Deccan Gold Mines Limited cuts equity by Rs 12.1799 crore

Deccan Gold Mines Limited retrospectively reduced its consolidated investment in an associate and other equity by Rs 12.1799 crore at March 31, 2026 after the associate’s audited accounts corrected earlier capitalisation errors. Deccan Gold said the revision did not affect its standalone financial results, group cash flows or non-controlling interests.

Why did Deccan Gold restate its consolidated accounts?

Deccan Gold restated its consolidated accounts because audited financial statements of Thriveni Lloyds Swarnagiri Private Limited for the year ended March 31, 2026 identified prior-period errors under Indian Accounting Standard 8, or Ind AS 8. The associate’s board approved those audited statements on September 4, 2026, whereas Deccan Gold had used unaudited management-certified accounts in its earlier March 2026 consolidated results.

The associate’s audit corrections related to pre-operative expenditure, depreciation and other expenses that had been incorrectly capitalised in earlier years, alongside other audit adjustments. Deccan Gold holds 26% of Thriveni Lloyds Swarnagiri and accounts for that stake under the equity method, so its consolidated investment and share of the associate’s equity had to be revised.

The filing says the associate’s other equity at March 31, 2026 was lower by Rs 46.8458 crore after the corrections. That associate-level reduction was larger than Deccan Gold’s adjustment because the group records its share of the associate’s results and net assets rather than consolidating 100% of the associate’s financial statements.

How much did the restatement reduce Deccan Gold’s equity?

Deccan Gold reduced both its investment in the associate and consolidated other equity by Rs 12.1799 crore at March 31, 2026. The company applied the adjustment retrospectively under Ind AS 8, meaning it revised comparative consolidated figures rather than recording the amount as a new charge in the half year ended September 30, 2026.

The Rs 12.1799 crore reduction comprised a Rs 12.2042 crore decrease in retained earnings, partly offset by a Rs 24.3 lakh increase in the other comprehensive income reserve. The reserve increase reflected the group’s share of a remeasurement gain on defined-benefit plans recognised in the associate’s audited financial statements.

The restatement was an accounting revision to accumulated equity and the carrying value of an associate investment, not a cash-flow item. Deccan Gold specifically stated that it had no effect on the holding company’s standalone results, the group’s cash flows or non-controlling interests as at March 31, 2026.

Which comparative periods did Deccan Gold revise?

Deccan Gold revised comparative consolidated figures connected with the year ended March 31, 2026 because the original results relied on the associate’s unaudited information. The company included the revised treatment in the November 13, 2026 announcement approving unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026.

The company said the carrying amount of its investment in the associate at September 30, 2025 was not affected by the restatement. It also said its share of the associate’s profit for the half year ended September 30, 2025 was based on the associate’s audited opening balances and did not include a prior-period adjustment.

Deccan Gold stated that its share of the associate’s other comprehensive income adjustment relating to the year ended March 31, 2025 was included in restated other comprehensive income for that year. The practical comparison is therefore between the restated March 31, 2026 consolidated base and subsequent reported periods, rather than between the revised balance and previously published March 2026 figures.

What did Deccan Gold report for September 2026?

Deccan Gold reported a consolidated loss before tax and extraordinary items of Rs 30.123 crore for the half year ended September 30, 2026, compared with a loss of Rs 48.376 crore for the corresponding half year ended September 30, 2025. The pre-tax loss was therefore Rs 18.253 crore lower year on year, while the associate restatement was disclosed separately from current-period performance.

Thriveni Lloyds Swarnagiri contributed Deccan Gold’s share of net profit after tax of Rs 20.585 crore for the period ended September 30, 2026, based on the associate’s unaudited interim financial information. Kalevala Gold Oy, the group’s Finnish associate, contributed a share of profit of Rs 26.12 lakh for the same period.

Cash flow did not move in line with the smaller pre-tax loss. Consolidated operating cash outflow increased to Rs 90.13 crore in the September 2026 half year from Rs 64.05 crore a year earlier, with trade receivables rising by Rs 88.613 crore in the current period.

The group’s investing cash flow was positive at Rs 166.473 crore in the September 2026 half year, compared with Rs 32.777 crore in the prior-year period, principally alongside Rs 192.819 crore of loan repayment shown in the cash-flow statement. Closing cash and cash equivalents fell to Rs 2.656 crore from Rs 3.853 crore a year earlier.

What did the auditors say about Deccan Gold’s restatement?

Deccan Gold’s consolidated review auditor drew attention to the associate-accounting correction but did not modify its conclusion. The auditor said that, based on its limited review for the quarter and half year ended September 30, 2026, nothing had come to its attention to indicate that the consolidated statement was materially misstated or inadequately disclosed under applicable standards and listing rules.

The auditor’s emphasis of matter identified the associate’s corrections to prior-period capitalisation of pre-operative expenditure, depreciation and other expenses. It repeated that Deccan Gold’s investment in the associate and other equity at March 31, 2026 were reduced by Rs 12.1799 crore, including the Rs 12.2042 crore retained-earnings reduction and Rs 24.3 lakh other-comprehensive-income increase.

The standalone review report separately highlighted unsecured inter-company loans of Rs 276.1054 crore to Avelum Partner LLC, the group’s Kyrgyzstan subsidiary, with accrued interest of Rs 41.1194 crore at 15% a year. Management said repayment of principal and accrued interest is expected to begin when commercial production starts at Avelum’s Altyn Tor Gold Project, and that it expects recovery based on future business projections.

Conclusion

The restatement means Deccan Gold’s previously reported consolidated March 2026 position overstated its associate investment and other equity by Rs 12.1799 crore because the group had relied on unaudited associate accounts that were later corrected in an audit. Most of the revision reduced retained earnings, while the company said standalone results, group cash flows and non-controlling interests were unchanged.

The next disclosed matter to watch is the commencement of commercial production at Avelum’s Altyn Tor Gold Project. Management linked that event to the expected start of repayment of Rs 276.1054 crore of inter-company loans and Rs 41.1194 crore of accrued interest, while future consolidated filings will provide comparisons against the restated March 31, 2026 base.