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Infosys climbs after clarification

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Infosys said it strongly condemns the mischievous insinuations made by anonymous sources against the co-founders and former colleagues, suggesting their involvement in the recent whistleblower allegations.

Shares of Infosys jumped 2.97% to Rs 716.50. The stock traded in a range of Rs 721.50 to Rs 691.70 so far.

According to Nandan Nilekani, chairman, Infosys, "These speculations are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals. I have deep regard for the life-long contribution of all our cofounders. They have built this institution and have served this company selflessly and even today, remain committed to the long-term success of Infosys."

As previously stated, the audit committee has appointed an external law firm to conduct an independent investigation into the allegations made in the complaints. The firm will share the outcome of the investigation at the relevant time with all stakeholders, the company added in its statement issued during trading hours today, 6 November 2019.

Last month an anonymous whistleblowers accused the chief executive officer (CEO) Salil Parekh and chief financial officer (CFO) Nilanjan Roy of "unethical practices". The National Stock Exchange (NSE) sought clarification from the company on 22 October 2019 with reference to whistleblower complaints.

Infosys in its statement to the bourses on 2 November 2019 said that the anonymous complaints make certain allegations. There is no supporting evidence to substantiate the allegations. Two of the anonymous complaints were received on 30 September 2019. On 16 October 2019, the company was made aware of a letter that refers to 30 September 2019 complaint purportedly written to the office of whistleblower protection program, Washington D.C.

The anonymous complaints were placed before the audit committee and the non-executive members of the board, in accordance with the whistleblower practice of the company.

Further, given the circumstances at this stage, where there is complete absence of prima facie evidence and the anonymous complaints are still under investigation, the company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints. In light of the above, no disclosure is required to be made.

On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on a 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 06 2019. 11:55 IST
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