The Members of Deccan Gold Mines Limited
Report on the Audit of the IND AS Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof Deccan Gold Mines Limited ("the Company") which comprise the Balance Sheetas at 31 March 2022 and the Statement of Profit and Loss (including other comprehensiveincome) the statement of Cash Flows and the statement of changes in equity for the yearthen ended and notes to the financial statement including a summary of significantaccounting policies and other explanatory information (herein after referred to as"standalone Ind AS financial statements")
In our opinion and to the best of our information and according to theexplanation given to us the aforesaid Ind AS standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the state of affairs of the Company as at 31 March 2022 and its financialperformance including comprehensive income its cash flows and the change in equity forthe year ended on that.
2. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.There matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
4. Other Information
The Company's management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements and ourauditors' report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.
5. Management?s Responsibility for the Standalone Ind AS FinancialStatements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind As)specified under Section
133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act; for safeguarding the assets of the Company; for preventing anddetecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
6. Auditors Responsibility for the Audit of the Standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
7. Report on Other Legal and Regulatory Requirements
A. As required by Section143(3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c. The Standalone IND AS Balance sheet the standalone statement ofprofit and loss including other comprehensive income the statement of cash flow and thestatement of changes in equity dealt with by this report are in agreement with the booksof account.
d. In our opinion the aforesaid standalone Ind AS financial statementscomply with the Indian Accounting Standards (Ind As) specified under Section 133 of theAct read with relevant rule issued thereunder.
e. On the basis of the written representations received from thedirectors as on 31 March 2022 and taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act;
f. We have also audited the internal financial controls over financialreporting (IFCoFR) of the Company as of 31 March 2022 in conjunction with our audit of thestandalone Ind AS financial statements of the Company for the year ended on that date andour report dated 30/05/2022 as per Annexure A expressed.
B. With respect to the matter to be included in the Auditors' Reportunder Section 197(16) of the Act: In our opinion and according to the information andexplanations given to us no remuneration is paid by the Company to its directors duringthe current year under Section 197 of the Act.
C. With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations which may impactits standalone Ind AS financial statements;
ii. The company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. The company does not have any amounts that pending to betransferred to the Investor Education and Protection Fund.
i. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11 (e) as providedunder (a) and (h) above contain any material misstatement.
D. As required by the Companies (Auditor's Report) Order 2020 (the"Order") issued by the Central Government in terms of Section 143(11) of theAct we give in "Annexure B" a statement on the matters specified in paragraphs3 and 4 of the Order.
ANNEXURE A TO THE STANDALONE IND AS INDEPENDENT AUDITOR?S REPORT
1. Independent Auditor?s report on the Internal Financial Controlswith reference to financial statements and its operative effectiveness under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
In conjunction with our audit of the standalone Ind AS financialstatements of Deccan Gold Mines Limited ("the Company") as of and for the yearended 31st March 2022 we have audited the internal financial controls over financialreporting (IFCoFR) of the company of as of that date.
2. Management?s Responsibility for Internal Financial Controls
The Company's Board of Directors is responsible for establishing andmaintaining internal financial controls based on the criteria being specified bymanagement. These responsibilities include the design implementation and maintenance ofadequate internal financial controls with reference to financial statements that wereoperating effectively for ensuring the orderly and efficient conduct of the company'sbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
3. Auditors? Responsibility
Our responsibility is to express an opinion on the Company's IFCoFRbased on our audit. We conducted our audit in accordance with the Standards on Auditingissued by the Institute of Chartered Accountants of India (ICAI) and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofIFCoFR and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate IFCoFR were established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includedobtaining an understanding of IFCoFR assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's IFCoFR.
4. Meaning of Internal Financial Controls over Financial reporting
A company's IFCoFR is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles including the Accounting Standards. A company's IFCoFR includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2)provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles including Accounting Standards and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
5. Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of IFCoFR including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on thecriteria being specified by management.
ANNEXURE B TO THE STANDALONE IND AS INDEPENDENT AUDITOR?S REPORT
With reference to the Annexure B referred to in the IndependentAuditors' Report to the members of the Company on the standalone Ind AS financialstatements for the year ended 31 March 2022 we report the following:
(i) In respect of Property Plant & Equipment:
a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment and relevantdetails of right-of-use assets.
b) The Company has maintained proper records showing full particularsof intangible Assets.
c) The Company has a program of physical verification of PropertyPlant and Equipment and right-of-use assets so to cover all the assets once every threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets Pursuant to the program certain Property. Plant and Equipmentwere due for verification during the year and were physically verified by the Managementduring the year. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.
d) According to the information and details provided the all theimmovable properties are held in the name of the company.
e) The Company has not revalued any of its Property Plant andEquipment (including right-of-use assets) and intangible assets during the year.
f) No proceedings have been initiated during the year or are pendingagainst the Company as at March 31st 2022 for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (as amended in 2016) and rules madethereunder.
