise in the ordinary course of business, at least the amount at which these are stated in the Balance Sheet. The balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

ii) Provision for all known liabilities have been made.

58 The company has not taken any facilities from banks/financial institutions against current assets hence disclosure regarding review and reporting of filings and submission of Quarterly returns or statements with banks/financial institutions are in agreement with books of accounts are not available.

59 Figures of previous year have been regrouped, rearranged, reclassified where ever necessary to make them comparable with that of current year.

As per our report of even date For and on behalf of Board of Directors

For V K Beswal & Associates Deccan Gold Mines Limited

Chartered Accountants Firm Registration No 101083W

Kailasam Sundaram Modali Hanuma Prasad

CA Nishit S. Agrawal Chairman Managing Director

Partner DIN: 07197319 DIN: 01817724

M No-159882

UDIN No. : 24159882BKCATT3977 K.Karunakaran S.Subramanium

Place : Mumbai Chief Financial Officer WTD & CS

Date : 30-May-2024 PAN: AITPK0276F DIN: 06389138

Place : Bengaluru Date : 30.05.2024

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Mar 31, 2023

PROVISION AND CONTIGENT LIABILTY

b. Financial assets at fair value through other comprehensive income: (FVTOCI)

A financial assets is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows
that are solely payments of principal interest on the principal amount outstanding.

c. Financial assets at fair value through profit and loss (FVTPL)

Financial assets which are not classified in any of the above categories are subsequently fair valued through
profit or loss.

3. Equity instruments

All equity investments are measured at fair value, with value changes recognised in the statement of profit and loss, except
for those equity investments for which the company has elected to present the value changes in ''other comprehensive
income''.

4. Investment in Subsidiaries and Associates and Joint Venture :

The company has accounted for its investments in Subsidiaries and Associates and Joint Venture at cost and at amortised
cost.

J. Foreign Currency

Functional Currency

The functional currency of the company is the Indian Rupee. The financial statements are presented in Indian Rupees
(Rounded off to Thousands).

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at
exchange rates in effect at the balance sheet date. The gains or losses resulting from such translations are included
in net profit in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a
foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value
was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at
historical cost are translated at the exchange rate prevalent at the date of the transaction.

Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit
for the period in which the transaction is settled. Revenue, expense and cashflow items denominated in foreign currencies
are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction.

K. Employee Benefits

a. Short Term Employee Benefits are recognized as an expense at the undiscounted amount in the profit and loss
account of the year in which the related service is rendered.

b. Post employment benefits are recognized as an expense in the Profit and Loss account for the year in which the
employee has rendered services. The defined benefit obligation is provided for on the basis of an actuarial valuation
on projected unit cost method.

c. Long Term employee benefits are recognized as an expense in the Profit and Loss account for the year in which
the employee has rendered services.

L. Taxation

a. Provision for current tax is made with reference to taxable income computed for the accounting period, for
which the financial statements are prepared by applying the tax rates as applicable.

b. The Company has carried forward losses under Tax Laws. In absence of virtual certainty of sufficient future
taxable income, deferred tax asset has not been recognized by way of prudence in accordance with Indian
Accounting Standard 12 “ Income Taxes” issued by The Institute of Chartered Accountants of India.

M. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended
use. All other borrowing costs are charged to revenue.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not
recognised but are disclosed in the notes to the accounts. Contingent Assets are neither recognised nor disclosed in
the financial statements.

O. Segmental Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and
financial reporting of the Company, the Company has only one segment viz; Gold Mining & Exploration.

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Mar 31, 2021

a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

b) Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

d) Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Note 25:

Acquiring significant stake in Geomysore Services (India) Private Limited (GMSI) primarily through takeover of Australian Indian Resources Limited, Australia (AIR):

At their meeting held on February 5, 2019, the Board of Directors of the Company authorised the management to initiate the process of obtaining valuations for GMSI and the Company and come back to it with a firm proposal for its consideration. Whilst on the subject, the Board noted that GMSI had approached the Company in the past and the Company had indicated its openness to consider the proposal on merits as it believed that the proposed takeover of GMSI would result in consolidation benefits in terms of creating the largest portfolio of gold assets held by one Company within India.

