Deccan Gold Mines Limited 2013

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ANNUAL REPORT 2013
CONTENTS
Corporate Information.....................................................................................................................................................2
Profile of Directors and Key Personnel...........................................................................................................................3
Report on Exploration Activities ......................................................................................................................................6
Exploration Permits and Applications............................................................................................................................20
Deccan Gold Mines Limited
Directors Report............................................................................................................................................................26
Section 212 Statement..................................................................................................................................................30
Management Discussion & Analysis.............................................................................................................................31
Report on Corporate Governance.................................................................................................................................35
Auditors Report.............................................................................................................................................................46
Balance Sheet...............................................................................................................................................................50
Profit and Loss Account.................................................................................................................................................51
Notes to Accounts.........................................................................................................................................................52
Cash Flow Statement....................................................................................................................................................61
Balance Sheet Abstract.................................................................................................................................................62
Subsidiary Company
Deccan Exploration Services Private Limited
Directors Report............................................................................................................................................................63
Auditor' Report...............................................................................................................................................................65
Balance Sheet...............................................................................................................................................................66
Profit and Loss Account.................................................................................................................................................67
Schedules and Notes to Accounts.................................................................................................................................68
Balance Sheet Abstract.................................................................................................................................................77
Consolidated Accounts of Deccan Gold Mines Limited
Auditors Report on Consolidated Accounts..................................................................................................................78
Consolidated Balance Sheet.........................................................................................................................................79
Consolidated Profit and Loss Account...........................................................................................................................80
Notes to Consolidated Accounts...................................................................................................................................81
Consolidated Cash Flow Statement..............................................................................................................................91
Consolidated Balance Sheet Abstract...........................................................................................................................92
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DECCAN GOLD MINES LIMITED
CORPORATE INFORMATION
Chairman
Mr. Charles E.E. Devenish
Managing Director
Mr. Sandeep Lakhwara
Directors
:

Mr. K.R. Krishnamurthy

Dr. M. Ramakrishnan
Prof. V.K. Gaur

Head-Legal & Company Secretary
: Mr. S. Subramaniam
Auditors
:

M/s. V.K. Beswal & Associates

Chartered Accountants,
Mumbai.
Legal Advisors
:

M/s. Crest Law Partners

No. F-3, Ligoury Court,
7, Palmgrove Road, Victoria Layout,
Bangalore 560 047.
Registrars & Share Transfer Agents

:

Link Intime India Private Limited

Pannalal Silk Mills Compound,
C-13, LBS Marg, Bandhup (West),
Mumbai 400 078.
Tel : 91-22-25963838
Fax : 91-22-25946969
Email: [email protected]
Bankers
Standard Chartered Bank
Registered Office
:

A-303, Prathamesh, 3rd Floor,

Raghuvanshi Mills Compound,
11-12, Senapati Bapat Marg, Lower Parel,
Mumbai 400 013.
Tel : 91-22-40764444
Fax : 91-22-40764466
Email : [email protected]
Web : www.deccangoldmines.com
Corporate Office
:

Raja Ikon Building,

# 89/1, 4th Floor,
Marathahalli Outer Ring Road,
Bangalore 560 037.
Tel : 91-80-40428400
Fax : 91-80-40428401
Email : [email protected]
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ANNUAL REPORT 2013
PROFILE OF DIRECTORS
CHARLES E.E. DEVENISH
Chairman
Charles Devenish has extensive experience spanning 35 years in mining, with a large range of interests in India,
Australia and Burma. He has strong involvement in mineral exploration in Australia and overseas for decades
and was the founder and first chairman of two publicly listed companies in the 1980s and 1990s that pioneered
diamond exploration in Australia. For 38 years, he was the Principal of Charles Edward Jewellers, one of Australias
leading specialist retail and wholesale outlets with international links in Europe, Middle East and USA. He also
acted as an advisor to the Government of Vietnam on the development of that countrys gemstone mining and
cutting industry. Charles moved to India in August, 2002 and ever since has been actively liaisoning with various
Government Departments and providing support and guidance to progress the development of gold exploration
and mining industry in India. Charles active role in exploration and mining projects, his profound knowledge of
the mining industry, his extensive corporate background and his concerns for Indian rural development based on
mining provide significant and valued input to the Company.
SANDEEP LAKHWARA
Managing Director
Sandeep Lakhwara has several years experience advising junior Australian exploration and mining companies
on development strategies. Educated at Curtin University in Western Australia and a member of the Australian
Society of Certified Practising Accountants (CPAs), Sandeep has been a principal and partner of several Australian
based accounting practices specializing in capital raisings for the mineral industry, financial planning and
corporate regulatory requirements for publicly listed companies. He lived in Australia for 25 years, headed various
organizations in the past, at times taking small start-ups to fully developed successful businesses, and moved
to Bangalore, India during 2002 to oversee the development of the mineral exploration projects in India. He is
primarily responsible for the acquisition and growth of Deccan Gold Mines Limited and is the Managing Director
of the Company. Sandeep has made various presentations on factors influencing gold pricing, the operation and
business model of international mineral exploration companies, and is regularly called upon to contribute articles
on the gold mining industry to various newspapers and magazines.
DR. M. RAMAKRISHNAN
Director
Dr. Ramakrishnan is a well known Precambrian Geologist. He was earlier Senior Deputy Director General of the
Geological Survey of India. He is a Fellow of the Indian Academy of Sciences and Vice President of the Geological
Society of India.
PROF. V.K. GAUR

Director
Professor V.K. Gaur is an eminent geoscientist of this country. He is a former Director of the National Geophysical
Research Institute. He is a Distinguished Scientist of the Council of Scientific and Industrial Research and
Distinguished Professor at the Indian Institute of Astrophysics.
K.R. KRISHNAMURTHY
Director
K.R. Krishnamurthy is a well known Mining Engineer. He was General Manager of Chitradurga Copper Company
and Manager at Ashanti Gold Fields, Ghana for 10 years. He was also Mining Consultant to Bharat Gold Mines
Limited and advises many mineral based industries in India and abroad.
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KEY PERSONNEL
CHIEF CONSULTING GEOLOGIST
DR. V. N. VASUDEV
Dr. V.N. Vasudev is Chief Consulting Geologist. An INSA Young Scientist Awardee with several years of experience
in mineral exploration, Dr. Vasudev has published several papers on the geology structure, gold and sulphide
mineralization in Archean greenstone belts of Dharwar Craton. He has also undertaken overseas research in
Southeast Greenland and was associated with Russian geologists in a research project on Kolar Gold Fields,
India. He was with Government of Karnataka, Department of Mines and Geology as a Senior Geologist and Mining
Geologist of Chitradurga Copper Company Limited. He has carried out extensive literature research and field
reconnaissance throughout India for the Company. Dr.Vasudev has several new mineral discoveries to his credit
including the Ganajur Gold deposit in Karnataka during the Reconnaissance stage.
GEOLOGICAL CONSULTANT
S. C. R. PESHWA, FGS (LOND)
Mr. Peshwa has nearly 30 years of experience as a mining and exploration geologist and specializes in gold
exploration and resource modeling studies. He worked as a Mining & Exploration Geologist for 13 years with Bharat
Gold Mines Limited. He has the distinction of working in the world famous Champion Reef Mine and carried out
detailed exploration of Champion lode system both in deep and shallow levels. This has resulted in delineating
new parallel lodes of the Champion Lode system. From 1996 to 2002 he worked as a Project Manager with ACC
Limited and was involved in exploration of gold and other minerals. He successfully carried out gold prospecting
in the Red Sea hills region of Sudan. Mr. Peshwa is responsible the DGMLs Gold Projects and has implemented
different exploration methods as per international standards. Mr. Peshwa is an RQP awarded by Indian Bureau
of Mines. Being a Fellow of Geological Society of London, he also qualifies as a competent person as defined by
the JORC Code.
DR. M. K. DEVARAJAN
Dr. Devarajan guides the exploration activities in respect of some gold exploration projects of the company. He
was with the Geological Survey of India for 17 years and while in GSI, had carried out geological mapping and
exploration for copper in the extension areas of the world class Malanjkhand of Central India. He had also carried
out exploration for manganese in the Sausar belt and for gold in the Mahakoshal belt. He also led the investigations
for the site selection studies of a Nuclear Power Plant in the Ratnagiri District of Maharashtra.
DR. M. HANUMA PRASAD
Dr. Hanuma Prasad has 15 years of experience as Exploration Geologist. Earlier he worked for Geological Survey
of India for 8 years as a Geologist. He has carried out geological mapping and mineral resources assessment
particularly gold, copper and nickel in the supra crustel belts in parts of Mahakoshal belt, Betul and Sakoli belt in
Central India. He has several important publications to his credit.
CONSULTING MINING ENGINEER

MR. DEEPAK VIDYARTHI
A qualified Mining Engineer, Mr. Deepak possesses over 36 years of experience in the mining industry which
include 3 years with NMDC Limited as Executive Director, 11 years in the Kudremukh Iron Core Co Ltd and
21 years with the Kolar Gold Mines. He also holds a First Class Mine Managers Certificate of Competency to
manage a Metalliferrous Mine. Mr. Deepak has got rich experience in the field of mine production and planning,
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ANNUAL REPORT 2013

project management, mine construction, mechanized mine development etc. Mr. Deepak is widely travelled and
has got several presentations / publications to his credit.
HEAD-LEGAL & COMPANY SECRETARY

MR. S. SUBRAMANIAM
Mr. Subramaniam is an Associate Member of the Institute of Company Secretaries of India and a Law Graduate.
He has 17 years of experience in the field of Company Law and other corporate laws. During his career, he has
handled mergers, amalgamations, joint ventures, foreign collaborations etc., He is in charge of the legal and
company secretarial matters and also functions as the Compliance Officer of the Company.
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REPORT ON EXPLORATION ACTIVITIES

DHARWAR-SHIMOGA GOLD EXPLORATION PROJECT, KARNATAKA STATE
This Project area forms
part of Archaean Western
Dharwar Craton in the
State of Karnataka.
Deccan Exploration
Services Private Limited
(DESPL), a wholly-owned
subsidiary of Deccan Gold
Mines Limited (DGML),
explored an area of 5,660
sq km of the DharwarShimoga Greenstone
belt covered under 3 RP
blocks and identified 22
gold prospects (Fig-1,
2). Gold mineralization
in all the prospects is
hosted within sulphidic
banded ferruginous chert.
Prospects around Dharwar
towards north (Dharwar
Cluster) and Haveri in the
south (Ganajur-Karajgi
Cluster) are considered
as significant discoveries.
Seven (8) Prospecting
License (PL) and two
(2) Mining Lease (ML)
applications, covering all
the important prospects of
Dharwar-Shimoga basin,
were filed. The GanajurKarajgi PL, within the
southern Ganajur-Karajgi
c l u s t e r, w a s g r a n t e d
in the year 2009. The
Mangalagatti PL, which
is located in the northern
Dharwar Cluster, has
been granted in the year
2013 and the execution
process is underway. The
remaining applications
are under various stages
of processing. The
updates on the DharwarShimoga Belt Projects are
presented below:
Fig.1: Geological Map of Karnataka, Kerala & A.P. Showing DGML - related
applications, one granted PL and one recommended ML. The status of
applications is provided in a Table on page 20.
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ANNUAL REPORT 2013
Fig-2 : Geological map of Dharwar-Shimoga Basin showing DGML Gold Prospects.
GANAJUR MAIN GOLD DEPOSIT & ITS SATELLITE PROSPECTS IN THE SOUTHERN GANAJUR
KARAJGI CLUSTER
DESPL holds a Prospecting Licence (PL) over an area of 2.2 sq.kms in the Ganajur Karajgi block since 2009.
The Ganajur Karajgi PL block covers the Ganajur Main gold deposit and several satellite gold prospects, viz.,
Ganajur East, Ganajur South, Ganajur South East, Ganajur Central, Karajgi Main, Karajgi East and Hut prospects
(Fig. 3). The initial 3 year PL period is completed and DESPL has submitted application for renewal of the same
for an additional two years. As it is considered to be deemed renewal, DESPL continues to carry out further
exploration in the PL block.
During the initial 3 year period, the PL Block has been explored by using multi disciplinary techniques as per
international standards. The exploration work carried out included systematic geological mapping, geophysical
surveys and several phases of Diamond Core & RC drilling. These exploration efforts have resulted in upgrading
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Fig-3 : Ganajur - Karajgi granted PL Block showing the key prospects & the ML block
which is under consideration of the Ministry of Mines, Govt. of India.
the project in terms of resource and overall value, particularly the Ganajur Main Gold Deposit. Summary of the
work carried out during the initial 3 years of PL tenure is given in table-1:
Table-1, SUMMARY OF EXPLORATION WORK CARRIED OUT IN
GANAJUR-KARAJGI PL BLOCK (FIRST 3 YEARS)
SL NO
TYPE OF EXPLORATION
UNIT
QUANTUM
TOPOGRAPHIC SURVEY
SQ.KMS
2.2
GEOLOGICAL MAPPING (1: 2000 AND 1:5000 SCALE)
SQ.KMS
2.2
GROUND GEOPHYSICAL MAGNETIC SURVEY
LINE KMS
288
GROUND GEOPHYSICAL SP-RESISTIVITY SURVEY
LINE KMS
16.5
GROUND GEOPHYSICAL IP SURVEY
LINE KMS
17.4
GROUND GEOPHYSICAL EM SURVEY
LINE KMS
TRENCHING
LENGTH (M)
SAMPLING AND ANALYSIS
Nos
2117
DRILLING
A. RC DRILLING (51 DRILL HOLES)
METRES
2328
B. DIAMOND CORE DRILLING (37 DRILL HOLES)
METRES
TOTAL DRILLING
746.56
3766
6094.14
10
COMPREHENSIVE METALLURGICAL STUDIES (AMMTEC)
KGS
11
ENVIRONMENTAL BASE LINE DATA COLLECTION (AIR, DUST FALL, SAMPLES

NOISE, WATER, SOIL)
12
MINERAL RESOURCE ESTIMATION BY SRK (AS PER JORC)
COMPLETED
13
SCOPING/PRE-FEASIBILITY STUDIES (for Ganajur Main Gold Project)
COMPLETED
14
LAND ACQUISITION
IN PROCESS
200
207
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ANNUAL REPORT 2013

GANAJUR MAIN GOLD DEPOSIT :
Ganajur Main Gold Deposit is situated in the northwestern part of the Ganajur Karajgi PL (Fig-3). Ganajur Main
Deposit has been the key project of DESPL ever since its discovery and hence the project attracted continuous
attention in terms of exploration and upgradation.
As reported previously, DESPL Commissioned SRK Mining services (India) Private Limited (SRK) to prepare a
mineral resource estimate as well as the Preliminary Economic Assessment of the Ganajur Main Gold Deposit
based on the available exploration data. SRK estimated a JORC compliant total resource of 308,000 Ounces of
gold, out of which 301,000 Oz is categorized under Indicated and the rest under Inferred category (Table2). The
resource has been estimated up to a depth of 120m.
Table 2- Mineral Resource statement of Ganajur Main Gold Deposit
CATEGORY AS PER SRK (JORC)
Quantity
(tonnes)
Grade (g/t)
Gold
(ounces)
A. SULPHIDE B. OXIDE
1. INDICATED
1,921,000
631,000
3.83
3.19
237,000
65,000
TOTAL INDICATED
2,552,000
3.67
301,000
93,000
17,000
1.82
3.26
5,000
2,000
109,000
2.06
7,000
A. SULPHIDE B. OXIDE
2. INFERRED
TOTAL INFERRED
UNFC
CODE AS
PER IBM
121
The Scoping study carried out by SRK addressed the mine optimization, process design, waste disposal and
management plans, site lay out and infrastructure, capital /operating expenditure estimates, project economics
(including key risks and opportunities) and future work programme. The Study has revealed that project economics
is technically and economically viable that could be improved upon considering the fact that there are a number of
highly prospective gold bearing targets in the PL block with distinct possibilities of adding to the existing mineral
resource. SRK's scoping studies have demonstrated that at a sustainable gold price greater than USD850/oz, the
Ganajur Main Project has the potential to be developed into a viable open-pit mining operation. The key aspect of
the scoping study was cash flow projection and project valuation.
A valuation of the Project has been derived based on the application of Discounted Cash Flow (DCF) techniques.
In summary, at an Au price of USD1250/oz and a 10% discount rate the project has an NPV of USD37.39M.
Sensitivity analysis of the project at different gold prices is given below:
PROJECT VALUATION AND SENSITIVITY ANALYSIS UNDER DIFFERENT GOLD PRICE SCENARIOS
DESCRIPTION
UNIT
1000
1100
1250BASE
CAE
1400
1500
1650
NET PRE TAX CASH FLOW
INR-CRORES
MUSD
318.87
70.86
415.62
92.36
560.75 705.83
124.61 156.85
802.58
178.35
947.70
210.6
NPV @ 10% DISCOUNT RATE
INR-CRORES
MUSD
66.96
14.88
107.46
23.88
168.26 229.01
37.39
50.89
269.42
59.87
329.27
73.17
IRR
20.15
25.61
44.22
50.24
33.11
39.95
Mining Lease under approval of the Ministry of Mines, New Delhi :

DESPL has lodged a Mining Lease application over 0.29 sq.kms covering the Ganajur Main Gold deposit and its
extensions. This application is currently awaiting approval of the Ministry of Mines, Government of India (MoM)
after it was recommended by the State Government of Karnataka (SG).
The Indian Bureau of Mines (IBM) has validated the gold resources for the Ganajur Main Gold Deposit under UNFC
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guidelines. IBM has reported to the MoM that the economic viability of the Ganajur Project has been established
and that the deposit could be classified under the UNFC 121 category, as an Economic Probable Mineral Reserve
category.
Further work in the Mining Lease Area :
DGML has made all out efforts to speed up the implementation of the project while the approval of the ML is
awaited. Additional works carried out in this respect include a) Preparation of Mining Plan b) Environmental Impact
Assessment (EIA) and Management Plan (EMP) studies as per Terms of Reference issued by the MOEF c)
Hydrogeological survey to locate water resources for the gold processing plant and mine operations, d) consultations
with leading metallurgical and process engineering groups e) Submission of application to the KIADB for land
acquisition and d) Geophysical studies and additional drilling in the Ganajur Main as well as the satellite prospects
to enhance the overall resource.
Preparation of Mining Plan :
DGML is in the process of giving final touches to the Mining Plan for the Ganajur Gold Project. As per Rule 22(4)
of MCR-1960, once the ML application is approved by the Ministry of Mines and a Letter of Intent (LOI) obtained
from the State Government, a Mining Plan has to be submitted to Indian Bureau of Mines. Such an IBM approved
Mining Plan is necessary for the final grant of Mining Lease by the State Government. It is to be noted that the
Ganajur Main Gold deposit would be an open pit mine operation, as shown in Fig. 4.
Fig-4 : Ganajur Main Ore Body open pit mine design
Approval of TOR and EIA studies :

The Expert Appraisal Committee (Industry) constituted by the Ministry of Environment and Forests has accepted
our application for TOR for the proposed 2000 tpd Ganajur gold ore Processing Plant. The committee while granting
the TOR has prescribed additional terms of reference for preparing a detailed EIA/EMP report. The proposal was
considered during the EAC meeting held 0n 5th March 2013 at New Delhi.
Share holders may be reminded that earlier the State Level Expert Appraisal Committee, Karnataka had already
accepted our application for TOR for the proposed 2000 tpd Ganajur gold ore mine. DGML therefore has the TORs
granted for both the Ore Processing Plant and the Gold ore Mine. The company has appointed B.S.Envitech a
highly reputed Environmental Consultant for undertaking the Environmental studies and preparation of EIA and EMP
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ANNUAL REPORT 2013
Fig-5: Dust, Soil, Water & Noise Sample Collection
report for both Ganajur Gold mine and the proposed plant. We are happy to further inform that detailed Baseline
Environmental data collection have been completed for the season March-May 2013 (Fig.5).
The draft EIA/EMP report is being prepared and will be submitted to the State Pollution Control Board at the
appropriate time
Hydrogeological Survey :
DESPL completed a detailed hydro geological studies in and around the project area as per the TOR and guidelines
prescribed by the MOEF. The studies include ground water potential, aquifer characteristics, rainwater harvesting
measures, Sources of water (river, ground water, mine water, other surface water), their requirement and utilization
for the project at different stages. DESPL has appointed a senior consultant to undertake these studies.
DESPL has identified the Varada river located at a distance of 4.0 kms from the proposed mine as a potential source
for the project. The State High Level Clearance Committee (SHLCC) has approved our request for drawing the
water from Varada River. However a judicious tapping of ground water is also considered as an alternative to the
Varada river if need arises. Thus the detailed ground water study undertaken would be helpful to identify potential
water resources in and around the Mining Lease area.
As part of this study, a detailed Resistivity Geophysical survey was carried out for locating suitable points with
ground water potential. A total of 84 points were surveyed using Vertical Electrical Sounding (VES) method (Fig06). The data from these studies indicate ground water potential areas that would be useful for the project.
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Fig-6: Map showing ground water survey locations in

