Information disclosed on Wednesday by the former auditor of Sorouh Properties, PriceWaterhouseCoopers (PWC), maintains that Sorouh's failure to submit it financial results to the Abu Dhabi Securities Market (ADSM) on time and the subsequent fining of the company for Dh100,000 was a result of management problems.
The claim, contained in the PWC auditors report, states that Soruoh management failed to answer some of its queries on its first and second quarter income statements, according to Khaleej Times. It said that in a meeting with the company's chairman and other directors, it raised some doubts about the first quarter income statements.
Company management, PWC claims, did not provide the details of subcontracts worth some Dh2.8 billion in the second quarter and that resulted in the delay in filing the results, and that its accounting practices of the company were not in compliance with international accounting standards.
It added that there were several changes in lease contracts that caused confusion in the financial statement. While the land in question has been leased for a period of four years with the lease extendable for up to seven years, Sorouh claimed that it has leased the land for 106 years with the option of purchasing it.
The auditor said that the company failed to provide requisite information and they could not solve the problem in time to submit the quarterly report prior to the deadline.
Surouh has since appointed Deloitte and Touche as its new auditor.
