TD cancels audit of firm accounts to reduce costs
Independent TD Michael Lowry said yesterday that his 'Streamline Enterprises' refrigeration business "is trading successfully" and will continue to do so.
Mr Lowry was yesterday commenting on the company's move to terminate the appointment of auditors, BBT Chartered Accountants, to audit the firm's accounts.
The accounts for Garuda Ltd, trading as Streamline Enterprises, will not now be independently audited. In an interview yesterday, Mr Lowry said that the move to no longer have the accounts audited "has been done to reduce costs".
He said: "It costs €20,000 a year to have the accounts audited, and it also involves a lot of preparation work for audit. The company is now below the threshold where there is a requirement to have accounts audited and so we applied for an audit exemption."
Last year, BBT Chartered Accountants -- based in Foxrock, Dublin -- initiated High Court action against Mr Lowry.
The case was discontinued and the reasons behind the case being initiated are not known.
Asked to comment on the High Court action, Mr Lowry said yesterday: "That's past tense. That's already dealt with -- no comment."
When contacted yesterday, BBT also declined to comment.
The latest accounts for Garuda Ltd show that accumulated profits at the firm dipped by €148,195 from €1.23m to €1.04m in the 12 months to the end of December 2010.
Asked if the company recorded a profit in 2011, Mr Lowry would only say that Streamline Enterprises "is trading successfully. It is a difficult business environment out there and the company will continue to trade successfully."
He added: "I am happy with how the company is performing."
Mr Lowry said that Streamline Enterprises "downsized two years ago" in response to the changing business environment, though he declined to state how many people the company currently employs.
The Independent North Tipperary TD said: "Capital investment in refrigeration has slowed down and we have had to adjust and we have reduced overheads. There is no company in Ireland that isn't reducing its cost base."
Mr Lowry said that he devotes as much time as is needed to the company.
The business is very much a family affair with Mr Lowry's brother, Patrick serving as the only other director.
A letter dated June 7 by BBT lodged with the Companies Office confirms that there are no circumstances in connection with the decision of the company to terminate their role as auditors "which we consider should be brought to the notice of the members or creditors of the company".
Garuda Ltd was established by Mr Lowry a year after he was first elected a Fine Gael TD in 1987.
In 2005, the Thurles-based firm reached a settlement with Revenue to pay over €1.26m in outstanding tax, interest and penalties.
Garuda Ltd's shareholder funds dropped by 20.5pc or €447,002 from €2.18m to €1.73m in 2010.
The accounts also record that cash in 2010 dropped by 35pc from €852,423 with debtors dropping from €1.56m to €998,859.
In 2009, the company recorded pre-tax profits of €354,046.