Annual Report – 2021-22

( )

BHARAT GOLD MINES LIMITED

(A Government of India Enterprise)
Oorgaum, Kolar Gold Fields - 563 120, Karnataka

50th ANNUAL REPORT 2021 - 22

Sl. Page
CONTENTS
No. No.

1 Board of Directors 3
2 Statement of the Chairperson, AGM 4
3 Report of the Board of Directors 7
4 Ten years Financials at a Glance 10
5 Significant Accounting Policies 11
6 Balance Sheet as at 31-3-2022 13
7 Profit & Loss Statement for the year 2021-22 14
8 Cash Flow Statement for the year 2021-22 15
9 Notes to Accounts (Note 1 to 28) 16
10 Report of the Independent Auditor 36
11 Comments of the C & AG of India 47

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Bharat Gold Mines Limited

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 Annual Report – 2021-22

B0ARD OF DIRECTORS

Dr. Ranjit Rath

Managing Director
(CMD, Mineral Exploration
Corporation Limited)

Smt. Farida M. Naik Dr. Veena Kumari D

Govt. Nominee Director Govt. Nominee Director
(Joint Secretary, Ministry of Mines (Joint Secretary, Ministry of Mines
Government of India) Government of India)

Shri Arun Goel

Govt. Nominee Director (F)
(GM (F), MECL)

REGISTERED OFFICE
SUVARNA BHAVAN
Smith Road, Oorgaum P. O.
Kolar Gold Fields, KOLAR Dist.Karnataka - 563 120
Phone: (08153) 295581, 295582

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 Bharat Gold Mines Limited

STATEMENT OF THE CHAIRPERSON, AGM

Farida M Naik

Dear Shareholders,

On behalf of the Company and the Board of Directors, I welcome you all to the 50th Annual
General Meeting of Bharat Gold Mines Limited.

The Notice of the Annual General Meeting, Directors‟ Report, Addendum to the Director‟s Report,
the Audited Accounts for the year ended 31st March, 2022 and the Report of the Independent
Auditors including the comments of C & AG on the accounts of the Company for the financial year
2021-22 have been shared with you and with your kind permission, I take them as read.

GENERAL SENARIO

You are aware that all production related activities have been stopped in the Company since
October, 2000. There has not been any production since then, including during the year under
report. As a result of orders for winding up of the Company passed by BIFR/AAIFR and permission
granted by the Ministry of Labour, Govt. of India for closure of the company w.e.f. 01-03-2001,
the services of all the employees were terminated effective from 1st March, 2001 and terminal
benefits have been settled.

STATUS OF THE COMPANY

The Government of India and the Company set upon to revive the mining operations, through sale
of assets to a mining company through a global bid process with first refusal option to eligible ex-
employees‟ society as per the Cabinet decision in 2006. The Company Bench of Hon‟ble High
Court permitted in July 2009 to issue Global Tenders with some amendments in the draft
documents. The Company and the Government filed an appeal before the Hon‟ble Division Bench
to set aside the referred order in respect of amendments. The Hon‟ble Division Bench vide its order
pronounced in August 2010 has set aside the order of the Company Bench, dismissed the
applications filed by the Company and the Government and directed the Union of India to
reconsider the winding up matter afresh. The Government and the Company have filed a Special
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 Annual Report – 2021-22

Leave Petition (SLP) in the Hon‟ble Supreme Court of India. The Ex-employees‟ unions have also
filed a similar SLP before the same court. The Hon'ble Supreme Court disposed the SLP on 09-07-
2013 by setting aside the order of the Division Bench of the High Court of Karnataka impugned in
the SLP and permitted the Union of India to proceed as per the decision of the Union Cabinet.

Meanwhile, all the mining leases of the Company got expired. The application for the renewal of
mining leases in Karnataka State is pending whereas the Government of Andhra Pradesh has
determined all the three mining leases and refused to renew them. WPs filed on the matter have
been dismissed by Hon‟ble High Court of Andhra Pradesh.

Post amendment of MMDR Act in 2015, leases cannot be transferred except leases acquired
through open auction procedure as specified in the Rules. Government of Karnataka has stated
that they would renew the mining leases for BGML but not in favor of any successful Bidder in
case of sale of assets of BGML. Hence, it is difficult to implement the Cabinet decision of 2006.

A Monitoring Committee was constituted by Ministry of Mines vide letter dated 18th April 2019 to
study and recommend an action plan for possible way forward for Bharat Gold Mines Ltd. (BGML)
through engagement of a Management Consultant to carry out Review of the Legal cases,
Valuation of Assets – land parcels, plants and machineries, scraps, buildings and other such assets
and based on the inputs from the Techno-Economic Feasibility study for the ore tailing dumps and
suggest a way forward for BGML.

M/s DMT has been appointed as Management Consultant through MECL. Management consultant
suggest following in the final report: (i) BGML does not look for operationalistion on its own and
give NOC to Govt. of Karnataka for auction of tailing dumps and two mineral blocks namely Mc
Taggart and Oriental Loades. (ii) Transfer the land to Govt. of Karnataka for suitable and
appropriate settlement, accordingly financial liabilities will be settled against the accrued value of
land monetization on the basis of prevailing circle rate. Land parcel for Marikuppam to Kuppam
railway line may be handed over to Indian Railways. (iii) MoM may engage MSTC on nomination
basis to undertake auction process of scraps and dilapidated buildings and proceeds shall be
deposited with MoM, GOI.

The entire land parcel of BGML is 12,109.70 Acres of land of which about 7,170.24 Acres has
been mutated upto March 31, 2022 in the name of BGML under Survey No. 1 & 2 of
“Bangaradhagani” village has also been incorporated. RTC for remaining area of BGML land
spread over 52 different survey numbers under 29 villages has to be collected. Reconciliation of
BGML land as per RTC and sale deed is in progress with BGML. It is decided to demarcate the
mutated portion of BGML land by pillaring on ground.

There have been several cases filed by ex-employees in various courts which are being settled as
the case may be. The affairs of the Company are being managed with the help of skeleton staff
engaging services of officers drawn from PSUs and Government organizations under the Ministry

5
 Bharat Gold Mines Limited

of Mines, an officer on deputation from BSF, engaging ex-employees on contract basis and out-
sourced security agency, with financial support received from Government of India as Grant-in-Aid
(Non-Plan). Presently, process of appointment of MD, BGML on additional charge basis is
underway. Hence, AGM is conducted under the Chairmanship of senior most Director on the
Board.

ACKNOWLEDGEMENTS

On behalf of BGML, I would like to thank the Ministry of Mines and other Ministries of the Central
and State Governments and the Comptroller & Auditor General of India, who have always
extended their support and provided their guidance at this critical juncture of the Company. I
would like to express my sincere gratitude for the same. The Statutory Auditors, bankers, local
authorities, officers and staff working for BGML and other associates also deserve my thanks for
their support and co-operation.
I also extend my sincere thanks to all my colleagues on the Board for their support and guidance
received to deal effectively for conducting the affairs of the Company.

(Farida M Naik)
Board of Director, BGML &
Chairperson of Annual General Meeting
DIN 7612050
Kolar Gold Field
26th September, 2022.

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 Annual Report – 2021-22

REPORT BY THE BOARD OF DIRECTORS

To

THE SHARE HOLDERS,

BHARAT GOLD MINES LIMITED

Gentlemen,
Your Directors have pleasure in presenting the FIFTIETH Annual Report of the Company together
with the Audited Statement of Accounts of the Company for the year ended 31st March 2022.

The preparation of Annual Accounts of the Company for the financial year ended 31st March 2022
has been continued based on “Going Concern” basis in the context of the status and developments as
detailed in the notes to accounts and the matter regarding valuation of assets is both confidential and sub-
judice.
The production, turnover, capacity utilization, exploration, technology absorption, foreign exchange
earnings and outgo, recruitment of personnel, purchase of raw materials/stores/spares etc., and any other
normal business activities for the year under report, 2021-22 is „NIL‟.

WAY FORWARD ACTIVITES:

APPOINTMENT OF MANAGEMENT CONSULTANT:
MECL as Programme Manager for BGML Way forward, has appointed M/s DMT Consulting Pvt. Ltd,
Kolkata to deal with Strategic, Legal and Commercial matters of BGML and suggest Road Map for future
course of action. DMT has submitted Final report during July 2021.

SURVEY AND MUTATION OF BGML LAND:

As per registered document BGML owns 12109 Acres and 28 guntas of land in Kolar district. However, so
far, the revenue records do not reflect the same and Mutation in favour of BGML has not been made. A
Drone survey has been carried out by BGML and the details of land parcels has been categorized basis their
current usage. With sustained and continuous engagement with the District Administration, the Revenue
Officials surveyed the area and has incorporated the Bangaradhagani village in KGF taluk, which was
missing in revenue records earlier and an area over an extent of 7170 acres 24 guntas belongs to Bharat
Gold Mines Ltd (BGML) under survey number 1 & 2 Bangaradhagani village has been identified and RTC
and pahani in favour of BGML has been issued. As of the remaining 4939 acres and 04 guntas of land
parcel, the process of obtaining RTC and pahani being perused. To obtain S & D map of 7170 acres and 28
guntas of land survey agency namely Seed Tech Innovations has been engaged for survey and demarcate
7170 acre and 24 guntas of BGML land in survey number 1 & 2 of Bangardhagani village in Kolar district
on the ground in the presence/ association of authorized surveyor of Govt. of Karnataka to obtain
authenticated survey map with signature and seal of competent authority of Govt. of Karnataka.

FINANCE:

The revenue for the year comprised of Grant in Aid from the Government of India, Rent from Township
and Interest on Bank deposits etc. There is no regular employee on the rolls of the company. The affairs of
the company are being managed with the help of skeleton staff on deputation from BSF, arrangement with
GSI, MECL on contractual basis and outsourcing security services and office assistants.

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 Bharat Gold Mines Limited

The key financial data for the year under review are summarized as follows:
(Rs. in Crores)

Particulars 2021-22 2020-21 2019-20

I REVENUE:
Other Income Rent/Interest/Miscellaneous 1.23 1.05 1.32
II EXPENDITURE:
Employee Benefit Costs (0.31) (0.31) (0.34)
Security and Labour Contract (4.67) (5.26) (3.91)
Other Expenses (0.83) (0.67) (0.54)
Development Expenses-(MECL) 0.00 (1.04) 0.00
Profit/(Loss) From Operations (4.58) (6.23) (3.42)
III GRANTS:
Grants from GOI 5.84 7.00 4.50
IV INTEREST AND DEPRECIATION:
Finance Costs (69.90) (70.24) (114.29)
Depreciation (00.16) (00.15) (00.17)
V ADJUSTMENTS:
Provisions withdrawn 0.00 239.68 32.94
Prior Period Adjustments (Net) (00.07) (22.67) 1.02
Net Profit/(Loss) for the Year (68.87) 147.39 (79.41)
Accumulated Net Profit/(Loss)
as on31-03-2022 (2034.20) (1965.33) (2112.72)
Capital Reserve (Land) 0.61 0.61 0.61
Share Capital 51.06 51.06 51.06
Net Worth (Negative) (1982.53) (1913.66) (2061.05)

DIRECTORS’ RESPONSIBILITY STATEMENT:

AUDIT COMMITTEE:
In view of no operations except for process of proposed sale of assets and proceedings in the
Hon‟ble High Court of Karnataka, no Audit Committee was in existence during the year.

STATUTORY AUDITORS' REPORT AND EXPLANATIONS OR COMMENTS ON EVERY QUALIFICATION,

RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE BY THE AUDITORS IN THEIR REPORT:
(Sec 134(3)(f)(i) of the Companies Act, 2013)

Comments/observations of the Independent Auditor and replies by the Company are attached to this report
as Addendum to Directors‟ Report 2021-22.

