The Reebok story darkens

Reebok lodges FIR against Shubhinder Singh and Vishnu Bhagat.


FIR against Shubhinder Singh, Vishnu Bhagat  

An FRI has been lodged by Reebok India against former managing director Subhinder Singh Prem and COO Vishnu Bhagat. Lodged with the Gurgaon Police, the FIR states that they had stolen company good which they stored in secret warehouses along with fabricated accounts and conjured sales to the tune of Rs 8,700 crore.

The FIR states, “In respect of the account receivable balances, which were at such regional outstanding reports, showed the official balance reported to the group and various adjustments to be made (for) arriving at a ‘net recoverable amount’. In order to hide the fraud, the accused malafidely (sic) passed on extra margin to the customers on the invoice which were treated as credit note reduction as issuing a credit note would have made it obvious that the balance reported in the books (were) not correct.”

 In case of one customer, the company alleged that the amount outstanding as per its records was Rs 34.36 crore, compared to Rs 13.32 crore in the ROR. On December 31, 2011, the official accounts receivable of all customers was estimated at Rs 1,007 crore, compared to around Rs 476 crore in the ROR.