E&Y forensics on Reebok accounts confirm fudging

A forensic analysis by Ernst and Young (E&Y) has confirmed that Reebok's accounts were fudged. According to sources, the report has now been submitted to SFIO and Gurgaon police. CNBC-TV18’s Ronojoy Banerjee, who broke the story, reports the details.

Earlier this year, when the alleged Rs 870 crore scam was reported, Reebok wanted to restructure its business operations and start their India operations a fresh from 2013. One of the key task that was also given to E&Y was to do a forensics audit into the books of accounts of the company to see whether there was indeed the fudging of accounts or not.
CNBC-TV18 learns from sources that the report -- code named “Project Leaf” -- was submitted to the SFIO and the Gurgaon police earlier this week where the auditor has confirmed that the books of accounts were indeed doctored.
It is interesting because KPMG had submitted a report in March 2011 where it had absolved the two key accused in the case -- that’s Subhinder Singh Prem and Vishnu Bhagat. Of course, Reebok India officially maintaining that the KPMG probe report then was very different from the E&Y probe report that has been submitted today.
The big question is what will the E&Y probe report now mean for the ongoing investigations? Sources, however, maintaining there will not too much of an impact because in a sense the E&Y probe findings corroborates whatever the SFIO has found so far. Reebok India in a sense also confirming to us that the report has been submitted to the investigation authorities.