Valuation of €18.8m put on builder's projects can't be verified
The independent auditor of one of the largest building firms in the midwest, Paddy Burke Builders Ltd has questioned the value of €18.8m placed by the company on finished projects and work in progress.
According to accounts just filed with the Companies' Office, Paddy Burke Builders pre-tax profits fell 69pc to €299,963 -- in spite of turnover increasing by 13pc to €46m -- to the end of August last year.
But the auditor's report lodged by chartered accountants, Michael Nagle & Co of Ennistymon, Co Clare states -- with respect to the valuation of €18.8m -- that "the evidence available to us was limited because, although the directors have valued the work in progress and finished projects to the best of their ability, there is no active market from which we could make an assessment of the net realisable value of value in use".
Mr Nagle added: "Owing to the unstable nature of the current construction industry environment, we were unable to obtain sufficient and appropriate audit evidence regarding the work in progress and finished projects by using other audit procedures."
Mr Nagle states in respect solely to the limitation of scope that: "We have not obtained all the information and explanations that we considered necessary for the purposes of our audit and were unable to determine whether proper accounting records had been maintained."
A spokeswoman for the Liscdoonvarna-based company, established in 1987, said Mr Burke would be making 'no comment'.
The company has constructed projects in the tourism, educational, commercial and residential sectors including the Clare County Museum, the Burren Art College, the Doolin Hotel, Kilkee Bay Hotel, commercial projects in counties Clare, Galway, Tipperary and Limerick, and a number of housing development projects.