We have audited the attached Balance Sheet of DECCAN GOLD MINES
LIMITED, as at 31 March 2012 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company''s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
1. As required by the Companies (Auditor''s Report) Order, 2003(as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of The Companies Act, 1956 we enclose
the annexure statement on the matters specified in paragraphs 4 and 5
of the Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
c. The Balance Sheet, Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
d. In our opinion the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
e. On the basis of written representations received from directors as
on 31 March, 2012 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31 March, 2012
from being appointed as a director in terms of clause (g) of
sub-section (i) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
I. In the case of Balance Sheet, of the state of affairs of the
Company as at 31 March, 2012, and
II. In the case of Profit & Loss Account, of the LOSS of the company
for the year ended on that date, and
III. In the case of Cash Flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT OF EVEN DATE (Referred to in paragraph
1. In respect of Fixed Assets –
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals during the year. We are informed that no material
discrepancies were noticed by the management on such verification.
c) Based on our scrutiny of the records of the company and the
information & explanation received by us, we report that there were
sales of fixed assets during the year but the fixed assets disposed of
did not constitute a substantial part of the fixed assets of the
company. Hence, the question of reporting whether the sale of any
substantial part of fixed assets has affected the going concern of the
company does not arise.
2. As the company has not purchased or sold any goods during the year,
nor does the company have any opening stock, therefore the requirement
to report the physical verification of stocks or maintenance of
inventory records in our opinion, does not arise
3. The company has not granted or taken any loans to/from companies,
firms or other party covered in the register maintained u/s.301 of the
Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business. Further,
on the basis of our examination of the books and records of the
company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct weaknesses in the
aforesaid internal control system.
5. a) Based on the audit procedures applied by us and the information
and explanations provided by the management, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 and
exceeding the value of Rs. 5 lacs in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us since the company has not accepted any deposits from public
within the meaning of section 58-A, 58AA or any other provision of the
Act, the question of compliance with the provisions of section 58A,
58AA or any other provisions of the Act does not arise.
7. In our opinion the Company has an internal audit system
commensurate with its size and nature of its business.
8. As informed to us, the Central Government has not prescribed the
maintenance of Cost records under section 209(1)(d) of the Companies
9. a) According to the records of the company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues, including Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other statutory dues applicable to it.
According to information & explanation given there were no undisputed
amounts payable in respect of income tax, wealth tax, service tax,
sales tax, custom duty, excise duty, service tax cess & other statutory
dues which remained outstanding as at 31st March, 2012 for a period
more than six months from the date they became payable.
b) The disputed statutory dues aggregating Rs. 2.57 Lacs that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under:
Name of Statute Amount Financial Year Forum where
(Rs. in Lacs) for which it
relates dispute is
Income Tax Act, 1961 2.13 2004-05 ITAT, MUMBAI
Income Tax Act, 1961 0.44 2006-07 ITAT, MUMBAI
10. The accumulated losses of the company are more than 50% of its net
worth as at 31 March 2012. The company has incurred a cash loss of Rs
52.75 lacs in the current financial year and Rs.58.13 lacs in the
immediately preceding financial year.
11. According to the records of the company, the company has not
borrowed from financial institutions or banks or issued any debentures
during the year, Hence in our opinion, the question of reporting on
defaults in repayment of dues to financial institutions or banks or
debenture holders does not arise.
12. According to the information and explanation given to us the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or other securities.
13. In our opinion, and to the best of our information and according
to the explanations provided by the management, we are of the opinion
that the company is neither a Chit Fund nor a nidhi /mutual benefit
society. Hence, in our opinion, the requirements of para 4 (xiii) of
the Order do not apply to the company.
14. As per records of the company and information and explanations
given to us by the management, company is not dealing or trading in
shares, securities, and debentures and other investments.
15. The company has not given any guarantee in connection with loans
taken by others from banks or financial institutions.
16. According to the records of the company, the Company has not taken
any term loan.
17. According to the information and explanations given to us and, on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment by the company.
18. According to the records of the company and the information and
explanations provided by the management, the company has not made any
preferential allotment of shares to parties and companies covered in
the register maintained u/s.301 of the Act.
19. No debentures have been issued by the Company during the year and
hence, the question of creating securities in respect thereof does not
20. The company has not raised any money by public issues during the
period covered by our audit report.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
For V. K. BESWAL & ASSOCIATES
FIRM REGN NO 101083W
CA K.V. BESWAL
Membership Number: 131054
Place : Mumbai
Dated : 13 August 2012