Infosys accused of ‘unethical’ practices to boost numbers: Report

A group of Infosys employees have anonymously written to the US Securities and Exchange Commission (SEC), alleging that the IT major took unethical measures to boost profits and short-term revenue.

The group, who calls themselves 'ethical employees', have also sent the letter to the Infosys board, according to a report by The Economic Times.

Moneycontrol could not independently verify the story.

Infosys is examining the allegations, the report said.

“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,” the company said in a statement to The Economic Times.

The employees accused chief executive Salil Parekh of bypassing reviews and approvals of large deals, the report said.

“He (Parekh) directs them to make wrong assumptions to show margins. CFO is compliant and he prevents us from showing in board presentations large deal issues…several billion-dollar deals of last few quarters have nil margin,” the letter said, as seen by the publication.

“Please ask auditors to check deal proposals, margins, undisclosed upfront commitments made and revenue recognition,” the employees added in the letter.

Parekh and CFO Nilanjan Roy allegedly pressurised the finance team to show higher profits in their treasury management "by taking risks and making changes to policies", according to the letter.

The letter to the Infosys board is dated September 20 while the letter to the US market regulator was sent on September 27.