- Charges on Parekh – accounting disturbances to increase company profit
- They also received a complaint against CFO Nilanjana Roy, Infosys said – they will investigate it
The stock of Infosys, the country’s second-largest IT company, fell 16% on Tuesday. This is the biggest single-day drop in the last 6 years. The stock plunged because of accusations of CEO Salil Parekh and CFO Nilanjana Roy for attempting to increase the company’s profit by an accounting glitch. An unknown group of employees, named ‘Ethical Employees’, wrote a letter to the company’s board on September 20, the information which came to light on Monday.
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The complainant also raised questions on Parekh’s visit to America
They accuse Parekh and Roy of trying to increase the company’s revenue and profit in the short term by adopting unethical methods. They also accuse him of manipulating the data and keeping the auditor in the dark. Infosys chairman Nandan Nilekani said on Tuesday that two complaints had been received. In a complaint, they have also raised questions about CEO Parekh’s visit to America and Mumbai. They will investigate the charges. They keep away the CEO and CFO from it.
The whistleblower said Parekh ignored the review report of big deals. Hid the information received from the auditor and company board. Changes in ‘investment policy and accounting’ without the approval of the board and auditors so that Infosys profits are seen more in the short term.
The whistleblower claims to have e-mail and voice recordings associated with the case. Also said- We hope that the board of Infosys will take appropriate investigation and take action in this matter. The complainants have also written to the Infosys board as well as the Securities and Exchange Commission of America. Infosys is also listed on the US stock market.