Ganajur Karjagi PL area.
Metallurgical Plant and

Process Design:
DGML has initiated
discussions with leading
Gold ore processing and
engineering groups to
understand and finalise
a suitable process route
for recovering the gold
efficiently keeping in mind
environmental and economic
aspects. The possible
process routes suggested
include, Pressure Oxidation
(POX), Biological Oxidation
(BIOX), Calcination and
CIL leaching, Conventional
CIL leaching and ultrafine
grinding and leaching.
DGML will be appointing a
leading group to undertake
a prefeasibility study to
cover all these aspects while
addressing CAPEX and
OPEX parameters.
Government of Karnataka's approval for land acquisition :

DESPL has received a Government Order (G.O.) after the State High Level Clearance Committee (SHLCC) cleared
our request for allotment of 200 acres of land for the Ganajur Main Gold Mining and Ore Processing Plant. The
G.O. has approved DESPL's request for additional 55 acres of land from 145 acres to 200 acres at Ganajur Village
in Haveri District, Karnataka for the proposed gold mine and processing plant.
The G.O. has also facilitated land acquisition process through Karnataka Industrial Areas Development Board
(KIADB), for which DESPL has submitted application to the KIADB in March, 2013. KIADB had asked DESPL to
obtain consent letters from 70% of the land owners, which is a pre-requisite as per the guidelines of The Government
of Karnataka. Accordingly, DESPL has obtained this consent from land owners and submitted the consent to KIADB
in august, 2013. It may be mentioned that, DESPLs long term lease agreement with land owners of the proposed
gold mine will be an added advantage in the land acquisition process.
UPDATES ON EXPLORATION
A detailed drilling programme of 8000 metres covering Ganajur Main, its extensions and the surrounding satellite
prospects have been planned during the coming months. We are in the process of finalizing the drilling contract.
The drilling programme will include metallurgical and geotechnical drilling apart from finding additional resources
in Ganajur Main and adjoining prospects.
Highlights of the key prospects that were explored by DESPL are presented below:
Ganajur Main Deposit :
Ganajur Main Deposit is the most important discovery of DESPL which was explored in detail by multi disciplinary
exploration techniques as per international standards during the initial 3 years of exploration under PL. More than
4000 metres of drilling was accomplished using a combination of Diamond Core and RC drilling methods. Most
of the drill holes passed through wide zones of sulphide mineralization containing significant amount of gold. The
average grade and width of mineralized zones intersected in the drill holes are furnished in the following Table-4.
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ANNUAL REPORT 2013

TABLE-04, DETAILS OF MINERALISED ZONES INTERSECTED IN THE DRILL HOLES
SL.NO
BH ID
From (m)
To (m)
Average Width
(m)
Average Au
(g/t)
Drill Type
G 12
20
24
2.19
RC
G 12
32
34
3.66
RC
G 16
24
41
17
3.89
RC
G 18
21
32
11
3.6
RC
G 22
11
13
1.9
RC
G 25
21
24
1.62
RC
G 27
22
23
3.13
RC
G34
63
72
6.49
RC
G35
92
93
1.72
RC
GMC-1
34.6
43.6
5.21
Core
GMC-1
47.1
48.1
1.4
Core
10
GMC-2
46.2
53.4
7.2
1.51
Core
GMC-2
54.4
79.9
25.5
1.12
Core
11
GMC-3
59.4
79.9
20.5
2.64
Core
GMC-3
84.4
93.4
3.27
Core
12
GMC-4
29.5
45
15.5
2.84
Core
GMC-4
48
56.5
8.5
5.85
Core
13
GMC-5
47
48.5
1.5
1.71
Core
GMC-5
50
79
29
8.54
Core
14
GMC-7
39.9
72.5
32.6
9.89
Core
15
GMC-9
83
90
4.46
Core
16
GMC-10
48.35
75
26.65
3.86
Core
17
GMC-11
39.3
46.8
7.5
5.37
Core
GMC-11
54.2
57.7
3.5
6.65
Core
GMC-11
62.8
65.8
4.19
Core
18
GMC-12
44
58.3
14.3
4.03
Core
19
GMC-13
59.2
71.15
11.95
3.58
Core
20
GMC-14
85.8
89.5
3.7
3.7
Core
21
GMC-15
47.7
62.31
14.61
3.24
Core
22
GMC-16
22.5
65.34
42.84
8.91
Core
23
GMC-17R
43.3
70.7
27.44
7.89
Core
24
GMC-18
57.9
80.75
22.85
5.45
Core
25
GMC-19
34.4
53.9
19
5.13
Core
26
GMC-27
39
45.5
6.5
2.19
Core
27
GMC-28
33.5
39
5.5
3.97
Core
28
GMC-29
48
54
2.05
Core
29
GMC-29
64.5
69.7
5.2
3.05
Core
30
GMC-30
8.4
22.5
14.1
1.35
Core
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As reported SRK has estimated an overall resource of 308,000 ozs of gold as per JORC standards of which >
90% is classified under indicated category.
Ground Geophysical Survey and deep drilling:
As per the latest available data, Ganajur Main Deposit can be mined through open pit upto a depth of 120m and
such an operation would last for about 5 years. However, the geophysical survey and drilling that was carried out
during RP and PL period, indicated considerable potential to find additional resources in the deeper part of the
Ganajur Main Deposit and also in the satellite prospects around it. With a view to further confirm the potential in
and around Ganajur Main Prospect, DESPL undertook detailed Ground geophysical Survey.
The geophysical survey with a combination of Transient Electromagnetic Survey (TEM) and Induced Polarization
(IP) survey was used to delineate conductive zones and also to locate geological structures favorable for hosting
gold mineralization in the entire Ganajur Karajgi PL Block. As informed earlier, a total of 17.4 line kms of IP survey
was completed which defined a major resistive feature in the southern half of the survey area. The IP survey has
also clearly brought out a 2.8 km long, strong linear Chargeability anomaly with high resistivity background, which
encloses the 600 metre long Ganajur Main Gold Deposit. This clearly indicates that the gold mineralization of the
Ganajur Main deposit could now probably extend for nearly 2.8 kms (Fig-7). The 2D Inversion model also indicates
that the Ganajur Main ore body and its extension may continue beyond 150metre depth. The Geophysical IP
Fig-7: Stacked 2D IP inversion models showing Ganajur Main ore body
survey has been very successful in tracing new zones of possible gold mineralization, which correlates well with
world class gold deposits with multimillion ozs of gold resources.
To test the results of Geophysical survey, DESPL carried out a limited diamond core drilling in the Ganajur-Karajgi
PL Block which included 3 deep holes in the Ganajur Main deposit; 2 holes at Karajgi Main Prospect and one in
the Ganajur South East Prospect.
Exploratory drilling for testing the deep seated IP anomaly in Ganajur Main Prospect was quite positive. All the drill
holes passed through the gold-bearing rock indicating the depth-ward extension of Ganajur Main Ore body. Best
drill intersection Include 1.5m @ 0.60 to 4.39 g/t and 2m @ 0.22 to 2.52 g/t of Au. With this significant information
DESPL plans to undertake further drilling for exploring the possible deep seated gold resource.
14
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ANNUAL REPORT 2013

KARAJGI MAIN PROSPECT:
Karajgi Main comprises of a southern auriferous
BIF which has a drilled resource of 90000 tonnes
averaging 2.23 g/t Au and two sulphidic chert bands
towards the northern slope area designated as
bands A and B. Number of old workings are noticed
all along these chert bands. DESPL carried out RC
drilling to explore the Chert bands A and B located
on the northern slope.
Encouraged by the earlier RC drill results, DESPL
completed 2 diamond core drill holes at Karajgi
Main prospect in order to test the geophysical IP
anomaly and also to understand structural controls
of gold mineralisation. Out of two holes drilled at
Karajgi Main Prospect, KMC-01 intersected two
significant zones of gold mineralisation. The first
one is 5.0 m thick which passed through between
45.50 to 50.50m averaging 7.43 g/t. gold including
Fig-8: Old Working from Karajgi Main Prospect,
a high value of 33.60 g/t. The second zone is 9.0
Ganajur-Karajgi PL, Haveri District, Karanataka.
m thick and was encountered between 71.1 and
80.1m averaging 3.19 g/t gold. The results from
Karajgi Main Prospect has confirmed the existence of high grade gold bearing zones and distinct possibility of
finding additional resources (Fig. 8).
GANAJUR SOUTH EAST PROSPECT :
Ganajur southeast prospect (GSEP) is located around 1.2 km SE of Ganajur Main prospect. Exploration under
various stages resulted in delineation of a mineralized
zone over a length of 455 metres. The exploration data
suggests that the NW portion was found to be more
promising that prompted DESPL to undertake 576
meters of R.C. drilling involving 12 drill holes and 171
samples. Significant intersections were obtained that
included gold value of 6.23 g/t over 15.0m width in one
of the drill holes.
Recent IP survey had indicated significant chargeability
anomaly extending for nearly 2.8 kms that included
Ganajur SE prospect. DESPL drilled one test diamond
drill hole to understand the structural control of gold
mineralization. This test drill hole passed through 2 zones
of gold mineralisation; the first one of 3.60m @ 1.85 g/t
gold between 39.40 to 43.0m depth and the second of 1m
thickness yielding 2.5 g/t gold between 52.50 to 53.50m
depth. The latest drill results and the previous data in
Ganajur-SE prospect suggest the possibility of finding
additional resource in the PL block (Fig-9).
Fig-9: Mineralized BIF exposed Ganajur SE, GanajurKarajgi PL, Haveri District, Karanataka.
DHARWAR CLUSTER
Mangalagatti and Bhavihal Prospects :
Mangalagatti and Bhavihal prospects are located 12 to 20 kms north of Dharwar city. They form part of the 'Dharwar
Cluster' of gold bearing sulphidic Chert bands. The Dharwar cluster comprises of Mangalagatti SE, Mangalagatti
15
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Main, East and Bhavihal prospects (Fig-10). All these are
considered as highly potential like the Ganajur-Karajgi
cluster near Haveri. DESPLs application of Prospecting
License over an area of 4 sq.kms and covering the
Mangalagatti Prospects was approved by Ministry of
Mines and Government of Karnataka issued grant order in
the month of October, 2012. Subsequently, the Secretary,
Department of Commerce and Industries, Government
of Karnataka, asked Department of Geology and Mines
(DGM) to submit a report on the exact boundaries of
the granted PL area. Accordingly, DGM has completed
the land survey and is about to submit the report to the
Secretary, subsequent to which the PL will be executed.
Initial exploration during the RP tenure in the Mangalagatti
SE prospect by RC drilling and channel sampling
had revealed significant gold mineralization. Gold
mineralization is hosted by southeasterly plunging folded
banded iron formation. Two auriferous zones extending
for nearly 500 metres over a width of 30 metres were
defined. An ancient working and adjacent pounding marks
indicates ancient mining activity in the area. An inferred
resource of 1.5 million tonnes@ 1.63 g/t Au was estimated
based upon results of shallow RC drilling programme.
DGML conducted Induced Polarization (IP) survey in the
PL block to identify the existence of possible mineralised
zones in addition to those already explored. The IP survey
was carried out on 12 lines by dipole-dipole configuration
at 50 to 100 m dipole spacing involving 19.7 line kms.
Fig-10: Magnetic image with IP profiles of

Mangalagatti-Bhavihal prospects.
The IP survey revealed a 300 to 400 metres wide, broad based chargeability anomaly suggesting that the
mineralization is controlled by a folded structure (Fig-11). More interestingly the IP anomaly has been traced all along
for a distance of 2.0 kms and the anomaly is still open. Further, the survey indicates that the IP anomaly continues
to greater depths below 200 metres with sharp increase in the intensity of the anomaly. The new findings suggest
a large system of possible gold mineralization that warrants more exploration by drilling. DGML will undertake a
drilling programme once the PL is executed.
BHAVIHAL PROSPECT :
Is located at a distance of 8 kms NW of Mangalagatti
prospect. Preliminary channel sampling followed
by RC drilling during the RP tenure had clearly
brought out surface expression of a wide ore body
hosted in cherty BIF. The limited RC drilling was
also intended to examine open pittable resource
similar to Mangalagatti SE prospect. As a result
of this preliminary investigation an area of 400
metres was delineated and an inferred resource of
74,000 oz of Au was estimated averaging 1.76 g/t.
A preliminary IP survey was initiated on 3 lines to
understand the IP signature . It is very encouraging
to note that all the three lines have brought out two
moderate chargeability anomalies with co-incident
resistivity highs. With this positive information, it
is planned to go ahead with additional IP survey
Fig-11: Mangalgatti 3D IP Geophysical Model (50m

Dipoles), Mangalagatti Prospect.
16
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ANNUAL REPORT 2013

to explore the depth and strike continuity of
the mineralization.
Hutti Maski Belt Projects
Hutti Maski Greenstone belt is one of the
most important Archaean gold bearing belts
in India. The Hutti-Maski belt hosts world
class Hutti Gold deposit that is being mined
by The Hutti Gold Mines Limited. DGML has
carried out exploration over an area 851 sq
km in the Hutti Belt, which has resulted in
identifying 21 gold bearing blocks. A total of
12 prospecting licenses (PLs) applications
covering the 21 gold targets and 1 Mining
lease (ML) application in Hirenagnur
have been filed with the Karnataka State
Government (Fig. 12) .
Our shareholders are aware that DGML is
contesting the Order passed by the Hon'ble
High Court of Karnataka in the month of
April, 2012 favouring Hutti Gold Mines
Limited (HGML) regarding the Hutti Belt
projects. A Special Leave Petition (SLP)
was lodged in the Hon'ble Supreme Court
of India, which was admitted in the month
of July, 2012. While admitting the SLP, the
Hon'ble Supreme Court has also observed
that the final decision on the grant of the
PLs over Hutti Belt, to be made by the
Central Government, shall be subject to
the outcome of the present SLP. It is to be
noted that the Ministry of Mines also filed
an SLP on 7th of September, 2013 against
the Karnataka High Court Order. We remain
confident of the outcome restoring our rights
over the Hutti Prospects.
Fig.12 : Geological map of Hutti-Maski Greenstone Belt

showing the key gold prospects and applied tenements
Due to delays in grant of PLs, DGML was unable to undertake further detailed exploration in the Hutti-Maski belt.
The details of prospects explored under the RP have been presented in the previous annual reports.
RAMGIRI BELT PROJECT:
The Ramagiri belt forms the southern half of the Ramagiri-Penkacherla greenstone belt falling in Andhra Pradesh.
Ramagiri is located 40km south -southeast of Anantapur and 180km due north of Bangalore. It is one of the important
gold-bearing greenstone belts of the Eastern Dharwar Craton (Fig. 13).
DGML, through its associates, held the Ramagiri RP block which contains the 13 km long Ramagiri Gold Field
(RGF). This area experienced intensive underground mining activity by the Britishers in the early part of the last
century. Three main mining ventures in this tract produced about 176,338 ounces of gold at a recovered grade of
around 15 g/t from high-grade veins in the years 1910 to 1927. Until April 2001, the Government of India owned
Bharat Gold Mines Ltd. (BGML) was operating the underground Yeppamana Mine in the RGF.
DGML during its RP tenure, defined two prospective blocks for further exploration that are covered under PL
applications. The details of the PL blocks are given below:
1) Ramagiri Gold Field block (RGF) -20 sq km area
2) Boksampalle block -17 sq km area
17
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PL applications are under processing with the Government of Andhra Pradesh, hence no exploration work has
been carried out in this year. Details on the work carried out in these prospects have been provided in the 2012
Annual Report.
Fig-13: Regional geological map of Ramagiri Greenstone belt showing areas applied for PL & ML.
18
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ANNUAL REPORT 2013

MANGALUR- JAINAPUR RP
BLOCK
The Government of Karnataka
granted Mangalur-Jainapur
Reconnaissance permit over an
area of 243.34 sq.kms and the
same was executed on 30-62010. This RP block covers the
western portion of the Mangalur
greenstone belt and comprises
of granitic rocks and sediments
of Bhima Basis. DGML as part
of the Reconnaissance reviewed
all the historical data followed by
Remote Sensing studies, Stream
Geochemical sampling, Ground
Magnetic Survey and follow up
geological traverses.
The results of the exploration
did not indicate any signs of
gold mineralization and it looks
like that gold mineralization is
only confined to the Mangalur
Greenstone Belt located towards
eastern side of the RP Block
that was previously explored by
DGML with positive results.
However during the course of
exploration DGML identified
extensive deposits good quality
limestone with in the RP area.
The flat bedded good quality
limestone of Arakeri-YadahalliKachakanur ridge in particular
looks good for manufacture
of cement with 48- 53% CaO
content. Based on these findings
two Prospecting Licence
applications were submitted for
limestone, Au and other minerals
covering areas of 60 and 30
sq,kms respectively (Fig-14).
Fig-14 : Regional geological map of Mangalur Greenstone belt
showing the granted RP and area applied for PL.
19
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EXPLORATION PERMITS AND APPLICATIONS

STATUS OF IMPORTANT APPLICATIONS FOR RP / PL / ML
(AS ON NOVEMBER 12, 2013)
State
Date of
Application
DGML.
RP-7
MangalurJainapur
Gulbarga
Karnataka
243.34
3.8.2004
DGML.
RP-5
Ramagiri
Anantapur
Andhra
Pradesh
2430
19.6.2004
No.F.No.17808/R43/04, Dt.19.6.2004
Pending at DMG,
Hyderabad.
DGML.
RP-2
Hutti South
Raichur
Karnataka
1000
26.2.2004
Pending at DMG,
Bangalore.
DGML.
RP-3
Hiriyur
Chitradurga
& Tumkur
Karnataka
596
17.3.2004
No.DMG/04 ARP
2004/19221,
Dt.3.3.2004.
No.DMG/07 ARP
2004/19751,
Dt.18.3.2004
TOTAL
4269.34
Ref. No. and Date
Status
Block Name
4 RPs
District
Area in
sq km
RP Nos.
Grant Order
No.CI.67 MMM
2007, dt.28.1.2010
RP Deed Executed
on 30.6.2010
RP period completed.
Applied for 2 PLs
within RP Area.
Submitted all the
six monthly, annual
reports and Final
Technical Report of
RP.
Pending at DMG,
Bangalore.
20
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ANNUAL REPORT 2013

DECCAN GOLD MINES LTD. (DGML)
PROSPECTING LICENCE (PL) APPLICATIONS OF DECCAN GOLD MINES LTD.
PL No.
Block Name
District
Area
in
sq km
Date of
Application
KARNATAKA STATE
21
30.10.2007
DGML.PL-4
Karajgi
Extension
Haveri
DGML.PL-7
Ajjenahalli
Tumkur
2.4.2009
DGML.PL-8
Chinna
MulgundAladgeri
Haveri
35
26.2.2010
DGML.PL-9
Ranibennur
Haveri
70
26.2.2010
DGML.PL-10
KatenahalliKengond
FatehpurHadanur
ArakeriShakhapur
Haveri
26
26.2.2010
Yadgir
30
25.3.2013
Yadgir
60
25.3.2013
TOTAL
243
DGML.PL-11
DGML.PL-12
7 PLs
DGML.PL-2
Puttumala
Palakkad
25
KERALA STATE
7.3.2005
Status
No.102APL 07/10680,
dt.2.11.2007
CI 297 MMM 2010
Under processing at DMG,

Bangalore.
No.DMG/58/APL 09/450,
dt.17.4.2009
No.DMG:09APL / 200910/
18735, dt.20.3.2010
(PL Application
filed in response to
Gazette Notification
dt.30.12.2009).
Under processing at
DMG, Bangalore.
Rejection Notice dt
12.3.2012 issued by
Director, DMG, Bangalore.
Contested at the Tribunal,
MoM, New Delhi. Details
are posted under PL
No.DESPL-15. On
15.12.2012, the State
Govt. had furnished
parawise comments to
MoM, New Delhi. We await
the fixing of the hearing
date by the Tribunal.
-do-
No.DMG:10 APL/200910/18736, dt.20.3.2010

No.DMG:11 APL/200910/18734, dt.20.3.2010
No.DMG/RP-Sec/01APL/2013, dt.3.4.2013
No.DMG/RP-Sec/02APL/2013, dt.3.4.2013
No.1863/M1/2005,
Dt.16.3.2005
CHHATTISGARH STATE
20
3.12.2008
S.No.658, dt.3.12.2008
DGML.PL-5
Bagmara
Raipur
DGML.PL-6
Rajadevri
Raipur
28
TOTAL
48
2 PLs
Ref. No. & Date
3.12.2008
S.No.657, dt.3.12.2008
-doUnder processing at
DMG, Bangalore.
Under processing at
DMG, Bangalore.
Under processing at State

Government of Kerala. (On
15.2.2013, PL area was
reduced from 81 to 25 sq
km as directed by Director,
DGM, Kerala).
Under processing at
DMG, Raipur.
Under processing at
DMG, Raipur.
21
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INCLUDING PL APPLICATIONS OF DECCAN EXPLORATION SERVICES PVT. LTD. (DESPL) &
THOSE APPLICATIONS UNDER AGREEMENT WITH
GEOMYSORE SERVICES (INDIA) PVT.LTD. (GMSI)
PL No.
Block Name
District
Area
in
sq km
Date of
Application
KARNATAKA STATE
2.2
17.10.2003
Ref. No. & Date
Status
PL Deed no. 3370 &

