E.Z.I. REPORT QUALIFIED

Press, Volume CXII, Issue 33068, 8 November 1972, Page 25

E.Z.I. REPORT QUALIFIED

Auditors make profit 53.4 m

(N.Z. Press Assn.—Copyright) SYDNEY, Nov. 8.

The auditors of EZ Industries, Ltd, have qualified the company’s accounts for the second year in a row, and claimed that net profit is overstated by more than sl.sm. Peat Marwick Mitchell and Company say that capital profits should have been included in revenue as extraordinary items, and provision for income tax equalisation should have been charged against profits. They have also qualified the report because no provision has been made for depreciation of houses and office buildings owned by the company in Melbourne and Hobart. In the accounts, the net surplus from the sale of shares and rights for the group was $33,605 (previous year $5,907,515). EZ Industries had added this to unappropriated profits brought forward from the previous year and then transferred it to general reserve. The income tax equalisation provision of $1,552,400 this year and $996,000 last year has been deducted from profits available for appropriation. Profit as stated by the company was $4,899,909, but if the auditors’ recommendations had been followed, it would have been $3,381,114, including $33,605 extraordinary profit. Last year, instead of the $3,341,656 profit stated, it would have been $8,253,171, including $5,907,515 extraordinary profit.