Catmoss under KPMG audit

Accounting major and auditor of Catmoss, KPMG is conducting a forensic audit of Catmoss

on the request of its private equity investor SAIF Partners, amid suspicions of financial irregularities and following allegations of financial mismanagement. The kidswear company becomes the latest retailer to evoke the ire of investors.

Catmoss is alleged to have mishandled the Rs 100 crores it received from SAIF Partners as well as the Rs 100 crores it raised through bank loans. SAIF Partners had invested about Rs 100 crores to pick up about 20 percent stake in the Delhi-based kidswear retailer in 2010.

SAIF makes investments in early and growth stages of companies in various sectors such as consumer products and services, technology, media and telecom, among others, and the firm is currently managing over $1 billion in India. SAIF investments include Taj Resorts & Palaces, National Stock Exchange, Network 18 and online firms such as makemytrip.com, homeshop18.com and firstcry.com, among others.

Catmoss started in 2004, caters to children up to 14. The products range from casual wear to ethnic wear for kids and also include footwear and accessories like belts, goggles, socks etc. The brand has about 165 exclusive stores all over India.