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Infosys techies accuse CEO, CFO of unethical practices

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Infosys

Bengaluru, Oct 21 A few anonymous employees of global software vendor Infosys have accused its Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy of unethical practices for many quarters.

“Parekh and Roy have been resorting to unethical practices for many quarters, as evident from their e-mails and voice recordings of their conversations,” said the complainants, who called themselves ‘ethical employees’ in a 2-page letter to the city-based IT behemoth’s board of directors on September 20, a copy of which has been accessed by IANS.

When there was no response from the board to their letter, an unnamed whistleblower on behalf of the unethical employees on October 3 wrote to the US-based office of the Whistleblower Protection Programme, alleging willful mis-statement material accounting irregularities for (the) last two quarters (April-September).

In response, the company in a statement on Monday said the whistleblower complaint had been placed before the audit committee as per the company’s practices.

“The complaint will be dealt with in accordance with the company’s whistleblowers policy,” the IT major said in a statement to IANS.

“In (the) last quarter (July-September), we were asked not to fully recognise costs like visa costs to improve profits. We have voice recordings of these conversations,” claimed the letter.

The employees also alleged that in the quarter under review of fiscal 2019-20, the management put immense pressure on them to not recognise reversals of $50 million of upfront payment in FDR contract, as it will slash profits for the quarter and negatively affect the company’s stock price. The letter said not recognising reversals of upfront payment in FDR contract was against fair accounting practice.

“Critical information is hidden from the auditors and board. In large contracts like Verizon, Intel and JVs (Joint Ventures) in Japan, ABN Amro acquisition, revenue recognition matters are forced which is not as per the accounting standards,” said the letter.

The employees said they have been instructed not to share large deal information with auditors.

The plaintiffs are confident of sharing the alleged emails and voice recordings with investigators when demanded.

“The CEO is bypassing reviews and approvals and instructing sales (teams) not to send mails for approvals. He directs them to make wrong assumptions to show margins,” recalled the unnamed Infoscions.

Alleging that the CFO (Roy) was hand in glove with the CEO (Parekh), the insiders said the former complied with unethical practices, restraining ethical employees from showing large deal issues to the board during presentations.

“The CEO told us, no one in the board understands these things, they are happy as long as the share price is up. Those two Madrasis (Sundaram and Prahlad) and Diva (Kiran Mazumdar-Shaw) make silly points, you just nod and ignore them,” charged the statement.

Biocon chairperson Shaw is an independent director on the Infosys board.

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Muthoot Finance to acquire IDBI Mutual Fund

After the transactions, both IDBI AMC and IDBI MF Trustee Company will become wholly owned subsidiary companies of Muthoot Finance.

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Muthoot Finance

New Delhi, Nov 22 : Foraying into the mutual fund space, Muthoot Finance Ltd said on Friday that it has entered into a definitive agreement to acquire IDBI Asset Management Ltd (IDBI AMC) and IDBI MF Trustee Company Ltd for Rs 215 crore.

Muthoot Finance said in a statement that the transaction is expected to be completed by the end of February 2020 subject to receipt of necessary regulatory approvals.

After the transactions, both IDBI AMC and IDBI MF Trustee Company will become wholly owned subsidiary companies of Muthoot Finance.

“The transaction will be completed pursuant to the share purchase agreement dated November 22, 2019 entered into by and between Muthoot Finance Limited, sellers and the target companies. Upon completion of the transaction, Muthoot Finance Ltd will purchase 100 per cent equity shares of IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd held by the sellers for a total consideration of Rs 215 crore,” the statement said.

The transaction is subject to receipt of approval from the regulators, including the Securities and Exchange Board of India (Sebi), it added.

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Business leadership award for Wipro czar Premji

They applauded Premji’s entrepreneurial journey, for transforming an edible oil producer into a global IT giant.

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Azim Premji Wipro

Bengaluru, Nov 22 : Software major Wipro’s Founder Chairman Azim Premji was conferred with the Madras Management Association – Amalgamations Business Leadership award 2019, by the Chennai-based professional association for building a business with integrity and ethics to make it a global IT powerhouse, said an official on Friday.

“Premji has put India on the world map as a software nation, being a nation builder and making yeomen contribution to business, industry and society,” said Amalgamations chairman A. Krishnamoorthy on the occasion in Chennai on Thursday.

In the ceremony, former ICICI Bank chairman N. Vaghul and Kirloskar Systems Chairman and Managing Director Vikram S. Kirloskar reminisced experiences and anecdotes on Premji.

They applauded Premji’s entrepreneurial journey, for transforming an edible oil producer into a global IT giant.

MMA – Amalgamations Business Leadership Award was instituted in 1969 by former Amalgamations Group chairman A. Sivasailam in memory of his father S. Anantharamakrishnan.

Amalgamations Group is an engineering conglomerate with interests in manufacturing, trading and distribution, plantations and services.

MMA is a professional association of management executives, established in 1956 to synthesise Indian ethos with international management thought among others.

The jury to zero in on the leadership award winner included industry veterans such as Ratan Tata, Arundathi Bhattacharya, M.M. Murugappan and Sunil Kant Munjal.

The event culminated with Premji speaking on the topic ‘Leading a young and digital India’.

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Airtel, Vodafone Idea move SC for waiving AGR penalties

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Mobile tower

New Delhi, Nov 22 : The country’s two top telecom operators – Vodafone Idea and Airtel – on Friday filed review petitions in the Supreme Court against its AGR verdict, just ahead of the 30-day time period expiring Saturday since the court’s order dealt a financial body blow to the already battered industry neck deep in debts and losses

Both Airtel and Vodafone Idea have filed for review petitions on waiver of interest and penalties of the AGR amount, sources said. The telcos went to the court again after the government told them that there is no proposal at present to waive interest and penalties on such dues.

As per Communication Minister Ravi Shankar Prasad’s replies in the Parliament, Bharti Airtel, Vodafone Idea and other telecom companies owe the government as much as Rs 1.47 lakh crore in past statutory dues. In replies to separate questions in the Lok Sabha, Prasad said telecom companies owe the government Rs 92,642 crore in unpaid licence fee, and another Rs 55,054 crore in outstanding spectrum usage charges.

In the case of Bharti Airtel, the liabilities added up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the SUC dues (not including the dues of Telenor and Tata Teleservices). In the case of Vodafone Idea, this number stands at a cumulative Rs 53,038 crore, including Rs 24,729 crore of SUC dues and Rs 28,309 crore in licence fee.

Both the petitions of Airtel and Vodafone India contest imposition of interest on outstanding dues and penalties as upheld by the Supreme Court, said sources. The deadline for payment of licence fee and spectrum charges dues on account of AGR definition as decided by the court over the last 14 years is January 24.

The Department of Telecommunications (DoT) has already issued demand notices to telcos asking them to do self-assessment, and submit the dues by around January 22, as directed by the Supreme Court in its late October judgement that favoured DoT in the 16-year-old dispute.

Under the impact of the dues, Vodafone Idea filed the highest-ever quarterly loss in the corporate history – Rs 50,992 crore in the second quarter of 2019/20. Airtel’s net losses were also phenomenal at Rs 22,830 crore in the same quarter. Both telcos have counted higher losses on the provisioning for AGR dues.

Bharti Airtel, for instance, has provisioned for Rs 28,450 crore in the September quarter which is over and above its earlier provisioning of about Rs 5,810 crore – taking the total provisioning (for AGR dues) to Rs 34,260 crore.

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