Country's second-largest IT major Infosys on Friday said the board's audit committee has completed the independent probe into the anonymous whistleblower allegations and found that there is "no evidence" of financial impropriety or executive misconduct.
Infosys’ audit committee Chairperson, D Sundaram, said, “The audit committee took the anonymous whistleblower complaints very seriously and commissioned a thorough investigation with the assistance of independent legal counsel. The audit committee determined that there was no evidence of any financial impropriety or executive misconduct.”
The audit committee conducted a thorough investigation with the assistance of independent legal counsel Shardul Amarchand Mangaldas & Co. and PricewaterhouseCoopers Private Ltd., the company said in the regulatory filings to the exchanges.
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Speaking about the probe by the company's audit panel, Infosys Chairman Nandan Nilekani said, “I am pleased that after a rigorous investigation, the audit committee has found no wrongdoing by the Company or its Executives. CEO Salil Parekh and CFO Nilanjan Roy are strong custodians of the Company’s proud heritage. Salil has played a key role in reinvigorating the organization and driving momentum and the Board is confident that he will continue to execute on the company’s new strategic direction successfully.”
The findings of the investigation were adopted by the Board of Directors of the Company, the IT major said.
The audit committee concluded that no restatement of previously announced financial statements or other published financial information is warranted, it said.
The Bengaluru-based company, after its October quarter results, had informed the stock exchanges of anonymous whistleblower complaints that had alleged certain unethical practices by the top management.
Infosys Chairman Nandan Nilekani had said the whistleblower complaint dated 20 September, as well as an undated complaint had been received by one of the board members on 30 September.
In the letter, dated 20 September, and signed by 'Ethical Employees', it was alleged that CEO Salil Parikh as well as Chief Financial Officer (CFO) Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards.
The complaints were placed before the audit committee on 10 October, and to the company's non-executive board members on 11 October, also the day when Infosys announced its second-quarter results.
US market regulator SEC has also initiated a probe on the matter, while Rosen Law Firm had said it was preparing a class-action suit to recover losses suffered by Infosys investors in the US.
Back home, Securities and Exchange Board of India (SEBI) had sought additional information from the company, while the National Financial Reporting Authority (NFRA) - part of the corporate affairs ministry - is also looking into alleged accounting lapses at the firm.
(With PTI inputs)
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Updated Date: Jan 10, 2020 17:42:52 IST