Infosys Probing Charges After Some Employees Accuse Of Unethical Practices To Boost Numbers
The anonymous group calling itself 'ethical employees' alleged in a letter to the board of Infosys and the US Securities and Exchange Commission (SEC) that the company is taking unethical steps to boost short-term revenue and profits.
Software major Infosys is examining charges made by some unnamed employees accused its Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy of unethical practices for many quarters.
"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," it said in a statement. The anonymous group calling itself 'ethical employees' alleged in a letter to the board of Infosys and the US Securities and Exchange Commission (SEC) that the company is taking unethical steps to boost short-term revenue and profits. The complainants said they have emails and voice recordings to substantiate the claims.
The letter added that Parekh and Roy were pressuring the finance team to show more profits in their treasury management by taking risks and making changes to policies.
"He (Parekh) directs them to make wrong assumptions to show margins. Several billion-dollar deals of the last few quarters have nil margin. Please ask auditors to check deal proposals, margins, undisclosed upfront commitments made and revenue recognition," the letter said.
"In large contracts like Verizon, Intel, joint ventures in Japan, ABN AMRO acquisition, revenue recognition matters are forced, which are not as per accounting standards," the letter stated.
Ironically, Infosys was last month awarded number three ranking on Forbes list of The World's Best Regarded Companies for 2019 which track each of top 250 companies on parameters of trustworthiness, honesty, social conduct, fairness to its employees and the performance of its products and services.