BOARD OF DIRECTORS:

Government of India has assigned the additional charge of the post of Managing Director, BGML to
Dr. Ranjit Rath, Chairman Cum Managing Director, Mineral Exploration Corporation Limited(A CPSE
under Ministry of Mines) w.e.f 01.01.2021 to 31.12.2021 or until further orders, whichever is earlier vide
order no Met 2-G010/2/2020-Metal II dated 10-02-2021 of Ministry of Mines and subsequently it was
extended further period of one year w.e.f 01.01.2022 to 31.12.2022 vide order no.Met2-G010/2/2020-
Metal II dated 06-12-2021 of Ministry of Mines.

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 Annual Report – 2021-22

The Ministry also conveyed to entrust the additional post of Director (Finance) on the board of
BGML to Shri Arun Goel, GM(F), MECL, (A CPSE under Ministry of Mines) w.e.f 01.07.2021 to
31.12.2021 until further orders vide Order no Met 2-G010/1/2020-Metal II dated 18-06-2021 and
subsequently it was extended further period of one year w.e.f 01.01.2022 to 30.06.2022 vide order no.vide
Order no Met2-G010/1/2020-Metal II dated 22-12-2021 of Ministry of Mines.

All the Directors on the Board are part time official Directors nominated by GOI and they are not
entitled for any sitting fee.

COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF

DIRECTORS) RULES 1988
Form A: Prescribed under the above rule is not applicable to BGML
Form B: (See Rule 2) – Form for disclosure of particulars with respect to Technology absorption
and Research and Development is not applicable to BGML
Form C: Foreign Exchange Earning and outgo 2020-21 is NIL

AUDITORS:
M/s. Mohammed Iqbal & Co. (Firm Reg. No. 007109S), Chartered Accountants, Bangalore were
appointed by the Comptroller & Auditor General of India as Auditors of the Company for the year ended
31.3.2022 vide letter No. CA.V/COY/CENTRAL GOVERNMENT, BGML (1)/1786 dated 23-09-2021.

ACKNOWLEDGEMENTS:
Your Directors wish to place on record the timely assistance, co-operation and guidance extended
by the Officers of the Ministry of Mines and other Ministries of Government of India, and other various
officials of the Governments of Karnataka and Andhra Pradesh for their co-operation and support.

The Directors also thank bankers of the company for their continued co-operation. The Board takes
this opportunity to thank the Officials of the Comptroller & Auditor General of India as well as the Statutory
Auditors for their valued co-operation.

For and on behalf of the Board of Directors.

(FARIDA M NAIK)
Board of Director, BGML
Chairperson of Annual General Meeting
Date: 26-09-2022. DIN 7612050

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 Bharat Gold Mines Limited

Ten Years Financials at a Glance

(Rs. in Crores)
PARTICULARS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Other Income 0.97 0.82 0.94 1.09 2.63 1.17 1.05 1.37 1.05 1.23
Non Plan 1.50 1.50 3.65 2.70 4.23 3.56 4.50 4.50 7.00 5.84
Grant in Aid-GOI
GOI Grant-
Terminal Gratuity 0.00 0.00 0.00 0.00 10.92 0.00 0.00 0.00 0.00 0.00
GOI Grant-
Global Tender 0.00 0.37 0.27 0.01 0.00 0.00 0.00 0.00 0.00 0.00
GOI Grant-
Court Cases 0.00 0.00 0.00 6.26 0.00 0.00 0.00 0.00 0.00 0.00
Equity 51.06 51.06 51.06 51.06 51.06 51.06 51.06 51.06 51.06 51.06
Capital Reserve 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61 0.61
Secured Loans -SBI 5.58 5.58 5.58 5.58 5.58 5.58 5.58 5.58 0.00 0.00
Secured Loans -SBI
Interest 48.68 61.48 77.30 96.85 121.01 150.87 187.77 233.39 0.00 0.00
GOI Loan 219.22 219.22 219.22 219.22 219.22 219.22 219.22 219.22 219.29 219.29
Interest on GOI-
Loan 1071.32 1129.25 1188.25 1248.31 1310.65 1372.49 1435.76 1500.10 1574.22 1640.21
Net Block 4.66 4.21 3.63 2.76 2.52 2.30 2.10 1.93 1.79 1.79
Net Profit/(Loss) (74.97) (76.86) (85.58) (76.60) (89.95) (100.48) (103.96) (79.41) 147.39 (68.87)
Net Worth (1448.98) (1525.68) (1611.25) (1687.86) (1777.81) (1878.29) (1982.25) (2061.05) (1913.66) (1982.53)

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 Annual Report – 2021-22

SIGNIFICANT ACCOUNTING POLICIES FOLLOWED

BY THE COMPANY - 2021-22
1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) and provisions of the
Companies Act, 2013. These financial statements have been prepared in the format
prescribed by the Schedule III to the Companies Act 2013. Previous year's figures have
been regrouped/reclassified wherever necessary to correspond with the current year's
classification/disclosure.
2. Use of estimates
The estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year.
The estimates used in preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the differences between the actual
results and the estimates are recognized in the periods in which the results are
known/materialize.
3. Cash and Cash equivalents
Cash comprises cash on hand, Bank Balances and demand deposits with banks.
4. Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and
any deferrals or accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are segregated based on the
available information.
5. Depreciation and amortization
Depreciation on fixed assets is charged on straight line method in the manner specified in
Part “C” of Schedule II of the Companies Act, 2013.
6. Expenditure and Income
All expenses and income have been accounted on accrual basis.
7. Employees’ Retirement/ Terminal Benefits
(a) Terminal gratuity for employees is provided as applicable as per the Gratuity Act &
Gratuity Rules on accrual basis.
(b) Workmen/Employees‟ compensation, TA on retirement/ terminations compensations, if
any, payable are provided/accounted on settlement/payment basis.
(c) PF, ESI & Leave Encashment liability is accounted on accrual basis. However, the
company do not have any employees on its Role and essential staff are engaged through
outsourcing agency.
8. Fixed assets
(i) Land
The land taken over from the Kolar Gold Mining Undertaking has been valued and
assigned a nominal rate of Rs.500/- per acre as approved by the Board in their 34th
Meeting held on 20th August 1978. Subsequent additions are accounted as per the terms
of settlement or cost of acquisition or purchase value as the case may be.

11
 Bharat Gold Mines Limited

(ii) Grant
Assets acquired from any specific grant received from Government or other agencies are
capitalized after reducing the grant from the original cost and depreciation is charged
accordingly. Other grants are accounted as income with suitable adjustments.
9. Inventory Valuation:
(i) Raw materials, stores and spare parts are stated at weighted average cost.
(ii) The closing stock of Gold and Silver is valued at cost or net realisable value, whichever
is lower.
(iii) The closing stock of work in progress and finished goods at workshops is valued at
estimated cost or net realisable value whichever is lower.
(iv) No value is assigned to stock of copper recovered from gold. The same is accounted on
consumption/sales.
(v) No value is assigned to stock of ore lying with mines and mills at the end of the financial
year.
10. Provisions and contingencies
Provisions are not discounted to their present value and are determined based on the best
estimate required to settle the obligation at the Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best estimates. Contingent
liabilities are disclosed in the Notes.
11. Salvaged Assets/Materials and disposal of scrap
Wherever whole identifiable assets are salvaged/disposed the corresponding values are
withdrawn from fixed assets and treated appropriately. Wherever only some parts are
salvaged, the value of the asset is not on record or assessable, no adjustment is carried
out.
The assets retired from active use and held for disposal are retained at the net book value
instead of withdrawing from fixed assets.
Salvaged material/scrap are accounted as income at the time of sale.

For & on behalf of Board of Directors - BGML Date: 28-07-2022

Sd/- Sd/- Sd/- Sd/-

(Arun Goel) (Dr. Veena Kumari D) (Farida M. Naik) (Dr. Ranjit Rath)
Director (Finance) Director Director Managing Director
DIN 8923137 DIN 8890469 DIN 7612050 DIN 08275277

As per our report of even date attached herewith

For Mohammed Iqbal and Co.
Chartered Accountants
Firm Reg. No. 007109S

Sd/-
(Mohammed Iqbal. B)
Bengaluru Proprietor
Date: 28-07-2022. Membership No. 023738

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 Annual Report – 2021-22

BALANCE SHEET AS AT 31-03-2022

(Rs. in Crores)
Sl. As at 31st As at 31st
Particulars Note
No. March 2022 March 2021
I A) EQUITY AND LIABILITIES:
1. Shareholders’ Funds:
a) Share Capital 1 51.06 51.06
b) Reserves and Surplus 2 -2,033.60 -1,964.73

2. Non Current Liabilities:

a) Long Term Borrowings 3 1,859.51 1,793.51
b) Other Long Term Liabilities 4 to 7 132.76 128.61

3. Current Liabilities:
a) Other Current Liabilities 8 to 10 6.21 7.29
b) Short Term Provisions 10.1 0.18 4.04

II Total 16.11 15.78

B) ASSETS:
1. Non-Current Assets:
a) Property Plant and Equipment &
intangible assets
(i) Property, Plant and Equipment 11 1.69 1.79
b) Long-Term Loans and Advances 12 to 13 3.02 3.06
c) Other-Non-Current Assets 14 0.28 0.27

2. Current Assets:
a) Cash and Cash Equivalents 15 8.50 8.53
b) Other current assets 16 to 18 2.61 2.14
Total 16.11 15.78

For & on behalf of Board of Directors - BGML Date: 28-07-2022

Sd/- Sd/- Sd/- Sd/-

(Arun Goel) (Dr. Veena Kumari D) (Farida M. Naik) (Dr. Ranjit Rath)
Director (Finance) Director Director Managing Director
DIN 8923137 DIN 8890469 DIN 7612050 DIN 08275277

As per our report of even date attached herewith

For Mohammed Iqbal and Co.

Chartered Accountants
Firm Reg. No. 007109S

Sd/-
(Mohammed Iqbal. B)
Bengaluru, Proprietor
Date: 28-07-2022. Membership No. 023738

13
 Bharat Gold Mines Limited

STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH, 2022
(Rs. in Crores)
Sl. Year ended Year ended
Particulars Note
No. 31st March,2022 31st March,2021

1 REVENUE:
a) GOI Grant 5.84 7.00
b) Other Income 19 1.23 1.05

Total Revenue (A) 7.07 8.05

2 EXPENSES:
(a) Employee benefit expenses 20 0.32 0.31
(b) Security labour Supply Contract 21 4.67 5.26
(c) Other Expenses 22 0.83 0.67
(d) Development Expenses 23 0.00 1.04
(e) Finance Costs 24 69.90 70.24
(f) Depreciation and Amortization Expenses 25 0.16 0.15

Total Expenses (B) 75.88 77.66

3 (Loss) Before Exceptional items (A) – (B) -68.80 -69.61

4 Exceptional Items
a) Provisions no longer required 26 0.00
239.68
b) Prior period adjustments 27 -0.08
-22.67

5 Profit / (Loss) Before Tax -68.88 -147.39

6 Tax Expense: 0.00 0.00

7 Profit/(Loss) for the year (5-6) -68.88 -147.39
Significant Accounting Policies and Notes on
accounts from 1 to 28 forming part of accounts

For & on behalf of Board of Directors - BGML Date: 28-07-2022

Sd/- Sd/- Sd/- Sd/-

(Arun Goel) (Dr. Veena Kumari D) (Farida M. Naik) (Dr. Ranjit Rath)
Director (Finance) Director Director Managing Director
DIN 8923137 DIN 8890469 DIN 7612050 DIN 08275277

As per our report of even date attached herewith

For Mohammed Iqbal and Co.
Chartered Accountants
Firm Reg. No. 007109S

Sd/-
(Mohammed Iqbal. B)
Bengaluru Proprietor
Date: 28-07-2022. Membership No. 023738

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 Annual Report – 2021-22

CASH FLOW STATEMENT FOR THE YEAR ENDED ON 31st MARCH, 2022
For the year ended
Particulars 31-3-2022 31-3-2021
Note No.
Amount Rs. Cr. Amount Rs. Cr.