Executed on 25.9.2009.
Renewal Ack. No.02APL/2012-13/4467,
dt.14.6.2012.
1) DESPL is continuing
prospecting under deemed
renewal of provision in the
PL area as per Rule 11 (2b) of
MCR 1960.
2) Applied for ML within PL
area on 20.12.2012.
Grant Notification issued by
Government of Karnataka
vide Order no. CI 61 MMM
2007, dt.11.10.2012.
Execution of PL is under
process.
Approved by MoM,
Government of India vide
letter no. 4/34/2008-M.IV,
dt.16.9.2009. Grant Order
to be issued.
Bangalore.
DES.PL-2
GanajuruKarajgi
HaveriDharwar
DES.PL-10
Mangalagatti
Dharwar
11.1.2005
No.07 APL 2005,

Dt.17.1.2005 CI 61 MMM
07
GMSI.PL-8
Jainapur
Gulbarga
1.1
7.11.2003
No.47 APL 03/13967,

Dt.10.11.2003 CI 59
MMM 05
GMSI.PL-7
Mangalur
Gulbarga
1.2
7.11.2003
DES.PL-6
Kulavalli
Belgaum
15.10.2004
DES.PL-9
Bhavihal
Dharwad
1.5
4.1.2005
DES.PL-12
Lakkikoppa
Haveri
22.3.2005
DES-PL-8
TurkaraSigihalli
Ganajuru
Extension
GanajuruKarajgi
Extension
Belgaum
1.7
31.12.2004
Haveri
12.1.2005
Haveri
25
26.2.2010
No.46 APL 03,

Dt.10.11.2003 CI 134
MMM 06,
No.127APL 2004,
Dt.24.11.2004 CI 112
MMM 07
No.02 APL 2005,
Dt.6.1.2005 CI 66 MMM
2010
No.85 APL 05,
CI 64 MMM 2010
No.181 APL 04/14744,
dt.3.1.2005
No.08 APL 2005,
Dt.17.1.2005
Ack. No.DMG:08
APL 2009-10/18729,
dt.20.3.2010
(PL Application
filed in response to
Gazette Notification
dt.30.12.2009).
DES.PL-11
DES.PL-15

Bangalore.
Bangalore.
Under processing at
DMG, Bangalore.
Under processing at
DMG, Bangalore.
Under processing at
DMG, Bangalore.
Rejection Notice
dt.12.3.2012 issued by
Director, DMG, Bangalore
which was contested before
the Tribunal of the MoM,
New Delhi. On 15.12.2012
State Govt. had furnished
parawise comments to MoM,
New Delhi. On 18.7.2013,
hearing did not take place as
State Representative did not
attend the hearing. The next
hearing is to be fixed shortly
by the Tribunal.
22
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ANNUAL REPORT 2013

DES.PL-1
Hutti North
Raichur
1.8.2003
No.24 APL 03,

Dt.18.8.2003
On 4.6.2012, Honble
High Court of Karnataka
directed DESPL to take
the matter before the
Tribunal of the MoM.
On 2.5.2013 the State
Govt. furnished parawise
comments to MoM. We
await fixing of the next
date of hearing.
DES.PL-3
Uti
Raichur
2.9
14.1.2004
No.06APL04/16815,
Dt.16.1.2004
DES.PL-4
Raichur
21
1.10.2004
DES.PL-4A
YatkalHirenagnur
Hirenagnur
Raichur
1.8
28.4.2006
DES.PL-5
Wandalli
Raichur
90
21.10.2004
DES.PL-7
Yelagatti
Raichur
17.12.2004
DES.PL-13
Palkanmardi
Raichur
28.2.2006
DES.PL-14
Bullapur
Raichur
15.3.2006
GMSI.PL-4
Sanbal-Maski
Raichur
14.7
29.8.2003
No.106 APL04/11544,
Dt.18.10.2004
No. 54 APL 06
Dt.5.5.2006
No.11APL04/10976,
Dt.28.10.2004
No.162 APL04/13923,
Dt.20.12.2004
No.39 APL 06/17,
Dt.29.3.2006
No.36 APL 06/15624,
Dt.25.3.2006
No. 32 APL 2003,
Dt. 29.8.2003
The State Govt. had

recommended for
reservation of this area
in favour of the State
PSU-Hutti Gold Mines
Ltd. MoM rejected the
State's proposal . The
PSU approached the High
Court of Karnataka. The
High Court has directed
the MoM to take a fresh
decision. The MoM did
not approve the States
recommendation. DESPL
has contested the
Judgement of the High
Court through a SLP at
the Supreme Court. The
Judges have recognized
the merit in the SLP &
directed the Respondents
to reply the points raised
in the SLP. The MoM has
also filed an SLP with the
Supreme Court against
the High Court Order in
Sept. 2013. Presently,
the matter is under the
consideration of the
Supreme Court.
-do-do-do-do-do-do-do-
23
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GMSI.PL-5
Buddini
Raichur
29.8.2003
GMSI.PL-12
UdbalDinnisamudra
Virapur
Raichur
35
14.1.2004
1.10.2004
GMSI.PL-28
22 PLs
GMSI.PL-3
Ramagiri
Raichur
No. 31 APL 2003,

Dt. 29.8.2003
No.9 APL 04,
Dt.29.7.2004
No.105 APL 2004/11545,
Dt.18.10.04
259.1
ANDHRA PRADESH STATE
Anantapur
18.32
23.8.2003
No.2095/M2/2003,
Dt.23.8.2003
-do-do-do-
On 5.6.2012, as per the

instruction of Director,
DMG, Hyderabad, the
Assistant Director,
Anantapur had called
for survey & inspection
of the PL area. We have
attended the inspection
on 6.6.2012. File is under
processing at Assistant
Directors Office,
Anantapur. Reminder sent
to the Assistant Director
on 5.4.2013 & 11.6.2013
1 PL
18.32
DGML= Deccan Gold Mines Ltd.
DES = Deccan Exploration Services Pvt .Ltd. is a 100% owned subsidiary of DGML
GMSI = Geomysore Services (India) Pvt. Ltd.
24
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ANNUAL REPORT 2013

MINING LEASE (ML) APPLICATIONS OF DECCAN EXPLORATION
SERVICES PVT. LTD., AND GEOMYSORE SERVICE (INDIA) PVT. LTD
.
ML Nos.
Block Name
District
DES.ML-2
Ganajuru
Dharwad
DES.ML-4
GanajuruKarajgi
Haveri
9.1.2009
No.DMG/01/AML/200910/13130, Dt.27.1.2009.

Bangalore.
DES.ML-5
Karajgi
Haveri
2.8
20.12.2012
No.DMG/Rp-Sec/11 AML
2012-13 Dt.5.1.2013
ML applied within granted &

executed PL area of 2.2 sq
km (Ganajur-Karajgi PL Block)
within the stipulated period.
Bangalore
GMSI.ML-20
4 MLs
Ramagiri
Area
in
sq km
Date of
Application
Ref. No. & Date
Status
KARNATAKA STATE
0.29
8.6.2006
No.567 AML 06/3389 CI 30
MMM 2010, dt. 8.11.2010
ANDHRA PRADESH STATE

Anantapur
1.3
10.4.2008
Ack.No.1770/M/08,
Dt.11.4.2008
TOTAL
ML was Recommended by
the State Govt. The MoM
had sought the opinion of
the I.B.M. The IBM has
given a favourable report on
the mineability of the Gold
Resource at Ganajur on
the basis of SRKs report &
Annual reports of work done
by DGML. The ML is under
consideration of the MoM.
On 28.1.2013, the State
Expert Appraisal Committee
(SEAC), Dept. of Ecology &
Environment has issued a
TOR for proposed 2000 tpd
gold mine.
Submitted Plant TOR to MoEF,
New Delhi. On 30.4.2013,
the MoEF, New Delhi has
approved the ToR for the 2000
tpd processing plant.
Under processing at
Asst. Directors Office,
Anantapur.
12.39
DGML = Deccan Gold Mines Ltd.

DESPL = Deccan Exploration Services Pvt. Ltd. is a 100% owned subsidiary of DGML
GMSI = Geomysore Services (India) Pvt .Ltd.
*MoM = Ministry of Mines
25
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DIRECTORS REPORT
Dear Shareholders,
We have pleasure in presenting the Annual Report on the business operations of the Company along with the
Statement of Audited Accounts for the year ended 31 March, 2013.
1. FINANCIAL RESULTS
Particulars
(Rs in 000s)
2012-13
2011-12

Total Income
Profit/(Loss) before Taxation
Profit/(Loss) after Tax
Balance brought forward
Balance transferred to Balance Sheet
1,571
(10,205)
(10,205)
(53,262)
(63,466)
3,028
(10,618)
(10,618)
(42,644)
(53,262)
During the year, the Company incurred Rs. 94.85 lac on exploration activities and Rs. 115.10 lac on administrative
and other expenses. The cumulative amount spent on exploration activities of Rs. 1062.51 lac as on 31 March,
2013 has been transferred to pre-operative expenses.
2. BUSINESS OPERATIONS AND OUTLOOK
For full details on the operations of the Company during the period under review, please refer the segment titled
Report on Exploration Activities and the segment titled Status of important applications for Reconnaissance
Permit (RP) / Prospecting Licence (PL) / Mining Lease (ML) published elsewhere in this Annual Report.
In line with the jurisdictions across the world, the Indian Government initiated several measures including introduction
of Mines and Minerals (Development & Regulation) Act, 2011 (MMDRA) with the objective of reforming the mining
sector. The MMDRA continues to await the approval of the Indian Parliament. The Parliamentary Standing Committee
before whom the MMDRA was referred for review has submitted its Report to the Parliament.
However, the areas of concern continue to be introduction of a complex system of grant of exploration licences;
huge increase in fee and security deposits for exploration and prospecting operations; auctioning for grant of
prospecting licences and mining leases in respect of under-explored areas; and introduction of a financial contribution
equivalent to Royalty payable by the Mining Lease holders into the District Mineral Foundation etc., Further, the
mining sector also needs to address the issues arising out of the Land Acquisition Act, 2011 which prescribes the
compensation to be paid on land acquisition for industrial purposes.
It may be observed that the National Mineral Policy of 1993 was updated with a new Policy in 2008 which clearly
incentivizes private sector investment in exploration and its seeks to ensure increased transparency in allocation
of mineral concessions; gives thrust on building infrastructure for mining and seeks to promote R&D in minerals
and establish education facilities for human resource development.
The global mining trends and the reactions of the various Governments point to a case for India to fast-track adoption
of progressive policy measures for the mineral exploration and mining sector. The Company keenly awaits and
expects that the final version of the MMDRA would positively address the concerns expressed by the Company
and the industry associations like FIMI.
A detailed write-up on Outlook and Opportunities for the mineral exploration sector in general forms part of the
section Management Discussion and Analysis Report published elsewhere in this Annual Report.
3. OFFER FROM GEOMYSORE SERVICES (INDIA) PRIVATE LIMITED
During August, 2013 the Company was approached by Geomysore Services (India) Private Limited (GMSI), a
Bangalore-based gold exploration company for being taken over as a wholly-owned subsidiary. The Board of
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ANNUAL REPORT 2013

Directors considered the offer of GMSI and advised undertaking of a due diligence on GMSI. The due diligence
exercise has been completed and the Company is evaluating various options in this regard in consultation with its
legal and taxation advisors to structure the transaction in a manner that best serves the interest of all stakeholders.
It may be noted that GMSI is an unlisted private limited company that has been actively engaged in exploration
activities in India since 1994. GMSIs large portfolio of mineral concession applications and licences, covers most
of the important gold bearing Archaean and Proterozoic belts of India. GMSIs assets include a granted and
executed Mining Lease in respect of its Jonnagiri Gold Project in Andhra Pradesh.
4. SUBSIDIARY COMPANY
As required under Section 212 of the Companies Act, 1956, the audited Profit and Loss Account for the year ended
31 March, 2013 along with the Balance Sheet as at that date and the Reports of the Directors and Auditors thereon
of Deccan Exploration Services Private Limited, a subsidiary company is attached.
5. CORPORATE GOVERNANCE
The Company has complied with all the mandatory requirements of Corporate Governance specified by the
Securities and Exchange Board of India through Clause 49 of the Listing Agreement. As required by the said
Clause, a separate Report on Corporate Governance forms part of this Annual Report. A Certificate from M/s. Rathi
& Associates, Practising Company Secretaries, Mumbai regarding compliance with the conditions of Corporate
Governance also forms part of this Annual Report.
Further, in terms of Clause 49(IV)(F) of the Listing Agreement, a separate report titled Management Discussion
and Analysis forms part of this Annual Report.
6. DECCAN GOLD MINES EMPLOYEE STOCK OPTION PLAN, 2008
The disclosures required to be made under the SEBI (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 are given in the Annexure to the Report.
7. BOARD OF DIRECTORS
Mr. Charles E.E. Devenish and Dr. M. Ramakrishnan are the Directors who retire by rotation and being eligible, offer
themselves for reappointment. Further, Mr. Sandeep Lakhwara has been re-appointed as the Managing Director
of the Company for a period of 3 years with effect from 1 May, 2013 subject to the approval of the shareholders.
Necessary resolutions seeking the approval of the shareholders for the reappointment of the aforesaid Directors /
Managing Director forms part of the Notice convening the Annual General Meeting. In terms of Clause 49(IV)(G)
(i) of the Listing Agreement entered into with the Bombay Stock Exchange Limited, all the requisite details about
the Directors seeking re-appointment at the ensuing Annual General Meeting forms part of the Notice convening
the Annual General Meeting.
Further, pursuant to Clause 49(IV)(E)(iv) of the Listing Agreement, the shareholders may take note that none of
the Non Executive Directors hold any shares/convertible instruments in the Company as on the date of this Report.
8. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors confirm:

that in the preparation of the annual accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures.
that they have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year ended 31 March, 2013 and of the loss of the Company for that period.
that they have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
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that they have prepared the attached Statement of Accounts for the year ended 31 March, 2013 on a going
concern basis.
9. PERSONNEL
Your Directors place on record, their appreciation for the good work done by all the employees.
During the year under review, none of the employees of the Company was in receipt of remuneration in excess of
the limits prescribed under the provisions of Section 217 (2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975.
10. AUDITORS
The Statutory Auditors M/s. V.K. Beswal & Associates, Chartered Accountants, Mumbai retire at the ensuing Annual
General Meeting and being eligible, offer themselves for re-appointment.
11. STATUTORY AUDITORS REPORT
Observations made in the Statutory Auditors Report are self-explanatory and therefore, do not call for any further
comments under Section 217(3) of the Companies Act, 1956.
12. FIXED DEPOSITS
The Company has not accepted or renewed any deposit from public during the year under review.
13. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO
A. Conservation of Energy and Technology Absorption
Considering the nature of the Companys existing business activities, your Directors have nothing to state in
connection with conservation of energy and technology absorption.
B. Foreign exchange earnings and outgo
It may be noted that during the year under review, the Company did not have any foreign exchange earnings or outgo.
14. ACKNOWLEDGEMENT
The Directors wish to express their gratitude to all the business associates and to the Investors / Shareholders for
the confidence reposed in the Company and its management. The Directors also convey their appreciation to the
employees at all levels for their enormous personal efforts as well as collective contribution.
For and on behalf of the Board,
Charles E.E. Devenish

Chairman
Place : Bangalore
Date : 13 November, 2013
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ANNUAL REPORT 2013
ANNEXURE TO DIRECTORS REPORT

Disclosures pursuant to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999.
A. Summary of Status of Options Granted / Vested / Exercised during 2012-13
Total number of options granted
An aggregate of 30,00,000 stock options

have been granted under Deccan Gold Mines
Employee Stock Option Plan, 2008 (Plan)
Pricing Formulae
25% discount to the latest available closing

price of shares on Bombay Stock Exchange
Limited on a day previous to the date of grant.
Total Options granted
3,000,000
Options vested
1,050,000
Options Exercised
245,000
Variation in terms of ESOP
Not applicable
Total number of shares arising as a result of exercise of option
245,000
Money realized as a result of exercise of options
Rs. 4,152,750
Total number of options in force
1,987,500
B. Employee wise details of options granted during financial year 2010-11

(i) Senior Managerial Personnel
Number of options granted
Name
Mr. Sandeep Lakhwara, Managing Director, Deccan Gold Mines Limited
550,000
Dr. V.N. Vasudev, Director,

Deccan Exploration Services Private Limited (resigned w.e.f. 17 September, 2013)
450,000
Mr. S.C.R. Peshwa, Director

350,000
Dr. M. Hanuma Prasad, Director

350,000
Dr. M.K. Devarajan, Director

350,000
Dr. Saleem Ahmed Khan, Director

Deccan Exploration Services Private Limited (resigned w.e.f. 03/02/2012)
350,000
Mr. K. Karunakaran, Director

300,000
Mr. S. Subramaniam, Company Secretary,

300,000
(ii) No employee has been identified and granted options exceeding 1% of the issued capital (excluding outstanding
warrants and conversions) of the Company at the time of grant.
C. Diluted EPS pursuant to issue of shares on exercise of options calculated in accordance with Accounting
Standard (AS) 20 and weighted average exercise price of options granted during the year is Rs. (0.17).
The Company has also received a certificate from M/s V.K. Beswal & Associates, Chartered Accountants, Mumbai
and the Statutory Auditors of the Company that the Scheme has been implemented in accordance with the SEBI
Guidelines.
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Statement pursuant to Section 212 of the Companies Act, 1956 relating to Companys interest in the
Subsidiary Deccan Exploration Services Private Limited.
(` in 000)
1
The financial year of the subsidiary company ended on
31st March, 2013
Date from which it became subsidiary
a) No. of shares held by Holding Company with its nominee in the subsidiary

at the end of the financial year of the subsidiary
3rd March, 2005

10,000 equity shares
of Rs.10/- each

b) Extent of interest of holding company at the end of the financial year of

the subsidiary
4
100%
The net aggregate amount of subsidiarys profit (loss) so far as it concerns the members

a) Not dealt with in holding companys accounts:

i) For the financial year of the subsidiary

ii) For the previous financial years of the subsidiary since it became the subsidiary
of the company
Nil
Nil

b) Dealt with in holding companys accounts*:

i) For the financial year of the subsidiary

ii) For the previous financial year of the subsidiary
6940
7105
Changes in the holding companys interest in the Subsidiary between the end of the
financial year of the subsidiary and the end of the holding companys financial year
None
Material changes between the end of the financial year of the subsidiary and the
end of the holding companys financial year in respect of:
a) Subsidiarys fixed assets
b) Its investments
None
c) The monies lent by it
None
d) The monies borrowed for the purpose other than meeting current liabilities
None
883
*Consolidated accounts reflect the effect.

