No accounting issue in Reebok’s $160m fraud case, says auditor

The Indian auditor of Reebok has said there is
no accounting issue relating to its audits after Reebok filed an
INR8.7bn ($160m) fraud case against two of its former
employees.

The statement issued by the auditor N
Narasimhan & Co follows a request by the Institute of Chartered
Accountants of India (ICAI) to clarify its role as part of its own
investigation into the matter.

The case involves the former managing director
and chief operating officer of Reebok India, who have been accused
of setting up four secret warehouses in Delhi and generating
fictitious sales over numerous financial years, according to Indian
media reports.
Allegedly, at the end of December 2011, products worth INR14.7bn
were invoiced but not delivered, resulting in an accusation of
“criminal conspiracy” and “fraudulent practices”, which both
executives deny.
Ministry of Corporate Affairs has also ordered an investigation
into the company’s accounts through its fraud probe body –
SFIO.