The Board of Directors had also recalled that as stated in the Company''s 2018 Annual Report, the takeover of GMSI was sought to be achieved through a takeover of AIR which is a key shareholder of GMSI and a ''buy-out'' of other interested GMSI shareholders. Further, the proposal was to be put to the Board of the Company and GMSI for their final approval as regards the terms and conditions of the transaction including but not limited to relevant valuation of shares and share exchange ratio at the appropriate time following which applicable shareholder and regulatory approvals will be sought. By way of background, GMSI is a multi-metal exploration company based in Bangalore, India and has got a portfolio of mineral prospects which include mineral concession applications over the Kolar Gold Belt and the key Jonnagiri Gold Project in Andhra Pradesh over which it holds a granted and executed Mining Lease (ML) and has obtained all statutory permits and licenses for the Project.

Note 26: Fair Value measurement Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values

Note 27: financial risk Management

Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through the managing board, which evaluates and exercises independent control over the entire process of market risk management. The managing board recommend risk management objectives and policies, which are approved by Senior Management.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Note 28: Capital risk management (a) risk Management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

Note 29: The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. In many countries, businesses are being forced to cease or limit their operations for long or indefinite period of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown.

As the company is yet to commence mining operations there has been no impact of COVID19 on the company''s day to day operations. However, the recent Covid-19 lockdown coupled with the inordinate delay in grant of mineral concessions has had a significant impact on the Company''s development of its Projects.

Note 30: Previous year figures have been re-grouped/reclassified wherever/necessary to make them comparable with current year.

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Mar 31, 2018

Note - 1: Employee Benefits

As per Indian Accounting Standard 19 “Employee Benefits”, the disclosure of Employee benefits as defined in the Indian Accounting Standard are given below:

2) Sensitivity Analysis

Significant Acturial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occuring at the end of the reporting period, while holding all other assumptions constant. The result of Sensitivity analysis is given :

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

b) Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

d) Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Note 3- Related party disclosure

a) Name of related parties and relationship

Note: It may be noted that the Board of Directors of the Company, at their meeting held on February 12, 2016 approved amendment to the Deccan Gold Mines Limited Employee Stock Option Scheme, 2014 (Scheme) on account of the Company’s rights issue during October, 2015. Under the amended Scheme, the number of stock options reserved for grant has been revised from 3,000,000 stock options to 4,500,000 stock options. Further, the Nomination & Remuneration Committee of the Board (NRC), at its meeting held on March 4, 2016 fixed the Exercise Price of the 1,500,000 new stock options as Rs.7/- per stock option (as was the case with the original 3,000,000 stock options). The NRC also granted these 1,500,000 new stock options to the respective allottee (s) in the same proportion as they were granted the original 3,000,000 stock options. Further, it was also decided that 100% of the new stock options would be vested on the allottee (s) post the mandatory lock-in period of 1 year from the date of grant and the exercise period shall remain at 12 months from the date of vesting.

On May 11, 2016, the Company received ‘in-principle’ approval of BSE in respect of the 1,500,000 new stock options.

Employee Stock Option Outstanding account Rs Nil (PY Rs. 727.20 Lacs) & Deferred Employee Compensation account Rs NIL (PY Rs Nil). Employee Compensation Expenses amounting to Rs. Nil (PY Rs.755.52 Lacs) is included under the head Salaries and other benefits

Note - 4:

The Board of our Company was approached by Geomysore Services (India) Private Limited (GMSI) for being taken over. This was sought to be achieved through a take over of Australian Indian Resources Limited, Australia (AIR) which is a key shareholder of GMSI and a ‘buy-out’ of other interested shareholders. The Company believes that the proposed takeover of GMSI would result in consolidation benefits in terms of gold assets to create a large Indian listed gold company.

The proposal will be put the Board of Directors of the Company and GMSI for their final approval as regards the terms and conditions of the transaction including but not limited to the relevant valuation of shares and share exchange ratio at the appropriate time following which applicable shareholder / regulatory approvals will be sought.

Note-5 : Note on Right Issue

During the financial year 2015-16 the company raised Rs.50.34 crores through Right Issues of equity shares. The shares were issued at issue price of Rs.17 per share (inclusive of premium of Rs.16 per share). The shares were issued at the ratio of 1:2 to the shareholders.

The paid up capital of the company prior to this Right issue stood at 5,92,18,250 equity shares of Re.1 each. Accordingly 2,96,09,125 equity shares were offered on Right Issue basis and the Issue was kept open from 14th October 2015 to 30th October, 2015.

The Rights Issue was subscribed 1.3 times of the issue size & the process of the allotment was completed by November, 2015.

