New Delhi: Infosys said Monday it is yet to receive any evidence to corroborate anonymous whistleblowers’ complaints that alleged unethical practices by the company’s top management.
“With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made,” Infosys told the National Stock Exchange (NSE).
The NSE had sought October 24 clarification from the IT major on the whistleblowers’ allegations and why the company had not disclosed the same to the exchanges.
In its response, the company said the audit committee has already engaged law firm, ‘Shardul Amarchand Mangaldas & Co’, to investigate the matter, and had also started consultations with independent internal auditor, ‘Ernst & Young’.
The independent internal auditor was given a mandate to review certain processes on the basis of the allegation in the anonymous complaints.
“…given the circumstances at this stage, where there is complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints,” Infosys told NSE.
The company also said it would keep stock exchanges informed about the matter on the basis of the findings of the investigation.
Immediately after the disclosure came to light shares of Infosys rose 3.23 per cent to close at Rs 710.10 apiece on the NSE.
In October, Infosys informed the stock exchanges of having received anonymous whistleblowers’ complaints alleging certain unethical practices by the top management.
Infosys chairman Nandan Nilekani had said the whistleblower complaint dated September 20 as well as an undated complaint had been received by one of the board members on September 30.
In the letter, dated September 20 and signed by ‘Ethical Employees’, it was alleged that CEO Salil Parikh as well as CFO Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards.
PTI
