New Delhi: The Serious Fraud Investigation Office (SFIO), probing the alleged irregularities at Reebok India, is likely to submit its report by November as the sportswear maker is finalising its accounts.

SFIO, under the Corporate Affairs Ministry, is looking at the alleged Rs 870-crore financial scam at the company over a period of time.

A senior Corporate Affairs Ministry official said, "The SFIO is likely to submit its report on Reebok India by November since the company is in the process of finalising its accounts".

The Ministry had ordered a probe into the affairs of Reebok India on May 29 following media reports.

Reebok India, in May, had filed an FIR, alleging that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in a Rs 870-crore fraud by indulging in "criminal conspiracy" and "fraudulent practices" over a period of time.

The Income Tax Department under the Finance Ministry is also probing the alleged financial irregularities at Reebok India.

Systemic management in business planning and running of the company were reportedly done by some officials at the company, according to agencies probing the issue.

Earlier, the company's German parent Adidas had said global sales of its Reebok brand declined by 26 percent in the April-June quarter, mainly due to impact from Reebok
India.

As per the group, it expected to take a hit of 70 million euro (about Rs 490 crore) in its global operating profit in 2012 on account of "irregularities" at Reebok India.

(Agencies)

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