The shares so issued were admitted for listing/trading on the Bombay Stock Exchange (BSE) with effect from 11th November, 2015.

The Right Issue fund raising was made by the Company for the following objects:

- Investment in Subsidiary Company

- General Corporate Purpose ; and

- Expenses for the Issue

Post the allotment of the shares under the Right Issue as discussed above, the promoters i.e. Rama Mines (Mauritius) Limited, Mauritius held approximately 29% stake in the Company with the balance 71% being widely held with a significant participation by FIIs and Non-resident investors.

Utilization of proceeds of rights issue by the Company for the year ended 31.03.2018 is as under:

Note - 6 : Reconciliation of Profit and Equity between Ind AS and previous GAAP.

The company adopted Indian Accounting Standards (“Ind AS”) from 1 April 2016 and accordingly these results has been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34, Interim Financial Reporting prescribed under section 133 of the Companies Act 2013 read with the relevant rules issued there under and other accounting pronouncements generally accepted in India. Financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS 34.

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Mar 31, 2016

Note 19: The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company''s intention to account for all the exploration expenditure of Rs.2650 Lacs as noted in Note ''2 d'' to the Balance Sheet as pre-operative expenditure which will be charged to the profit & loss account as and when the commercial activities/production commences.

Employee Stock Option Outstanding account Rs.1,165.05 Lacs (PY Rs. 912.75 Lacs & Deferred Employee Compensation account Rs. 755.52 Lacs (PY Rs. 842.12 Lacs). Employee Compensation Expenses amounting to Rs.487.10 Lacs (PY Rs.70.62 Lacs) is included under the head Salaries and other benefits. Reversal of Employee Compensation Expenses amounting to Rs.NIL (PY Rs.27.85 Lacs) is included under the head Other Income.

Disclosure in respect of Deccan Gold Mines Limited Employee Stock Option Scheme 2014 (amended 2016)

Note: It may be noted that the Board of Directors of the Company, at their meeting held on February 12, 2016 approved amendment to the Deccan Gold Mines Limited Employee Stock Option Scheme, 2014 (Scheme) on account of the Company’s rights issue during October, 2015. Under the amended Scheme, the number of stock options reserved for grant has been revised from 30,00,000 stock options to 45,00,000 stock options. Further, the Nomination & Remuneration Committee of the Board (NRC), at its meeting held on March 4, 2016 fixed the Exercise Price of the 15,00,000 new stock options as Rs. 7/- per stock option (as was the case with the original 30,00,000 stock options). The NRC also granted these 15,00,000 new stock options to the respective allottee (s) in the same proportion as they were granted the original 30,00,000 stock options. Further, it was also decided that 100% of the new stock options would be vested on the allottee (s) post the mandatory lock-in period of 1 year from the date of grant and the exercise period shall remain at 12 months from the date of vesting.

On May 11, 2016, the Company received ‘in-principle’ approval of BSE in respect of the 15,00,000 new stock options.

Note 1 : "During Financial 2013-14, Geomysore Services (India) Private Limited (GMSI), a Bangalore-based gold exploration company approached Deccan Gold Mines Limited (DGML) for being taken over as a wholly-owned subsidiary. The Board of Directors of DGML at their meeting held on 27 August, 2013 decided to consider the offer of GMSI. After completion of the necessary due diligence on GMSI, the Board of Directors of DGML, at their meeting held on 3 December, 2013 accorded their ‘in-principle’ approval to amalgamate Australian Indian Resources Limited, Australia with DGML pursuant to a Scheme of Arrangement under the provisions of Sections 391-394 of the Companies Act, 1956. It may be noted that AIR held 38.80% stake in GMSI at that point in time. Under this arrangement, DGML also proposes to acquire the balance of 61.20% stake from the other resident /non-resident shareholders of GMSI on the same terms as offered to AIR. Upon the acquisition of shares as aforesaid, GMSI would become a wholly-owned subsidiary of DGML. The Board also authorized the Managing Director of DGML to do the needful in this regard including appointment of merchant bankers and valuation experts to carry out the valuation exercise.

Accordingly, the valuation of the projects of DGML and GMSI are underway and DGML is also evaluating the proposal from an Australian perspective since the proposal involves the amalgamation of an Australian Company into DGML.

The proposal is subject to the final approval of the Boards of DGML and AIR / GMSI of the proposed terms of the amalgamation including but not limited to the relevant valuation of shares and the share exchange ratio.

Note 2 : Note on Rights Issue

During the year the company has raised Rs.50.34 crores through Rights Issue of equity shares. The shares were issued at issue price of Rs.17 per share (inclusive of premium of ''16 per share). The shares were issued at the ratio of 1:2 to the shareholders.

The paid up capital of the company prior to this Rights issue stood at 5,92,18,250 equity shares of'' 1 each. Accordingly 2,96,09,125 equity shares were offered on Rights issue basis and the scheme was kept open from 14th October 2015 to 30th October, 2015.

The Rights issue was subscribed 1.3 times of the issue size & the process of the allotment was completed by November, 2015.

The additional shares so issued were admitted for listing/trading on the Bombay Stock Exchange (BSE) with effect from 11th Nov.2015.

The rights issue proceeds were sought to be utilized for financing the following objects :

- Investment in Subsidiary Company

- General Corporate Purpose ; and

- Expenses for the Issue

Post the allotment of the shares under the Rights Issue as above, the promoters i.e. Rama Mines, Mauritius Ltd. held approximately 29% stake in the company, with the balance 71% being widely held with a significant participation by FIIs and Non-resident investors.

Note 3 : Segment Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

Note 4 : Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, in the opening balance of Profit and Loss Account for the year ended 31.03.2015 amounting to Rs.23 (in thousands). Had the company provided depreciation as per old companies act, 1956, the change for depreciation for the financial year 2014-15would have been lower by Rs. 0.99 Lac

Note 5 - Salaries and wages incurred during the year Rs. 1,64,56,667/- of which Rs. 66,70,215/- was recovered from subsidiary and Rs.23,16,016/-was transferred to Exploration Expenditure resulting in a net salary expense of Rs.74,70,436/-.

Note 6 : Previous year figures have been re-grouped, re-arranged wherever considered necessary.

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Mar 31, 2015

Note 1: The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company's intention to account for all the exploration expenditure of Rs. 1368.05 Lacs as noted in Note '2 d' to the Balance Sheet as pre-operative expenditure which will be charged to the profit & loss account as and when the commercial activities/production commences.

Note 2. Disclosure in respect of Employee Stock Option Scheme

Note 3. "During Financial 2013-14, Geomysore Services (India) Private Limited (GMSI), a Bangalore-based gold exploration company approached Deccan Gold Mines Limited (DGML) for being taken over as a wholly-owned subsidiary. The Board of Directors of DGML at their meeting held on 27 August, 2013 decided to consider the offer of GMSI. After completion of the necessary due diligence on GMSI, the Board of Directors of DGML, at their meeting held on 3 December, 2013 accorded their 'in-principle' approval to amalgamate Australian Indian Resources Limited, Australia with DGML pursuant to a Scheme of Arrangement under the provisions of Sections 391-394 of the Companies Act, 1956. It may be noted that AIR holds a 38.80% stake in GMSI. Under this arrangement, DGML also proposes to acquire the balance of 61.20% stake from the other resident /non-resident shareholders of GMSI on the same terms as offered to AIR. Upon the acquisition of shares as aforesaid, GMSI would become a wholly-owned subsidiary of DGML. The Board also authorized the Managing Director of DGML to do the needful in this regard including appointment of merchant bankers and valuation experts to carry out the valuation exercise.

Accordingly, the valuation of the projects of DGML and GMSI are underway and DGML is also evaluating the proposal from an Australian perspective since the proposal involves the amalgamation of an Australian Company into DGML. The proposal is subject to the final approval of the Boards of DGML and AIR / GMSI of the proposed terms of the amalgamation including but not limited to the relevant valuation of shares and the share exchange ratio.

Note 4 : Pursuant to the approval accorded by the Board at its meeting held on 19 November, 2014 and 30 December, 2014 the Company has announced a Rights Issue involving raising of funds to the tune of Rs. 444.14 million through the issue of 1 rights share for every 2 shares held in the Company at an Issue Price of Rs. 15/- per share (including a premium of Rs.14/- per share) to the shareholders of the Company as on the Record Date. Accordingly, the Company proposes to issue 29.61 million shares to the shareholders of the Company. The Record Date would be fixed by the Board of Directors post the receipt of all statutory / regulatory approvals including from SEBI and BSE. The Company has lodged the draft Letter of Offer for the Rights Issue with SEBI and BSE on 31 March, 2015.

Note 5. Segment Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

Note 6 : Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, in the opening balance of Profit and Loss Account amounting to Rs. 23 (in thousands). Had the company provided depreciation as per old companies act, 1956, the change for depreciation for the current year would have been lower by Rs.0.99 Lac.

Note 7 : The Company has incurred substantial losses and its net worth is eroded, the accounts have been prepared on the principle of going concern with a view to revive the operations of the Company in future notwithstanding the fact that its net worth is completely eroded, and the company is a Sick Industrial Company.

Previous year figures have been re-grouped, re-arranged wherever considered necessary.

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Mar 31, 2014

1. Related party disclosure

a) Name of related parties and Relationship

Name of the party Relationship

1 Deccan Exploration Services PVT LTD Wholly owned subsidiary

2 Sandeep Lakhwara Managing Director

3 Charles E.E. Devenish Chairman

4 K.R.Krishnamurthy Director

5 Dr.M.Ramakrishnan Director

6 V.K.Gaur Director

2. The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company''s intention to account for all the exploration expenditure of Rs1266.95 Lacs as noted in schedule ''2 d'' to the Balance Sheet as pre-operative expenditure which will be charged to the Profit & loss account as and when the commercial activities/production commences.

3. Disclosure in respect of Employee Stock Option Scheme a. Employee Stock Option Scheme:

C. Employee Stock Option Outstanding account Rs. 47.69 Lacs & Deferred Employee Compensation account Rs. Nil. Reversal of Employee Compensation Expenses amounting to Rs.51.92 Lacs is included under the head Other Income.

The estimates of future salary increase, considered in actuarial valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. The company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

5. Quote:

"During August, 2013, Geomysore Services (India) Private Limited (GMSI), a Bangalore-based gold exploration company approached Deccan Gold Mines Limited (DGML) for being taken over as a wholly-owned subsidiary. The Board of Directors of DGML at their meeting held on 27 August, 2013 decided to consider the offer of GMSI. After completion of the necessary due diligence on GMSI, the Board of Directors of DGML, at their meeting held on 3 December, 2013 accorded their ''in-principle'' approval to amalgamate Australian Indian Resources Limited, Australia with DGML pursuant to a Scheme of Arrangement under the provisions of Sections 391-394 of the Companies Act, 1956. It may be noted that AIR holds a 38.80% stake in GMSI.

Under this arrangement, DGML also proposes to acquire the balance of 61.20% stake from the other resident /non-resident shareholders of GMSI on the same terms as offered to AIR. Upon the acquisition of shares as aforesaid, GMSI would become a wholly-owned subsidiary of DGML. The Board also authorised the Managing Director of DGML to do the needful in this regard including appointment of merchant bankers and valuation experts to carry out the valuation exercise.

Accordingly, the valuation of the projects of DGML and GMSI are underway and DGML is also evaluating the proposal from an Australian perspective since the proposal involves the amalgamation of an Australian Company into DGML.

The proposal is subject to the final approval of the Boards of DGML and AIR / GMSI of the proposed terms of the amalgamation including but not limited to the relevant valuation of shares and the share exchange ratio.

12. Segment Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

13. Previous year fgures have been re-grouped, re-arranged wherever considered necessary.

rights, preferences and restrictions attached to each class of shares: Equity Share of Rs.1000/- each fully paid-up:

a Right to dividend on pari passu

b Voting rights one vote per each share

c No preferential rights are attached

d No restrictions are attached.

18. Contingent Liabilities: Nil (P.Y Nil)

Share Holders & Relatives:

a. M/s Geomysore Services India (P) Ltd.

b. M/s Deccan Gold Mines Ltd

Key Management Personnel

a. Mr. S.C.R.Peshwa-Director

b. Mr.Karunakarn-Director

6. Particulars of number of employees drawing remuneration exceeding a sum of Rs. 24,00,000 per annum or Rs. 2,00,000 per month is Nil.

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Mar 31, 2013

1. The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company''s intention to account for all the exploration expenditure of Rs. 1062.51 Lacs as noted in schedule ''2 d'' to the Balance Sheet as pre-operative expenditure which will be charged to the proft & loss account as and when the commercial activities/production commences.