For and on behalf of the Board
Charles E.E.Devenish
Chairman
Sandeep Lakhwara
Managing Director

Place : Bangalore
S. Subramaniam
Dated : 30 May, 2013
Company Secretary
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ANNUAL REPORT 2013
MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INTRODUCTION
Established in 2003 by promoters with deep roots in the exploration and mining sector, Deccan Gold Mines Limited
(DGML) is the first and the only gold exploration company listed on the Bombay Stock Exchange Limited (BSE).
DGML brings to India, a wealth of international technical know-how and experience in the gold exploration and
mining sector. Since its establishment, DGML has actively pursued gold exploration activities in all of its exploration
prospects that resulted in identification of probable gold resources at several locations. DGML now has a large
portfolio of exploration prospects in the States of Karnataka, Andhra Pradesh and Rajasthan.
Details on the results of DGMLs exploration work has been provided under the heading Report on Exploration
Activities.
A comprehensive list of the prospects acquired by DGML and its 100% owned subsidiary Deccan Exploration
Services Private Limited (DESPL) has been provided under the heading Status of important applications for RP
/ PL / ML.
It must, however, be appreciated that exploration companies, have long gestation periods between exploration
and discoveries, to which DGML is no exception. This gestation period has been further impacted by the delays
in grant of permits by the Government authorities.
INDUSTRY REVIEW
Contribution of mining sector to Indias GDP has been stagnant at around 1.2% over the last decade. The Indian
mining sector grew at a CAGR of 7.3% in the last decade compared to 22% in China for the same period. The
percentage of population employed in mining sector in India is only 0.3% as compared to 3.8% in South Africa,
1.4% in Chile and 0.7% for China. Employment in the Indian mining sector has grown at a rate of about 3% per
annum over the last 10 years. (Source : Ministry of Mines, Government of India).
Recent global trends indicate that there is a rising demand relative to supply and increasing cost of mining leading
to an increase in commodity prices. Replenishing mineral reserves has become more difficult due to declining
ore grades and additional challenges such as inadequate infrastructure and human capital, critical to support the
growth of the sector. Consequently, we see heightened exploration activity with companies increasingly getting
into new geographies like Africa. The Governments worldwide are adopting progressive policy measures to boost
mining and mineral exploration in their countries. The Indian Government, too, has initiated several measures
like the new mining legislation (still awaiting the approval of the Indian Parliament) and Sustainable Development
Framework. The mining and mineral exploration industry keenly awaits the legislative and regulatory initiatives
from the Government to promote private and foreign investment and introduction of internationally compatible
mining policies.
PERFORMANCE
Full details of exploration work undertaken by the Company are contained in Report on Exploration Activities
forming part of this Annual Report. The status of our applications is contained in this Annual Report under the
heading Status of important applications for RP / PL / ML.
DGML incurred a total expenditure of ` 1062.51 lacs (cumulative) on exploration on its prospects as on 31 March
2013. The amount of exploration expenditure (cumulative) incurred as on 31 March, 2012 was ` 967.65 lacs.
Administrative and other costs for the year ended 31 March 2013 were ` 115.10 lacs compared to ` 127.61 lacs
for the year ended 31 March 2012.
The net loss of the company for the year ended 31 March 2013 was ` 102.05 lacs compared to ` 106.18 lacs for
the year ended 31 March 2012.
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DGMLs working capital funds as at 31 March 2013 were ` 174.69 lacs compared to ` 294.43 lacs for the year
ended 31 March 2012.
It is pertinent to note that exploration companies by their very nature will not generate mining revenues until
commencement of mining operations.
RISKS AND CONCERNS

The Company is into gold exploration which is highly speculative in nature and subject to several operational risks.
These risks include exploration and mining risks, delays in approvals to undertake exploration activities, delays
in grant of appropriate mineral concession licences, actual resources differing from estimates, operational delays
and the availability of equipment, personnel and infrastructure.
The Company is also dependent on key personnel and subject to actions of third parties, including the staff, other
contractors and suppliers.
The Companys operations are also subject to government laws and regulations, particularly environmental and
land acquisition regulations.
The Companys future revenues from product sales will be affected by changes in the market price of gold which
is affected by numerous factors which are beyond its control. These include international supply and demand, the
level of consumer product demand, international economic trends, currency exchange rate fluctuations, the level
of interest rates, rate of inflation, global or regional political events and international events as well as a range of
other market forces.
In the absence of cash flow from operations, the Company may have to rely on capital markets / private equity
investment to fund its operations. The Companys ability to raise further funds will depend on the success of
existing operations. Although the Company has been successful in the past in obtaining financing through the
sale of equity securities, there can be no assurance that additional funding will be available, or available under
terms favourable to the Company in future. Failure to obtain such additional finance may require the Company
to reduce the scope of its operations.
All the above factors notwithstanding, your Company and its Directors believe that they have adequate experience
and access to expertise and capital sources that will enable the Company to successfully develop, launch and
execute its projects successfully.
OUTLOOK AND OPPORTUNITIES

With global demand for minerals consistently outpacing supply, Governments worldwide are exploring all possible
options to boost supply in order to control the unprecedented rise in commodity prices. However, Indias spend
on exploration projects stands at a dismal 0.3% of the global spend (compared to 19% for Canada and 12% for
Australia). Exploration in India is mostly restricted to a depth of 50 to 100 metre vs. as deep as 300 metre in
countries like Australia. (Source: Ministry of Mines, Government of India).
With regard to gold, India imported 850 tonnes of gold valued at $ 58 billion in 2012-13 and it was one of the major
causes of the burgeoning current account deficit which is mainly affected by large-scale import of the yellow metal.
To bring down gold imports, the Government had raised duty on the yellow metal from 6% to 10%, followed by
Reserve Bank of India imposing curbs linking it to compulsory export of processed gold up to 20% of imports. In
addition to hiking the import duty on gold, duties on silver and platinum were also raised to 10%. In August, 2013
the Government also put a ban on import of gold coins and medallions.
India has the right geological potential for discovery and development of new gold mines. The 12th Five Year Plan
Core Group on Precious Metals has estimated that it is possible to produce about 45 tonnes of gold in the last
year (2017) of the Plan.
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ANNUAL REPORT 2013

In addition to substantially bridging the current account deficit, opening up and development of new mines could
help in mainstreaming the local communities (including tribal communities) by sharing the economic benefits of
mining related activities with them in a fair and equitable manner. Most of the mineral potential areas are in the
interior tribal areas of India, where the development is the lowest. The mineral sector can potentially change the
situation by providing much needed employment and infrastructure creation needs.
With the untapped mineral potential in India, the contribution of the mining sector in the GDP should aspire to
around 7-8% over 20 years. The mining sector needs to play a major role if India has to realize the potential growth
of 9% per annum in the coming years.
To unlock the potential of the mineral sector, the Indian Government would need to rework the legislative framework
for transparent, safe, scientific & sustainable mining and effective regulation. Concerted action is required to
promote scientific exploration for expanding the mineral reserves in India to its full potential. India needs to ensure
globally best, fair, transparent and efficient process for the mineral concession system that reduces permit delays
to create a more favourable policy environment.
Despite all these shortcomings, the gold exploration and mining sector holds substantial potential to contribute
to the growth of the economy and create value for all stakeholders, including the Central Government, State
Government (s) and the community at large.
To sum up, Deccan Gold Mines Limited, the only private sector listed gold exploration company is well poised to
take advantage of the potential that the sector offers. DGML with state of the art technology; a large pool of well
trained geologists, geophysicists and mining engineers has a unique combination of advantages to generate a
mineral-based economic development of enormous scale and value.
ADEQUACY OF INTERNAL CONTROL

The Company has in place adequate internal control systems, which assure proper recording of transactions of
its operations and also ensure protection against misuse or loss of the Companys assets. The Company has
constituted an Audit Committee and has assigned to it tasks that will further strengthen the internal audit system.
SUSTAINABLE DEVELOPMENT
DGML is committed to sustainable development; we believe in creating sustainable values that our employees,
business partners and shareholders can uphold and believe in. We strive to meet the needs of all our stakeholders.
DGML believes in making a positive contribution to the community in which we are involved. Our mission is to
increase the known gold resources base of the country in a way that enhances the well being of its people, the
environment, and the investors and stakeholders of the Company.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections,
estimates, expectations or predictions may be forward looking statements within the meaning of the applicable
securities laws and regulations. Actual results could differ materially from those expressed or implied. Important
factors that could make a difference to the Companys operations include the availability of economically viable
deposits, changes in Government regulations, tax regimes, economic developments in India and other incidental
factors.
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PRACTISING COMPANY SECRETARIES CERTIFICATE ON CORPORATE GOVERNANCE
To
The Members
We have examined the compliance of conditions of Corporate Governance by Deccan Gold Mines Limited (the
Company) for the year ended 31st March 2013 as stipulated in Clause 49 of the Listing Agreement of the said
Company with the Stock Exchange.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examinations
were limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance
of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing
Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.
For and on behalf of

M/s. Rathi & Associates
Company Secretaries
Place : Mumbai

Himanshu S. Kamdar
Partner
FCS No. 5171
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ANNUAL REPORT 2013
REPORT ON CORPORATE GOVERNANCE

for the year ended and as on 31 March, 2013
Pursuant to Clause 49 of Listing Agreement
1. COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE

Corporate Governance involves the building of a set of relationships between the Company, its Board, the
management, the shareholders and other stakeholders by putting in place a structure and a system through
which the established goals of the Company may be achieved. It denotes the process, structure and relationship
through which the Board of Directors oversees what the management does. Good governance is integral to the
existence of a Company. It inspires and strengthens investor confidence by ensuring Companys commitment to
higher growth and profits. Your Companys management and Board of Directors are committed to ensure good
corporate governance in its operations.
The Company has complied with the provisions of Clause 49 of the Listing Agreement entered into with the BSE
relating to Corporate Governance for the year ended and as on 31st March, 2013.
2. BOARD OF DIRECTORS
a)
Composition and category of directors, number of other Board and Board Committees in which they are
Chairperson / Member
As on 31st March, 2013, the Board comprised of 5 Directors out of which one is an Executive Director and the
other 4 are Non Executive Directors. Out of the 4 Non Executive Directors, 3 are Independent Directors. The
Chairman of the Board (Promoter Category) is a Non Executive Director and one-half of the Board comprises of
Independent Directors.
The Board comprises of competent professionals who are highly recognized in their respective field.
The composition of the Board and other relevant details relating to Directors are given below:
Name of the Director
Designation
Category of
Directorship
Chairman
Promoter,
Non-Executive
Managing Director
Director
Dr. M. Ramakrishnan
Prof. V.K. Gaur
No. of other
Directorships
No. of other
Committee
Memberships #
Chairman
Member
Nil
Nil
Executive
Nil
Nil
Nil
Non-Executive,
Independent
Nil
Nil
Nil
Director
Non-Executive,
Independent
Nil
Nil
Director
Non-Executive,
Independent
Nil
Nil
Nil
# Notes:
1. For the purpose of considering the limit of directorship positions, foreign companies have been excluded.
2. For the purpose of considering the limit of committee membership positions, membership of only Audit
Committee and Investors / Shareholders Grievance Committee have been considered.
3. There are no inter-se relationships amongst the directors.
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b) Reappointment of Directors
Detailed profiles of Mr. Charles E.E. Devenish and Dr. M. Ramakrishnan, Directors liable to retire by rotation and
who being eligible have offered themselves for re-appointment and of Mr. Sandeep Lakhwara, re-appointed as
Managing Director for a period of 3 years with effect from 1st May, 2013 subject to the approval of shareholders,
is furnished along with the Notice convening the ensuing Annual General Meeting.
c) Number of Board Meetings held & dates on which held

Four Board Meetings were held during the financial year 2012-13. These meetings were held on
14th May, 2012; 13th August, 2012; 12th November, 2012 and 12th February, 2013.
d) Attendance of each Director at the Board Meetings and the last Annual General Meeting

The details of attendance of Directors in Board Meetings and in the last Annual General Meeting held on
29th September, 2012 are as follows:
No. of Board Meetings attended
Attendance at the last Annual

General Meeting
(Yes / No)
Yes
Yes
Yes
Dr. M. Ramakrishnan
Yes
Prof. V.K. Gaur
No
Name of the Director
3. AUDIT COMMITTEE
a) Brief description of terms of reference
The terms of reference of the Audit Committee as defined by the Board are as under:
i)
Hold discussions with the auditors periodically about internal control systems, the scope of audit including
the observations of the auditor and review the quarterly, half-yearly and annual financial statements before
submission to the Board and also ensure compliance of internal control systems.
ii)
Oversight of the Companys financial reporting process and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and credible.
iii)
Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal
of the statutory auditor and the fixation of audit fees.
iv)
Approval of payment to statutory auditors for any other services rendered by the statutory auditors.
v)
Reviewing, with the management, the annual financial statements before submission to the Board for approval,
with particular reference to:
(a) Matters required to be included in the Directors Responsibility Statement to be included in the Boards
Report in terms of clause (2AA) of section 217 of the Companies Act, 1956.
(b) Changes, if any, in accounting policies and practices and reasons for the same.
(c) Major accounting entries involving estimates based on the exercise of judgment by management.
(d) Significant adjustments made in the financial statements arising out of audit findings.
(e) Compliance with listing and other legal requirements relating to financial statements.
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ANNUAL REPORT 2013

(f)
Disclosure of any related party transactions.
(g) Qualifications in the draft audit report.

vi)
Reviewing, with the management, the quarterly financial statements before submission to the board for
approval.
vii) Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal
control systems.
viii) Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department,
staffing and seniority of the official heading the department, reporting structure coverage and frequency of
internal audit.
ix)
Discussion with internal auditors on any significant findings and follow up there on.
x)
Reviewing the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the
matter to the board.
xi)
Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well
as post-audit discussion to ascertain any area of concern.
xii) To look into the reasons for substantial defaults in the payment to the depositors, debenture holders,
shareholders (in case of non payment of declared dividends) and creditors.
xiii) Review of information as prescribed under Clause 49 (II)(E) of the listing agreement.
POWERS OF THE AUDIT COMMITTEE
Further, the Board has delegated the following powers to the Audit Committee:
i)
Investigating any activity within its terms of reference as above, or in relation to the items specified in Section
292A of the Companies Act, 1956, or as may be referred to it by the Board, from time to time and for this
purpose, it shall have full access to information contained in the records of the Company and external
professional advice, if necessary.
ii)
Seek information from any employee.
iii)
Obtain outside legal or other professional advice, if necessary.
iv)
Secure attendance of outsiders with relevant expertise, if it considers necessary.
b)
Composition, name of members & Chairperson
The Committee comprises 3 Non Executive Directors, all of whom are Independent Directors. All the members
of the Committee are financially literate. The Chairman of the Committee is an Independent Director and is the
member with accounting or related financial management expertise.
The name of members & Chairperson of the Committee are as under:
Name of Member
Designation
Chairman
Dr. M. Ramakrishnan
Member
Prof. V.K. Gaur
Member
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c)
Meetings and attendance during the year
Four Audit Committee Meetings were held during the financial year 2012-13. These meetings were held on
14th May, 2012; 13th August, 2012; 12th November, 2012 and 12th February, 2013.
The details of attendance in Audit Committee Meetings are as follows:
Name of Member
No. of Meetings
Attended
Dr. M. Ramakrishnan
Prof. V.K. Gaur
d) The Company Secretary acts as Secretary to the Committee. Further, the Audit Committee invites such of
the executives of the Company as it considers appropriate to be present at its meetings. The representatives
of the Statutory Auditors are also invited to these meetings.
4. REMUNERATION COMMITTEE
a) Brief Description of terms of reference
Although a non-mandatory requirement, the Company has constituted a Remuneration Committee. This Committee
also functions as the Compensation Committee under the supervision and control of the Board of Directors in
accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 for the implementation of the Deccan Gold Mines Employee Stock Option Plan 2008.
The terms of reference of the Committee are to review and recommend compensation payable to the Executive
Directors and Senior Management of the company. It shall also administer the Companys stock option plans, if
any, including the review and grant of the stock options to eligible employees under such plans. The Committee
may review the performance of the Executive Directors, if any and for the said purpose may lay down requisite
parameters for each of the Executive Directors at the beginning of the year.
b) Composition, name of members and Chairperson
The Committee comprises of Non Executive Directors and the Chairman is an Independent Director.
The name of members & Chairperson of the Committee are as under:
Name of member
Designation
Chairman
Dr. M. Ramakrishnan
Member
Member (ceased to be a member w.e.f.

13th August, 2012)
Prof V.K. Gaur
Member (inducted as a member w.e.f.

13th August, 2012)
c) Attendance during the year

The Remuneration Committee did not meet during 2012-13.
During the financial year 2012-13, the Compensation Committee met once on 29th May, 2012 for issue and
allotment of equity shares pursuant to exercise of stock options by the allottee (s) under the Deccan Gold Mines
Employee Stock Option Plan 2008. Mr. K.R. Krishnamurthy and Mr. Charles E.E. Devenish and attended the
meeting. Dr. M. Ramakrishnan did not attend the meeting due to his preoccupations.
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ANNUAL REPORT 2013

d) Remuneration Policy & details of remuneration to all Directors
i) Management Staff
Remuneration of employees largely consists of basic remuneration and perquisites. The components of the total
remuneration vary for different grades and are governed by industry patterns, qualifications and experience of the
employee, responsibilities handled individual performance, etc.
ii) Non-Executive Directors
The Company pays sitting fees to all the Non-executive Directors of the Company for attending Board & Committee
Meetings. The sitting fees paid is within the limits prescribed under the Companies Act, 1956.
Details of the sitting fee paid to Non Executive Directors during the year 2012-13 is as under:
Name of the Director /
Member
Sitting Fees paid for

attending meetings of (in `)
Board

Dr. M. Ramakrishnan
Audit Committee
15,000
7,500
5,000
5,000
Prof. V.K. Gaur
20,000
10,000
Total
40,000
22,500
iii) Executive Directors

The aggregate of the salary paid in the financial year 2012-13 to Mr. Sandeep Lakhwara, Managing Director is
` 12,00,000/-.
5. SHAREHOLDERS / INVESTORS GRIEVANCE COMMITTEE

a) Name of Non Executive Director heading the Committee
Mr. K.R. Krishnamurthy, a Non Executive Director heads the Committee.
This Committee has been constituted to look into investors complaints like transfer of shares, non-receipt of
declared dividends, etc. and take necessary steps for redressal thereof. Presently, the Registrars & Share Transfer
Agents of the Company are attending to the share transfer requests on a regular basis.
The Committee met thrice during the financial year 2012-13. These meetings were held on 14th May, 2012; 13th
August, 2012 and 12th November, 2012.
The composition of the Shareholders/Investors Grievance Committee and the details of attendance in meetings
are as follows:
Name of Director
Designation
No. of Meetings Attended
Chairman
Member
b) Compliance Officer
Mr. S. Subramaniam, Company Secretary is the Compliance officer of the Company.
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c) Shareholder Complaints
During the financial year 2012-13, the Company did not receive any investor complaints. As such, there were no
pending complaints as at the end of the year.
6. GENERAL BODY MEETINGS
i)
Location, time and date of holding of the last three Annual General Meetings (AGM) are given below:
Financial Year
ii)
Date
Time
Location of the Meeting
2009-10
29/09/2010 3.00 p.m. Royal Room, 3rd Floor, Sunville Banquets, 9, Dr. Annie
Besant Road, Worli, Mumbai 400 018.
2010-11
2011-12
Special Resolutions during previous three Annual General Meetings:

Date of AGM
29/09/2010
Particulars of Special Resolutions Passed

Reappointment of Mr. Sandeep Lakhwara as Managing
Director for 3 years with effect from 1st May, 2010.
iii)
During the financial year 2012-13, no resolutions were passed through Postal Ballot.
iv)
Resolutions, if any, passed by Postal Ballot shall be in accordance with the provisions of Section 192A of the
Companies Act, 1956 read with Companies (Procedure for Passing of Postal Ballot) Rules, 2001.
v)
No Special resolution is proposed to be passed through Postal Ballot in the ensuing AGM.
7. DISCLOSURES
a) The Company did not have any related party transactions, i.e. transactions of the Company of material nature,
with its promoters, Directors or the Management, their subsidiaries or relatives, etc., which may have potential
conflict with the interests of the Company at large. Related Party transactions have been disclosed in the
Notes to Accounts in the financial statements as at 31st March, 2013.
b)
There was no non-compliance in respect any matter related to the capital markets by the Company during
the last 3 years. Further, there was no penalty / strictures imposed on the Company by any Stock Exchange,
SEBI or any Statutory Authority on any matter related to the capital markets during the last 3 years.
c)
The Company has complied with all the mandatory requirements as contained in Clause 49 of the Listing
Agreement.
8. MEANS OF COMMUNICATION
i.
The quarterly results are published in leading English and Marathi newspapers. Further, they are also
submitted to the BSE upon their approval by the Board of Directors and are available on the website of BSE
(www.bseindia.com).
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ii.
The website of the Company (www.deccangoldmines.com) also displays official news releases issued on
behalf of the Company.
iii.
No presentations were made to institutional investors or to the analysts during the year under review.
9. GENERAL SHAREHOLDER INFORMATION

i. Annual General Meeting:
Day / Date
Time
Venue
Wednesday, 11 December, 2013

3.00 p.m.,
Banquet Room, Ground Floor, West End Hotel,
45 New Marine Lines, Mumbai - 400 020.
ii. Financial Year:

The Company follows April-March as its financial year. The audited financial results (stand alone and consolidated)
for the year ended 31st March, 2013 has been published by the Company upon approval of the Audit Committee
and Board of Directors of the Company at their meeting held on 30th May, 2013.
The financial calendar would be as under:
Unaudited financial results for quarter /
half-year ending
Reporting Date
30th June, 2013
14th August, 2013
30th September, 2013
By 14th November, 2013
31st December, 2013
By 14th February, 2014
31st March, 2014
By 31st May, 2014
Annual General Meeting for the year ending By 30th September, 2014
31st March, 2014
iii. Date of Book Closure
4th December, 2013 (Wednesday) to 11th December, 2013 (Wednesday) - both days inclusive.
iv. Dividend Payment Date
Not applicable
v. Listing on Stock Exchanges

The Companys shares are listed on Bombay Stock Exchange Limited (BSE). The Company has paid the
listing fees to the Stock Exchange within the prescribed time
vi. Stock Code

512068 (BSE).
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vii. Market price data high & low during each month of last financial year

The monthly high and low quotations of the Companys shares traded on the BSE is as follows:
High
Low
BSE Sensex - High
BSE Sensex - Low
April 2012
Month
23.35
18.50
17,664.10
17,010.16
May 2012
19.35
17.10
14,432.33
15,809.71
June 2012
19.80
17.20
17,448.48
15,748.98
July 2012
19.90
16.10
17,631.19
16,598.48
August 2012
19.25
15.60
17,972.54
17,026.97
September 2012
20.85
16.50
18,869.94
17,250.80
October 2012
26.45
20.05
19,137.29
18,393.42
November 2012
25.50
21.50
19,372.70
18,255.69
December 2012
23.25
19.20
19,612.18
19,149.03
January 2013
23.70
19.00
20,203.66
19,508.93
February 2013
20.50
16.80
19,966.69
18,793.97
March 2013
19.75
15.05
19,754.66
18,568.43
viii. Performance in comparison to broad-based indices of BSE Sensex
_____ Deccan Gold Mines Limited (DGML) Share Price

---------- BSE Sensex
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ANNUAL REPORT 2013

ix.

Registrar and Transfer Agents

(Formerly Intime Spectrum Registry Limited)
C-13, L.B.S. Marg,
Bhandup (W), Mumbai 400 078.
Tel : 91-22-25963838 & Fax : 91-22-25946969
E-mail: [email protected]
x. Share Transfer System

Applications for transfer of shares held in physical form are received at the office of the Registrars and Share
Transfer Agents of the Company. They attend to share transfer formalities at least once in 15 days.

