Infosys has been on the radar this week after the IT major received whistleblower complaints claiming that the CEO Salil Parekh and CFO Nilanjan Roy indulged in unethical practices to boost revenues and profits. In response to the complaint, Nandan Nilekani in its statement said that the company's audit committee will conduct an independent investigation on the same.
"One Board member received two anonymous complaints on September 30, one dated September 20 titled “Disturbing unethical practices” and the second undated with the title, “Whistleblower Complaint.” Pursuant to our whistleblower practice, we have placed both Complaints before the Audit Committee on October 10 and before the non-executive members of the Board," noted Nilekani in his statement to the exchanges.
He further said that these complaints will be dealt with in an objective manner. Although the company has not been provided with any of the emails or voice recordings, it will be ensured that the generalized allegations are investigated to the fullest extent. Additionally, to ensure independence in these investigations the CEO and CFO have been recused from this matter.
The Audit Committee of the company began consultation with the independent internal auditors i.e. Ernst & Young, and has also retained the law firm of Shardul Amarchand Mangaldas to conduct an independent investigation, Nilekani added.
He also noted that Infosys' statutory auditors, Deloitte, India, have been "completely updated" on this matter post the October 11 Board meeting.
He concluded the statement by saying that there will be no further comment from him on this because the investigation is going on. The Board will commit to uphold the highest standard of corporate governance and protect the interests of all stakeholders.
Infosys stock, however, took a beating on Tuesday, trading lower by 16 percent.