2. The Company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

3. Segment Reporting: The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and fnancial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

4. Previous year fgures have been re-grouped, re-arranged wherever considered necessary.

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Mar 31, 2012

31.03.2012 31.03.2011 Rs. in Lacs Rs. in Lacs

1. Capital Commitments Nil Nil

2. Claims made against the company but not acknowledged as debts Nil Nil

3. Contingent Liabilities on disputed Income Tax 2.57 20.27

4. Additional information pursuant to para 3 & 4 of para ii of schedule VI of the Companies Act, 1956.

31.03.2012 31.03.2011 Rs. in ('000) Rs. in ('000)

1. Expenditure in foreign currency Nil 22.41

2. Earning in foreign currency Nil Nil 3. Payment to Auditors :

- Audit Fees 105 105

5. The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company's intention to account for all the exploration expenditure of Rs 967.65 Lacs as noted in schedule '2 c' to the Balance Sheet as pre-operative expenditure which will be charged to the profit & loss account as and when the commercial activities/production commences.

6. The company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

7. Segment Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

8. Previous year figures have been re-grouped, re-arranged wherever considered necessary.

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Mar 31, 2011

31st March 2011 31st March 2010 (Rs '000) (Rs '000)

1. Contingent Liabilities on disputed Income Tax 2027 2027

2. Related Party Disclosure :

a. Name of related parties and relationship

Sl No. Name of the Party Relationship

1 Deccan Exploration Services Private Limited Wholly owned subsidiary

2 Mr. Sandeep Lakhwara Managing Director

3 Mr. Charles E.E. Devenish Chairman

4 Mr. K.R. Krishnamurthy Director

5 Dr. M. Ramakrishnan Director

6 Prof. V. K. Gaur Director

b. The company had transactions with the following related parties :- Dr. M. Ramakrishnan, Mr. K.R. Krishnamurthy, Prof. V.K.Gaur, Mr. Sandeep Lakhwara and Deccan Exploration Services Private Limited.

3. The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not commenced and therefore it is the Company's intention to account for all the exploration expenditure of Rs.7,59,76,628 as noted in schedule 'G' to the Balance Sheet as pre-operative expenditure which will be charged to the profit & loss account as and when the commercial activities/production commences.

C. Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

Not Applicable as the Liability is not funded.

4. The company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

5. Segment Reporting :

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.

6. Grant of Stock Options

Pursuant to the approval accorded by the shareholders at their Annual General Meeting held on 28th November 2008, the Company had introduced the Deccan Gold Mines Employees Stock Option Plan, 2008 for the benefit of the Eligible Employees of the Company and its subsidiaries providing for issue of up to a maximum of 30,00,000 Stock Options. The Bombay Stock Exchange Limited (BSE) had granted its 'in-principle' approval for listing of the 30,00,000 Equity Shares that are likely to arise out of the exercise of the Stock Options under the Plan.

The Compensation Committee of the Board, at its meeting held on 2nd June 2010 had granted 30,00,000 Options at an Exercise Price of Rs.16.95 per Option / Equity Share to certain Eligible Employees of the Company and its wholly- owned subsidiary viz, Deccan Exploration Services Private Limited. In terms of the Plan, the Options were granted at a 25% discount to the latest available closing price of Rs.22.60 at the BSE on 1 June, 2010 (a day prior to the date of the Compensation Committee meeting).

Employee Stock Option Outstanding account Rs.1.70 Crore & Deferred Employee Compensation account Rs.1.23 Crore.

Employee Compensation Expenses amounting to Rs.46,90,274/- is included under the head Salaries and other benefits.

7. Previous year figures have been re-grouped, re-arranged wherever considered necessary.

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Mar 31, 2010

31st March 2010 31st March 2009

(Rs 000) (Rs 000)

1. Capital Commitments Nil Nil

2. Claims made against the company but not acknowledge as debts Nil Nil

3. Contingent Liabilities Nil Nil

on disputed Income Tax A Y 2007-08 1813.17- 1813.17

4. Figures of the previous year have been regrouped/rearranged wherever necessary to make them comparable with current years figures.

5. Additional information pursuant to para 3 & 4 of par ii of schedule VI of the Companies Act, 1956.

a) Expenditure in foreign currency 95.11 2,110.92

b) Earning in foreign currency Nil Nil

c) Payment to Auditors: - Audit Fees 115.82 115.82



2 The company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

3 Segment Reporting:

The Company is mainly engaged in the business of gold exploration and mining. Considering the nature of business and financial reporting of the Company, the Company has only one segment viz; Gold Mining and Exploration as reportable segment.