Whistleblowers accuse Infosys CEO Salil Parekh of fudging company's financials and inflating profits
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Rockville, Maryland/Bengaluru, Oct 22 (Canadian-Media): Mounting troubles for IT giant Infosys, a group of anonymous whistleblowers from the employees have alleged that that CEO Salil Parekh has been fudging the company’s financials and inflating profits in the recent quarters, media reports said. Infosys shares plunged by nearly 16 per cent on Tuesday after the accusations in the IT giant's worst single-day fall in over six years.
Image Credit: Infosys website
They also alleged that the CEO passes racist and misogynistic comments about different members of the board.
The company said it has started investigating into the matter.
“The whistleblower complaint has been placed before the Audit Committee as per the Company’s practice and will be dealt with in accordance with the Company’s whistleblowers policy,” Infosys said in a statement as reported by Deccan Herald.
According to an Economic Times report, Chairman Nandan Nilekani state in a statement to the stock exchanges that Infosys will ensure that the whistle-blower's complaint will be investigated to the 'fullest extent'.
In the letter to the board of the Infosys, the employees of Infosys have alleged that they were told not to report costs in recent quarters in a bid to inflate profits, reported the newspaper.
“We have high respect for all of you and bring to your notice unethical practices of CEO in the recent quarters… In the last quarter, we were asked not to fully recognise the costs like visa costs,” the letter in possession of Deccan Herald said.
The employees of the company, who wrote the letter, said they have audio recordings in connection with the matter.
The letter claimed that there have been irregularities in connection with the large deal signings.
“CEO is bypassing reviews and approvals and instructing sales not to send an email for approvals. He directs them to make wrong assumptions to show margins,” the letter said as reported by Deccan Herald.
The letter also alleges that the company’s CFO Nilanjan Roy has collaborated with Parekh in fudging the numbers, reported the newspaper.
Following the exit of former CEO Vishal Sikka, Parekh had taken charge of the company two years ago.