Net Profit/Loss for the Year 2021-22 -68.88 -147.30

1. ADD INCREASE IN LIABILITIES
Long term borrowings-SBI & GOI 3 66.00 -
Long term Liabilities (AP Govt.) 4 0.01 -
Long term Liabilities (KA Govt.) 5 3.88 3.10
Long term Liabilities (Statutory) 6 0.24 14.71
Current Liabilities (Statutory) 8 0.00 0.02
Current Liabilities (Creditors) 10 0.00 0.88
Depreciation Provision 25 0.00 0.15
2. LESS DECREASE IN LIABILITIES
Long term borrowings-SBI & GOI 3 0.00 -164.78
Long term Liabilities (AP Govt.) 4 0.00 -0.01
Long term Liabilities (KA Govt.) 5 0.00 0.00
Long term Liabilities (Statutory) 6 0.00 0.00
Long term Liabilities (Others) 7 0.00 0.00
Current Liabilities (Statutory) 8 -0.02 0.00
Current Liabilities (Employees) 9 -0.10 0.00
Current Liabilities (Creditors) 10.1 -0.81 -0.06
3. ADD DECREASE IN ASSETS
Long Term Deposits 12 0.09 0.00
GST/TDS Receivable 16 0.03 0.87
Current Assets - Others 18 0.00 0.00
4. LESS INCREASE IN ASSETS
Purchase of Computer 11 0.00 0.00
GST/TDS Receivable 16 -0.28 0.00
Rent Receivable 17 -0.00 -0.15
Current Assets-Others 18 -0.20 -0.08
INCREASE IN CASH AND BANK BALANCES -0.03 2.06
Opening Balance of Cash and Bank Balances 8.53 6.47
Closing Balance of Cash and Bank Balances 8.50 8.53
Increase in Cash and Bank Balances -0.03 2.06
Cash and Bank Balances as on 31.03.2020 6.47
Cash and Bank Balances 0.10
Fixed Deposit Receipts 6.38
Cash and Bank Balances as on 31.03.2021 8.53
Cash and Bank Balances 0.12
Fixed Deposit Receipts 8.41
Cash and Bank Balances as on 31.03.2022 8.50
Cash and Bank Balances 0.67
Fixed Deposit Receipts 7.83
Increase in Cash and Bank Balances -0.03
For & on behalf of Board of Directors – BGML Date: 28-07-2022
Sd/- Sd/- Sd/- Sd/-
(Arun Goel) (Dr. Veena Kumari D) (Farida M. Naik) (Dr. Ranjit Rath)
Director (Finance) Director Director Managing Director
DIN 8923137 DIN 8890469 DIN 7612050 DIN 08275277
As per our report of even date attached herewith
For Mohammed Iqbal and Co.
Chartered Accountants
Firm Reg. No. 007109S
Sd/-
(Mohammed Iqbal. B)
Bengaluru Proprietor
Date: 28-07-2022. Membership No. 023738

15
 Bharat Gold Mines Limited

NOTES FORMING PART OF ACCOUNTS

Note – 1 SHARE CAPITAL

Partculars
As at 31-03-2022 As at 31-03-2021

Number of Value Number of Value

Shares (Rs. Cr) Shares (Rs. Cr.)
i) Authorized/Issued/Subscribed/Paid up
a) Authorized
Equity Shares of Rs. 1,000/- each 600000 60.00 600000 60.00
(b) Issued, Subscribed and Paid-up:
Allotted fully as fully paid Equity Shares of 100/- each 510640 51.06 510640 51.06

(ii) Reconciliation of the number of shares and amount outstanding at the

beginning and at the end

Particulars As at 31-03-2022 As at 31-03-2021

Number of Value Number of Value

Shares (Rs. Cr) Shares (Rs. Cr.)
Equity Shares
Number of Equity Shares at the beginning of the year 510640 51.064 510640 51.064

Number of Equity Shares at the end of the year 510640 51.064 510640 51.064

(iii) Details of shares held by each shareholder holding more than 5% of the paid up
Equity Share Capital of the Company
Class of Shares/Name of shareholder As at 31-03-2022 As at 31-03-2021

% Holding % Holding in
Number of Number of
in that class that class of
Shares held Shares held
of shares shares
Equity Shares with voting rights:
President of India 510638 100% 510638 100%

Note 1.1 Shares allotted as Fully Paid includes 85111 shares allotted as Fully Paid for consideration other than -
.cash towards purchase consideration, preliminary expenses etc.
Note 1.2 Company does not have holding, subsidiary or ultimate holding company.

Note – 2 RESERVES AND SURPLUS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Capital Reserve (Land Valuation) (A) 0.61 0.61

Profit & Loss Account
Balance as per last Balance Sheet -1,965.33 -2,112.73
Add: Profit/(Loss) for the year -68.88 147.39
Profit & Loss Account Balance (B) -2,034.20 -1,965.33
Total (A+B) -2,033.60 -1,964.73

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 Annual Report – 2021-22

Note – 3 LONG TERM BORROWINGS

As at 31-03-2022 As at 31-03-2021
Particulars
Value (Rs. Cr.) Value (Rs. Cr)

UN-SECURED LOANS
GOI Loans – Plan 86.14 86.14
GOI Loans – Non Plan 133.15 133.15
Interest Accrued GOI Loans – Plan 423.16 409.05
Interest Accrued GOI Loans – Non Plan 641.18 616.43
Penal Interest Accrued – GOI Loans 575.88 548.74
2.75% of interest accrued on opening balance
Total 1,859.51 1,793.51

Note 3.1 The Plan and non Plan loans of the Government of India are overdue for payment along with
applicable rates of interest which varies as per the terms and conditions of the sanctioned orders on various dates
(from 1978-79 to 2000-01). The company has been making provisions for the interest and penal interest as per
the terms of the loan sanction order year to year.
Note 3.2 The repayment of the above GOI loans along with the interest will be made out of the sale proceeds of
the company as per Union cabinet Approval in July 2006 or subsequent decision of the Union Cabinet if any.

Note – 4 OTHER LONG TERM LIABILITIES – AP GOVERNMENT

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

APSEB – Power Bills 1.39 1.39

Interest Accrued - APSEB – Power Bills 7.39 7.39
AP – CGM – Royalty 0.31 0.31
AP – OBM – Royalty 0.12 0.12
Interest Accrued – AP CGM – Royalty 1.11 1.10
Interest Accrued – AP OBM – Royalty 0.40 0.40
Total 10.72 10.71

Note 4.1 The Royalty dues of AP Government have been reconciled with the present status of demand based
on the latest demand intimation dated 30.05.2022 received from Asst. Director of Mines and Geology (FAC),
Department of Mines and Geology, Government of AP.

Note – 5 OTHER LONG TERM LIABILITIES – KARNATAKA GOVERNMENT

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

KA – Power Bills HT-1 25.53 25.53

KA – Power Bills HT-7 0.01 0.01
KA – Royalty Gold 20.06 16.18
Interest Accrued – KA – Royalty Gold 51.30 51.30
Total 96.90 93.01

Note 5.1 The Royalty dues of Karnataka Government have been reconciled with the present status of demand
based on the latest demand intimation dated 04.06.2022 received from Asst. Director of Mines and Geology,
Department of Mines and Geology, Government of Karnataka and the excess liability provided upto 31.03.2022.

17
 Bharat Gold Mines Limited

Note – 6 OTHER LONG TERM LIABILITIES – STATUTORY LEVIES

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

KA – Mineral Right Tax* 4.76 4.76

MH – Bombay Municipal Corp* 0.57 0.57
CE – Excise Duty on Capital Items* 1.22 1.22
Property Tax - KGF 14.95 14.71
Total 21.50 21.25
Note 6.1 The Liabilities marked * are subject to reconciliation and confirmation.

Note – 7 OTHER LONG TERM LIABILITIES - OTHERS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Non Refundable Deposit (Beml) 1.00 1.00

Vendors Miscellaneous Trade Payables* 1.81 1.81
Miscellaneous Advance and Deposits Received* 0.63 0.63
AP – CGM Police Outpost Charges* 0.17 0.17
KA – KGF Police Escort Charges* 0.03 0.03

Total 3.64 3.64

Note 7.1 The Liabilities Marked* are subject to reconciliation and confirmation.

Note – 8 CURRENT LIABILITIES – STATUTORY

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

TDS Salary 0.00 0.00

TDS Contractors 0.05 0.00
TDS Professional Charges 0.01
PF Liability 0.00 0.08
CGEGIS Liability 0.00 0.00
Total 0.06 0.08

Note – 9 OTHER CURRENT LIABILITIES – EMPLOYEES

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Gratuity Payable - STBP 0.05 0.05

Gratuity Payable – Non STBP 0.02 0.02
Gratuity Others* 0.07 0.17
Pay Roll Deduction* 0.07 0.07
LSC & PC* 0.03 0.03
STBP – House Sale Value Received 2.17 2.17
STBP – Deposit 0.05 0.05
Deposit Employees for Power Supply* 0.01 0.01
Total 2.48 2.58

18
 Annual Report – 2021-22

Note 9.1 Approximately 31.90 acres of built up area of 2812 houses marked to be sold to ex-employees
who were on the rolls at the time of closure of the company as per directions of GOI under STBP Scheme
out of which Employees have paid the sale value for 2732 houses to the tune of Rs. 21694867/- (Approxi-
mately at an average rate of Rs. 15/- per sq. ft.) and the sale value is retained in the books pending transfer
of title and completion of other formalities.

Note 9.2 The decision on the transfer of courtyard around the quarters (Approximately 91 acres) and its
Extend and sale value is yet to be finalized.

Note 9.3 Employees staying in 75 houses still have to pay the sale value. They are charged nominal
monthly rent. 5 houses are abandoned and left vacant.

Note 9.4 The Liabilities Marked* are subject to reconciliation and confirmation.