(ii) Based on our scrutiny of the company?s books of accounts andother records and according to the information and explanations given to us we are of theopinion that the company has neither purchased/sold goods during the year nor is there anyopening stocks therefore requirement on reporting on physical verification of stocks ormaintenance of inventory records in our opinion does not arise.
(iii) In our opinion and accordingly to the information andexplanation given to us the Company has not made investments in provided any guaranteeor security or granted any loans or advances in the nature of loans secured or unsecuredto companies firms Limited Liability partnerships or other parties. Accordingly theprovisions of clause 3(iii) (a) to (f) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans investments guarantees and securityto the parties covered under section 185 of the Act. Based on our audit proceduresperformed for the purpose of reporting the true and fair view of the financial statementsand according to the information and explanations given by the Management the Company hascomplied with the provisions of section 186 of the Act in respect of the loansinvestments guarantees and securities provided by it to the extent applicable to theCompany.
(vi) To the best of our knowledge and according to the information andexplanations given to us the Central Government has not prescribed the maintenance ofcost records under section 148(1) of the Act. in respect of the business activitiescarried on by the company. Accordingly the provisions of the clause 3 (vi) of the Orderis not applicable to the Company.
(vii) In respect of Statutory Dues:
a) According to information and explanations given to us and on thebasis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Goods and ServicesTax Provident Fund Employees? State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities.
b) According to the information and explanation given to us there areno dues of Goods and Services Tax Provident Fund Employees? State InsuranceIncome-Tax Sales tax Service Tax Duty of Customs Duty of Excise Value added Tax Cessand any other statutory dues with the appropriate authorities outstanding on account ofany dispute.
(viii) There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961. (43 of 1961).
(ix) a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has notdefaulted in the repayment of loans or borrowings or in the payment of interest thereon toany lender.
b) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not been declareda wilful defaulter by any bank or financial institution or government or governmentauthority.
c) The Company has not taken any term loan during the year and thereare no outstanding term loans at the beginning of the year and hence reporting underclause 3(ix)(c) of the Order is not applicable.
d) According to the information and explanations given to us and on anoverall examination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term purposes by the Company.
e) According to the information and explanations given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries as defined in the Act. The Company does not hold anyinvestment in any associate or joint venture (as defined in the Act) during the year ended31 March 2022.
f) The Company has not raised any loans on the pledge of securitiesheld in its subsidiaries joint ventures or associate companies during the year and hencereporting on clause 3(ix)(f) of the Order is not applicable.
(x) a) According to information and explanations given to us thecompany has not raised moneys during the year by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly provisions of the clause 3(x)(a)of the Order is not applicable to the Company.
b) During the year the Company has not made any preferential allotmentor private placement of shares or convertible debentures (fully or partly or optionallyconvertible) under Section 42 and Section 62 of the Companies Act 2013 and hencereporting under clause 3(x)(b) of the Order is not applicable.
(xi) a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of fraud by the Company or on the Company noticed or reportedduring the year nor have we been informed of any such case by the Management.
b) According to the information and explanations given to us no reportunder sub-section (12) of Section 143 of the Act has been filed by the auditors in FormADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with theCentral Government.
c) According to information and explanations given to us the companyhave not received any whistle blower complaints during the year (and upto the date of thisreport) neither any reported to auditor for consideration.
(xii) The Company is not a Nidhi Company and hence reporting underclause 3 (xii) (a) to (c) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
(xiv) a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.
b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.
(xv) Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with Directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order is not applicable to the Company.
(xvi) a) In our opinion the Company is not required to be registeredunder section 45-1A of the Reserve Bank of India Act. 1934. Hence reporting under clause3(xvi)(a) and (b) of the Order is not applicable.
b) In our opinion the company is not a Core Investment Company (CIC)(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(c) of the Order is not applicable.
c) In our opinion there is no core investment company within the Group(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
(xvii) According to the information and explanations given we findthat the company has incurred a cash losses during the financial year covered by our auditand the immediately preceding financial year. The details of which are as under:
The figure of cash loss arrived at as above for the financial yearunder audit and the immediately preceding financial year should be adjusted for the effectof all quantifiable qualification in the audit report.
|Particulars ||2021-22 ||2020-21 |
|Net Loss ||(26358) ||(30370) |
|Add back depreciation ||72 ||12 |
|Cash Loss ||(26286) ||(30358) |
(xviii) There has been no resignation of the statutory auditors of theCompany during the year.
(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report that the Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due
(xx) The provision for contribution towards Corporate SocialResponsibility (CSR) u/s 135 of the Companies Act are not applicable to the companyhence reporting under this clause is not applicable.
(xxi) According to the information and explanations given to us wefind that there no adverse remarks by the respective auditors in the Companies (auditorsreport) Order (CARO) reports of the company included in the Consolidated financialStatements hence nothing is required to be reported and hence nothing is to be reportedunder this clause.
|For P R Agarwal & Awasthi Chartered Accountants |
|Firm Registration No 117940W |
|CA Pawan KR Agarwal |
|M No-034147 |
|UDIN: 22034147AKMTWK6770 |
|Place : Mumbai |
|Date : May 30 2022 |