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Business Companies 24 Jan 2020 Not received any Seb ...

Not received any Sebi request for further audit in whistleblower case: Infosys

PTI
Published Jan 24, 2020, 12:14 pm IST
Updated Jan 24, 2020, 12:14 pm IST
The audit committee commissioned a through investigation with the assistance of an independent legal counsel.
Earlier this month, Infosys had said its audit committee had found no evidence of financial impropriety or executive misconduct.
 Earlier this month, Infosys had said its audit committee had found no evidence of financial impropriety or executive misconduct.

New Delhi: Infosys on Friday said it has not received any request from Sebi for conducting further investigation in the whistleblower case where top executives were accused of rigging the company's balance sheet.

Sources had said market watchdog Securities and Exchange Board of India (Sebi) is likely to call for a forensic audit of books of Infosys as it continues to probe whistleblower allegations of alleged financial irregularities at the company.

 

Earlier this month, Infosys had said its audit committee had found no evidence of financial impropriety or executive misconduct, virtually giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who had been accused by anonymous whistleblowers.

"The company has not received any request from Sebi to conduct further audits as reported by media on January 23, 2020," Infosys said in a regulatory filing on Friday.

It added that as disclosed previously, the company had received letters from regulatory authorities seeking information on the anonymous whistleblower investigation.

 

"The company continues to cooperate with regulatory authorities," Infosys noted. In one of the letters dated September 20 and signed by 'Ethical Employees', it was alleged that Infosys CEO Salil Parikh as well as its Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards. There was another undated complaint also.

In October, Infosys had informed stock exchanges of having received anonymous whistleblower complaints alleging certain unethical practices by the top management. It then started a probe into the matter and roped in external investigators. The audit committee commissioned a through investigation with the assistance of an independent legal counsel.

 

US market regulator SEC had also initiated a probe into the matter, while Rosen Law Firm had said it was preparing a class-action lawsuit to recover losses suffered by Infosys' investors in the US. Shares of Infosys were trading Rs 774.70 apiece on the BSE, down 1.26 per cent from the previous close.

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Location: India, Delhi, New Delhi




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