Resurgere Mines & Minerals India Ltd

 

Adjourned AGM, Auditor Resignation cast shadow on the company

The AGM of Resurgere threw up many insights into governance issues and accounts of the company. The AGM scheduled for 30th September had to be adjourned to 8th November. The auditors M/s Churiwala & Company resigned and approval is sought for new auditors to be appointed. Many corporate governance issues were apparent and shareholders should long have recognized this.

 

About the Company

Resurgere Mines & Minerals India Limited (Formerly Exfin Shipping (India) Ltd.) is presently engaged in the business of extraction and processing of iron ore products i.e. lump ore and size ore, and is predominantly a manufacturer of calibrated lump ore (CLO) and Iron Ore Fines. The company is also engaged into merchant export of iron ore fines to China. The company is a member of CAPEXIL, FIEO and FIMI and is a recognized STAR TRADING HOUSE. At present, the Company has run-of-mines contracts for two mines situated at Nuagaon and Maharajpur in state of Orissa.

As at 31st September 2011, 75.98% of the total shares of Resurgere Mines & Minerals India Limited were held by Public, while 22.89% was held by Promoter and Promoter Group. Another 1.13% was held by Custodians and against which Depository Receipts have been issued.

 

Out of the public holdings, some funds held >1% shares. These are:

CRESTA FUND LTD                                     : 2.38% holding

CPI BALLPARK INVESTMENT LTD                      : 4.53% holding

INDIA BUSINESS EXCELLENCE FUND 1            : 1.37% holding

 

The shares of the company have a face value of Rs. 1 and are currently trading at Rs. 0.25 per share.

 

AGM 2011

Resurgere Mines & Minerals India Limited had its 24th Annual General Meeting on 30th September 2011. However, the meeting had been adjourned as the following items had to be adjourned:

1)      Adoption of Audited Balance Sheet as at 31st March 2011, Profit and Loss Account for the year ended on that date along with the Reports of the Board of Directors and the Auditors thereof.

2)      Re-appointment of M/s Churiwala & Co., Chartered Accountants, Mumbai as Statutory Auditors of the company.

A new Notice for the adjourned AGM is submitted to the exchange. The meeting is to be held on 8th November 2011, to transact the following:

1)      Adoption of Accounts as at 31st March 2011.

2)      Appointment of new Auditors.

As per the notice of the Adjourned Meeting, the AGM was adjourned as the Auditors had not submitted the signed copy of the Accounts until the day of the AGM i.e. 30th September 2011 and had made many qualifications to the accounts as follows:

1)      Schedule E of financial Statements state that Rs. 160.57 crores was there as Capital WIP. But no supporting document was provided to Auditors. Management replied that the same was provided.

2)      Schedule R stated that Rs. 11.14 crores was provided towards road development expenses but no supporting documents were provided to Auditors. Management replied that the same was provided.

3)      Schedule J states that in earlier years, the company has given Rs. 35.25 crores as deposit for raising of iron ore and Rs. 18 crores as advance to two parties as per agreement entered with them and projects have not commenced as government approvals not obtained but no supporting document was submitted to Auditors. Management replied that the same was provided.

4)      Schedule J wherein Rs. 2.3 crores was given to one party towards mobilization deposit, no supporting document submitted. Management replied that the same was provided.

5)      No supporting documents provided for the physical verification of the assets by the management. Management claims that certified papers for the verification were obtained from the mine supervisor / chief operating officer of the respective mines.

6)      Internal Control system was not consummate with the size of the company. Management denies the same.

7)      Internal Audit Report for quarter IV (Jan’11 to March’11) not submitted to statutory Auditors. Management replied that the same was provided.

Subsequently the auditors M/s Churiwala & Company resigned and approval is sought for new auditors to be appointed.

 

Read the full Blog from this link: Resurgere Mines Minerals India Limited