1 min read.Updated: 10 Jan 2020, 04:05 PM IST Written By Nikhil Agarwal
Infosys said its audit committee found no evidence of financial impropriety or executive misconduct
Shares of Infosys rose by nearly 2% ahead of its December quarter earnings announcement due later in the day
NEW DELHI :
IT major Infosys today said that its audit committee found no evidence of financial impropriety or executive misconduct. Infosys’ audit committee chairperson D. Sundaram said they 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," he said.
Infosys chairman Nandan Nilekani said he is very pleased that after a rigorous investigation, the audit committee 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," Nilekani said.
A letter, claimed to have been written by some employees of the company in October, had said CEO Salil Parekh asked them and others to bypass approvals for large deals fearing a negative impact on shares from reduced profit.
The investigation, conducted with the assistance of independent legal counsel Shardul Amarchand Mangaldas & Co. and PricewaterhouseCoopers, concluded that the allegations regarding treasury policy are unsubstantiated as Infosys strictly complied with its treasury policy, without any interference or pressure from either the CEO or CFO.
"Infosys is a model of strong corporate governance, and the company’s handling of these allegations from start to finish has been consistent with these high standards of governance," Nilekani said.
Allegations regarding visa costs and large deal approvals, have also been found to be unsubstantiated in the investigation report.