Secret Warehouses Swot Analysis

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Secret warehouses:
The audit by Ernst & Young confirmed the EOW’s previous findings with respect to the secret warehouses, which were hired by RIC between October 2009 and June 2012 and costed RIC about 14.3 million in rent. The goods were shown as having been sold to dealers or distributors on RIC’s books, and invoices to this effect had also been generatedwith an intention to deciee and inflate sales figures: the siphoned off stock never left the warehouses. These figures were further complicated by RIC’s intentional failure to give an account for the stock returned to them by distributors and dealers: storing them in such warehouses, but leaving them off the books.
Circular trading and off-the-books sales transactions:
The audit revealed a number of extremely complex and circular transactions between RIC and companies owned by Sanjay Mishra, through whom the company was supplied with staffing services. RIC seemingly sold goods that need to be repaired to Mishra-owned Shivam Enterprises and Oriya Sales for 352 million while the actual value of the goods in question was about 143 million. The Mishra-owned enterprises only paid 30.8 million for these goods sold to them, some of which were …show more content…

Following the SFIO investigation, the ICAI issued a show cause notice to Vishnu Bhagat (a member of the ICAI), one of the main accused in the Reebok case in 2013, subsequent to which proceedings were commenced against him in 2014. The ICAI is also investigating two separate complaints against the concerned auditors of RIC. While one case is being investigated by the Directorate in consonance with the Chartered Accountants (Procedure of Investigation of Professional and Other Misconduct and Conduct of Case) Rules, 2007, the other matter is still under

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