The Members of Deccan Gold Mines Limited

Report on the Audit of the IND AS Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone Ind AS financial statements of M/s. Deccan Gold Mines Limited (“the Company”), which comprise the Balance Sheet as at 31st March 2025, and the Statement of Profit and Loss (including other comprehensive income), the statement of Cash Flows and the statement of changes in equity for the year then ended, and notes to the financial statement including a summary of significant accounting policies and other explanatory information (herein after referred to as “standalone Ind AS financial statements”)

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2025, and its Loss including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period.

5. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

A. Conversion of Compulsorily convertible debentures (Refer Note 15(E)(III) & 16.1 to the Standalone Financials Statements)

On March 2, 2023, the Company has acquired 30,852 fully paid-up equity shares in M/s. Geomysore Services (India) Private Limited (“GMSI”) aggregating to Rs. 4,95,51,072 from M/s. Australian Indian Resources Limited, Australia. In consideration, the Company allotted 14,99,276 fully paid-up Compulsorily Convertible Debentures of face value of Re. 1/- each (“CCD”) at a price of Rs.33.05 per CCD, on preferential basis to Australian Indian Resources Limited, Australia, (Promoter Group) for consideration other than cash.

Australian Indian Resources Limited, Australia has opted for conversion of the CCDs into equity shares and accordingly, on August 20, 2024, the Company allotted 14,99,276 equity shares of the Company of face value of Re.1/- each at an issue price of Rs. 33.05/- per share.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting of Conversion included the following:

i. Obtained an understanding of the terms and conditions of the issue and conversion of CCD.

ii. Evaluated the accounting treatment of conversion of the CCD into Equity Shares done by the Management as per the applicable financial reporting framework.

iii. Evaluated the terms and conditions in relation to the conversion of CCD.

iv. Evaluated and verification of approval from various statutory & regulatory bodies such as SEBI, FEMA, MCA etc.

v. Assessed the appropriateness of the presentation of issue and conversion of CCD as per IND AS 32, ‘Financial Instruments: Presentation.'

B. Conversion of Warrants (Refer Note 16.3 to the Standalone Financials Statements)

During the year 2023-2024, the company issued 81,28,768 equity warrants at an issue price of Rs.53.47/- per warrant and received 25% consideration from the equity warrant allottees.

During the year 2024-25 the company have received the remaining 75% consideration from the Equity warrant allottees who opted for conversion of the Equity warrants into equity shares and accordingly, the Company have allotted 81,28,768 equity shares of the Company of face value of Re.1/- each at an Issue Price of Rs.53.47/- per share.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting of warrants and Conversion thereof included the following:

i. Obtained an understanding of the terms and conditions of the issue and conversion of warrants.

ii. Evaluated the accounting treatment of the conversion of warrants done by the Management as per the applicable financial reporting framework.

iii. Evaluated the terms and conditions in relation to the conversion of warrants.

iv. Evaluated and verification of approval from various statutory & regulatory bodies such as SEBI, FEMA, MCA etc.

C. Issue of Compulsorily convertible debentures (Refer Note 16.2 to the Standalone Financials Statements)

Allotment of 6,92,764 fully paid-up Compulsorily Convertible Debentures (CCDs) each at an 'issue price of Rs.116.20/- per CCD with the option of the CCDs convertible into equivalent number of equity shares on preferential basis through private placement for cash consideration carrying carry interest at the rate of 10% p.a. payable annually.

These CCD's shall be convertible into equity shares at any time not later than 18 months from the date of allotment of such CCD i.e. on or before 30th November 2025;

Our audit procedures to assess the accounting of CCDs included the following:

i. Obtained an understanding of the terms and conditions of the issue and conversion of CCD.

ii. Evaluated the accounting treatment of the CCD done by the Management as per the applicable financial reporting framework.

iii. Evaluated the terms and conditions in relation to the conversion of CCD.

iv. Evaluated the accounting for interest accrued but not due in the books of accounts done by Management as per the applicable financial reporting framework.

v. Assessed the appropriateness of the presentation of issue and conversion of CCD as per IND AS 32, ‘Financial Instruments: Presentation.'

D. Acquisition of further stake in M/s. Geomysore Services (India) Private Limited, M/s. Deccan Gold - FZCO, M/s. Dubai, Deccan Gold (Tanzania) Private Limited, Tanzania and M/s. Kalevala Gold Oy (Refer Note 5.3, 5.2, 5.1 & 5.4 to the Standalone Financials Statements).

During the year 2024-25 the company has acquired further stake in subsidiaries and associates whose details are given below :-

How the matter was addressed in our audit:

Our audit procedures to assess the accounting of acquisition of Stake holding are as follows:

i. Obtained an understanding of the terms and conditions of the acquisition of stake.

ii. Evaluated share certificate and valuation certificates issued on further acquisition of equity shares.

iii. Evaluated and verification of approval from various statutory & regulatory bodies such as SEBI, FEMA, MCA etc.

iv. Evaluated the accounting treatment of the purchases of stake in Subsidiary & Associates by the Management.

v. We evaluated the adequacy of the disclosures made in the Standalone Financial Statements.

vi. We have taken and review the Quarterly un-audited results provided by the management of all Subsidiaries & Associates to ensure that the amount remitted are showing in the corresponding financial statements.

vii. We had inquired with management to obtain an understanding of the relevant factors in respect of certain investments carried at fair value for the status of the projects owned in that respective entity and there progress, external valuation reports, for which significant estimates/judgements are required to arrive at fair value.