Note – 10 CURRENT LIABILITIES – OTHERS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)
Grant in Aid Global Tender 0.50 0.50
Grant in Aid Ex-employees Court cases 0.27 0.32
EMD – Abscissa Facilities 0.02 0.02
PG Deposit – Abscissa Facilities 0.14 0.13
PG Deposit – Vehicle Contract 0.00 0.00
SD Rent Collectors 0.01 0.01
SD Hombale Films 0.00 0.00
SD Indus Towers 0.11 0.11
SD Summit Digital Infrastructure P Ltd 0.09 0.09
Deposit – Domestic & Commercial Rent 2.13 2.13
CAUTION DEPOSIT 0.00 0.30
SD – DEPOSIT - ESPS 0.04 0.00
Provisions Security Contract Bills – ESPS 0.30 0.70
Provisions Security Contract Arrears Payable 0.00 0.32
Provisions Vehicle Contract Bills 0.01 0.01
Rent Received in Advance 0.05 0.00
Total 3.67 4.62

19
 Bharat Gold Mines Limited

Note – 10.1 CURRENT LIABILITIES - SHORT TERM PROVISIONS

Particulars As at 31-03-2022 As at 31-03-2021
Value (Rs. Cr.) Value (Rs. Cr)
Provisions for Sundry Creditors 0.04 0.00

Provisions Legal Charges 0.01 0.01

Provision for Audit Fee (Statutory) 0.01 0.01
Provisions Repairs and Maintenance 0.00 0.00
Provisions Telephone Charges 0.00 0.00
Provisions Travelling Expenses 0.00 0.00
Provision for Commission Charges 0.00 0.00
Provision for Power & Lighting 0.00 0.00
Provisions Medical Expenses 0.00 0.00
Provisions Drone Survey & Research Expenses 0.01 0.02
Provisions Advertisement Expenses 0.00 0.00
Provisions Pay Revision (Officer on Deputation) 0.00 0.00
Provision for Professional Fee 0.00 0.00
Provision – NPS Liability CSO 0.01 0.00
CGST Output 0.02 0.00
CGST Output 20-21 0.02 0.00
CGST Output 0.02 0.00
CGST Output 20-21 0.02 0.00

Total 0.18 0.04

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 Annual Report – 2021-22

Note – 11 STATEMENT OF FIXED ASSETS AS ON 31-3-2022

(Rs. in Crores)
Gross Block at Cost
Asset Type Original Additions Deletions Adjustments Total Value
Value 2021-22 2021-22 2021-22 31-3-2022
1-4-2021

Land 0.68 0 0 0 0.68

Building 12.22 0 0 0 12.22
Furniture 0.17 0 0 0 0.17
Office Equipment 0.84 0 0 0 0.84
Plant & Machinery 46.51 0 0 0 46.51
Power Line 0.25 0 0 0 0.25
Railway Siding 0.02 0 0 0 0.02
Roads and Drains 1.75 0 0 0 1.75
Shaft Sinking 1.69 0 0 0 1.69
Vehicles 1.63 0 0 0 1.63
Water Supply 1.36 0 0 0 1.36
Laptops & Computers 0.00 0.07 0.00 0.00 0.07

Grand Total 67.13 0.07 0.00 0.00 67.19

Previous Year Total 67.13 0.00 0.00 0.00 67.13

Note – 11 FIXED ASSETS (Continued)

(Rs. in Crores)
Depreciation Net Block
Asset Type Balance Sold/ Adjust Depreciation Cumulative Book
31-3-2021 Scrapped ments 2021-22 Depreciation Value
31-3-2022 31-3-2022

Land - 0 0 0 0 0.68
Building 11.12 0 0 0.14 11.26 0.96
Furniture 0.17 0 0 0.00 0.17 0.00
Office Equipment 0.83 0 0 0.01 0.84 0.00
Plant & Machinery 46.51 0 0 0 46.51 0.00
Power Line 0.25 0 0 0 0.25 0.00
Railway Siding 0.02 0 0 0 0.02 0.00
Roads and Drains 1.75 0 0 0 1.75 0.00
Shaft Sinking 1.69 0 0 0 1.69 0.00
Vehicles 1.63 0 0 0 1.63 0.00
Water Supply 1.36 0 0 0 1.36 0.00
Laptops & Computers 0.00 0 0 0.01 0.01 0.05

Grand Total 65.34 0.00 0.00 0.16 65.50 1.69

Previous Year Total 65.19 0.00 0.00 0.15 65.34 1.79

21
 Bharat Gold Mines Limited

Note – 11 NON CURRENT ASSETS – PPE NET OF DEPRECIATION

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

KGF Mines - Land 0.67 0.67

YM (Ramagiri) Mines - Land 0.01 0.01
KGF Mines - Others 0.90 1.04
YM (Ramagiri) Mines - Others 0.00 0.00
CGM Mines – Others 0.06 0.07
KGF - Laptops 0.05 0.00

Total 1.69 1.79

Note: 11.1 In view of closure of the company, the Gross/Net Block of Assets retired from active use and
retained pending disposal/write-off as the matter is sub judice.
Note: 11.2 The Company has obtained 12109.70 acres of land at K.G.F. through a transfer deed from the
Central Government dated 28-03-1977. Out of which, 14.075 acres sold to (i) P&T (0.70 acre), (ii) MSEB
(4.98 acres), (iii) DGMS (5.74 acres) and (iv) FCI (2.66 acres). The balance 12095.625 acres of land at the
rate of Rs.500/- per acre was debited to „Land Account‟ with a corresponding credit to „Capital Reserve
Account‟ on 31-3-1978. Similarly, 0.427 acre of land which was in possession of the Company and for
which, taxes were regularly paid and title established, was added at the same rate during the year 1981- 82
and to display the correct position of the land in the Company‟s books, a corresponding credit to „Capital
Reserve Account‟ was made. The company has paid proper stamp duty Rs. 6.81 lakhs. In June 2000. The
value of 83.35 acres of land at Ramagiri, Andhra Pradesh has been accounted at the taken over value.

Note 11.3 The Company has 10911 residential accommodations in its township for officers and
employees. Out of this, 2812 quarters were given under STBP Scheme as per the directions of GOI. In the
remaining 8099 Quarters, 4477 houses are given on lease/rent, 37 houses were given to NIMH and NIRM,
4 houses abandoned vacant and 3581 quarters are unauthorisedly occupied despite security arrangements.
Future action/way forward of BGML for disposal of assets is in active consideration of Ministry of Mines,
GOI.
Note 11.4 The land (over 10 acres approx.) appurtenant to properties transferred to National Institute of
Rock Mechanics which are in possession stand retained in the books pending transfer of title and completion
of legal and other formalities. BGML holds title in respect of the land.
Note 11.5 Approximately 31.90 acres of built up area of 2812 houses marked to be sold to ex employees
who were on the rolls at the time of closure of the company as per the directions of GOI under STBP
Scheme. Out of which employees have paid the sale value for 2732 houses to the tune of Rs. 21694867/-
(approximately at an average rate of Rs. 15/- per sq. ft.) and the sale value is retained in the books pending
transfer of title and completion of other formalities. The decision on the transfer of courtyard area around
the quarters (approximately 91 acres) and its extend and sale value is yet to be finalized. Employees staying
in 75 houses still have to pay the sale value. They are charged nominal monthly rent. 5 houses are
abandoned and left vacant.
Note 11.6 The Land includes area on which 1000 houses have been built and the vacant land
appurtenant thereto approx. measuring to 1000 acres is under unauthorized occupation & possession of
localities and ex-BGML employees. The management is in the process of taking a necessary action to vacate
them.

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 Annual Report – 2021-22

Note 11.7 M/s South Western Railway (SWR) have proposed to acquire 49.7125 acres of BGML land for
construction of Marikuppam (KGF) to Kuppam (AP) new B.G. line and filed an application in the Hon‟ble
High Court of Karnataka for permission vide C.A. No. 129/2017 in COP No. 180/2000. The High Court
vide Order dated 12-06-2017 admitted the application and directed SWR to deposit the value of the land
(Rs. 2.78 Crore) as revised by Deputy Commissioner, Kolar and pending the disposal of the CA in the
Hon‟ble High Court of Bangalore and the land yet to be transferred for want of Union Cabinet approval. No
adjustment has been made in the books of accounts for the money deposited in the High Court by SWR.
Note 11.8 Certain machinery shifted from C.R. Workshop to workshops leased to BEML Ltd. during 2004-
2005 for their use on loan basis has been retained in the books. (Original Value and cumulative
depreciation Rs.95.45 lakhs respectively)
Note 11.9 The total infrastructure of drinking water supply to residential colonies of K.G.F. was handed
over to City Municipal Council, Robertsonpet, K.G.F. from 01-02-2002 has been retained in the books.
(Original Value and Cumulative Depreciation Rs.123.89 lakhs respectively).
Note 11.10 During the year 2016-17 a Technical Committee constituted amongst senior executive officers
of BGML and other PSUs/Government inspected, examined and assessed the technical feasibility and
usability of various assets lying at different sites/mines of BGML. The Technical Committee opined that most
of the machineries not usable and may be treated as scrap.
Note 11.11 The item-wise physical stock verification of fixed assets excluding land has been carried out
during the year 2019-20 by the external auditor whose report is accepted by the management. Valuation of
the assets and reconciliation of Physical verification report with Fixed assets register is not done as the same
is both confidential and subjudice.

Note – 12 LONG TERM LOANS AND ADVANCES – LONG TERM DEPOSITS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Unsecured, considered Good

Deposits in HC, KA – BEML 1.22 1.22
Deposits in HC – Others* 0.52 0.52
Deposits in Income Tax Department* 0.09 0.09
Deposit AP – APSEB* 0.00 0.00
Deposit AP – Agricultural Land Tax* 0.10 0.10
Deposit KA - BESCOM 0.00 0.00

Total 1.94 1.94

Note 12.1 The Deposits Marked* are subject to reconciliation and confirmation.

23
 Bharat Gold Mines Limited

Note – 13 LONG TERM LOANS AND ADVANCES – ADVANCE TO OTHERS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Unsecured, considered Doubtful

Advance paid ROC Consultant* 0.01 0.01
Advance to Employees - Projects* 0.17 0.17
Advance to Contractors - Projects* 0.05 0.05
Advance to Vendors* 2.99 2.99
Provision Doubtful Loans Adv. & Dep. -2.14 -2.13
Customers – P&CD-Mining* 0.43 0.43
Provision Customers – P&CD-Mining -0.43 -0.43
Customers – Miscellaneous* 0.22 0.22
Provision Customers – Miscellaneous -0.22 -0.19
ACS – Electricity Dues Pvt. Consumers* 0.04 0.04
Provision ACS – Electricity Dues Pvt. Consumers -0.04 -0.04

Total 1.09 1.11

Note 13.1 The Deposits and Advances Marked* are subject to reconciliation and confirmation.

Note – 14 OTHER NON-CURRENT ASSETS – INVENTORIES

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Security Deposit – Projects* 0.01 0.01

Material Stock of Gold (Fg) 34.67 Gms. 0.01 0.01

Provision for Loss of Gold (Fg) 26.07 Gms. -0.01 -0.01
Material Stock of Silver (Fg) 384 Gms. 0.00 0.00
Provision for Loss of Silver (Fg) 384 Gms. -0.00 -0.00
Material Work in Progress* 0.49 -0.49
Provision for Unrealisable WIP -0.49 -0.49
Material in Stores – KGF & CG Mines* 2.29 2.29
Provision for Obsolete Stores -2.04 -2.04

Material in Stores – YM* 0.01 0.01

Total 0.28 0.28

Note 14.1 Inventory does not include scraped bare copper wires (removed from overhead lines) weighing
around 150 Metric Tons valued approximately Rs. 6 Crore pending the decision on disposal.
Note 14.2 An estimated 33 Million Tonnes of tailing sand reported to contain around 13.2 Metric Tons of
recoverable Gold on the surface is not valued and accounted.
Note 14.3 The value of 8.6 grams of Gold, 14 Nos. specimen ore samples of Rock nuggets weighing
12,386 grams and Platinum crucibles and Assay items kept in Corporation Bank, Robertsonpet Branch
bank lockers are not valued in the company‟s books and accounted pending ascertainment of realizable
value. Also value of Hollow Drill Steel weighing 5057 Kgs and 881 Nos. TC Inserts kept at Central
Workshop, BEML are not accounted pending ascertainment of realizable value.

24
 Annual Report – 2021-22

Note 14.4 The Inventory does not include materials received free of cost from Southern Railways for and
on behalf of the President of India, for manufacture of wagons kept unused and held in trust in Company‟s
works (against an indemnity bond of Rs.35 lakh). The value of these unused virgin steel items at the end of
the year estimated to be in the order of Rs. 80000/- (approx.) after returning major items to M/s Southern
Railway, during the year 2008-09. Further one wagon manufactured by the company is retained as proto
type. The Railway authorities had been following up to take back the remaining steel items and the semi-
finished components.
Note 14.5 Certain quantity of discarded cables (4 Metric Ton approx.) and chemicals sold are retained by
the Company pending court verdict/delivery to the purchasers/adjustments in due course.
Note 14.6 As per the policy of the Company, the closing stock of ore weighing 340 tonnes at the Mines
and Mills is not valued & accounted.
Note 14.7 The Departmental inquiry by C.V.O. from Geological Survey of India is in progress regarding
non-traceability of 29.65 gms. of B-Drilling samples containing 26.07 gms. of fine gold, 384 gms of fine
silver and 192.50 gms of Mint Dross bullion received from India Government Mint. Provision has been
made for the Gold and Silver which are not physically available.
Note 14.8 The item wise physical stock verification of the inventories has carried out during the year 2019-
20 by the external auditor. Valuation of these assets is not done as the same is both confidential and
subjudice. There are no purchases of raw materials/stores/spares etc., during the current year. The
inventories are kept unmoved at various locations of BGML are under the control of security guards round
the clock.
Note 14.9 Inventories are considered as noncurrent assets as their utilization is subjudice and not realizable
in the near term.

