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Infosys shares rally over 4% on update over whistleblower complaint

ETMarkets.com|
Updated: Nov 04, 2019, 03.44 PM IST
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BCCL
Infosys
Infosys also added that the independent internal auditors were given a mandate to review certain processes on the basis of the allegation in the anonymous complaints.

Highlights

  • The scrip was trading 4.10 per cent up at Rs 716.20 at around 11.15 am (IST)
  • Infosys says it found no prima facie evidence on the whistleblower complaints
  • Independent internal auditors were given a mandate to review, Infy added
  • Infosys will update stock exchanges on the basis of key findings of the investigation
Shares of Infosys advanced over 4 per cent after the IT major informed bourses that it has not received any evidence to corroborate allegations by whistleblower.

“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. In any event, the audit committee retained the services of the law firm, Shardul Amarchand Mangaldas & Co. to investigate the matter,” Infosys said in a clarification.

Infosys also added that the independent internal auditors were given a mandate to review certain processes on the basis of the allegation in the anonymous complaints.

It also said that the company will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded.

Earlier leading stock exchange BSE in October asked Infosys to explain why it did not make a disclosure about a whistleblower complaint which alleged that the company’s top executives were following “unethical practices” to shore up profits through irregular accounting ways.

A September 20 letter, signed by “Ethical Employees”, had alleged that CEO Salil Parikh as well as Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards.

The shares of the company closed at 3.05 per cent higher at Rs 709 on BSE.

Also Read

Mohandas Pai on dealing with whistleblower complaints

MCA seeks details from Infosys on whistleblower complaint

USSEC begins probe on the whistleblower complaints against Infosys

BSE seeks clarification why it was not informed of whistleblower complaint

Whistleblower complaints are investigated independently: Nandan Nilekani

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