Found no evidence to support wrongdoing charges: Infosys


The company informed that the anonymous complaints are still under investigation and they are yet to receive any evidence to corroborate whistleblower complaints against top executives.

"The complaints do not fall within the purview of deemed material events under the LODR Regulations". U.S. market regulator Securities and Exchange Commission (SEC) has initiated an investigation into the anonymous whitleblowers' allegations of unethical practices to fudge numbers and governance lapses at Infosys. "The independent internal auditors were given a mandate to review certain processes on the basis of the allegation in the anonymous complaints", the filing said.

The letter to the NSE claimed Infosys was not able to determine "concreteness, credibility and materiality of complaints".

A complaint was also filed with the US Securities and Exchanges Commission alleging accounting irregularities by CEO Salil Parekh and CFO Nilanjan Roy.

However, stock exchanges were not informed about these complaints and the company informed the bourses only on October 21 - nearly three weeks after the board members received the complaints.

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Just a few anonymous employees had despatched a two-page letter to the firm's board of directors on September 20. The delay in disclosing the anonymous complaints dated September 30 and the whistle blower letter on October 16, raised investor hackles about the lack of transparency.

Moreover, even before the appointment of the independent investigator, the audit committee began consultations with independent internal auditors: Ernst & Young.

On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on a 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019. "Unless an event / information is deemed "material" under the LODR (Listing Obligations and Disclosure Requirements) Regulations, or determined as "material" by the company, the company has no obligation to disclose the same under Regulation 30 of the LODR Regulations".

Indian IT services major Infosys Ltd INFY.NS said on Monday it had not yet received any evidence to support the allegations in a whistleblower letter from last month, sending its shares up as much as 6.5% in early trading.