Error in firm's accounts corrected and explained
AN error understating profits by €22,395 at Michael Lowry's refrigeration business has been addressed by the North Tipperary independent TD.
New accounts lodged with the Companies Office by Lowry's Garuda Ltd show the firm was sitting on accumulated profits of €1.072m at the end of December last. However, 2012 financial statements confirm that the accounts for 2011 gave an incorrect accumulated profit figure of €1,013,493 – understating profits by €22,395.
The error has been corrected in the new accounts, showing the 2011 accumulated profit figure now to be €1,035,888.
A note attached admits the error and states that the adjustment "arises as a result of an error in which an incorrect exchange rate was used when accounting for a foreign exchange transaction".
The figures show that the cash at Mr Lowry's firm last year increased from €319,163 to €393,139. Shareholder funds stood at €1.7m.
The firm's PAYE bill last year increased tenfold, from €15,119 in 2011 to €151,938.
Mr Lowry and Garuda made a €1.4m settlement with the Revenue some years ago following a lengthy investigation. Last July, his home in Co Tipperary, as well as offices linked to his affairs, were raided by Revenue officials.
Garuda, which trades under the name Streamline Enterprises, was established by Mr Lowry a year after he was first elected a Fine Gael TD in 1987. The accounts – signed off on September 20th last – do not provide a turnover figure.
The firm operates from state-of-the-art warehousing and office facilities in Abbey Road in Thurles.
The accounts show that AIB has a mortgage debenture over the firm's assets and a mortgage over property and lands located at Abbey Rd, Thurles.
Mr Lowry did not return a call for comment yesterday.
The accounts are unaudited – last year Mr Lowry confirmed that he terminated the appointment of the firm's auditors in order to reduce costs.