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Notes to Accounts of Deccan Gold Mines Ltd.

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.


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.


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.


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.


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.


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.


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.


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.


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.


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.

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