Note – 15 CURRENT ASSETS – CASH AND CASH EQUIVALENTS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Cash at Bank – Union Bank of India 945926 0.04 0.02

Cash at Bank – Union Bank of India 945896 0.40 0.07
Cash at Bank – SBI – Bangalore 0.00 0.00
Cash at Bank SBI No.2 (VRS-KGF) 0.00 0.00
Cash at Canara Bank – KGF 0.21 0.01
Cash at Canara Bank – Ramagiri 0.01 0.01
Cash on Hand – KGF 0.01 0.00

Bank Deposit (FDR) Corp Bank 945926 7.83 7.78

Bank Deposit (FDR) Corp Bank 945896 0.00 0.00
Bank Deposit (FDR) Canara Bank – KGF 0.00 0.63

Total 8.50 8.53

25
 Bharat Gold Mines Limited

Note – 16 OTHER CURRENT ASSETS – GST/TDS RECEIVABLE

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

TDS on Interest on Bank TD 0.13 0.08

CGST Receivable INPUT PPA 0.44 0.47

Provisions CGST Receivable INPUT (Upto FY 2018-19) -0.44 -0.45
SGST Receivable INPUT -0.01 0.00
SGST Receivable INPUT PPA 0.44 0.47
Provisions SGST Receivable INPUT (Upto FY 2018-19) -0.44 -0.45
Provisions SGST Receivable INPUT -0.01 0.00

CGST RCM Receivable Input 1.13 0.64

Provisions CGST RCM Receivable INPUT -0.31 -0.29
SGST RCM Receivable Input 1.13 0.64
Provisions SGST RCM Receivable INPUT -0.31 -0.29

IGST Receivable 0.00 0.00

CGST RCM Payable Input 0.05 0.00

SGST RCM Payable Input 0.05 0.00

CGST RCM Payable INPUT -0.47 -0.07

SGST RCM Payable INPUT -0.47 -0.07

TDS Rent 2021-22 0.03 0.00

Indus Tower (GST A/c) 0.02 0.00

Total 0.96 0.68

Note: 16.1 BGML outsourced security services and office staff. By availing these services GST paid is
accumulated in BGML GST account as on 31.03.2022 to the tune of Rs.77,43,287.00 in GST. As it is not
possible to utilize the GST amount receivable in near future, a provision has been created for an equivalent
amount against this current asset to maintain true and fair view of the financials.

Note – 17 OTHER CURRENT ASSETS – RENT FROM OCCUPANTS OF BGML LAND

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Rent receivable Domestic and Commercial 10.39 10.39

Accumulated provision for unrecoverable rent -9.30 -9.30

Rent receivable STBP 0.16 0.16

Prepaid/Suspense rent -0.07 -0.07
Total 1.18 1.18

Note 17.1 The company has 10911 residential accommodations in its township for officers and
employees. Out of this, 2812 quarters were given under STBP scheme as per the directions of GOI. In the
remaining 8099 quarters, 4477 houses are given on lease/Rent, 37 houses were given to NIMH and NIRM ,
4 houses abandoned vacant, and 3581 quarters are unauthorisedly occupied despite security
arrangements. Soon suitable decision will be taken to dispose off the assets as per directions of GOI.

26
 Annual Report – 2021-22

Note 17.2 Age wise analysis of rent receivables from Domestic and commercial buildings is given below
Particulars As at 31-03-2022 As at 31-03-2021
Value (Rs. Cr.) Value (Rs. Cr)
UPTO 1999-2000 0.86 0.86
> 10 years 8.86 8.86
< 10 years 0.12 0.12
< 9 years 0.09 0.09
< 8 years 0.07 0.07
< 7 years 0.11 0.11
< 6 years 0.08 0.08
< 5 years 0.04 0.04
< 4 years 0.04 0.04
< 3 years 0.03 0.03
< 2 years 0.05 0.05
< 1 year 0.04 0.04
Total 10.39 10.39

Note – 18 OTHER CURRENT ASSETS – OTHERS

Particulars As at 31-03-2022 As at 31-03-2021

Value (Rs. Cr.) Value (Rs. Cr)

Interest Accrued – Bank Term Deposits 0.43 0.25

Advance to Employees Travel and Others 0.02 0.00
Advance to Contractors 0.02 0.02

Total 0.47 0.27

Note – 19 OTHER INCOME

Particulars For the Year ended For the Year ended
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

(a) Interest Income:

Interest on Bank Deposits 0.45 0.40
Accrued Interest
(b) Rent from:
(i) Township (Net Rent Received/Accrued) 0.50 0.44
(ii) Other Rental Income (Ground/Kalyana/Skating/Others) 0.05 0.16
(c) Miscellaneous Income – Tower (Indus & Summit) 0.21 0.02
(d) Trees Auction/Penalty 0.02 0.03
Total 1.23 1.05

Note – 20 EMPLOYEE BENEFITS EXPENSES

[

Particulars For the Year ended For the Year ended

31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Salaries & Wages - Essential 0.29 0.29

Welfare - Medical 0.00 0.00
Employer PF/Pension 0.02 0.02

Total 0.32 0.31

27
 Bharat Gold Mines Limited

Note – 21 SECURITY/LABOUR SUPPLY

Particulars For the Year ended For the Year ended
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Security Service Contract 4.48 5.06

Labour Contract 0.18 0.20
GST on Vehicle Hire 0.01
Total 4.67 5.26

Note – 22 OTHER EXPENSES

Particulars For the Year ended For the Year ended
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Audit Expenses
Expenses – Statutory Audit 0.00 0.00
Fee – Statutory Audit 0.01 0.01
Professional Fee
Expenses (Physical Verification of Assets) 0.00 0.00
Return Filing Fee 0.00 0.00
Expenses (Drone Survey) 0.08 0.07
238Other Professional Fee 0.04 0.03
Repairs & Maintenance
Office Equipment 0.01 0.02
Buildings 0.03 0.06
Travelling Allowance
CMD & Directors 0.04 0.02
Others 0.07 0.03
Other Expenses
Advertisement General 0.00 0.00
Bank charges 0.00 0.00
Books & Periodicals 0.00 0.00
Incidental & Board Meeting Expenses 0.05 0.02
Legal Fee and Expenses 0.05 0.01
Vehicle Hire Charges 0.13 0.12
Postal Charges 0.00 0.00
Printing and Stationery 0.02 0.01
Telephone & Mobile 0.02 0.01
Power & Lighting 0.03 0.02
Rent Collection Charges 0.01 0.01
Repair & Maintenance - Mantaps 0.01 0.00
Property Tax 0.24 0.23

Total 0.83 0.67

Note – 23 DEVELOPMENT EXPENSES

For the Year ended For the Year ended
Particulars 31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Expenses (MECL) for MOM 0.00 1.04

Total 0.00 1.04

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 Annual Report – 2021-22

Note – 24 FINANCE COST

For the Year For the Year

ended ended
Particulars
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Interest Account – Interest GOI Plan Loan 14.12 13.73

Interest Account – Interest GOI Non Plan Loan 24.75 24.75
Interest Accrued - Penal GOI Loans 27.13 26.91

Interest on Royalty AP-CGM 0.01 0.02

Interest on Royalty AP-OBM 0.00 0.01
Interest on Royalty KA-KGF 3.88 3.88
0.00 0.00
Interest on Power Bills APSEB 0.00 0.00

Total 69.90 69.30

Note – 25 DEPRECIATION
[

For the Year For the Year

ended ended
Particulars
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Depreciation – Buildings – KGF 0.13 0.13

Depreciation – Office Equipment – KGF 0.01 0.01
Depreciation – Buildings – YM 0.00 0.00
Depreciation – Buildings – CGM 0.01 0.01
Depreciation – Laptops & Computers Exp 0.01 0.00
Total 0.16 0.15

Note – 26 PROVISIONS AND WRITE OFF [

For the Year For the Year

ended ended
Particulars
31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Provisions No longer required 0.00 243.49

Total 0.00 243.49

Details of excess provisions withdrawn is:

(Rs. In Cr)

SBI Over Draft cleared under OTS 2020 0.00 238.53

Royalty dues AP Govt. upro 31-03-2020 0.00 0.33
Power Dues AP Govt. upto 31-03-2021 0.00 3.85
Royalty dues to KA Govt. uptp 31-03-2020 0.00 0.78

Total 0.00 243.49

29
 Bharat Gold Mines Limited

Note – 27 PRIOR PERIOD ADJUSTMENTS

For the Year For the Year

ended ended
Particulars 31-03- 2022 31-03- 2021
(Rs. In Cr.) (Rs. In Cr.)

Prior Period Adjustment A/c 0.08 0.00

Total 0.08 0.00

Note – 28 ADDITIONAL INFORMATION REQUIRED UNDER COMPANIES ACT 2013

Note 28.1 Contingent Liabilities (Other claims for which company is contingently liable)
(Rs. in Crores)
Particulars As on As on
31-3-2022 31-3-2021

Claims amounting to 122 lac made by the Contractors against the 1.22 1.22
company are not acknowledged as debts. Company has made counter
claims amounting to 191.13 lac against the contractors and referred the
matter to the arbitrator. The company contested the award of the
arbitrator at the Principal District Judge, Kolar, pending its outcome, no
adjustments have been made in the accounts.

Claims made by ex employees prior to closure of company. 6.44 6.44

Demand from Govt. of Karnataka for payment of Environmental

protection fee pending non receipt of details of the claim from them. 43.79 43.79

Total 51.45 51.45

Note 28.2 STATUS OF THE COMPANY

28.2.1 The company was declared “Sick” under the provisions of Sick Industrial Companies (Special
provisions) Act 1985 by the Board for Industrial and financial Reconstruction (BIFR) during 1992 and the
proceedings by BIFR/AAIFR were completed and their decision dated 15.11.2000 was upheld as per section
20(1) of the SIC(SP) Act 1985 on just and equitable grounds for closure of the company. The Ministry of
labour has also issued permission on 29.01.2001 to close the company with effect from 01.03.2001 under
the Section 25(O) of the Industrial Disputes Act 1947. These decisions including the closure of the company
were challenged by the Employees Unions and others in writ petitions before the single judge of Karnataka
HC. The Hon‟ble judge disposing the writ petitions on 16.03.2001 quashed the opinion of BIFR/AAIFR and
also the permission granted by the Ministry of Labour and directed the BIFR to find the ways and means for
revival of BGML: The Company filed an appeal against this order before the Division Bench of Karnataka
High Court and a stay was granted on 19th April 2001. The Hon‟ble Division Bench pronounced its
judgment dated 26th September 2003 setting aside the order of Hon‟ble single Judge dated 16th March
2001 of the Hon‟ble single judge in WP Nos. 157-159,1343,5118,7987 and 4503-07 of 2001 and the WPs
thus stand dismissed.

