An independent auditors’ report issued by BDO revealed that Four Elements claimed to have €33.8m (£24.3m, $37.3m) in investments, cash, cash equivalents, interest and loans on 31 December 2013.
However, BDO said it was “unable to obtain sufficient appropriate audit evidence as to [the €33.8m’s] existence at the reporting date”. The auditor also said an extra €32.9m might not be recoverable.
“The company, which has invested in its subsidiaries, has not presented consolidated financial statements as required by the International Financial Reporting Standards,” BDO said.
The document also revealed that the Mauritius-based fund house had made a loss of €12.7m in 2013, preceded by a loss of €27.9m in 2012.
In 2013, Four Elements reported total assets of €197.2m, falling sharply from the €353m in assets it reported only a year prior.
Enforcement actions
The firm’s parent company, Belvedere Management Group, had its management licence suspended by the Mauritius Financial Services Commission in March.
The commission also published a public notice in October last year warning that “enforcement actions” had been initiated against Four Elements and the company were no longer allowed to take any new business.
Last week, PricewaterhouseCoopers announced that the Cayman Islands-based fund house Kijani Resources – also owned by Belvedere under the Brighton SPC company name – had gone into liquidation.
