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Last Updated : Nov 06, 2019 06:37 PM IST | Source: Moneycontrol.com

Infosys climbs 4% after mgmt commentary on whistleblower complaints; key takeaways from concall

Even God can't change numbers of the company, chairman Nandan Nilekani says on accusations of cooking of books.


Shares of Infosys gained 3.7 percent intraday on November 6 after co-founder Nandan Nilekani said the company was committed to defining and following the highest corporate governance standards.

The stock has gained 11 percent in the last seven days. It was quoting at Rs 719.40, up Rs 23.60, or 3.39 percent, on the BSE at 1152 hours IST.

In a statement to exchanges on November 6, the Indian IT giant said it strongly condemned the mischievous insinuations made by anonymous sources against the co-founders and former colleagues, suggesting their involvement in the recent whistleblower allegations.

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"These speculation are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals. I have deep regard for the life-long contribution of all our cofounders. They have built this institution and have served this company selflessly and even today, remain committed to the long-term success of Infosys," Nilekani said.

Addressing a press conference, he said the company had taken whistleblower complaints very seriously and the audit committee brought on an external company for a probe and would provide a summary of investigation once it was completed.

"Even God can't change numbers of company," he said, adding he was personally satisfied that there was nothing wrong with Panaya acquisition.

The company was under no obligation to put out every investigative report and the company's deal flows continued to be as large as ever, Nilekani said.

"I am feeling insulted with accusations, but don't want to bias the investigation. We will respond to the class-action law suit in due course," Nilekani said.

Here are some takeaways from Infosys' conference call:

  • Digital disruption is fundamentally changing every industry

  • Navigating digital disruption is a priority for every enterprise

  • Enterprises that understand the change will emerge leaders in the new economy

  • The company's revenue growth averages 11.4 percent in constant currency over the last 4 quarters

  • Gives credit to CEO Salil Parekh for steering this growth

  • The board is focussed on strengthening corporate governance standards in line with our heritage

  • Infosys takes complaints of whistleblower very seriously

  • The audit committee brought on an external company to investigate the accusations

  • Will provide a summary of the investigation once it is complete

  • The company is committed to defining and following highest standards of corporate governance

  • Integrity and transparency are at the core of the company's business

  • The company's whistleblower policy has been in place for more than 15 years

  • The policy is grounded in the foundation of corporate governance

  • The audit committee serves as a custodian of the whistleblower process

  • If the investigation substantiates the complaint, the company will take necessary steps

  • Infosys’ response adhered to the company policy, past practices, all laws and regulations

  • Contrary to reports, the company acted responsibly in response to the complaint

  • Became aware of the complaint on September 30, which was placed before he audit company on October 10

  • October 3 letter did not include any of the reference emails or voice recordings

  • Retained Shardul Amarchand on October 21 just as he complaint was leaked to public

  • Prematurely disclosing complaints without due diligence contradicts corporate governance

  • Will not comment on the merits of the allegation

  • Every aspect of the allegations is being thoroughly investigated

  • Focus is on building momentum gained in the last three years

  • The board is fully supportive of and behind the management strategy

  • Our role is to bring this probe to an appropriate conclusion within the best possible time

  • Everything is being done to ensure that business does not suffer


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First Published on Nov 6, 2019 12:53 pm
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