E. Arrangement of secured borrowing from body corporates pledge against investment in Equity Shares of M/s.Geomysore Services (India) Private Limited ("GMSI"), Associate & Accounting thereof (Refer Note 17 to the Standalone Financials Statements).

The company entered into facility arrangement with body corporates by pledging the investment of the company in the equity shares of GMSI. The funding required by the company is for investment in Avelum Partner LLC & GMSI for procurement of plant and machinery and other equipments for gold process plant and balance amount shall be utilized for general corporate purpose.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting and utilization of borrowings are as follows:

We have performed the following principal audit procedures in relation to accounting of borrowing:

i. Evaluated disclosures made in Standalone Financial statements and the related compliance with the requirements of the applicable accounting standards.

ii. Verification of loan agreements, terms of repayment, security provided, interest rate and creation of charges in MCA and informing to the BSE and shareholders.

iii. Utilization of Funds by the company by investing into subsidiary and associates by way of Equity participating and Loans.

iv. Understanding & Discussion from the management towards utilization of funds by the Subsidiary and Associates.

F. Issue of Stock Incentive Plan to the eligible employees of the Company, its subsidiaries and its associates (Refer note 16.4 of the Standalone Financial Statements)

The company has framed ESOP scheme for its employees under which the Company pays remuneration to its employees for services received in the form of equity-settled share-based payment transactions In accordance with the principles of Ind AS 102 Share Based Payments (Ind AS 102), the fair value of aforesaid employee stock options determined at the date of their grant is recognized as employee compensation cost by the Company over the vesting period of such options.

The fair valuation of options granted to employees for the services rendered is performed by external valuation specialists using Black-Scholes valuation model which requires the management to make certain key estimates and assumptions including expected volatility, dividend yield interest rate, performance factor, attrition rate and non-acceptance factors.

Considering significant management judgment and materiality of amounts involved, valuation of ESOP reserve and expense is considered as a key audit matter for the current year audit.

How the matter was addressed in our audit:

Our audit procedures to assess the accounting of Share Based Payment are as follows:

i. Obtained an understanding of the terms and arrangements of Employee Stock Option Plans

ii. Reviewed the report from management's valuation specialist considered for valuation of options granted during the year and evaluated competency and objectivity of valuation specialist hired by the management.

iii. Evaluated the accounting of Share Based Payment (“SBP”) done by the management to determine the expenses to be accounted and recognized for options granted during the year.

iv. Evaluated the appropriateness of disclosures made in Standalone Financial Statements with respect to SBP required by applicable Indian Accounting Standards.

Information other than the Standalone Ind AS Financial Statements and auditor's report thereon

6. The Board of Directors of the Company is responsible for the preparation of other information. The other information comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business Responsibility & Sustainability Report Corporate Governance and Shareholder's Information but does not include the Standalone Financial Statements and our auditor's report thereon

7. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

8. In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Ind AS Financial Statements

9. The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone Ind AS financial statements, that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under Section 133 of the Act, read with relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; for safeguarding the assets of the Company; for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

10. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

11. Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditors Responsibility for the Audit of the Standalone Ind AS Standalone Financial Statements

12. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

13. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient

and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

14. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

15. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

16. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

17. As required by the Companies (Auditor's Report) Order, 2020 (the “Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

18. As required by Section143(3) of the Act, we report that:

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

iii. The Company has no branch office and hence the company is not required to conduct audit under section 143 (8) of the Act;

iv. The Standalone Ind AS Balance sheet, the standalone statement of profit and loss including other comprehensive income, the statement of cash flow and the statement of changes in equity dealt with by this report are in agreement with the books of account.

v. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards (Ind As) specified under Section 133 of the Act, read with relevant rule issued thereunder.

vi. During our audit we did not come across any financial transaction or matters which might have an adverse effect on the functioning of the company.

vii. We do not have any qualification, reservation or adverse remark relating to the maintenance of accounts and other matters connected therewith.

viii. On the basis of the written representations received from the directors as on 31 March, 2025 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2025 from being appointed as a director in terms of Section 164(2) of the Act;

ix. With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

x. In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

xi. With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which may impact its standalone Ind AS financial statements;

ii. The company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. The company does not have any amounts that pending to be transferred to the Investor Education and Protection Fund.

iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11 (e), as provided under (a) and (b) above, contain any material misstatement.

v. No dividend has been declared or paid during the year by the Company.

vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

For V K Beswal & Associates Chartered Accountants Firm Registration No 101083W

CA Nishit S. Agrawal Partner M No-159882

UDIN No. : 25159882BMKUHF3655 Place: Mumbai Date: 29-05-2025