"The Accounting Authority" demands the "National Housing" to clarify the impact of the sale of the Meridien Heliopolis Hotel

The Central Auditing Organization criticized the failure of the National Housing Company for Professional Syndicates to prove the sale of Meridian Heliopolis Hotel in the financial statements ending on June 30, 2021, and its impact on the value of net profit before tax, income tax, net profit after taxes and non-current assets for the purpose of sale, despite the fact that On June 1, 2021, the company sold the hotel owned by it for 605 million pounds, a final inclusive price.

 

The agency also criticized, in the limited examination report on the periodic financial statements of the National Housing Company for Professional Syndicates, the company’s failure to prove the credit interests in the income statement - related to the sale of the Meridien Heliopolis Hotel - for the period from April 1, 2021, amounting to about 12.655 million pounds, and the impact of that On net profit before tax, income tax, net profit after tax, debits and other debit balances.

 

The Central Auditing Authority demanded that it be provided with the opinion of the company’s tax advisor regarding the extent to which the hotel sale process is subject to value-added tax, and its impact on the income statement and the balance of provisions on the date of the financial position. - To reduce the size of the company’s business in the future, which indicates the existence of uncertainty that leads to a fundamental doubt in the company’s ability to continue, so the company may not be able to realize its assets and settle its obligations through its normal activities, and the company’s financial statements and the clarifications supplementing it have not been disclosed on this matter. .

 

In the same context, the Central Auditing Organization, with the approval of the company’s extraordinary general assembly held on December 26, 2019, criticized the sale of the Meridian Heliopolis Hotel for an amount of 605 million pounds, less than the average evaluations approved by the board of directors, which amounted to about 680 million pounds, in addition to the company’s failure to pay the outstanding balance. The Training and Rehabilitation Fund for the previous years, whose balance at the date of the financial statements is about 1.355 million pounds.