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Wysłany: Nie 23:47, 25 Sie 2013
Temat postu: Adidas takes Rs 1090cr hit due to Reebok India irr
Adidas takes Rs 1090cr hit due to Reebok India irregularity,
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German sportswear giant Adidas on Thursday said its balance sheet for 2011 is negatively impacted by euro 153 million (over Rs 1,
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,090 crore) due to 'commercial irregularities' at its arm Reebok India Co. The company had in April last year stated that the estimated maximum negative impact due to the alleged fraud by its two top executives at Reebok India,
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, could be up to a pre-tax amount of 125 million euros.
Also Read: Adidas hopes to boost sales with high-tech sneaker
Adidas said it has corrected its consolidated financial statements as on December 31,
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, 2012,
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, in which the comparative figures for the year 2011 are restated and the opening balance sheet for 2011 is corrected to the extent that earlier periods are affected. "The results of these restatements led to a reduction of net income attributable to shareholders of euro 58 million for 2011. In addition,
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, shareholders' equity of the opening balance sheet for 2011 is negatively impacted by euro 153 million,
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," the company said in a statement.
For the year 2012,
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, the group had reported 6 per cent increase in overall sales to euro 14.9 billion,
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, while its net cash position at year-end stood at euro 448 million. While the investigations by government agencies are ongoing,
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, earlier this year Adidas group had announced top management change in India with Erick Haskell,
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, ex-COO of its China operations,
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Reebok India had offered voluntary retirement scheme to 200 employees in 2012 out of which said 84 have taken up the offer,
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. It also downsized store count to 500 with two-third of the original franchisees staying on board with the company after its transition into a new business model,
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