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 Annual Report – 2021-22

The Bench in its order stated that “We recommended to the Central Government following measures:
(i) To extend to the employees of BGML, the benefit of VRS as already offered with the further modification
contained in the Official Memorandum dated 06.11.2001.
(ii) To transfer/convey the quarters/houses which have been allotted to the employees of BGML at a
concessional price, say at the rate of Rs. 10/- per sq. ft. where the site area of which is below 1000 sq. ft., Rs.
20/- per sq. ft. where the site area is more than 1000 sq. ft. less than 3000 sq. ft. and Rs. 30/- per sq. ft.
where the site area is more than 3000 sq. ft. Having regard to the fact that the structures are very old and
most of them in a dilapidated condition and having regard to the fact that the houses are being offered
under a retirement package at a concessional rate nothing may be charged towards the value of structures.
The benefit of transferring houses should be extended also to those who have already accepted the VRS.
(iii) To take appropriate steps to enable such of the employees who have accepted VRS Scheme to form an
Employees Co-operative by providing them appropriate land and such machinery and equipment as it can
spare so that they can take up projects wing their specialized knowledge and experience.
(iv)To allot the excess lands held by BGML to needy ex-employees at reasonable rates to help them
rehabilitate themselves.
(v) To give the employees another interim relief of Rs. 5,000/- to each employee within two months to tide
over their difficulties.
We have made the above only as recommendations and not as directions, when virtually a town is closed as
a result of closure of BGML, special provisions are necessary and we do hope that the Central Government
will do justice to the poor and suffering employees, as expeditiously may at its discretion modify the
recommendation. The Central Government may also consider any fresh proposals for revival if it so deem
fit. Be that as it may.

28.2.2 The Union Cabinet has considered the commendations of the Hon‟ble High Court in 2006 as
mentioned hereunder:
"i) Reopening the Special Terminal Benefit Package (STBP), already approved by the Cabinet earlier, to
the employees of BGML for another period of one month from the date of opening, involving an
expenditure of Rs.72.45 Crores;
ii) Ex-post facto approval for reopening of STBP in BGML with effect from 20.12.2002 for a period of one
month;
iii) Sale of houses of various categories to the ex-employees of the company at rates suggested by the High
Court.
iv) Floating an open global tender, inviting bids for purchase of the assets of BGML;
v) Adopting the procedure of setting up Inter Ministerial Group for overseeing the tender etc.
vi) Offering the highest bid received in the tender to the Employees' society/company set up by the society;
vii) In principle approval to write-off the liabilities to the extent these are not met from the proportionate
share of the proceeds from assets disposal;
viii) No allotment of excess land to ex-employees by way of a special dispensation and;
The decision of the Cabinet will pave the way for smooth closure of BGML."
28.2.3 The Government of India released budgetory support and re opened the Special Terminal Benefit
Package (STBP) with effect from 22.12.2006. All the employees except four employees whose settlement is

31
 Bharat Gold Mines Limited
pending as they not received the settlement amount sent by post. The sale value of houses related to land
under plinth area at rates suggested by the High Court has been recovered from final settlement and the
sum so recovered was accounted as „advance from employees‟ pending further formalities on transfer of
ownership.
28.2.4 An Inter Ministerial Group (IMG) under chairmanship of Secretary (Mines) was set up in December
2006 to oversee the tendering process for sale of assets of the Company. Consultants were appointed in
2007 for assessing the value of assets of the Company and for preparation of Detailed Information
Memorandum of Company‟s assets and Global Tendering Document for sale. The draft of Detailed
Information Memorandum of Assets and Global Tendering document submitted by the Consultants were
approved by the IMG. These draft documents were submitted to the Hon‟ble High Court of Karnataka
(Company Court) on 9th July 2008. The Hon‟ble Judge permitted in July 2009 to issue Global Tender with
certain amendments in the draft documents. The Company and the Government filed appeal before the
Hon‟ble Division Bench of the Court in October 2009 to set aside the order for amendments in the draft
tender documents. The Hon‟ble Division Bench in its order made available in August 2010 set aside the
order of Single Bench and also dismissed all the applications filed by the Company and the Government
and directed the Government to re-examine the whole scenario afresh.
28.2.5 The Government and the Company filed a Special Leave Petition (SLP) in the Hon‟ble Supreme
Court of India. The SLP was disposed off on 09-07-2013 by setting aside the order of the Division Bench of
the High Court impugned in the Special Leave Petitions and permit the Union of India to proceed with the
global tender in accordance with the decision taken by the Cabinet in July 2006. M/s MECON Ltd. were
engaged in November 2013 as „Service Provider‟ for providing services to BGML for Global Competitive
Bidding Process for sale of its assets under the supervision of the IMG and the Ministry. Meanwhile, all the
mining leases of the Company were expired. Subsequently Amendment of Mines and Mineral
(Development and Regulation) Act 2015 does not permit transfer of mining lease which obtained by
allotment. Thus, Global Tendering has become legally not feasible.
28.2.6 Meanwhile, further proceedings under the Companies Act, 1956 & the Companies (Court) Rules,
1959 are continuing at the Company Court/High Court and subjudice. As such, adjustments & provisions
etc are not made in financial statements on any matters relating to liabilities, classification and realization
of various assets and discharge of its liabilities if Company is not able to continue its business as a „going
concern‟ consequent to the impending process of law. Therefore, preparation of accounts on a 'Going
Concern' basis has been continued in the absence of adequate necessary data for compilation of accounts
on an alternative basis. Consequent adjustments/impacts on the accounts of the company, if any, not
carried out.
28.2.7 In view of the facts stated in preceding paragraphs, the Accounting Standards viz. i) Valuation of
Fixed Assets (AS 10), ii) Segment reporting (AS 17), iii) Related party disclosure (AS 18), iv) Accounting for
Taxes (AS 22), v) Discontinued operations (AS 24) and vi) Impairment of assets (AS 28) that are relating to
preparation of financial statements are not applied as either not relevant or not practicable at this stage.

Note 28.3 Land and Property Lease

This includes various leases of land and properties viz.,
(i) 117.95 acres leased to various private Parties & Institutions.
(ii) 1,109.00 acres together with the properties viz., buildings of Central Workshops (Mech.), Nundydroog
Workshop along with fixtures, fittings, some machinery temporarily (10 years) leased to BEML Ltd. which
expired on 05-05-2014. However, pending decision of outright sale / permanent lease of these leased

32
 Annual Report – 2021-22

properties to BEML Ltd. by the Government/High Court, these leased properties are still in the possession of
them. The amount of Rs. 1.00 Crore received in this regard as non-refundable deposit during the year
2004-05 under terms of this lease from BEML has been accounted under „Current Liabilities‟ and the same
has been deposited in the High Court on 17-07-2008 together with interest accrued till 15th July 2008, as
per the directions of Hon‟ble High Court of Karnataka and the same has been accounted as „deposits‟ under
Loan and Advances(Asset) in the books of the company. BEML has expressed to retain 28.35 Acres of
Land and return remaining 1080.65 Acres leased land to BGML. The matter is at respective Administrative
Ministry of BGML and BEML.
Note - 28.4 Mining Leases
28.4.1 Mining leases in Andhra Pradesh
The Mining leases in Andhra Pradesh are as detailed below:

Location Area in acres Lease w.e.f. Date of Expiry

Chigaragunta 551 30/8/1988 29/8/2008
Ramagiri 416.18 05/11/1982 04/11/2002
Bisanatham/Athinatham 105.25 12/03/1993 11/03/2013

The Government of Andhra Pradesh has determined all the three mining leases and refused to renew them.
Company has filed Revision Application (RA) before the Revisional Authority, Government of India,
Ministry of Mines against the orders of the Government of Andhra Pradesh on its refusal to renew the leases
in respect of Yeppamanai Mine, Chigaragunta mines and Old Bisanatham Mine. However, the Tribunal
dismissed RA vide its order No.454/2011 dated 29-06-2011 on the contention that the dues of royalty and
interest accrued thereon are not paid by the company.
Company has filed a Writ petition No.3055/2013 and 35112/2015 in the Hon‟ble High Court of Andhra
Pradesh against the orders of the Tribunal in respect of mining leases of Yeppamana Mine, Chigarigunta
Mines and Old Bisanatham Mine and the same was admitted. Meanwhile, the Government of Andhra
Pradesh issued a Notification No.8322/P-MBA/2017-1 dated 23-04-2018 for bids for grant of mining leases
in respect of Gold Block in Chigaragunta Bisanatham Mineral Block over an extent of 262.01 Hectares
including parts of BGML mining Lease area.
In this regard, Company sought the clarification from the Director, Mines and Geology, Government of
Andhra Pradesh requesting them not to include leased area of BGML in NIT to avoid legal issue as the
matter is subjudice.
Meanwhile, the BGML ex-employees‟ Forums (a) M/s Bharat Gold Mines All Employees Industrial Co-
operative Society Ltd. and (b) M/s Global Gold Mines Employees Industrial Co-operative Society Ltd. have
filed writ petitions before the Hon‟ble High Court of Judicature of Hyderabad for the State of Telangana
and State of Andhra Pradesh to stay the Notification issued by the Govt. of A.P., all further proceedings for
bids for grant of mining leases with respect to Gold Block in Chigaragunta - Bisanatham Mineral Block over
an extent of 262.01 Hectares.

In the changed Mineral Legislation and Mineral Administration Environment, BGML files applications before
the Hon"ble High Court of Andhra Pradesh for withdrawing the WPs filed. The applications are considered
by the Hon"ble High Court and "WPs are dismissed as withdrawn". Since the WPs are dismissed, the
company does not have any right over the mining lease area already held by BGML.

33
 Bharat Gold Mines Limited

28.4.2 Mining leases in Karnataka

The Mining leases over an area of 12882.01 acres at Bangaradhagani and other villages (KGF), Kolar
District, Karnataka renewed in favour of BGML w.e.f 09.08.1993 for a period of twenty years. The mining
lease period expired on 8.8.2013 and the company has filed an application with the Government of
Karnataka for renewal of mining lease one year before the expiry of the lease period.
The renewal of mining lease is being pursued with the Government of Karnataka. Post amendment of
MMDR, leases cannot be transferred except the lease obtained through open auction procedure as specified
in the Rules.
Government of Karnataka has stated that they would renew the mining leases for BGML but not in favour
of any successful Bidder in case of sale of assets of BGML. Hence, it is difficult to implement the Cabinet
decision of 2006.
In view of amendments to the MMDR Act in 2015, GOI proposed to Government of Karnataka for possible
terms of taking over of Bharat Gold Mines Limited. However, the Government of Karnataka have conveyed
that the proposal of the GOI to transfer its entire share holding in BGML held in the name of the President
of India in favour of Governor of Karnataka for a token amount on „as is where is basis‟ is not acceptable to
government of Karnataka during 2015. Presently, government of Karnataka requesting to transfer
unencumbered land of BGML, for development of Industrial Park. The proposal is being pursued in MOM.
Ministry of Mines explored the possibilities of reviving BGML gold mines or otherwise and getting explored
by Mineral Exploration Corporation Ltd. (MECL) in the unexplored area. The Tailing dumps of BGML is
being tested by NFTDC, Hyderabad for recovery of Gold and other metals under the R & D Programme of
Ministry of Mines. MECL and NFTDC have submitted their reports. The reports were shared with DMT, the
interaction consultant appointed as Management and Technical consultation to study the feasibility and
suggest way forward. The DMT consultant opined the reopening of mines is not economically viable option
and also suggest to auction two blocks explored by MECL, extraction of gold from tailings monetization land
parcel and sale of plant and machineries as scrap. Also opined NFTDC findings are R & D initiative and not
yet proved in industrial scale.

28.5 Advances, Sundry Debtors and Creditors

28.5.1 Balances of debtors and creditors are subject to confirmation and reconciliation.
28.5.2 The outstanding balances in respect of Advances, Sundry Debtors and Sundry Creditors were
reviewed to the extent of such position ascertained. Further review is continuing to ascertain the factuals. No
provision is being made in the accounts in respect of some debts/advances which are outstanding for a
period of more than 3 years and that not confirmed by the parties.
28.5.3 In the absence of relevant information, amounts due to Small Scale Industrial Undertakings and
other than Small Scale Industrial Undertaking are not given as required by Gazette Notification dated 22-02-
1999 by Government of India Ministry of Law, Justice and Company Affairs (Department of Company
affairs). Similarly, the provision of Section 22 of Micro, Small & Medium Enterprises Development Act 2006
are not complied.
Note 28.6 Other Information
28.6.1 In view of closure of the operations since March, 2001, the installed capacity, production, capacity
are NIL and not available.