Shares held in the dematerialized form are electronically traded in the Depository and the Registrars and
Share Transfer Agents of the Company periodically receive from the Depository the beneficiary holdings so
as to enable them to update their records for sending all corporate communications, dividend warrants, etc.
Physical shares received for dematerialization are processed and completed within a period of 21 days from
the date of receipt, provided they are in order in every respect. Bad deliveries are immediately returned to
Depository Participants under advice to the shareholders.
xi. Shareholding Pattern & Distribution of Shareholding

(a) Shareholding Pattern (as at 31 March, 2013)

Sr. No.
Category
No. of Shares held
1.
Promoter Group
2.
Banks/FI/FII/Mutual Funds / UTI / Central & State Govt.,/ 1805581

Venture Capital / Foreign Venture Capital / Trusts
43.12
3.08
3.
Bodies Corporate
3804289
6.47
4.
Individual Public shareholders
25092406
42.69
5.
Clearing Member
376012
0.64
6.
Non Resident Indians / NRNs
2350513
4.00
Total
58,771,250
100.00
25342449
(b) Distribution of Shareholding (as at 31st March, 2013)

Shareholding of Nominal
Value (`)
1 -
500
No. of Shareholders
18043
% of Total
74.98
Shares
3562823
% of Total
6.06
501 -
1000
2948
12.25
2571352
4.38
1001 -
2000
1379
5.73
2216842
3.77
2001 -
3000
483
2.01
1262881
2.15
3001 -
4000
212
0.88
779845
1.33
4001 -
5000
240
1.00
1135962
1.93
5001 -
10000
373
1.55
2876498
4.89
385
1.60
44365047
75.49
24063
100.00
58,771,250
100.00
10001 and above

TOTAL
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xii. Dematerialisation of Shares and Liquidity

About 99.79% of the shares have been dematerialized as on 31st March, 2013. The equity shares of the
Company are traded at Bombay Stock Exchange Ltd. (BSE).
xiii. Details of Shares held by Non-Executive Directors as on 31st March 2013

Sr. No. Name of the Non-Executive Director
No. of Shares held
Nil
Nil
Dr. M. Ramakrishnan
Nil
Prof V.K. Gaur
Nil
xiv. Outstanding GDRs / ADRs / Warrants or any Convertible Instruments, conversion date and likely
impact on equity:

The Company has not issued any GDRs / ADRs / Warrants or any Convertible instruments which were
outstanding as of 31st March, 2013. However, details of the stock options granted, vested and exercised
and outstanding at the end of the year that were issued under the Deccan Gold Mines Employee Stock Option
Plan, 2008 are given in the Annexure to the Directors Report forming part of the Annual Report for the year
2012-13.
xv. Plant locations

The Plant Locations are NIL. The Company does not have any manufacturing activities.
xvi. Address for Correspondence:

For any assistance regarding dematerialization of shares, share transfers, transmissions, change of
address, non-receipt of dividend or any other query relating to shares:

(formerly Intime Spectrum Registry Limited)
C-13, L.B.S. Marg,
Bhandup (W), Mumbai 400 078.
Tel : 91-22-25963838 & Fax : 91-22-25946969
E-mail : [email protected]
For general correspondence :

Deccan Gold Mines Limited,
Raja Ikon Building, 4th Floor,
# 89/1, Marathahalli Outer Ring Road, Bangalore 560 037.
Tel : 91-80-40428400 & Fax : 91-80-40428401
e-mail : [email protected]
10) Non-mandatory Requirements:

I.
The Board
(a) An office for the use of the Chairman is made available whenever required.
(b) At present there is no policy fixing the tenure of independent directors.
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ANNUAL REPORT 2013

II. Remuneration Committee
Particulars of constitution of Remuneration Committee and terms of reference thereof has been detailed
earlier.
III. Shareholders Rights
Half yearly financial results including summary of the significant events in last six months are presently, not
being sent to shareholders of the Company.
IV. Audit Qualifications

The financial accounts of the Company are unqualified.
V.
Training of Board Members

There is no formal policy at present for training of the Board Members of the Company as the members of
the Board are eminent and experienced professional persons.
VI. Mechanism for evaluating non-executive board members

There is no formal mechanism existing at present for performance evaluation of non-executive directors.
VII. Whistle Blower Policy
The Company has not implemented the whistle blower policy.
CODE OF CONDUCT DECLARATION

Pursuant to Clause 49 I (D) of the Listing Agreement entered into with the Stock Exchanges, I hereby declare
that the Company has obtained affirmative compliance with the code of conduct from all the Board members and
senior management personnel of the Company.
Sandeep Lakhwara
(Managing Director)
Place : Bangalore
Date : 13th November, 2013
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AUDITORS REPORT
To the Members of
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Deccan Gold Mines Limited, which comprise the
Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
As required by the Companies (Auditors Report) Order, 2003 (the Order) issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
As required by section 227(3) of the Act, 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 audit;
b.
in our opinion proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books [and proper returns adequate for the purposes of our audit have been
received from branches not visited by us];
c.
the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in
agreement with the books of account
d.
in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;
e.
on the basis of written representations received from the directors as on March 31, 2013, and taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed
as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
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ANNUAL REPORT 2013

f.
Since the Central Government has not issued any notification as to the rate at which the cess is to be paid
under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing
the manner in which such cess is to be paid, no cess is due and payable by the company.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013
(b) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
For V. K. BESWAL & ASSOCIATES

CHARTERED ACCOUNTANTS
FIRM REGN NO 101083W
CA K.V. BESWAL
PARTNER
Membership Number: 131054
Place : Mumbai
Dated : 30 May 2013
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DECCAN GOLDMINES LIMITED
ANNEXURE TO THE AUDITORS 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 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 no sale of fixed assets during the year. 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.
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 ` 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 Act, 1956.
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, 2013 for a period more than six months from the date they became payable.
10. The accumulated losses of the Company are more than 50% of its net worth as at 31st March 2013. The Company
has incurred a cash loss of ` 67.67 lacs in the current financial year and ` 52.75 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.
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ANNUAL REPORT 2013

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. The company has made preferential allotment of shares to parties and companies covered in the register maintained
under section 301 of the Act. In our opinion, prices at which shares have been issued is not prejudicial to the interest
of the company.
19. No debentures have been issued by the Company during the year and hence, the question of creating securities
in respect thereof does not arise.
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 audit.

CA K.V. BESWAL
PARTNER
Place : Mumbai
Dated : 30 May 2013
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(FORMERLY WIMPER TRADING LIMITED)
BALANCE SHEET AS AT 31 MARCH 2013

Note No.
Particulars
I.

EQUITY AND LIABILITIES

Shareholders Funds
(a) Share Capital
1
58,771
58,526
(b) Reserves and Surplus
2
(49,522)
(35,124)
(c) Employee Stock Option Outstanding
10,503
8,717

Non-Current Liabilities

(a) Long-term Provisions
3

Current Liabilities

(a) Trade Payables
4

(b) Other Current Liabilities
5

31-03-2013
(Amount in 000)
31-03-2012
19,752
32,119
739
739
613
613
5,736
150
5,886
3,297
408
3,705

TOTAL (I)
26,377
36,437

II. ASSETS

Non-Current Assets

(a) Fixed Assets
6

(i) Tangible Assets
796
1,055

(ii) Intangible Assets
12
19

(iii) Capital Work-in-Progress
-

(b) Non-Current Investments
7
100
100

(c) Other Non-Current Assets
8
2,115
2,115

3,023
3,289

Current assets

(a) Current Investments
9
16,612
25,299

(b) Cash and Cash Equivalents
10
1,658
2,916

(c) Short-term Loans and Advances
11
5,085
4,933

(d) Other Current Assets
-

23,355
33,148
TOTAL (II)
26,377
36,437
Notes are integral part of the Balance Sheet and Profit & Loss Account
As per our report of even date,
For V. K. BESWAL & ASSOCIATES,

CA K.V. BESWAL
PARTNER
Chairman

Place : Mumbai
Place : Bangalore
Dated : 30 May 2013
Dated : 30 May 2013
Sandeep Lakhwara
Managing Director
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2013
(Amount in 000)
Particulars
Note No.
31-03-2013
31-03-2012
Other Income
12
1,571
3,028

Total Revenue
1,571
3,028

Expenses:
Employee benefits expense
13
5,408
6,684

Finance costs
14
14
16

Depreciation and amortization expense
6
266
885

Other expenses
15
6,088
6,061

Total expenses
11,776
13,646

Loss before extraordinary items and tax
(10,205)
(10,618)

Extraordinary Items

Prior year adjustments
-
Loss before tax
(10,205)
(10,618)

Tax expense:
(1) Current tax
-

Loss for the period
(10,205)
(10,618)

Earnings per equity share: Basic (in `)
-0.17
-0.18
Earnings per equity share: Diluted (in `)
-0.17
-0.18

CA K.V. BESWAL
PARTNER
Chairman

Place : Mumbai
Place : Bangalore
Dated : 30 May 2013
Dated : 30 May 2013
Sandeep Lakhwara
Managing Director
S. Subramaniam
Company Secretary
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NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013

Note : 1 Share Capital
A
Particulars
31 March 2013
Numbers
31 March 2012
` (000)
Numbers
` (000)
Authorised
Equity Shares of ` 1 each
100,000,000 100,000
100,000,000
100,000
100,000,000
100,000
100,000,000
100,000
Issued, Subscribed & Fully Paid up

Equity Shares of ` 1 each
58,771,250
58,771
58,526,250
58,526
Total
58,771,250
58,771
58,526,250
58,526
B Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particulars
31 March 2013
At the beginning of the year
Add Shares Issued on exercise of

Employee Stock Options
At the end of the year
Equity Shares
31 March 2012
Numbers
` (000)
Numbers
` (000)
58,526,250
58,526
58,450,000
58,450
245,000
245
76,250
76
58,771,250
58,771
58,526,250
58,526

C Shares held by holding company / ultimate holding company and/or their subsidiaries/associates

Particulars
Nature of Relationship
31 March 2013

Equity Shares

31 March 2012
NIL
Detail of shareholders holding more than 5% of shares in the company
Name of Shareholder
Equity Shares
31 March 2013
31 March 2012
No. of
Shares held
% of
Holding
No. of
Shares held
% of
Holding
25,342,449
43.12
25,747,506
43.99
Rama Mines (Mauritius) Limited

E
The Company has reserved issuance of 19,87,500 (Previous year 25,73,750) Equity shares of ` 1/- each for
offering to eligible employees of the company and its subsidiaries under Employees Stock Option Scheme (ESOS).
During the Financial Year 2010-2011 the company has granted 30,00,000 option to the eligible employees at a price
of ` 16.95/- per option plus all applicable taxes, as may be levied in this regard on the company]. The Options
would vest over a maximum period of 3 years or such other period as may be decided by the Employees Stock
compensation Committee from the date of grant based on specified criteria.

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ANNUAL REPORT 2013

F. Disclosure pursuant to Note no. 6(A)(i) of Part I of Schedule VI to the Companies Act, 1956

Particulars
Aggregate No. of Shares

(for last 5 Financial Years)
Equity Shares :
Fully paid up pursuant to contract(s) without payment being received in cash
NIL
Fully paid up by way of bonus shares
NIL

Shares bought back

Note - 2 : Reserve and surplus
NIL
Particulars

31 March 2013
` (000)
31 March 2012
` (000)
a. Capital Reserves

Opening Balance
16,726
16,726

(+)/(-) Transfer
-

Closing Balance
16,726
16,726
b. Securities Premium Account

Opening Balance
98,177
96,530

(+) on allotment of Equity Shares
5,292
1,647

Closing Balance
103,469
98,177
c. Profit & Loss Account

Opening balance
(53,262)
(42,644)

(+ ) Net Loss For the current year
(10,205)
(10,618)

Closing Balance
(63,466)
(53,262)
d. Preoperative Expenses

Opening balance
(96,765)
(75,977)

(+) Incurred during the year
(9,485)
(20,788)

Closing Balance
(106,251)
(96,765)
Total

Note - 3 : Long Term Provisions
(49,522)
(35,124)
31 March 2013
` (000)
31 March 2012
` (000)
739
613
Particulars

Provision for Gratuity

739
613

Note - 4 : Trade payables
Particulars

31 March 2013
` (000)
Due to Mirco, small and medium enterprises
Due to Others
5,736
31 March 2012
` (000)
3,297
Total
5,736
3,297

Note: Based on the information available with the Company, there are no suppliers who are registered as micro small &
Medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006, as at 31 March 2013.

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Note - 5 : Other Current Liabilities

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
(i) Statutory dues
20
302
(ii) other liability
130
106
Total
150
408
Note 6 : Fixed Assets

(Amount in 000)

Fixed Assets
Gross Block
Accumulated Depreciation
Net Block (WDV)
Balance
Balance
Balance
Balance
Balance
Balance
as at
as at
as at For the Written
as at
as at
as at
01-04-2012 Additions Disposals 31-03-2013 01-04-2012 year
back 31-03-2013 31-03-2013 31-03-2012
Tangible Assets :
Land - Lease hold
2,864
-
-
2,864
2,864
-
-
2,864
-
Plant and Equipment
1,138
-
-
1,138
590
164
-
755
383
Vehicles
502
-
-
502
446
15
-
460
42
Computer
268
-
-
268
235
13
-
248
20
Furniture and Fixtures
563
-
-
563
363
36
-
399
164
Office equipment
452
-
-
452
235
30
-
265
187
Total
5,788
796
1,055
Intangible Assets :
Computer software
146
-
-
146
127
8
-
135
12
19
Total
19
146
5,788
146
4,733
127
259
4,992
548
56
33
200
218
135
12
Capital Work In Progress
Total
Intangible assets
under Development
5,935
6,104
Total
Previous Year
169
5,935
4,860
266
5,935
4,120
885
-
145
5,127
808
1,074
4,860
1,074
Note - 7 : Non-current investments

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
Investments in Wholly Owned Subsidiary Company:

10,000 Equity Shares of Rs.10 Each of
Deccan Exploration Services Pvt Ltd fully paid
100
100
Total
100
100

Note - 8 : Other Non-current Assets

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
Security Deposits
2,115
2,115
Total
2,115
2,115
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ANNUAL REPORT 2013

Note - 9 : Current investments

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Investments in Mutual Fund:
Reliance Medium Term Fund Daily Dividend Plan

(P Y Market Value Rs. 4.28 Lacs)
BNP Paribas Money Plus Fund Weekly Dividend

(C.Y Market Value Rs.166.28 Lacs P Y Market Value Rs. 248.89 Lacs)
16,612
24,871
Total
16,612
25,299
428
Note - 10 : Cash and Cash Equivalents

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
a. Balances with banks

On current accounts in scheduled bank
1,580
2,866
b. Cash on hand
78
50

Total
1,658
2,916

Note - 11 : Short-term loans and advances

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Advance receivable in cash or kind
11
5

Balance with Government Authorities

Income Taxes (Net)
2,225
2,225
Service Tax
2,849
2,703
Total
5,085
4,933
Note - 12 : Other Income

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Profit on Sale of Investment

Interest on tax refund
Dividend Income
20
-
1,551
41
3
2,984
Total
1,571
3,028

Note - 13 : Employee Benefit Expenses

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Salaries & wages

Expenses on Employee Stock Option Scheme
Staff welfare expenses
2,226
3,170
12
2,205
4,457
22
Total
5,408
6,684
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Note - 14 : Finance costs

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Bank Charges
Interest Paid
14
0
14
2
Total
14
16

Note - 15 : Other expenses

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Electricity Expenses
Listing Fees
Rent
Rates and taxes
Repair and maintenance
Directors Remuneration
Business promotion & Advertisement Expenses
Travelling and conveyance
Communication Expenses
Legal and Professional fees
Directors sitting fees
Auditors Remuneration
Loss on Disposal of Assets
Miscellaneous expenses
Membership & Subscription fees
116
262
2,037
7
247
1,200
1,070
218
21
597
63
226
-
3
20
146
260
2,014
27
184
1,200
1,075
195
17
583
68
198
24
38
32
Total
6,088
6,061

Payments to Auditor

Particulars
31 March 2013 31 March 2012

` (000)
`.(000)

For Audit Fee
105
105
For Certification & Others
121
93
Total
226
198
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ANNUAL REPORT 2013

Notes -16
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ANNEXED TO

BALANCE SHEET AS AT 31 MARCH, 2013

(i) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:
A. Basis of accounting:
The financial statements are prepared under the historical cost convention and comply with the applicable accounting
standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.
B. Fixed Assets:
Fixed Assets are stated at cost of acquisition less depreciation. All costs relating to the acquisition and installation of
fixed assets are capitalised.
C. Depreciation:
1. Depreciation is provided as per Written down Value prescribed under Schedule XIV of the Companies Act, 1956.
2. Depreciation on Leased Premises is provided over a period of five years i.e the tenure of the lease
D. Foreign Currency transactions
Transactions of foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or at the
exchange rate under related forward exchange contracts. The realized exchange gains/losses are recognized in the
Profit & Loss Account. All foreign currency assets/ liabilities are translated in rupees at the rates prevailing on the date
of Balance Sheet.
E. Investments:
(a)
Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other
than temporary nature.
(b)
Current investments are carried at the lower of cost and market value. The determination of carrying cost of such
investments is done on the basis of specific identification.
F. Taxes on income:
1. Current year tax is determined in accordance with Income Tax Act, 1961 at the Current Tax rates based on assessable
income.
2.
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 Accounting Standard
22 Accounting for taxes on income issued by The Institute of Chartered Accountants of India.
G. Impairment of Assets:
At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether
there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an
assets net selling price and value in use.
H. Revenue Recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured.
1.
2.
3.
Exploration Income is recognised when services are provided

Interest Income is recognised on accrual basis
Dividend Income is accounted on accrual basis when the right to receive the dividend is established
I. Employee Benefits
Leave encashment : The company does not have a policy of carry forward of pending leaves and hence no provision
for the same is made as mentioned under AS - 15 issued by ICAI.
Gratuity
: Gratuity provision is made for qualifying employees. Gratuity liability is defined benefit obligation
and is provided for on the basis of an actuarial valuation on projected unit cost method.
J Provisions , contingent liabilities and contingent assets

Estimation of the probability of any loss that might be incurred on outcome of contingencies on basis of information
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available up to the date on which the financial statements are prepared. A provision is recognised when an enterprise
has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on management
estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions.
These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases
where the available information indicates that the loss on the contingency is reasonable possible but the amount of
loss cannot be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote
possibility neither provision nor disclosure is made in the financial statement. The company does not account for or
disclose contingent asset, if any.
K. Stock Option Granted
The stock options granted are accounted for as per the accounting treatment prescribed by Employee Stock Option
Scheme and Employee Stock Purchase Guidelines, 1999, issued by Securities and Exchange Board of India, whereby
the intrinsic value of the option is recognised as deferred employee compensation. The deferred employee compensation
is charged to Profit & Loss Account on straight-line basis over the vesting period of the option. The employee stock option
outstanding account is shown net of any unamortized deferred employee compensation.
(ii) NOTES TO THE ACCOUNTS:
S No
PARTICULARS

31 March 2013
` (000)
31 March 2012
` (000)
Nil
1.
Capital Commitments
Nil
2.
Claims made against the company but not acknowledged as debts
Nil
Nil
3.
Contingent Liabilities on disputed Income Tax
Nil
2.57
4.
Additional information pursuant to para 3 & 4 of para ii of
Schedule VI of the Companies Act, 1956.
a. Expenditure in foreign currency
Nil
Nil
b. Earning in foreign currency
Nil
Nil

5. Related party disclosure
a) Name of related parties and relationship
S. No.
Name of the party
Relationship
Wholly owned subsidiary
Sandeep Lakhwara
Managing Director
Chairman
K.R.Krishnamurthy
Director
Dr.M.Ramakrishnan
Director
V.K.Gaur
Director
b) Transactions with related parties:S. No. Nature

31 March 2013
` (000)
31 March 2012
` (000)
Reimbursement of Exploration Expenses to Subsidiary
9,276.83
16,821.40
Managerial Remuneration paid to Directors
1,200.00
1,200.00
Directors Sitting Fees & Audit Committee Fees
62.50
67.50
Rent for Guest House to Managing Director
360.00
360.00
5.
Equity Shares issued under ESOP
To Managing Director(80,000 Equity shares @ Rs 16.95 each)
1,356.00

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ANNUAL REPORT 2013

6.
The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not
commenced and therefore it is the Companys intention to account for all the exploration expenditure of ` 1062.51
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.
7.
Disclosure in respect of Employee Stock Option Scheme
a. Employee Stock Option Scheme:

Particulars
Tranche-I
Tranche-II
Tranche-III
No of Options
750,000
1,050,000
1,200,000
Method of Accounting
Intrinsic Value
Vesting Period
Exercise Period
Grant Date
02-06-2011
02-06-2012
1 year
1 year
1 year
02-06-2010
02-06-2010
02-06-2010
Grant/Exercise Price (Rs.16.95 per share)

16.95
Market Price on the date prior to the
16.95
date of grant of option)
22.60
22.60
02-06-013
16.95
22.60
b. Movement of Options granted

Particulars

Options outstanding at the beginning of the year
01.04.2012
to
31.03.2013
01.04.2011
to
31.03.2012
25,73,750
30,00,000
76,250
Exercised during the year
2,45,000
Options Lapsed during the year
3,41,250
Option Lapsed on account of Employee resignation
*3,50,000
Options outstanding at the end of the year
19,87,500
25,73,750
Option unvested at the end of the year
10,60,000
19,87,500
Option exercisable at end of the year
9,27,500
5,86,250
* This includes 87500 stock options vested on 2nd June 2011
c. Employee Stock Option

Employee Stock Option Outstanding account ` 112.29 Lacs & Deferred Employee Compensation account ` 7.26 Lacs.
Employee Compensation Expenses amounting to ` 31.70 Lacs is included under the head Salaries and other benefits.
8. Defined benefit Plans: A
The amounts (in ` ) recognised in the statement of Profit and Loss are as follows:
Defined benefit Obligation

S. No.
Particulars
31.3.2013
31.3.2012
1
2
3
4
5
6
Current service cost

Interest on obligation
Expected return on plan assets
Net actuarial losses (gains) recognised in year ended
Past service cost
Losses (gains) on curtailments and settlement
93,100
52,079
-
(19,112)
-
-
87,997
40,634
(23,855)
-
Total, included in Employee Benefit Expense
126,067
104,776
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B
Changes in the present value of the defined benefit obligation representing reconciliation of opening and closing
balances thereof are as follows:

S. No. Particulars
31.3.2013
31.3.2012
1
2
3
4
5
6
7
8
9
Opening Defined Benefit Obligation

Service cost for the year
Interest cost for the year on opening D.B.O.
Actuarial losses (gains)
Losses (gains) on curtailments
Liabilities extinguished on settlements
Liabilities assumed in an amalgamation in the nature of purchase
Exchange differences on foreign plans
Benefits paid
612,698
93,100
52,079
(19,112)
-
-
-
-
-
507,921
87,997
40,634
(23,855)
-
Closing defined benefit obligation
738,765
612,698
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.
D.
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

1
2
3
4
31.3.2013
31.3.2012
8.00%
-
-
6.00%
8.50%
6.00%
Discount rate
Proportion of employees opting for early retirement
Annual increase in Salary costs
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
9. Earning Per Share (Amount in 000)
Particulars
Net Profit / (Loss) available to Equity Shareholders
Weighted Average No of Equity Shares
Basic Earning Per Shares (in `)
Diluted Earning Per Shares (in `)
31.03.2013
31.03.2012
(10,205)
58732318
-0.17
-0.17
(10,618)
58490768
-0.18
-0.18
10. 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.
11. 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.
12. Previous year figures have been re-grouped, re-arranged wherever considered necessary.

CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2013

For the
year ended
31.03.2013
(` 000)
For the
year ended
31.03.2012
(` 000)
A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit/(Loss)before Tax and after Extraordinary items
(10,205)
(10618)

Adjustment For :

Depreciation
266
885

Interest & Finance charges
14
16

Interest received
-
(3)

Dividend Income
(1,551)
(2984)

Expenses on Employee Stock option
3,170
4,457

(20)
(41)

Loss (Profit) on sale/disposal of Assets
-
24

Operative Profit before Working Capital Changes

Adjustment For :

Trade and Other Receivables

Trade & Other liability

Cash Generation from Operations

Direct Taxes
(8,326)
(8264)
(152)
2,307
(6,171)
0
(478)
726
(8016)
(3)

Net Cash Flow from operating activities
(6,171)
(8019)

B. CASH FLOW FROM INVESTING ACTIVITIES

Pre-operative Expenses
(9,485)
(20,788)

Proceeds from investments
8,707
26,016

Dividend Income
1,551
2,984

Interest Received
-
3

Net Cash used in investing activities
772
8215

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Share Issue
4,153
1293

Financial Charges
(14)
(16)

Net Cash used in financing activities

D. NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C)

Cash and Cash Equivalents as at 1st April 2012

Cash and Cash Equivalents as at 31st March 2013
4,139
(1,260)
2,916
1,658
1277
1473
1442
2916


CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
61
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BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE

A.

REGISTERATION DETAILS
State Code
Registration Number
Balance Sheet Date
:
:
:
11
34662
31 March 2013

B. CAPITAL RAISED DURING THE YEAR

Public Issue
:

Right Issue
:

Bonus Issue
:

Private Placement
:

Employee Stock Option Scheme
:
(Amount ` 000)
NIL
NIL
NIL
NIL
245
C.

POSITION OF MOBILISATION AND DEVELOPMENT

Total Liability
:
26,377
Total Assets
:
26,377
SOURCE OF FUND
Paid up capital
:
58,771
Reserves & Surplus
:
(49,522)
Employees Stock Option Outstanding
:
10,503
Unsecured Loans
:
Non- Current Liabilites
:
739
Current Liabilites
:
5,886
APPLICATION OF FUNDS
Net fixed Assets
Non-Current Assets
Current Assets
D.

PERFORMANCE OF THE COMPANY

Total Income
:
1,571
Total Expenditure
:
11,776
Profit/(Loss) Before Tax
:
(10,205)
Profit/(Loss) After Tax
:
(10,205)
Earning per share in Rs.
:
(0.17)
Dividend Rate %
:
-
E.

GENERAL NAMES OF THEIR PRINCIPAL

PRODUCTS / SERVICES OF THE COMPANY (as per Monetary terms)
Item Code No. (ITC Code)
Product Description
:
:
:
:
:
808
2,215
23,355
N.A


CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013
DECCAN EXPLORATION SERVICES PRIVATE LIMITED

(FORMERLY DECCAN GOLD EXPLORATION SERVICES PRIVATE LIMITED)
DIRECTORS REPORT
Your Directors have pleasure in presenting their Sixteenth Annual Report of the Company together with the audited
accounts of the company for the year ended 31 March, 2013.
OPERATIONS AND FUTURE OUTLOOK
Your company continued to carry out exploration activities pursuant to the Agreement with Deccan Gold Mines
Limited in terms of which, all expenses incurred by the company for exploration activities in respect of the Projects
covered under the said Agreement are reimbursed by Deccan Gold Mines Limited.
The company during the year incurred profit / (loss) of ` (0.16) million compared to profit / (loss) of ` 1.02 million
during the previous year.
The Mining Lease Application over an area of 0.29 sq kms covering the Ganajur Main Gold Prospect is now
pending approval of the Ministry of Mines, Government of India (MoM) to whom it was recommended by the State
Government of Karnataka. The same is being pursued vigorously.
UPDATES DURING 2012-13:

State High Level Clearance Committee (SHLCC) of Government of Karnataka approved enhancement in
land allotment from 145 acres to 200 acres at Ganajur Village, Haveri District, Karnataka for the proposed
gold mine and processing plant (May, 2012)
Grant of Prospecting Licence (PL) for gold over an area of 4 sq kms in the Mangalagatti Block located in
the Dharwar District of Karnataka vide Grant Order dated 11 October, 2012 issued by the Government of
Karnataka and is awaiting execution.
Execution of Technical and Commercial Consultancy and Advisory Services Agreement (Agreement) and
Addendum to the Agreement with Hira Infratek Private Limited (part of Hira Group, Chhattisgarh) with regard
to the Ganajur Gold Project. (November, 2012)
Grant of Terms of Reference for the proposed Ganajur Gold Ore Processing Plant (March, 2013).
MANAGEMENT
The Board comprises of eminent geologists and professionals. Further, Mr. Saradchandra Rao Peshwa and
Dr. M. Hanuma Prasad are the Directors retiring by rotation and being eligible, offer themselves for re-appointment
at the ensuing Annual General Meeting.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors confirm that:
a.
in preparation of the annual accounts, the applicable Accounting Standards have been followed along with
proper explanations relating to any material departures, if any;
b.
they have selected such Accounting Policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as
at 31 March, 2013 and of the net profit / (loss) for the year ended on that date;
c.
they had taken proper and sufficient care for maintenance of adequate accounting records as required under
the Companies Act, 1956 for safeguarding the assets of the company and for prevention and detection of
fraud and other irregularities; and
d.
they have prepared the Statement of Accounts for the year ended 31 March, 2013 on a going concern basis.
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PARTICULARS OF EMPLOYEES
During the year under review, the company did not have any employee falling under the provisions of Section 217
(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE
EARNING AND OUTGO
(a) Conservation of energy and technology absorption:

Considering the nature of the companys existing business activities, your Directors have nothing to state in
connection with conservation of energy and technology absorption.
(b) Foreign exchange earnings and outgo:

During the year under review, the company did not have any foreign exchange earnings, but had a foreign
exchange outgo of ` 7.62 lac.
AUDITORS
M/s. Rao & Venkatesulu, Chartered Accountants, Bengaluru (FRN 003108S) who were appointed as Auditors of
the company at the last annual general meeting, will be retiring at the conclusion of the ensuing annual general
meeting. They, being eligible, have communicated their consent for re-appointment.
ACKNOWLEDGMENT
Your Directors acknowledge the co-operation and support extended by one and all.

S.C.R. Peshwa
Director
Place : Bangalore
Date : 2 September 2013
K. Karunakaran
Director
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ANNUAL REPORT 2013
AUDITOR'S REPORT
TO THE MEMBERS OF
We have audited the Balance Sheet of DECCAN EXPLORATION SERVICES PRIVATE LIMITED as at 31st MARCH,
2013 and the annexed Profit and Loss Account for the year ended on that date. 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 have 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 the management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
1.
The company being not coming under the purview of the Companies (Auditor's Report) Order, 2003 issued
by the central government under section 227 (4A) of the Companies Act, 1956, we have not reported our
finding on the matters stated therein.
2.
Further to our comments in the Annexure referred to in paragraph (1) above:

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 audit.
b.
in our opinion, proper books of account as required by the law have been kept by the Company so far
as it appears from our examination of those books;
c. the Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with those
Books of account;
d.
in our opinion, the Profit and Loss Account and the Balance Sheet dealt with by this report comply with
the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;
on the basis of the written representations received from the Directors and taken on record by the
Board of Directors, we report that none of the directors is disqualified as on 31st March, 2013 from
being appointed as a director of the Company are disqualified from being appointed as a director
in terms of Section 274 (1) (g) of the Companies Act, 1956; and
f.
in our opinion and to the best of our information and according to the explanations given to us. the
accounts 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 the Balance Sheet, of the state of affairs of the company as at 31st March, 2013; and
(ii) in the case of the Profit and Loss Account, of the loss of the company for the year ended on that date.
For RAO & VENKATESULU
Chartered Accountants
K.Y. NINGOJI RAO

Partner
Membership No. : 018278
FR No. 003108S

Place : Bangalore
Date : May 10, 2013
65
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BALANCE SHEET AS AT 31 MARCH, 2013

Particulars
Sch No
31.3.2013
31.3.2012
I

1 Shareholders Funds:
a Share Capital
1
100
100
b Reserves and Surpluses
2
6,941
7,105
c Money Received Against Share Warrants

2 Share Application Money Pending Allotment

3 Non-Current Liabilities:
a Long Term Borrowings
b Deferred Tax Liabilities (Net)
c Other Long Term Liabilities
d Long Term Provisions

4 Current Liabilities:
a Short Term Borrowings
b Trade Payables
3
705
367
c Other Current Liabilities
4
24
61
d Short Term Provisions
5
-
324

TOTAL 7,770 7,957
II ASSETS

1 Non Current Assets:
a Fixed Assets:

(i) Tangible Assets
6
628
748

(ii) Intangible Assets

(iii) Capital work-in-progress
-

(iv) Intangible Assets Under Development
b Non Current Investments
c Deferred Tax Assets (net)
d Long Term Loans and Advances
7
284
284
e Other Non Current Assets
8
909
1,867

2 Current Assets:
a Current Investments
b Inventories
-
c Trade Receivables
9
5,736
3,102
d Cash and Cash Equivalents
10
172
1,915
e Short Term Loans and Advances
11
41
41
f Other Current Assets

TOTAL
NOTES TO ACCOUNTS
7,770
7,957
19
Schedules referred to above and notes attached there to form an integral part of Balance Sheet.

For DECCAN EXPLORATION SERVICES PRIVATE LIMITED

S.C.R PESHWA
K.KARUNAKARAN

Director
Director

As per our report of even date attached.

For Rao & Venkatesulu
K Y Ningoji Rao
Partner
Membership No. :018278
Place : Bangalore
Date : 10 May 2013
FRN: 003108S
66
www.sansco.net
ANNUAL REPORT 2013

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED ON 31 MARCH, 2013

Particulars
Sch No
31.3.2013
31.3.2012
8,699
-
15,557
6,083
REVENUES:

Revenue From Operations
12

Other Income
12

Total Revenue (I +II)

8,699
21,640
EXPENSES:
1 Exploration Expenses
13
8,705
2 Changes in Inventories of Finished Goods

Work-in-Progress and Stock-in-Trade
14
-
3 Employee Benefit Expense
-
4 Financial Costs
15
2
5 Depreciation and Amortization Expense
16
120
6 Other Expenses
17
37
16,022
4,083
-
7
135
46
Total Expenses
8,864
20,293
Profit Before Exceptional and Extraordinary Items & Tax
(164)
1,347
(164)
1,347
18
Profit Before Extraordinary Items and Tax
Exceptional Items
Extraordinary Items
Profit Before Tax

(164)
Tax Expense:
1 Current Tax
2 Earliear Year Taxes
3 Deferred Tax

Profit (Loss) For The Perid From Continuing Operations
1,347
-
324
-
-
(164) 1,347
Profit/(Loss) from Discontinuing Operations
Tax Expense of Discounting Operations
Profit/(Loss) From Discontinuing Operations
Profit/(Loss) For The Period
(164)
1,347

Earning Per Equity Share:
1 Basic
-16.44
2 Diluted
-16.44
102.27
102.27
Schedules referred to above and notes attached there to form part of Profit & Loss Account


S.C.R PESHWA
K.KARUNAKARAN

Director
Director


K Y Ningoji Rao
Partner
Place : Bangalore
Date : 10 May 2013
FRN: 003108S
67
www.sansco.net

(FORMERLY DECCAN GOLD EXPLORATION SERVICES PRIVATE LIMITED))
SCHEDULES FORMING PART OF ANNUAL ACCOUNTS

(` 000)
Share Capital
Particulars
As At 31.3.2013
Schedule : 1
As At 31.3.2012
AUTHORIZED CAPITAL
50,000 Equity Shares of Rs. 10/- each.
500
500
ISSUED , SUBSCRIBED & PAID UP CAPITAL

10,000 Equity Shares of Rs. 10/- each, Fully Paid Up
100
100
Total
100
Reserve & Surpluses

Particulars
As At 31.3.2013
100
Schedule : 2
As At 31.3.2012
Reserves
-
Total
Profit & Loss Account:
Balance Brought Forward
7,105
Add: Net Profit For The Year
(164)
6,082
1,023
Total
6,941
7,105
Trade Payables
Schedule : 3

Particulars
As At 31.3.2013
As At 31.3.2012
Trade Creditors
Others
661
44
337
30
Total
705
367
Other Current Liabilities
Schedule : 4
Particulars
As At 31.3.2013
As At 31.3.2012
TDS Payble
24
61
Total
24
61
Short Term Provisions
Schedule : 5

Particulars
As At 31.3.2013
As At 31.3.2012
Provisions For Current Taxes

Provision From Employees Benefit
Others
-
-
-
324
-
-
Total
324
68
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ANNUAL REPORT 2013

Fixed Assets
Note 6

Fixed Assets
Gross Block
Net Block (WDV)
Balance
Balance
Balance
Balance
Balance
Balance
as at
as at
as at
as at
as at
back 31-03-2013 31-03-2013 31-03-2012
Rate
Tangible Assets :
Land
0%
-
-
-
-
-
-
-
-
Buildings
10%
-
-
-
-
-
-
-
-
Plant & Equipment 15%
-
-
-
-
-
-
-
-
Vehicles
15%
844
-
-
844
127
108
-
234
Furniture & Fixtures 10%
-
-
-
-
-
-
-
-
Office equipment
10%
13
-
-
13
1
12
-
19
Computer
60%
26
-
-
26
8
11
-
18
Sub Total (A)
883
883
135
119
255
610
11
7
628
717
12
18
748
Intangible Assets :
Sub Total (B)
-
-
Sub Total (C)
Intangible assets
under Development
Sub Total (D)
Current Year (A+B+C+D) 883 - - 883 135

119 - 255 628 748
Previous Year
883
883
135
135
Long Term Loans and Advances

Particulars
Security Deposit
Other Loans & Advances
748
Schedule : 7
As At 31.3.2013
As At 31.3.2012
127
156
117
166
Total
283
283

Other Non Current Assets
Schedule : 8
Particulars
As At 31.3.2013
As At 31.3.2012
Long Term Trade Recievables

Others
909
1,866
Total
909
1,866

Trade Recievables
Schedule : 9
Particulars
As At 31.3.2013
Outstanding for more than six months

Others
-
5,735
As At 31.3.2012
3,101
Total
5,735
3,101

Cash & Cash Equivalent
Schedule : 10
Particulars
As At 31.3.2013
As At 31.3.2012
Cash-in-Hand
Bank Balance
13
158
29
1,886
Total
171
1,915
69
www.sansco.net

Short Terms Loans and Advances
Schedule : 11
Particulars
As At 31.3.2013
As At 31.3.2012
Loans & Advances from Related Parties

Others
-
41
41
Total
41
41

Revenues From Operations & Other Income
Schedule : 12
Particulars
Previous Year
Current Year
Revenues From Operations:

Exploration Contract
8,699
15,556
Drilling Contract Receipts
Total
8,699
Other Income:
Consultancy Receipts
Interest on Others
Miscellaneous Receipts
Total

-
-
-
-
Total
15,556
6,061
20
6,082
8,699
21,639
Exploration Expenses
Schedule : 13
Particulars
Current Year
Previous Year
Analysis Charges
Boarding & Lodging Charges
Camp Expenses
Diesel & fuel
Duplicating Charges
Field Supplies & Consumables
Field Vehicle Maintenance
RP Processing Fees
Rent
Land & Crop Compensastion
Field Travel Expenses
Exploration Contract Expenses
Food & Water Charges
Professional & Consulantancy Fee
Trenching , Drilling & Pitting Charges
Surveying Charges
Other Camp Expenses
74
235
24
102
4
89
58
1,302
360
480
137
3,069
162
1,821
776
6
5
1,289
188
109
132
1
272
50
63
189
280
150
3,367
250
939
6,154
2,571
11
TOTAL carried To Profit & Loss Account
8,705
16,021
Change in Inventories
Schedule : 14
Particulars
Previous Year
Current Year
Opening Stock:
Working in Progress
-
Total
-
Closing Stock:
Working in Progress
Total
-
Total
4,082
4,082
4,082
70
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ANNUAL REPORT 2013

Financial Cost
Schedule : 15
Particulars
Current Year
Previous Year
Interest On Loans
Bank Charges & Other Charges
2
Total

Depreciation & Amortised Cost
Schedule : 16
Particulars
Current Year
Previous Year
Depreciation
120
Preliminary Expenses Amortized
135
-
Total
120
135
Other Expenses
Schedule : 17
Particulars
Previous Year
Current Year
Rates & Taxes

1
Postage & Telegraph
-
Filing Fee
2
Printing & Stationery
3
Other Expenses
-
Professional Fee
4
Travelling Expenses
Auditors Remuneration:
For Audit
22
For Tax Audit
4
For Others
Total [ A + B ]
1
4
12
22
4
3
37
46
Exceptional Items
Schedule : 18
Particulars
Previous Year
Current Year
Penal Interest & Other Expenses
Total
TRADE PAYABLES
Particulars
As At 31.3.2013
As At 31.3.2012
FOR TRADE:
Geo Mysore Services (India) Pvt Ltd
BS Envitech (P)Ltd
607
53
337
Total
660
337
FOR EXPENSES:
Staff
18
Service Tax
-
Rao & Venkatesulu
27
30
Total
45
30
Total
705
367
71
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OTHER CURRENT LIABILITIES
Particulars
As At 31.3.2013
As At 31.3.2012
Income Tax TDS Payable
24
61
Total
24
61

TRADE RECEIVABLES
Particulars
As At 31.3.2013
As At 31.3.2012
DUES FOR LESS THAN SIX MONTHS:

Deccan Gold Mines Ltd
5,735

3,101
Total
3,101
5,735
DUES FOR LESS THAN SIX MONTHS:

Total
Total
5,735
3,101

OTHER NON CURRENT ASSETS
Particulars
As At 31.3.2013
As At 31.3.2012
Long Term Trade Receivables

Others:
Income Tax T.D.S.
909
1,866
Total
1,866
909

LONG TERM LOANS & ADVANCES
Particulars
As At 31.3.2013
As At 31.3.2012
Security Deposit
127
117
Total
127
117
Others:
Rent Deposit
155
Yogesh
Jajadish Chandra Jat
1
155
11
Total
166
156

SHORT TERM LOANS & ADVANCES
Particulars
As At 31.3.2013
As At 31.3.2012
Loans & Advances From Related Parties

Total
Others:
Service Tax
41
41
Total
41
41
Total
41
41
72
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ANNUAL REPORT 2013

SCHEDULE 19
NOTES FORMING PART OF ANNUAL ACCOUNTS:
1. Share Capital:
Reconciliation of Number of Shares:
Particulars
As At 31.3.2013
As At 31.3.2012
Equity Shares:
Balance at the beginning
Add: Number of Share Allotted
10
Nil
10
Nil
Balance at close
10
10
As At 31.3.2013
As At 31.3.2012
Nil
Nil
Number of Shares issued for consideration other wise than for cash:
Particulars
Equity Shares of ` 10/- Each
Rights, preferences and restrictions attached to each class of shares:
Equity Share of ` 10/- each fully paid-up:
a
b
c
d
Right to dividend on pari passu

Voting rights one vote per each share
No preferential rights are attached
No restrictions are attached.
Name of shareholders holding more than 5% of Equity Shares:

Name of Shareholders
As At 31.3.2013
As At 31.3.2012
% of Shares
9999
9999
99.99%
Deccan Gold Limited

2. Particulars of Reserves and Surpluses:
Particulars
Profit & Loss Account:
Opening Balance Brought Forward
Add: Current Year Profit
Less: Proposed Dividend & Dividend Tax
Less: Transferred to General Reserve
Closing Balance Carried Forward
As At 31.3.2013
As At 31.3.2012
7,105
(164)
(Nil)
(Nil)
6,941
6,082
1,022
(Nil)
(Nil)
7,104
As At 31.3.2013
As At 31.3.2012
Nil
5,735
Nil
5,735
Nil
Nil
3,101
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
3. Trade Receivables:
Classified as Current: ` 5,735,664 (P.Y. ` 3,101,617) includes:
Particulars
i.

ii.
iii.
iv.
v.

