ICAI issues notice to Reebok's former exec Vishnu Bhagat

Reebok

Accounting regulator ICAI has issued show-cause notice to Reebok India's former Chief Financial Officer Vishnu Bhagat regarding alleged fraud at the sportswear maker.

The issue relates to alleged Rs 870 crore financial fraud at the company last year.

"We have issued show-cause notice to Reebok's former CFO Vishnu Bhagat and he has sought time till March 31, 2013 (to reply)," Institute of Chartered Accountants of India (ICAI) President Subodh Kumar Agrawal said here last evening.

The next course of action would be decided after getting the information from Bhagat, he added.

"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 said.

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.

"We are a watchdog not a blood hound... We are not an investigating agency, we are not a forensic auditor," said Agrawal, who was elected as ICAI President yesterday. "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.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus