Infosys employees made allegations against their CEO & CFO- Salil Parekh, Nilanjan Roy, in an anonymous letter sent by whistleblower employees to the Board, accusing them of unethical practices. The stock fell over 14% after the market opened today reacting on the news.
The allegations are:
Many of the large deals have negligible margins, and the company bypassed appropriate review and approval processes on these deals
Information related to these deals were suppressed from auditors and board members.
Revenue and cost recognition related to some of the large deals have not adhered to accounting standards to help improve near-term profitability.
CEO & CFO put pressure on treasury to boost other income by taking higher risks to help improve near-term profitability.
What does Infosys say:
The IT major has acknowledged the matter with an Infosys audit committee looking into whistleblower complaints against top executives. It says the matter has been placed before the audit committee of the board chaired by D Sundaram. The panel also comprises independent members Roopa Kudva and Punita Kumar Sinha.
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