ICAI issues show-cause notice to Reebok’s ex- CFO
Moneylife Digital Team 13 February 2013

Reebok India had filed an FIR alleging fraud by its former managing director Subhinder Singh Prem and Bhagat. Both of them have denied the charges

The Institute of Chartered Accountants of India (ICAI) has issued a show-cause notice to Reebok India’s former chief financial officer Vishnu Bhagat regarding the alleged Rs870  crore fraud at the sportswear manufacturer last year.

 

“We have issued show-cause notice to Reebok’s former CFO Vishnu Bhagat and he has sought time till 31 March 2013 (to reply),” ICAI president Subodh Kumar Agrawal said in Delhi yesterday.

 

“From what information the (former) CFO gives, the written information, then if we find there is a case against the auditor... Then (we will take action),” Agrawal said.

 

The external auditor for Reebok is N Narasimhan & Co, he added.

 

Earlier, Reebok India had filed an FIR alleging fraud by its former managing director Subhinder Singh Prem and Bhagat. Both of them have denied the charges.

 

“If there is some failure and we find that the auditor did not work diligently, then we take action against them,” he added.

 

He also stressed that ICAI has taken action against auditors in the Satyam fraud case.

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