JOIN USInfy told auditors of whistleblower's letter on Oct 11
Statutory and internal auditors of the IT major Infosys were not informed about the whistleblowers' letter that the company was in possession of until the second quarter results were finalised, the sources in the know told DH.
The sources in the loop confirmed to DH that it was only after the board meeting of October 11, that the company had disclosed the letter to the auditors of the company.
"The auditors of the company were not presented with these facts as they evaluated the opinion on the company's financials," a source told DH.
When contacted by DH, the company declined to comment.
At present Deloitte is the statutory auditor of the company, while Ernst and Young are the internal auditors of the company. When contacted, both Deloitte and E&Y declined to comment on the issue.
In fact, even as the company, which has been seen as the 'poster boy' of corporate governance in India, informed its auditors about the grave allegations faced by the company's CEO Salil Parekh and CFO Nilanjan Roy, the company didn't disclose it to any of its stakeholders.
In a letter dated September 20, which was first published by the DH, a whistleblower group in the company had alleged financial impropriety, racism, and misogyny by Parekh and Roy.
It was only after the letter was leaked to the select media houses, that the company said that they are investigating whether there has been fudging in the revenues.
Also read — What Infosys’ latest trouble could mean for it
The investors of the company, many of whom spoke off the record to DH, have been concerned about the fact that the company had not informed them about the letter.
The institutional investors, who have been asking some tough questions to the company, have been worried over the fact that the auditors of the company have signed the financials of the company despite the grave allegation.
Recently auditing firms in India have been witnessing the anger of the investors after fiasco at the shadow banking giant IL&FS.