Debts Due for a period:

a. More than Six Months from the due date
b. Others
Debts considered good and secured
Debts considered good but secured
Debts considered unsecured and doubtful of recovery and not provided for
Debts due from:
a. Directors
b. Other Officers
c. Companies in which the Directors of the company is Directors
d. Firms in which Directors of the company are interested as partners
3,101
Nil
73
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4. Loans and Advances:
Classified as Current: ` 40,995 (P.Y. ` 40,862) includes:
Particulars
As At 31.3.2013
As At 31.3.2012
i.

Short Term Loans & Advances:

a. Capital Advances
b. Security Deposits
c. Due From Related Parties
d. Others
Nil
Nil
Nil
41
Nil
Nil
Nil
41
ii.

Loans and advances which are:

a. Secured and considered good
b. Unsecured and Considered Good
c. Doubtful
Nil
41
Nil
Nil
41
Nil
iii.

Loans & Advances due from:

e. Directors
f. Other Officers
g. Companies in which the Directors of the company is Directors
h. Firms in which Directors of the company are interested as partners
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
As At 31.3.2013
As At 31.3.2012
Classified as Non-Current: ` 283,553 (P.Y. ` 283,933) includes:

Particulars
i.

Long Term Loans & Advances:

e. Capital Advances
f. Security Deposits
g. Due From Related Parties
h. Others
Nil
127
Nil
156
Nil
117
Nil
166
ii.

Loans and advances which are:

d. Secured and considered good
e. Unsecured and Considered Good
f. Doubtful
Nil
156
Nil
Nil
166
Nil
Nil
Nil
Nil
Nil
Nil
As At 31.3.2013
As At 31.3.2012
i. Geo Mysore Services India Private Limited
607
337
Total
607
337
i Deccan Gold Mines Ltd.
5,735
3,101
Total
5,735
3,101
iii. Loans & Advances due from:

i. Directors

j. Other Officers

k. Companies in which the Directors of the company is Directors

l. Firms in which Directors of the company are interested as partners

5. Amounts due to and From Related Parties:
Particulars
Amounts due to Related Parties:
Amounts due from Related Parties:
74
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ANNUAL REPORT 2013

6. Bank Balances Include:
Particulars
As At 31.3.2013
As At 31.3.2012
Nil
Nil
Nil
Nil
1,886
i.
ii.
III.
iv.
v.
Unpaid Dividends
Margin Money
Deposits with more than 12 months maturity
Cheques & Drafts On Hand
Others
Nil
Nil
Nil
Nil
158
Total
158 1,364
7. Operating Cycles of the business considered by the management are:

Particulars
Period of operation cycle
I. Mine Exploration Contracts
One Year
ii Mining Consultancy
Six Months
8. The particulars of Gross Revenue and Net of Duties are:

Particulars
i
Mining Exploration Contracts
ii Consultancy Services

Total
Gross Value
Less: Duty
Net of Duty
8,699
Nil
8,699
Nil
Nil
Nil
8,699
Nil 8,699
9. Particulars of amounts contributed to various funds for Employees benefit:

Particulars of Funds
Current Year
Previous Year
i. Provident Fund
ii. ESI Contribution
iii. Labour Welfare Fund
Nil
Nil
Nil
Nil
Nil
Nil
Total
Nil Nil
75
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10. RELATED PARTY TRANSACTIONS DISCLOSURES:
Particulars

Associated Concerns &

Directors Relatives
Key Management
Personnel
TOTAL
Exploration & Other Expenses Paid
3,068
Nil
3,068
Exploration Contract Receipts
8,699
Nil
8,699
Financial Transactions:
a. Loan Borrowed
Nil
Nil
Nil
b. Loan Repaid
Nil
Nil
Nil
c. Interest Paid
Nil
Nil
Nil
d. Equity Share Capital
Nil
Nil
Nil
e. Share Application
Nil
Nil
Nil
f. Advances Received
Nil
Nil
Nil
g. Advances Repaid
Nil
Nil
Nil
Sale Of Fixed Assets

Purchase Of Fixed Assets
Receiving Of Services
Rendering Of Services
Guarantees & Collaterals:
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Associated Concerns:
a.
M/s Geo Mysore Services India (P) Ltd
b.
M/s Deccan Gold Mines Ltd.
Relatives:
None
Key Management Personnel
a.
Mr. S.C.R.PESHWA
- Director
b.
Mr. Karunakarn - Director
11. Previous figures have been rearranged and regrouped so as to make them comparable with current figures.
12. SIGNIFICANT ACCOUNTING POLICIES:
A. REVENUE RECOGNITION:

1. Sales revenues are accounted on accrual basis.

2. All incomes, to the extent they are ascertained, are accounted on accrual basis.
B. EXPENDITURE RECOGNITION:

1. All expenditure relating to the purchase of goods are accounted on accrual basis.

2. All expenditure, to the extent they are ascertained, are accounted on accrual basis.
C. VALUATION OF INVENTORY:
Inventories of goods traded are valued at cost or net realisable value which ever is lower.
D. FIXED ASSETS:
Depreciation on fixed assets are provided on Written Down Value Method at the rates prescribed under the Income Tax
Rules, 1962.
E. ACCOUNTING OF TAXES ON INCOME:

1. Current Taxes On Income is provided as per the liability computed under the Income Tax Act, 1961.

2. The Deferred Tax Asset and liabilities is created as per AS-22 prescribed by the Institute Of Chartered

Accountants of India.
F. ACCOUNTING OF INTANGIBLE ASSETS:

1. All intangible Assets acquired at cost are recognized as assets.

2. All intangible Assets are amortized as per the norms stipulated in AS-22 issued by the ICAI.
76
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ANNUAL REPORT 2013

13. BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE:
I. Registration Details :
Registration No.: 22819

BALANCE SHEET AS AT 31st MARCH, 2013:
State Code: 08
Particulars
As At 31.3.2013
As At 31.3.2012
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Total Liabilities
7.769
7.957
Total Assets
7.769
7.957
Paid Up Capital
Reserves & Surpluses
Non Current Liabilities
Current Liabilities
0.100
6.941
Nil
0.729
0.100
7.105
Nil
0.752
Application of Funds:
Net Fixed Assets
Non Current Assets
Current Assets
Deferred Tax Asset
0.628
1.193
5.948
Nil
0.748
2.151
5.058
Nil
8.699
8.863
(0.164)
(0.164)
21.640
20.293
1.347
1.023
(`16.44)
` Nil
` 102.27
` Nil
II. Capital raised during the year: ` in Millions:

Public Issue
Right Issue
Bonus Issue
Private Placement
III. Position of mobilization and deployment of funds: ` in Millions:
Sources of Funds:
IV. Performance of the Company: ` in Millions:

Turnover
Total Expenditure
Profit Before Tax
Profit After Tax
Earning Per Share [Annualized]
After reckoning Deferred Tax Asset
Dividend
V. Generic names of three principal products of Company (as per monetary terms):
Product Description Item Code (ITC Code)
a. Mining Exploration
980100.45
SIGNATURES TO SCHEDULES 1 and 19




S.C.R PESHWA
K.KARUNAKARAN

Director
Director

K Y Ningoji Rao
Partner
Place : Bangalore
Date : 10 May 2013
FRN: 003108S
77
www.sansco.net
AUDITORS REPORT
To the Members of
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the accompanying consolidated financial statements of Deccan Gold Mines Limited, which
comprise the Consolidated Balance Sheet as at March 31, 2013, and the Statement of Consolidated Profit and
Loss and Consolidated Cash Flow Statement for the year then ended, and a summary of significant accounting
policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these consolidated financial statements that give a true and
fair view of the financial position, financial performance and cash flows of the Company in accordance with the
Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsibility
includes the design, implementation and maintenance of internal control relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants
of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Consolidated Balance Sheet, of the Consolidated state of affairs of the Company as at
March 31, 2013
(b) in the case of Consolidated Statement of Profit and Loss, of the Loss for the year ended on that date and
(c) in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date.
CA K.V. BESWAL
PARTNER
Place : Mumbai
Dated : 30 May 2013
78
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ANNUAL REPORT 2013

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2013
(Amount in 000)
Particulars
Note No.
31-03-2013
31-03-2012
I.


Shareholders Funds
(a) Share capital
1
58,771
58,526
(b) Reserves and surplus
2
(42,384)
(27,823)
(c) Employee Stock option Outsanding
10,503
8,717

Non-Current Liabilities

(a) Long-term Provisions
3
26,890
739
613

Current Liabilities

(a) Trade payables
4

(b) Other current liabilities
5

(c) Short-term provisions
6

739
613
705
175
-
880
39,420
562
469
324
1,355

TOTAL (I)
28,510
41,388

II. ASSETS

Non-Current Assets

(a) Goodwill on Consolidation
197
197

(b) Fixed assets
7

(i) Tangible assets
1,427
1,804

(ii) Intangible assets
10
19

(c) Long Term Loans and Advances
8
2,399
2,398

4,033
4,418
Current assets
(a) Current investments
9
16,612
25,299
(b) Cash and cash equivalents
10
1,829
4,831
(c) Short-term loans and advances
11
6,035
6,840
24,476
36,970
TOTAL (II)
28,510
41,388

CA K.V. BESWAL
PARTNER
Chairman

Place : Mumbai
Place : Bangalore
Dated : 30 May 2013
Dated : 30 May 2013
Sandeep Lakhwara
Managing Director
S. Subramaniam
Company Secretary
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STATEMENT OF CONSOLIDATED PROFIT & LOSS FOR THE YEAR ENDED 31 MARCH 2013
(Amount in 000)
Particulars
Note No.
31-03-2013
31-03-2012
Other income
12
1,571
9,111

Total Revenue
1,571
9,111

Expenses:
Exploration Expenses

5
465

Employee benefits expense
13
5,408
7,884

Finance costs
14
16
23

Depreciation and amortization expense
15
386
1,021

Other expenses
16
6,124
4,908

Change in Inventories
-
4,083
Total expenses
11,939
18,384

Profit before extraordinary items and tax
(10,368)
(9,273)
Extraordinary Items Prior year adjustments
-

Profit before tax
(10,368)
(9,273)

Tax expense:
(1) Current tax
-
324
(2) Deferred Tax
-

Profit (Loss) for the period
(10,368)
(9,597)

Earnings per equity share: Basic (in `)
-0.18
-0.16
Earnings per equity share: Diluted (in `)
-0.18
-0.16

CA K.V. BESWAL
PARTNER
Chairman

Place : Mumbai
Place : Bangalore
Dated : 30 May 2013
Dated : 30 May 2013
Sandeep Lakhwara
Managing Director
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
Note : 1 Share Capital
A
Particulars
31 March 2013
Numbers
31 March 2012
` (000)
Numbers
` (000)
Authorised
Equity Shares of Rs.1 each
100,000,000 100,000
100,000,000
100,000
100,000,000
100,000
100,000,000
100,000
Issued, Subscribed & Fully Paid up

Equity Shares of Rs.1 each
58,771,250
58,771
58,526,250
58,526
Total
58,771,250
58,771
58,526,250
58,526
B Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particulars
31 March 2013
At the beginning of the year
Add Shares Issued on exercise of

Employee Stock Options
At the end of the year
Equity Shares
31 March 2012
Numbers
` (000)
Numbers
` (000)
58,526,250
58,526
58,450,000
58,450
245,000
245
76,250
76
58,771,250
58,771
58,526,250
58,526

C Shares held by holding company / ultimate holding company and/or their subsidiaries/associates

Particulars
Nature of Relationship
31 March 2013

Equity Shares

NIL
Detail of shareholders holding more than 5% of shares in the company
Name of Shareholder
31 March 2012
Equity Shares
31 March 2013
31 March 2012
No. of
Shares held
% of
Holding
No. of
Shares held
% of
Holding
25,342,449
43.12
25,747,506
43.99
Rama Mines (Mauritius) Limited

E
The company has reserved issuance of 19,87,500 ( Previous year 25,73,750) Equity shares of ` 1/- each for
offering to eligible employees of the company and its subsidiaries under Employees Stock Option Scheme (ESOS).
During the Financial Year 2010-2011 the company has granted 30,00,000 option to the eligible employees at a
price of ` 16.95/- per option plus all applicable taxes, as may be levied in this regard on the company]. The Options
would vest over a maximum period of 3 years or such other period as may be decided by the Employees Stock
compensation Committee from the date of grant based on specified criteria.
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F. Disclosure pursuant to Note no. 6(A)(i) of Part I of Schedule VI to the Companies Act, 1956

Particulars
Aggregate No. of Shares

(for last 5 Financial Years)
Equity Shares :
Fully paid up pursuant to contract(s) without payment being received in cash
NIL
Fully paid up by way of bonus shares
NIL

Shares bought back

Note - 2 : Reserve and surplus
NIL
Particulars

31 March 2013
` (000)
31 March 2012
` (000)
a. Capital Reserves

Opening Balance
16,726
16,726

(+)/(-) Transfer
-

Closing Balance
16,726
16,726
b. Securities Premium Account

Opening Balance
98,177
96,530

(+) on allotment of Equity Shares
5,292
1,647

Closing Balance
103,469
98,177
c. Profit & Loss Account

Opening balance
(51,792)
(42,195)

(+ ) Net Loss For the current year
(10,368)
(9,597)

(62,160)
Closing Balance
(51,792)
d. Preoperative Expenses

Opening balance
(90,933)
(70,145)

(+) Incurred during the year
(9,486)
(20,788)

Closing Balance
(100,419)
(90,933)
Total

Note - 3 : Long Term Provisions
(42,384)
(27,823)
31 March 2013
` (000)
31 March 2012
` (000)
739
613
Particulars

Provision for Gratuity

739
613

Note - 4 : Trade payables
Particulars

31 March 2013
` (000)
Total Creditors
Others
Total

31 March 2012
` (000)
660
45
562
705
562
Note: Based on the information available with the Company, there are no suppliers who are registered as micro small &
Medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006, as at 31st March 2013
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ANNUAL REPORT 2013

Note - 5 : Other Current Liabilities

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
(i) Statutory dues
45
363
(ii) other liability
130
106
Total
175
469
31 March 2013
` (000)
31 March 2012
` (000)
Note - 6 : Short Term provision

Particulars

(i) Provision For Income Tax
324
Total
324
Note 7 : Fixed Assets

Fixed Assets
Gross Block
(Amount in 000)
Net Block (WDV)
Balance
Balance
Balance
Balance
Balance
Balance
as at
as at
as at
as at
as at
back 31-03-2013 31-03-2013 31-03-2012
Tangible Assets :
Land - Lease hold
2,864
-
-
2,864
2,864
-
-
2,864
-
Plant and Equipment
1,138
-
-
1,138
590
164
-
755
383
Vehicles
1,346
-
-
1,346
572
123
-
695
651
Computer
294
-
-
294
243
24
-
267
27
Furniture and Fixtures
563
-
-
563
363
36
-
399
164
Office equipment
466
-
-
466
235
31
-
266
200
Total
6,672
6,672
4,868
378
5,245
1,427
548
774
52
200
230
1,804
Intangible Assets :
Computer software
146
-
-
146
128
8
-
136
10
19
Total
19
146
146
128
136
10
Total
Intangible assets
under Development
Total
Previous Year
6,819
6,104
883
169
6,819
6,819
4,996
386
4,120 1,021
-
145
5,381
1,437
1,823
4,996
1,823
Note - 8 : Other Non-current Assets

Particulars

Security Deposits
Other Loans & Advances
Total
31 March 2013
` (000)
31 March 2012
` (000)
2242
2232
156
166
2,398
2,398
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Note - 9 : Current investments

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
Investments in Mutual Fund:
Reliance Medium Term Fund Daily Dividend Plan

(P Y Market Value ` 4.28 Lacs)
BNP Paribas Money Plus Fund Weekly Dividend

(C.Y Market Value `.166.28 Lacs P Y Market Value ` 248.89 Lacs)
16,612
24,871
Total
16,612
25,299
428
Note - 10 : Cash and Cash Equivalents

Particulars

31 March 2013
` (000)
31 March 2012
` (000)
a. Balances with banks

On current accounts in scheduled bank
1738
4752
b. Cash on hand
91
79

Total
1829
4831

Note - 11 : Short-term loans and advances

Particulars

31 March 2013
` (000)
11
31 March 2012
` (000)
Advance receivable in cash or kind
Balance with Government Authorities

Income Taxes (Net)
3,134
4,092
Service Tax
2,890
2,743
Total
6,035
6,840
Note - 12 : Other Income

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Interest Income
Dividend Income
Consultancy Income
-
20
1,551
-
24
41
2,984
6,062

Total
1,571
9,111

Note - 13 : Employee Benefit Expenses

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Salaries & wages

Expenses on Employee Stock Option Scheme
Staff welfare expenses
2,226
3,170
12
3405
4457
22
Total
5408
7884
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ANNUAL REPORT 2013

Note - 14 : Finance costs

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Bank Charges
Interest Paid
16
0
21
2

Total
16
21

Note - 15 : Other expenses

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Electricity Expenses
Filing Fees
Rent
Rates and taxes
Directors Remuneration
Repair and maintenance
Business promotion & Advertisement Expense
Travelling and conveyance
Communication Expenses
Legal and Professional fees
Directors sitting fees
Auditors remuneration
Misc Balance Written Off
Loss on Disposal of Assets
Miscellaneous expenses
Membership & Subscription fees
116
264
2037
9
1200
206
1070
218
6
601
63
253
44
0
3
34
146
260
2014
27
0
184
1076
206
18
587
68
228
24
38
32
Total
6124
4908

Payments to Auditor

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

For Audit Fee
127
132
For Certification & Others
126
96
Total
253
228
Note - 16 : Change in Inventories

Particulars
31 March 2013 31 March 2012

` (000)
` (000)

Opening Stock:
Working in Progress
4,083
Total
4,083
Closing Stock:

Working in Progress
Total
4,083
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Schedule 17 of Significant Accounting Policies and Notes annexed to Consolidated Balance Sheet as at 31st
March, 2013.
Statement of Significant Accounting Policies:A. Basis of accounting:
A. Principles of Consolidation
The Consolidated financial statements relate to Deccan Gold mines Limited and its subsidiary Company.
The Consolidated financial statements have been prepared on following basis:
(a)
The financial statement of the company and its subsidiary Company are combined on line-by- line basis by adding
together the book values of like items of assets, liabilities, income and expenses after fully eliminating intra group
transactions resulting in unrealized profits/losses in accordance with accounting standard (AS) 21 "Consolidated
Financial Statement" issued by the Institute of Chartered Accountants of India.
(b)
As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances and are presented in the same manner as the Company's
separate financial statements.
B. Basis of accounting
The financial statements are prepared under the historical cost convention and comply with the
applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956.
C. Fixed Assets
Fixed Assets are stated at cost of acquisition less depreciation. All costs relating to the acquisition and installation of
fixed assets are capitalized.
D. Depreciation
(a)
Depreciation is provided as per Written down Value prescribed under Schedule XIV of the Companies Act, 1956.
(b)
Depreciation on Leased Premises is provided over a period of five years i.e. the tenure of the lease.
E. Foreign Currency transactions

Transactions of foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or at the
exchange rate under related forward exchange contracts. The realized exchange gains/losses are recognized in the
Profit & Loss Account. All foreign currency assets/ liabilities are translated in rupees at the rates prevailing on the date
of Balance Sheet.
F. Investments
(a) Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other
than temporary nature.
(b) Current investments are carried at the lower of cost and market value. The determination of carrying cost of such
investments is done on the basis of specific identification.
G. Taxes on income
(a) Current year tax is determined in accordance with Income Tax Act, 1961 at the Current Tax rates based on assessable
income.
(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 Accounting Standard
- 22 "Accounting for taxes on income" issued by The Institute of Chartered Accountants of India.
H. Impairment of Assets
At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether
there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an
asset's net selling price and value in use.
I. Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured.
(a) Exploration Income is recognized when services are provided.
(b)
Interest Income is recognized on accrual basis.

