The Members of Deccan Gold Mines Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of DeccanGold Mines Limited ("the Company") which comprise the Balance Sheet as at 31March 2018 and the Statement of Profit and Loss (including other comprehensive income)the statement of Cash Flows and the statement of changes in equity for the year thenended and notes to the financial statement including a summary of significant accountingpolicies and other explanatory information (herein after referred to as "standaloneInd AS financial statements")
2. In our opinion and to the best of our information and according to the explanationgiven to us the aforesaid Ind AS standalone financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs of the Company as at 31 March 2018 and its financial performanceincluding comprehensive income its cash flows and the change in equity for the year endedon that.
3. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance 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.
4. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. There matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
5. Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind As) specifiedunder 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 for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
6. Auditors Responsibility
Our objective are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatements whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theCompanies Act 2013 we give in the Annexure I a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable..
8. As required by Section143(3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof 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 been kept by theCompany so far as it appears from our examination of those books.
c. The Balance sheet the statement of profit and loss including other comprehensiveincome the statement of cash flow and the statement of changes in equity dealt with bythis report are in agreement with the books of account.
d. In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards (Ind As) specified under Section 133 of the Act read withrelevant rule issued thereunder.
e. On the basis of the written representations received from the directors as on 31March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act;
f. We have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of 31 March 2018 in conjunction with our audit of thestandalone Ind AS financial statements of the Company for the year ended on that date andour report dated 23.05.2018 as per Annexure II expressed.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 impact its standaloneInd AS financial statements;
ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.
For P R Agarwal & Awasthi
Firm Registration No 117940W
CA Pawan KR Agarwal
Date: 23 May 2018
ANNEXURE I TO THE AUDITOR'S REPORT OF EVEN DATE (Referred to in paragraph 1 thereof)
1. In respect of Fixed Assets:
a) The Company has maintained proper records showing full quantitative details andsituation of its fixed assets.
b) The fixed assets have been physically verified by the management at reasonableintervals during the year. We are informed that no material discrepancies were noticed bythe management on such verification.
c) The Company does not have any immovable properties.
2. Based on our scrutiny of the company's books of accounts and other records andaccording to the information and explanations given to us we are of the opinion that thecompany has neither purchased/sold goods during the year nor is there any opening stockstherefore requirement on reporting on physical verification of stocks or maintenance ofinventory records in our opinion does not arise.
3. The Company has not granted any loans secured or unsecured to the companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013.
4. The Company has complied with the provisions of Section 185 and 186 of the CompaniesAct 2013 for investment made during the year. The Company has not granted any loansprovided any guarantees or security during the year.
5. According to the information and explanations given to us the Company has notaccepted any deposits from public.
6. As informed to us the Central Government has not prescribed the maintenance of Costrecords under section 148 of the Companies Act 2013 for any of the activities of thecompany.
7. In respect of Statutory Dues:
(a) According to record of the Company produced before us the Company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund investor education and protection fund employees' state insurance incometax wealth tax goods & service tax customs duty excise duty cess and otherstatutory dues applicable to it.
(b) According to the information and explanations given no undisputed amounts payablein respect of Income-Tax wealth tax goods & service tax customs duty exciseduty/cess were outstanding as at 31.03.2018 for a period of more than six months from thedate they became payable.
(c) According to the records of the company there are no dues of Income-Tax wealthtax goods & service tax customs duty excise duty/cess which have not been depositedon account of any dispute
8. As per the information and explanations given to us the company has neitherobtained any loan from any financial institutions / banks nor issued any debentures.
9. According to the records of the Company the Company has not raised any money raisedby way of right issue during the year.
10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.
11. According to the records of the Company the managerial remuneration has been paidor provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013.
12. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is not aNidhi Company. Hence in our opinion the requirements of para3 (xii) of the Order do notapply to the company.
13. According to the information and explanations given to us the Company in respectto transactions with related parties has complied provisions of sections 177 and 188 ofCompanies Act 2013 and has disclosed all particulars in Financial Statements.
14. The company has not made any preferential allotment or private placement of sharesduring the year therefore comments under this clause are not called for
15. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company has notentered into any non-cash transaction with directors or persons connected with him and noprovisions of section 192 have been contravened.
16. In our opinion and to the best of our information and according to theexplanations provided by the management we are of the opinion that the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.
For P R Agarwal & Awasthi
Firm Registration No 117940W
CA Pawan KR Agarwal
Date: 23 May 2018
Independent Auditor's report on the Internal Financial Controls with reference tofinancial statements and its operative effectiveness under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")
1. In conjunction with our audit of the standalone financial statements of Deccan GoldMines Limited ("the Company") as of and for the year ended 31st March 2018 wehave audited the internal financial controls over financial reporting (IFCoFR) of thecompany of as of that date.
Management's Responsibility for Internal Financial Controls
2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the criteria being specified by management. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls with reference to financial statements that were operating effectivelyfor ensuring the orderly and efficient conduct of the company's business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.
Meaning of Internal financial Controls over financial reporting
6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles includingthe Accounting Standards. A company's IFCoFR includes those policies and procedures that(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2)providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles includingAccounting Standards and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal financial Controls over financial reporting
7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2018 based on thecriteria being specified by management.
For P R Agarwal & Awasthi
Firm Registration No 117940W
CA Pawan KR Agarwal
Date : 23 May 2018