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 Annual Report – 2021-22

28.6.2. Finished Goods:

Figures in brackets relate to previous year. (Rs. in Lakhs)
Opening Production/ Adjustment Closing Sale
Particulars Unit Sales
Stock Transfers for missing Stock Value
Gold Gms. 34.67 Nil Nil -26.07 8.6 0.22
(34.67) (Nil) (Nil) (-26.07) (8.6) 0.22
Silver Gms. 384 - - -384 0 Nil
(384)
(Nil) (Nil) (384) 0 (Nil)

28.6.3. Raw Materials:

(Rs. in Lakhs)
HOLLOW DRILL STEEL T.C. INSERTS

2021-2022 2020-2021 2019-20 2021-22 2020-21 2019-2020

Kg. Rs.in L Kg. Rs. in L Kg. Rs.in L Nos. Rs.in L Nos. Rs.in L Nos. Rs.in L
Opening stock 5057 2.25 5057 2.25 5057 2.25 881 1.76 881 1.76 881 1.76
Purchases/ - - - - - - - - - - - -
Adjustment
Closing Stock 5057 2.25 5057 2.25 5057 2.25 881 1.76 881 1.76 881 1.76
Consumption - - - - - - - - - - - -

28.6.4 C.I.F. value of Imports: NIL (PY. Nil)

28.6.5 Expenditure in foreign currency: NIL (PY. Nil)
28.6.6 Expenditure on Foreign Travel: Nil (PY. Rs. Nil)
28.6.7 Previous year figures have been suitably regrouped wherever necessary to conform with the current year's
presentation.
28.6.8 In view of (i) opinion by BIFR for winding up of the Company under Sick Industrial Companies (Special
Provisions) Act 1985, (ii) the confirmation of the referred opinion of BIFR by Hon‟ble High Court of Karnataka, (iii)
closure permission granted by the Ministry of Labour, Government of India u/s 25(O) of Industrial Disputes Act, 1947
w.e.f 01.03.2001, all production, mining and sale activities were stopped. As the result thereof, the production,
turnover, capacity utilization, exploration and any other normal business activities for the year under report, 2021-22
were NIL. However the preparation of Annual Accounts of the Company for the financial year ended 31.03.2022 has
been done on "Going Concern" basis.
28.6.9 Notes on Accounts No.1 to 28 and Significant Accounting Policies form an integral
part of Accounts.

For & on behalf of Board of Directors - BGML Date: 28-07-2022

Sd/- Sd/- Sd/- Sd/-
(Arun Goel) (Dr. Veena Kumari D) (Farida M. Naik) (Dr. Ranjit Rath)
Director (Finance) Director Director Managing Director
DIN 8923137 DIN 8890469 DIN 7612050 DIN 08275277

As per our report of even date attached herewith

For Mohammed Iqbal and Co.
Chartered Accountants
Firm Reg. No. 007109S
Sd/-
(Mohammed Iqbal. B)
Bengaluru Proprietor
Date: 28-07-2022. Membership No. 023738

35
 Bharat Gold Mines Limited

INDEPENDENT AUDITOR’S REPORT

TO
THE MEMBERS OF BHARAT GOLD MINES LIMITED
KOLAR GOLD FIELDS

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS:

We have audited the accompanying financial statements of BHARAT GOLD MINES LIMITED (herein
after referred as the „Company‟), which comprise the Balance Sheet as at 31st March, 2022, the Statement
of Profit & Loss, and the statements of Cash Flows for the year then ended on that date, and a summary of
Significant Accounting Policies and other explanatory information.

In our opinion and to the best of our information and according to the explanation given to us, because of
the significance of the matter discussed in the Basis for Adverse Opinion section of our report, the
accompanying financial statements do not give a true and fair view in our conformity with the accounting
principles generally accepted in India, of the state of affairs of the company, as at March 31, 2022 and its
Loss, and the cash flows for the year on that date.

Basis for Adverse Opinion

a) We are of the opinion that accounts prepared on a Going Concern concept is not appropriate to the
company in the context of the development detailed Note 28.2.1 to 28.2.7 of Notes forming part of
accounts relating to the Status of the Company.
b) Note 11.3 of Notes forming part of accounts regarding the Company has 10911 residential
accommodations in its township for officers and employees. Out of this, 2812 quarters were given under
STBP Scheme as per the directions of GOI, In the remaining 8099 quarters, 4477 houses are given on
lease/rent, 37 houses were given NIMH and NIRM, 4 houses abandoned vacant, and 3581 quarters are un-
authorisedly occupied.
We are unable to quantify the implications on the financial statements for want of relevant information.
c) Note 11.4 forming part of accounts regarding the land (over 10 acres approximately) appurtenant to
properties transferred to National Institute of Rock Mechanics which are in their possession stand retained in
the books pending transfer of title and completion of legal and other formalities.
We are unable to quantify the implications on the financial statements for want of relevant information.
d) Note 11.5 of Notes forming part of accounts regarding approximately 31.90 acres of built up area of
2812 houses marked to be sold to ex-employees who were on the rolls at the time of closure of the
company as per directions of GOI under STBP Scheme. Out of which Employees have paid the sale value
for 2732 houses to the tune of Rs. 2,16,94,867.33 (Approximately at an average rate of Rs. 15/- per sq. ft.)
and the sale value is retained in the books pending transfer of title and completion of other formalities. The
decision on the transfer of courtyard around the quarters (Approximately 91 acres) and its extend and sale
value is yet to be finalized. Employees staying in 75 houses still have to pay the sale value. They are
charged nominal monthly rent. 5 houses are abandoned and left vacant.
We are unable to quantify the implications on the financial statements for want of relevant information.
e) Note 14.2, 14.3 and 14.6 of Notes forming part of accounts regarding non accounting of 13.2 metric tons
of recoverable gold, 14 Nos. specimen ore samples of Rock Nuggets weighing 12,386 grams and platinum
crucibles with assay items and 340 metric tons of ore.
We are unable to quantify the implications on the financial statements for want of relevant information.

36
 Annual Report – 2021-22

f) Note 28.5.1 and 28.5.2 of Notes forming part of accounts regarding review/reconciliation of Advances
Sundry Debtors and Creditors and consequential non provision for further doubtful debts if any.
We are unable to quantify the amount in the absence of relevant information and not able to comment on
correctness of implications on the financial statements for want of relevant information.
g) On verification of GST Returns, it is noticed that Input Tax Credits as per GST portal and Input Tax
Credits as per books are to be reconciled.
In the absence of reconciliation statement for the same, we are unable to quantify its implications on the
financial statements.
h) The Cash Flow Statement prepared by the Company does not comply to the provisions of AS-3 and
Accounting Policy of the Company.

KEY AUDIT MATTERS

Except for the matter described in the Basis for over Adverse Opinion section, we have determined that
there are no other key audit matters to communicate in our report.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS’ REPORT

THEREON:
The Company‟s board of directors is responsible for the preparation of the other information. The other
information comprises the information included in the Board‟s Report including Annexures to Board‟s
Report, Business Responsibility Report, Corporate Governance and Shareholder‟s information, but does not
include the financial statements and our auditor‟s report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appear 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 RESPONSIBILITY FOR THE FINANCIAL STATEMENTS:

The Company‟s Board of Directors are responsible for the preparation and presentation of these financial
statements in term of the requirements of the Companies Act, 2013 that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under Section 133 of
the Act. This responsibility also include maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring accuracy and completeness of the
accounting records, 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.
In preparing the financial statements the management of the company are responsible for assessing the
ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going

37
 Bharat Gold Mines Limited
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.

The Board of Directors are also responsible for overseeing the financial reporting process of the Company.

AUDITOR'S RESPONSIBILITY:
Our objectives are to obtain reasonable assurance about whether the 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 financial
statements.

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

(i) Identify and assess the risks of material misstatement of the 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.
(ii) 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 Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls
with reference to financial statements in place and the operating effectiveness of such controls.
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
(iv) 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 ability of the Company 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 financial statements or, if such a 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.
(v) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

Materially the magnitude of misstatement in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.

38
 Annual Report – 2021-22

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.

We also provide those charged with governance with a statement that we have compiled 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.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor‟s report unless law or regulation precludes public
disclosure about the matter or when, in extreme rare circumstances, we determine that a matter should not
be communicated in our report because these 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:

1. As required by the Companies (Auditor‟s Report) Order, 2016 („the Order‟) issued by the
Government of India in its terms of sub-section (11) of section 143 of the Act, and on the basis of
such checks of the books and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the Annexure I a statement on the
matters specified on the paragraphs 3 and 4 of the said order.

2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the
books and records of the Company as we considered appropriate and according to the information
and explanations given to us, in the Annexure II on the directions issued by Comptroller and
Auditor General of India.

3. As required by Section 143 (3) of the Act, we report that:

a. We have sought and except for the possible effects of the matter discussed in the Basis for Adverse
Opinion section of our report, obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;

b. Except for the possible effects of the matter discussed in the Basis for Adverse Opinion section of our
report and non-maintenance of Records showing full particulars, including quantitative details and
situation of fixed assets, in our opinion proper books of accounts as required by law have been kept
by the Company so far appears from our examination of those books.

c. Except for the possible effects of the matter discussed in the Basis for Adverse Opinion section of our
report, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with
by this Report are in agreement with the books of account.

d. Except for the possible effects of the matter discussed in the Basis for Adverse Opinion section of our
report and Note No. 28.2.7 of Notes forming part of accounts, the financial statements comply with
the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

39
 Bharat Gold Mines Limited
e. In view of exemption given vide Notification No. G.S.R. 463(E) dated June 5, 2015 issued by
Ministry of Corporate Affairs, provisions of Section 164(2) of the Act regarding disqualification of
the Directors are not applicable to the company.

f. With respect to the adequacy of the internal financial controls with reference to the financial
statements of the Company and the operating effectiveness of such controls, refer to our separate
Report in ‘Annexure III’.

g. With respect to the other matters to be included in the Auditor‟s 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 has disclosed the impact of pending litigations on its financial position in its
financial statements. Refer Note 28.1 of Notes forming part of accounts.

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

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, as disclosed
in the notes to the accounts, no funds 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(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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, as disclosed in
the notes to accounts, no funds have been received by the Company from any person(s) or
entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded
in writing or otherwise, that the Company shall, 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 has 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. The Company has not declared or paid any dividend during the year.

For Mohammed Iqbal and Co.

Chartered Accountants
Firm Reg. No. 007109S
Sd/-
(Mohammed Iqbal. B)
Bengaluru, Proprietor
Date: 04-08-2022. Membership No. 023738
UDIN:22023738AOHGDR7938

40
 Annual Report – 2021-22

‘ANNEXURE I’ TO THE INDEPENDENT AUDITOR’S REPORT

As referred to in Paragraph 1 under the heading „Report on Other Legal and Regulatory requirement of our
report of even date to the members on the financial statements of the Company for the year ended March
31, 2022:
In terms of the information and explanations sought by us and given by the Company and the books of
account and records examined by us in the normal course of audit and to the best of our knowledge and
belief, we state that:

1. (a) (A) Records showing full particulars, including quantitative details and situation of Property,
Plant and Equipments was not made available for our verification and consequently we are
unable to comment whether or not the company is maintaining proper records showing full
particulars, including quantitative details and situation of Property, Plant and Equipment.
(B) The Company is not holding in any intangible Assets.
(b) As explained to us, though the Property Plants and Equipments are not being physically verified
by the management at reasonable intervals, the item wise physical stock verification of the
excluding land has been carried out during the year 2019-20 by the external auditor whose report
accepted by the management. And valuation of the assets and reconciliation of Physical
verification report with the Property Plants and Equipments Register is not done as the same is
both confidential and subjudice. Accordingly, discrepancies, if any, were not dealt with the books
of account.
(c) As explained to us, the title deeds of immovable properties are held in the name of the company
except in the case of freehold Land to the extent of 77.61 acres (Original Cost of Rs. 0.86 lakhs)
at Ramagiri, Andhra Pradesh where the title deed/sale deed was not made available for
Verification.
(d) The Company has not revalued its PPE during the year as such there is nothing to comment in
this regard.
(e) The Company does not hold any benami property as such there is nothing to comment in this
regard.
2. (a) The inventories are not being physically verified by the management at reasonable intervals, the item
wise Physical stock verification of inventories has been carried out during the year 2019-20 by the
external auditor. And the valuation of the inventory is not done as the same is both confidential and
subjudice. Accordingly, discrepancies, if any, were not dealt with the books of account.
(b) During no point of time the company was sanctioned working capital from any bank or financial
institution. Hence there is nothing to comment in this regard.
3. The Company has not made any investments in, provided any guarantee or security, and granted any
loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability
Partnerships or any other parties during the year, and hence reporting under clause (iii) of the Order is
not applicable.
4. The Company has not granted any loans, made investments or provided guarantees or securities and
hence reporting under clause (iv) of the Order is not applicable.
5. The Company has not accepted any deposits and hence the directives issued by the Reserve Bank of
India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules
framed there are not applicable to the company.
6. The maintenance of Cost Records has been specified by the Central Government under sub-section (1)
of Section 148 of the Act, in respect of the activities carried on by the Company. As per the information
and explanations given to us and with reference to the status of the Company enumerated in Note 28.2,
the Company has ceased operations and hence the cost records are not being maintained.

41
 Bharat Gold Mines Limited
7. a) According to information and explanations given to us and on the basis of our examination of the
books of account and records, the Company is generally regular in depositing undisputed statutory dues
including GST, Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of
Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate
authorities except in respect of the following:

Statutory dues for period

Amount in Rs.
31-03-2022
Karnataka Mineral Right Tax 4,75,69,680.00
MH- Bombay Municipal Corp 56,84,791.00
Central Excise 1,21,56,280.00
Property Tax 14,95,61,930.00
GST 4,09,860.00
Total 21,53,82,541.00
b) According to information and explanations given to us, there are no dues under dispute in respect of
Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, and Value Added Tax.
8. There were no transactions relating to previously unrecorded income that were surrendered or disclosed
as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
9. (a). The Company has defaulted in repayment of Loan to Government of India and the details of the
same as at 31st March, 2022 are as under:
Amount not paid No of
Nature of Whether
Name on days
Borrowing, Principal Remarks,
of the due date (Rs.) delay
including debt or If any.
Lender of
securities Interest
unpaid
Unsecured Govt. of 219,29,20,000.00 Principal NA Company is a closed PSE of
Loans: India Govt. of India and loan pertains
Plan & non- period 1999-2000 and earlier
Plan years.
Unsecured Govt. of 16,40,21,32,779.0 Interest NA Company is a closed PSE of
Loans: India 0 Govt. of India and major portion
Plan & non- of interest pertains to old period.
Plan
b). The Company has not been declared willful defaulter by any bank or financial institution or
government or any government authority.
(c). The Company has not taken any term loan during the year and there are no unutilised term loans at
the beginning of the year and hence, reporting under clause (ix)(c) of the Order is not applicable.
(d). The Company has not raised any funds on short term basis during the year and hence, reporting
under clause (ix) (d) of the Order is not applicable.
(e). The Company did not have any subsidiary or associate or joint venture during the year and hence,
reporting under clause (ix)(e) of the Order is not applicable.
(f). The Company has not raised any loans during the year and hence reporting on clause (ix) (f) of the
Order is not applicable.
10. (a) The Company has not issued any of its securities (including debt instruments) during the year and
hence reporting under clause (x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotment or private placement of shares
or convertible debentures (fully or partly or optionally) and hence reporting under clause (x)(b) of the
Order is not applicable to the Company.
11. (a) To the best of our knowledge no fraud by the Company or no material fraud on the Company has
been noticed or reported during the year.

42
 Annual Report – 2021-22

(b) To the best of our knowledge, no report under sub-section (12) of section 143 of the Companies Act
has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government, during the year and up to the date of this report.
(c). As represented by the Management, there was no whistle blower complaints received by the
Company during the year (and upto the date of this audit report).
12. The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2020 Order
is not applicable.
13. In our opinion, the Company does not have any related party transactions and hence compliance with
Section 177 and 188 and Accounting Standards are not applicable to the Company.
14. (a). The Company does not have Internal Audit System.
(b). In the absence of Internal Audit System, the question of considering Internal Audit Report does not
arise.
15. In our opinion during the year the Company has not entered into any non-cash transactions with its
directors or persons connected with them and hence provisions of section 192 of the Companies Act,
2013 are not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934 Hence, reporting under clause (xvi)(a), (b) and (c) of the order is not applicable.
18 The Company has incurred cash losses amounting to Rs. 68.71 Crores during the financial year covered
by our audit. During the immediately preceding financial year though there was cash loss of Rs. 92.14
Crores because of writing back of provisions there was Net Profit as per the Profit and Loss Account.
19 There has been no resignation of the statutory auditors of the Company during the year.
20 According to the information and explanations given to us and on the basis of the financial ratios, ageing
and expected dates of realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements and our knowledge of the Board of Directors and Management
plans and based on our examination of the evidence supporting the assumptions, we are of the opinion
that material uncertainty exists as on the date of the audit report that Company may not be capable of
meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of
one year from the balance sheet date.
21 Provision of Section 135 of the Act is not applicable to the company; hence reporting under clause 3(xx)
of the Order is not applicable.

For Mohammed Iqbal & Co

Chartered Accountants
Firm Reg. No. 007109S

Sd/-
(Mohammed Iqbal. B)
Proprietor
Place: Bangalore, Membership No.023738
Date: 04-08-2022. UDIN: 22023738AOHGDR7938

43
 Bharat Gold Mines Limited

‘ANNEXURE II’ TO THE INDEPENDENT AUDITOR’S REPORT

As referred to in paragraph 2 under the heading „Report on Other Legal & Regulatory
Requirement‟ of our report of even date of the financial statement of the company for the year
ending 31st March 2022.

Impact on the
Sl.
Directions Action Taken accounts and
No.
Financial Statements
1. Whether the company has system in No. Nil.
place to process all the accounting
transactions through IT system? If yes,
the implications of processing of
accounting of accounting transactions
outside IT system on integrity of the
accounts along with the financial
implications, if any, may be stated.
2. Whether there is any restructuring of an No. Nil.
existing loan or cases of waiver/ write
off of debts/loans/interest etc., made by
a lender to the company due to the
company‟s inability to repay the loan? if
yes, the financial impact may be stated.

3. Whether funds/grants/subsidy etc., Not Applicable. Nil.

received/receivable for specific schemes
from central/state agencies were
properly accounted for/utilized as per its
term and conditions? List the cases of
deviation.

For MOHAMMED IQBAL & CO.

Chartered Accountants
Firm‟s Reg No. 007109S

Sd/-
(B. Mohammed Iqbal)
Proprietor
Membership No.023738
UDIN: 22023738AOHGDR7938

Place: Bangalore,
Date: 04-08-2022.

44
 Annual Report – 2021-22

‘ANNEXURE III’ TO THE INDEPENDENT AUDITOR’S REPORT

Annexure referred to in Paragraph 3(f) under the heading „Report on other Legal and Regulatory
Requirement‟ of our report of even date to the members on the Financial Statements of the Company for
the year ended 31-03-2022.

Report on the Internal Financial Controls with reference to financial statements of the Company under
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 („the Act‟)

We have audited the internal financial controls with reference to financial reporting of Bharat Gold Mines
Limited („the Company‟) as of March 31, 2022 in conjunction with our audit of the financial statements of
the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS:

The Company‟s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of India („ICAI‟). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company‟s policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.

AUDITOR’S RESPONSIBILITY:

Our responsibility is to express an opinion on the Company‟s internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor‟s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company‟s internal financial controls system over financial reporting.

45
 Bharat Gold Mines Limited
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:
A company's internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A
company's internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors
of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company's assets that could have a material
effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER

FINANCIAL REPORTING:
Because of the inherent limitations of internal financial controls over financial reporting, including
the possibility of collusion or improper management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also, projections of any evaluation of the
internal financial controls over financial reporting to future periods are subject to the risk that the
internal financial control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
A „material weakness‟ is a deficiency, or a combination of deficiencies, in internal control over
financial reporting, such that there is a reasonable possibility that a material misstatement of the
division‟s annual financial statements will not be prevented or detected on a timely basis.

DISCLAIMER OF OPINION

The system of internal financial controls over financial reporting with regard to the Company were
not made available to us to enable us to determine whether the Company has established
adequate internal financial control over financial reporting and whether such internal financial
controls were operating effectively as at March 31, 2022.
We have considered the disclaimer reported above in determining the nature, timing, and extent of
audit tests applied in our audit of the financial statements of the Company, and the disclaimer has
affected our opinion on the financial statements of the Company and we have issued an adverse
opinion on the financial statements.
For Mohammed Iqbal and Co.
Chartered Accountants
Firm Reg. No. 007109S

Sd/-
(Mohammed Iqbal. B)
Bengaluru Proprietor
Date: 04-08-2022. Membership No. 023738
UDIN: 22023738AOHGDR7938

46
 Annual Report – 2021-22

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 143 (6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL
STATEMENTS OF BHARAT GOLD MINES LIMITED FOR THE YEAR ENDED ON
31 MARCH 2022

The preparation of financial statements of Bharat Gold Mines Limited for the year ended on
st
31 March 2022 in accordance with the financial reporting frame work prescribed under the
Companies Act, 2013 (Act) is the responsibility of the Management of the Company. The Statutory
Auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of Act
are responsible for expressing opinion on the financial statements under Section 143 of the Act
based on the independent audit in accordance with the Standards on Auditing prescribed under
Section 143 (10) of the Act. This is stated to have been done by them vide their Audit Report
dated 04 August, 2022.

I, on behalf of the Comptroller and Auditor General of India, have decided not conduct the
supplementary audit of the financial statements of Bharat Gold Mines Limited for the year ended
31st March, 2022 under Section 143(6)(a) of the Act.

For and on the behalf of the

Comptroller and Auditor General of India

Sd/-
(M. S. Subrahmanyam)
Director General of Commercial Audit
Hyderabad

Place: Hyderabad
Date: 5th September, 2022.

47
 Bharat Gold Mines Limited

OFFICERS OF BGML

Shri R. Nanmathi Selvan

Officer on Special Duty
Bharat Gold Mines Limited

Shri Shashi Ranjan Shri Jim Amalraj

Director GSI & Chief Manager (F) HCL &
Bharat Gold Mines Limited Bharat Gold Mines Limited
Up to 10-01-2022

Dr. S. A. Pansambal Shri S. S. Muthusubramaniyam

Dy. Commandant, BSF & Finance Incharge, MECL &
Chief Security Officer & Estate Officer Bharat Gold Mines Limited
Bharat Gold Mines Limited From 11-01-2022

AUDITORS BANKER
M/s Mohammed Iqbal & Co UNION BANK OF INDIA, Kolar Gold Field
Chartered Accountants
No.1/7 & 8, III Floor, Naaz Complex, N. R. Road
BANGALORE - 560 002

48