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ANNUAL REPORT 2013

(c)
Dividend Income is accounted on accrual basis when the right to receive the dividend is established.
J. Employee Benefits
Leave Encashment: The company does not have a policy of carry forward of pending leaves and hence no provision for
the same is made as mentioned under AS - 15 issued by ICAI.
Gratuity: Gratuity provision is made for qualifying employees. Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit cost method.
K. Provisions, Contingent Liabilities and Contingent Assets
Estimation of the probability of any loss that might be incurred on outcome of contingencies on basis of information
available upto the date on which the financial statements are prepared. A provision is recognized when an enterprise has
a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on management
estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions.
These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases
where the available information indicates that the loss on the contingency is reasonable possible but the amount of
loss cannot be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote
possibility neither provision nor disclosure is made in the financial statement. The company does not account for or
disclose contingent asset, if any.
L. The stock options granted are accounted for as per the accounting treatment prescribed by Employee Stock Option
Scheme and Employee Stock Purchase Guidelines, 1999, issued by Securities and Exchange Board of India, whereby
the intrinsic value of the option is recognized as deferred employee compensation. The deferred employee compensation
is charged to Profit & Loss Account on straight-line basis over the vesting period of the option. The employee stock option
outstanding account is shown net of any unamortized deferred employee compensation.
(ii) NOTES TO THE ACCOUNTS:
S No
PARTICULARS

31 March 2013
` (000)
31 March 2012
` (000)
Nil
1.
Capital Commitments
Nil
2.
Claims made against the company but not acknowledged as debts
Nil
Nil
3.
Contingent Liabilities on disputed Income Tax
Nil
2.57
4.
Additional information pursuant to para 3 & 4 of para ii of
Schedule VI of the Companies Act, 1956.
a. Expenditure in foreign currency
Nil
Nil
b. Earning in foreign currency
Nil
Nil

5. Related party disclosure
a)
Name of related parties and relationship
S. No.
Name of the party
Relationship
Wholly owned subsidiary
Sandeep Lakhwara
Managing Director
Chairman
K.R.Krishnamurthy
Director
Dr.M.Ramakrishnan
Director
V.K.Gaur
Director
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b) Transactions with related parties:S. No.
Nature

31 March 2013
` (000)
31 March 2012
` (000)
Reimbursement of Exploration Expenses to Subsidiary
9276.83
16,821.40
Managerial Remuneration paid to Directors
1,200.00
1200.00
Directors Sitting Fees & Audit Committee Fees
62.50
67.50
Rent for Guest House to Managing Director
360.00
360.00
5.
Equity Shares issued under ESOP
To Managing Director(80,000 Equity shares @ ` 16.95 each)
1356.00

6.
The Company undertook activities for exploration of gold at various sites. Commercial production of gold has not
commenced and therefore it is the Companys intention to account for all the exploration expenditure of ` 1004.19
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.
7.
Disclosure in respect of Employee Stock Option Scheme
a. Employee Stock Option Scheme:

Particulars
Tranche-I
Tranche-II
Tranche-III
No of Options
7,50,000
10,50,000
12,00,000
Method of Accounting
Intrinsic Value
Vesting Period
Exercise Period
1 year
1 year
1 year
Grant Date
02-06-2010
02-06-2010
02-06-2010
Grant/Exercise Price (`16.95 per share)

16.95
Market Price on the date prior to the
16.95
date of grant of option)
22.60
02-06-2011
22.60
02-06-2012
02-06-013
16.95
22.60
b. Movement of Options granted

Particulars

Options outstanding at the beginning of the year
01.04.2012
to
31.03.2013
01.04.2011
to
31.03.2012
25,73,750
30,00,000
Exercised during the year
2,45,000
76,250
Options Lapsed during the year
3,41,250
Option Lapsed on account of Employee resignation
*3,50,000
Options outstanding at the end of the year
19,87,500
25,73,750
Option unvested at the end of the year
10,60,000
19,87,500
Option exercisable at end of the year
9,27,500
5,86,250
* This includes 87500 stock options vested on 2nd June 2011
c. Employee Stock Option

Employee Stock Option Outstanding account `112.29 Lacs & Deferred Employee Compensation account ` 7.26 Lacs.
Employee Compensation Expenses amounting to ` 31.70 Lacs is included under the head Salaries and other benefits.
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ANNUAL REPORT 2013

8. Defined benefit Plans: A
The amounts (in `) recognised in the statement of Profit and Loss are as follows:
S. No.
1
2
3
4
5
6

B
Particulars
31.3.2013
31.3.2012
Current service cost

Interest on obligation
Net actuarial losses (gains) recognised in year ended
Past service cost
Losses (gains) on curtailments and settlement
93,100
52,079
-
(19,112)
-
-
87,997
40,634
(23,855)
-
Total, included in Employee Benefit Expense
126,067
104,776
Changes in the present value of the defined benefit obligation representing reconciliation of opening and closing
balances thereof are as follows:
S. No. Particulars
31.3.2013
31.3.2012
1
2
3
4
5
6
7
8
9
Opening Defined Benefit Obligation

Service cost for the year
Interest cost for the year on opening D.B.O.
Actuarial losses (gains)
Losses (gains) on curtailments
Liabilities extinguished on settlements
Liabilities assumed in an amalgamation in the nature of purchase
Exchange differences on foreign plans
Benefits paid
612,698
93,100
52,079
(19,112)
-
-
-
-
-
507,921
87,997
40,634
(23,855)
-
Closing defined benefit obligation
738,765
612,698
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.
D.
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

31.3.2013
31.3.2012
1
2
3
4
Discount rate
Proportion of employees opting for early retirement
Annual increase in Salary costs
8.00%
-
-
6.00%
8.50%
6.00%
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
9.
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.
10. 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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11. Previous year figures have been re-grouped, re-arranged wherever considered necessary.

CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013

For the
year ended
31.03.2013
(` 000)
For the
year ended
31.03.2012
(` 000)
A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit/(Loss)before Tax and after Extraordinary items
(10,368)
(9,273)

Adjustment For :

Depreciation
386
1,021

Increase/ Decrease in Stock
-
4,083

Interest & Finance charges
16
23

Dividend & Interest Income
(1,551)
(3,008)

Expenses on Employee Stock option
3,170
4,457

(20)
(41)

Loss (Profit) on sale/disposal of Assets
-
24
Operative Profit before Working Capital Changes
(8,367)
(2,712)

Adjustment For :

Trade and Other Receivables
(153)
1,149

Trade & Other liability
(25)
(5,073)

Cash Generation from Operations

Less: Taxes Paid
(8,544)
(634)
(6,636)
-
Net Cash Flow from operating activities
(7,910)
(6,636)
B. CASH FLOW FROM INVESTING ACTIVITIES

Pre-operative Expenses
(9,486)
(20,788)
Purchase of Fixed Assets
-
(883)
Proceeds from investments
8,707
26,016
Dividend & Interest Income
1,551
3,008
Net Cash used in investing activities
772
7,353
C.

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Share Issue
4,153
1,293
Financial Charges
(16)
(23)
Net Cash used in financing activities
4,137
1,270
D.

NET CHANGE IN CASH AND CASH EQUIVALENTS

(A+B+C)
(3,002)
1,987
Cash and Cash Equivalents as at 1st April 2012
4,831
2,844
Cash and Cash Equivalents as at 31st March 2013
1,829
4,831
Notes :

1. Figures in brackets represent cash outflows.

2. Previous year figures have been regrouped wherever necessary.


CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
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CONSOLIDATED BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE

A.

REGISTERATION DETAILS
State Code
Registration Number
Balance Sheet Date
:
:
:
11
34662
31 March 2013

B. CAPITAL RAISED DURING THE YEAR

Public Issue
:

Right Issue
:

Bonus Issue
:

Private Placement
:

Employee Stock Option Scheme
:
(Amount ` 000)
NIL
NIL
NIL
NIL
245
C.

POSITION OF MOBILISATION AND DEVOLOPMENT

Total Liability
:
28,510
Total Assets
:
28,510
SOURCE OF FUND
Paid up capital
:
58,771
Reserves & Surplus
:
(42,384)
Employees Stock Option Outstanding
:
10,503
Unsecured Loans
:
Non- Current Liabilites
:
739
Current Liabilites
:
880
APPLICATION OF FUNDS
Net fixed Assets
Non-Current Assets
Current Assets
D.

PERFORMANCE OF THE COMPANY

Total Income
:
1,571
Total Expenditure
:
11,939
Profit/(Loss) Before Tax
:
(10,368)
Profit/(Loss) After Tax
:
(10,368)
Earning per share in Rs.
:
(0.18)
Dividend Rate %
:
-
E.

GENERAL NAMES OF THEIR PRINCIPAL

PRODUCTS / SERVICES OF THE COMPANY (as per Monetary terms)
Item Code No. (ITC Code)
Product Description
:
:
:
:
:
1,634
2,399
24,476
N.A


CA K.V. BESWAL
Sandeep Lakhwara
PARTNER
Chairman
Managing Director
Place : Mumbai
Dated : 30 May 2013
Place : Bangalore
Dated : 30 May 2013
S. Subramaniam
Company Secretary
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ANNUAL REPORT 2013

NOTES
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ANNUAL REPORT 2013
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B
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ANNUAL REPORT 2013
NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of Deccan Gold Mines Limited will be held on
Wednesday, 11 December, 2013 at 3.00 p.m., at Banquet Room, Ground Floor, West End Hotel, 45, New Marine
Lines, Mumbai 400 020 to transact the following business:
ORDINARY BUSINESS:
1.
To receive, consider and adopt the Statement of Profit and Loss for the year ended 31st March, 2013 and
the Audited Balance Sheet as on that date along with the Reports of the Board of Directors and Auditors
thereon.
2.
To appoint a Director in place of Mr. Charles E.E. Devenish, who retires by rotation and being eligible, offers
himself for reappointment.
3.
To appoint a Director in place of Dr. M. Ramakrishnan, who retires by rotation and being eligible, offers himself
for reappointment.
4.
To appoint M/s. V.K. Beswal & Associates, Chartered Accountants, Mumbai (Firm Registration No. 101083W)
as Auditors of the Company to hold office from the conclusion of this Annual General Meeting to the conclusion
of the next Annual General Meeting of the Company.
SPECIAL BUSINESS :
5.
To consider and if thought fit, to pass, with or without modification (s), the following resolution as a Special
Resolution:
RESOLVED THAT pursuant to the provisions of Sections 198, 269, 309, 311 and other applicable provisions,
if any, of the Companies Act, 1956 read with Schedule XIII and guidelines for managerial remuneration issued
by the Central Government from time to time, the approval be accorded for reappointment of Mr. Sandeep
Lakhwara as Managing Director of the Company with effect from 1st May, 2013 for a period of 3 years with
liberty to either party to terminate the appointment on three months notice in writing to the other, on a salary
of Rs. 1,00,000/- per month with further liberty to the Board of Directors to increase the salary and / or revise
the terms of employment, from time to time in such manner as may be in the best interest of the Company
subject however to the restrictions, if any, contained in the Companies Act, 1956, including Schedule XIII
thereto, as amended up to date.
RESOLVED FURTHER THAT where, in any financial year, the Company has no profits or its profits are
inadequate, the Company shall pay the above salary to the Managing Director as and by way of minimum
remuneration subject to the applicable provisions of Schedule XIII of the said Act.
By order of the Board

for DECCAN GOLD MINES LIMITED
Place : Bangalore
S. Subramaniam
Company Secretary
REGISTERED OFFICE:
A-303, Prathamesh, Raghuvanshi Mills Compound,
Mumbai 400 013.
1
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NOTES:
1.
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ALSO ENTITLED TO APPOINT A
PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF ON A POLL ONLY. THE PROXY NEED NOT BE
A MEMBER OF THE COMPANY.
2. Proxies, if any, in order to be effective must be received at the Company's Registered Office not later than
48 hours (forty eight hours) before the time fixed for holding the meeting.
3
The Register of Members and the Share Transfer Books of the Company will remain closed from Wednesday,
the 4 December, 2013 to Wednesday, the 11 December, 2013 (both days inclusive).
4.
The Annual Reports and Attendance slips will not be distributed at the Annual General Meeting. Shareholders/
Proxies are requested to bring the same along with them.
2
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ANNUAL REPORT 2013

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
ITEM NO. 5:
The shareholders may note that Mr. Sandeep Lakhwara was appointed as the Managing Director for a period
of 3 years with effect from 1st May, 2010 upon the terms & conditions including remuneration as approved by
the Board at its meeting held on 30 April, 2010 and by the shareholders at the Annual General Meeting held on
29 September, 2010.
Pursuant to the recommendation of the Remuneration Committee, the Board of Directors of the Company, at their
meeting held on 30 May, 2013, re-appointed Mr. Sandeep Lakhwara as the Managing Director of the Company
for a period of 3 years with effect from 1st May, 2013 at a remuneration of Rs. 1,00,000/- per month and upon the
other terms and conditions as contained in the resolution pertaining to Item No. 5 of the Notice convening the AGM.
The abstract of the terms and conditions of appointment furnished in the Resolution pertaining to Item No. 5 may
be treated as the statement required to be sent to the shareholders pursuant to Section 303 (2) of the Companies
Act, 1956.
Further, details regarding Mr. Sandeep Lakhwara, his expertise in specific functional areas, other Directorships /
committee memberships, are furnished in the Annexure forming part of the Notice convening the AGM.
The Board recommends the resolution for approval of the shareholders.
Mr. Sandeep Lakhwara is interested in this resolution for his re-appointment as noted hereunder:
Financial Interest
Shareholding in the Company 80,000 equity shares

Remuneration Rs. 100,000/- per month
Other interest
Not applicable
Apart from Mr. Sandeep Lakhwara, none of the other persons as specified in Section 102 of the Companies
Act, 2013 namely the promoters, Directors, Key Managerial Persons, Relatives of Promoters, Directors and Key
Managerial Persons or the entities comprising the interest of Promoters, Directors, or Key Managerial Persons
are concerned or interested in the above resolution.

By order of the Board

for DECCAN GOLD MINES LIMITED
S. Subramaniam
Company Secretary
Place : Bangalore
REGISTERED OFFICE:
A-303, Prathamesh, Raghuvanshi Mills Compound,
Mumbai 400 013.
3
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ANNEXURE TO NOTICE
DETAILS OF DIRECTORS SEEKING APPOINTMENT / RE-APPOINTMENT
Name
Mr. Charles Edward

English Devenish*
Mr. Sandeep Lakhwara Dr. M. Ramakrishnan
Date of Birth / Age
24 October, 1940 /
5 September, 1955/
27 April, 1940 /
73 years
58 years
73 years
Appointed on
21 January, 2003
31 July, 2002
24 April, 2004
Qualification
School Leaving
Certificate
B.Bus (Curtin University, M.Sc., (Geology)

Western Australia)
Certified Practising
Accountant (Australia)
Ph.D., (Geology &

Geochemistry)
Expertise in specific functional areas Promoter of

mineral exploration
companies
Managing &
Pre-cambrian Geology
developing mineral
exploration businesses
Directorship held in Public Companies Nil
Nil
Nil
Membership / Chairmanships of Nil

Committees across Public Companies
(other than Deccan Gold Mines
Limited)
Nil
Nil
No. of shares held in the Company
80,000
Nil
Nil*
* Note:
Mr. Charles E.E. Devenish holds Directorship in 3 private limited companies viz., Vasundhara Metal Mining Private
Limited; Australian Indian Rural Development Foundation (Section 25 Company); and Vajra Diamond Mining
Private Limited.
Further, in terms of Clause 49 of the Listing Agreement entered into with the Stock Exchange viz., BSE, the
shareholders may take note that Mr. Charles E.E. Devenish, a non-executive director, does not hold any shares
in the Company as on 12 November, 2013 (either in his own name or held by / for other persons on a beneficial
basis). However, Mr. Charles E.E. Devenish is a Director / shareholder of Rama Mines (Mauritius) Limited which
hold 25,297,144 equity shares in the Company as on 12 November, 2013 constituting 42.97% of the paid-up
equity capital of the Company.
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ANNUAL REPORT 2013

REGD. OFFICE : A-303, Prathamesh, Raghuvanshi Mills Compound,
11-12, Senapati Bapat Marg, Lower Parel, Mumbai 400 013.
ATTENDANCE SLIP
I hereby record my presence at the Annual General Meeting held on Wednesday, the 11 December, 2013 at
3.00 p.m., at Banquet Room, Ground Floor, West End Hotel, 45 New Marine Lines, Mumbai - 400 020.
Full name of the Shareholder/Proxy* attending the Meeting....................................................................................
Folio No. / DP ID No............................................................. Client ID No................................................................
No. of Shares.................................................................................
Full name of the Shareholder...................................................................................................................................
(If the proxy attends instead of Shareholder)
*Delete whichever is not applicable
(Member / Proxy attending the Meeting must fill in this attendance
slip and hand it over at the entrance of the Meeting hall)
Signature of Shareholder / Proxy
!
PROXY FORM
Folio No.......................................................................... No. of shares held............................................................
DP ID No........................................................................ Client ID No......................................................................
I / We........................................................................................................................................................................
of.................................................................................... in the district of.................................................................
being a Member / Member of the above-named Company hereby appoint Mr. / Ms...............................................
....................................................................................... of.......................................................................................
in the district of.............................................................................................................................or failing him / her
Mr./Ms............................................................................. of............................................................... in the district of
.......................................................................as my / our proxy to vote for me / us on my / our behalf at the Annual
General Meeting of the Company to be held on Wednesday, the 11 December, 2013 at 3.00 p.m., Banquet Room,
Ground Floor, West End Hotel, 45 New Marine Lines, Mumbai - 400 020. and at any adjournment thereof.
Signed.................................................day of.......................................... 2013
Affix

Rs. 1.00
Revenue
Stamp
Note : This proxy form, in order to be effective should be duly stamped, completed

and signed and must be deposited at the Registered Office of the Company

not less than 48 hours before the Meeting.
Signature of Shareholder
5
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November 2013
Dear Shareholders,
Deccan Gold Mines Ltd (DGML) continues to be the only gold exploration company listed on the
Bombay Stock Exchange (BSE) and during a time when the reliance on gold imports is contributing
to the current account deficit and erosion of the Rupee, DGML remains in a unique position with a
platform to unlock the value of Indias gold resources.
As you are aware our Ganajur ML application has received all the recommendations including
certification of the gold Resource as mineable from the Indian Bureau of Mines. The IBM sent its
report to the Ministry in June 2013. The application is currently under the scrutiny of the Ministry.
While we are awaiting the grant of Mining Lease we have taken steps to speed up other important
issues such as getting Environmental clearance for the project. In this direction we are pleased to
inform the MOEF has issued Terms of Reference for both the plant and the Proposed open pit mine.
We have undertaken the preparation of the draft EIA and EMP report for the project.
The Ganajur-Karajgi PL block is currently under the extension period. DESPL has proposed to
carryout 8000m of drilling covering the Ganajur Main and its adjoining prospects shortly. We are in
the process of finalizing the drilling contractor to undertake this exciting drilling programme.
The Mangalgatti PL was granted one year ago in October 2012. Since then the DMG has been
going through with various procedures required to execute the PL. DESPL has supplied the original
village maps desired by the DMG, attended the inspection by the concerned District Senior Geologist
and has also submitted the demand drafts towards the PL fee security deposit. We are hopeful that
the DMG will arrange for execution of the PL shortly.
The Bhavihal PL had been recommended by the DMG to the State Secretariat. However, one of
the previous Secretaries has returned the file back to the DMG directing him to seek fresh NoC from
the Revenue Authorities. The file is currently pending with the DMG waiting for the NoC from the
Revenue authorities. We have repeatedly reminded the DMG to speed up the process.
As you are aware, in July 2012, DGML filed a Special Leave Petition (SLP) against Hutti Gold Mines
although at Hutti Gold Mines request the hearings were repeatedly postponed to allow them time to
respond to our SLP. Recently in September 2013 the Ministry of Mines, Govt. of India has also filed
an SLP against Hutti Gold Mines in connection with our dispute. This is an encouraging step as it
highlights the Governments will to protect the rights of DESPL and uphold their previous decisions
made in connection with this dispute. The SLP by the Union of India has been tagged along with
our petition and Hutti has now filed their response and we are hopeful that the scheduled hearing
on 10th December 2013 will proceed. DGML, with the support of our legal team in Delhi is of the
opinion that we have a strong case and we look forward to a favorable outcome.
Although licensing continues to be a tedious process we remain focused on this area of the business
with the assistance of FIMI, Invest India and various other industry organizations; and we are
continually making representations to the Government on the need for investor friendly policies
and procedures. We have also been working very closely with the Australian High Commissioner,
Consulate and their respective teams who are making representations on our behalf at various
levels of the Indian Government in terms of expediting our long pending licenses.
We have also been working on establishing and formalizing key partnerships. As you are aware,
in August 2013 Geomysore Services (India) Pvt Ltd, a Bangalore based exploration company
6
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ANNUAL REPORT 2013
approached DGML to be taken over as a wholly owned subsidiary of DGML. We have since
completed the due diligence process and the company is evaluating various options in this regard in
consultation with its legal and taxation advisors and its Merchant Banker to structure the transaction
that best serves the interest of all its shareholders. It is very encouraging to note that GMSI has
executed a Mining License for their Jonnagiri Gold Prospect in Andhra Pradesh in October 2013.
On a personal note I would like to formally acknowledge the long term support of our shareholders
and appreciate that it has been a long gestation period although know that I am also right along
side each and every one of you. I have ultimate faith in the future of this company and rest assured
that I am, along with the DGML team continually working towards our joint goals.
Yours truly,

Chairman
7

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