Business

We Haven’t Received Prima Facie Evidence Until Date: Infosys

Infosys Says No Evidence To Support Allegations In Whistleblower

Bengaluru, NFAPost: Infosys today said it has not received any supporting evidence along with anonymous complaints to substantiate allegations against its top executives.

“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,” the company said in a statement to stock exchanges.

Allegations

A group of anonymous whistleblowers had sent a letter to Infosys board and US Securities and Exchange Commission (SEC) by a group of employees, calling themselves ‘ethical employees.’

In the letter dated September 20, the group alleged that CEO Salil Parekh was bypassing reviews and approvals for large deals.

The letter had said that Parekh allegedly referred to independent directors D Sundaram and DN Prahlad as ‘Madrasis’ and also referred to Biocon chairperson Kiran Mazumdar-Shaw, a lead independent director on the 10-member Infosys board, as a ‘diva’.

Further, given the circumstances at this stage, where there is complete absence of prima-facie evidence and the anonymous complaints are still under investigation, Infosys said it is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints.

“In light of the above, no disclosure under Regulation 30 of the LODR Regulations is required to be made,” it added.

As requested, it will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded, Infosys said.

Regulatory compliance

The company will continue making timely disclosures as required under Regulation 30 of LODR Regulations, it added.

In any event, Infosys further said the audit committee has retained the services of the law firm, Shardul Amarchand Mangaldas & Co, to investigate the matter.

Moreover, even before the appointment of the independent investigator the audit committee began consultations with independent internal auditors Ernst & Young, it said.

Internal auditors

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

As stated above, unless an event or an information is deemed ‘material’ under the LODR Regulations, or determined as ‘material’ by the company, it has no obligation to disclose the same under Regulation 30 of the LODR Regulations, it said.

The anonymous complaints do not fall within the purview of deemed material events under the LODR Regulations, it said.

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