Annual Report: 2022
The Hutti Gold Mines Company Limited's 76th Annual Report for FY 2021-22 outlines the company's corporate vision to become a self-reliant mining giant and its mission to improve productivity, profitability, and ensure steady growth.
Operational & Financial Highlights:
Future Outlook:
India is the second largest consumer of gold after China, and HGML's production will only meet 1/2% of India's gold demand, suggesting substantial scope for growth. While gold prices in India depend on international prices, HGML reviews gold price movements and will take actions to sustain operations, including cost reduction measures.
Dividend:
The board recommended a dividend of 1125.88% on paid-up equity capital, amounting to Rs. 3334.89 lakhs, pending member approval. Rs. 1500 lakhs were transferred to the General Reserve. Unclaimed dividend amounting to Rs. 21.28 Lakhs as of 31st March 2022 will be remitted to the Central Government.
Directors and Key Managerial Personnel:
A list of directors and their appointment/cessation dates is provided. During the year there were changes in directors. As of the report, the Key Managerial Personnel consisted of 2 members. The board has reviewed the status of Equity Shares of the Company, has considered initial public offering and other modes to facilitate the buyback of Equity Shares.
Directors’ Responsibility Statement:
The directors affirm compliance with Section 134 (5) of the Companies Act, 2013, stating they followed accounting standards, selected reasonable policies, ensured proper maintenance of accounting records, prepared accounts on a 'going concern' basis, and laid down effective internal financial controls.
Audit:
The company has adequate internal financial controls in place and operates effectively. The financial statements are prepared in accordance with Indian Accounting Standards.
Other Information:
Additional Points:
Auditor's Report Summary (BVC & Co.):
The independent auditor's report expresses a qualified opinion due to the company's failure to obtain balance confirmations from trade payables, capital creditors, trade/security deposits, and creditors for expenses, and the failure to provide details of relationships with struck-off companies. Emphasis is placed on contingent liabilities related to prior year tax and excise demands and the status of a captive Gold Refinery plant that is neither capitalized nor depreciated.
The audit identified significant internal control weaknesses, particularly regarding the failure to obtain balance confirmations, impacting the adequacy of internal financial controls. The auditor also provides statements on compliance with the Companies Act, adherence to accounting standards, and reporting on matters such as fraud and internal financial controls. The company has not deposited the declared dividend in a separate scheduled bank account within the timeline. Therefore, dividend declared or paid during the year by the Company is not in compliance with section 123 of the Companies Act 2013. The report includes annexures detailing specifics on property, plant, and equipment revaluation, statutory dues, and other financial and compliance-related matters.
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