New Delhi: Surat-based Rama Newsprint and Papers Ltd has come under the scanner of the ministry of corporate affairs for alleged discrepancies in its compliance with the Companies Act, according to people familiar with the development who didn’t want to be named.
The ministry ordered an inspection of the company’s accounts under section 209 (a) of the Companies Act. The Registrar of Companies (RoC), which was entrusted with the task of carrying out the inspection, has submitted its report to the ministry with its observations and recommendations.
The report, the people said, indicated discrepancies under section 274 (1g) and 224 (8b) of the Companies Act. Section 274 specifies guidelines for the appointment of directors on company boards and lays down conditions that disqualify them.
Section 224 prescribes guidelines for giving remuneration to auditors appointed by the company.
The ministry, the people said, is currently in consultation with its regional director to take the case forward and is likely to decide soon if any action is required.
Rama Newsprint, when contacted, confirmed an inspection of its books by the RoC and said that it had provided all the information that was sought by the agency. The company, however, said that it had not received any show-cause notice from the ministry on the alleged “discrepancies”.
The stock ended 5.6% down on the Bombay Stock Exchange.