The Whelan Group, which last week withdrew its petition for court protection, had significant financial inaccuracies in its internal group and subsidiary accounts for the period January 2008 to September 2010.

Sales invoices were duplicated and expenses were not recognised in the profit-and-loss account, according to the independent accountant's report into Whelan Group (Ennis). The inaccuracies were identified following audit and due diligence work on behalf of Bank of Scotland Ireland.

"Management now believe this resulted in an excess drawdown on the invoice discounting facility in 2008. The identification of these inaccuracies resulted in the withdrawal of invoice facilities by Bank of Scotland Ireland" on or around 5 November, the report by independent accountant Noel Kelly of BDO states.

There is an excess drawdown on the facility of €2.92m, the report continued, adding that Whelan Group had accepted the then managing director's resignation. A review resulted in the restatement of management accounts.

The decision to withdraw the petition came after about €50m of the company's loans were transferred to Nama from Anglo Irish Bank.