Infosys, the Indian software giant is looking into the issue of alleged irregular accounting by some senior executives with a view to enjoying an increased profit. The investigation was launched after a group of whistleblowers lodged complaints against the CEO and the CFO of the company, reporting about irregular accounting in a statement.
As the fallout of these sudden actions that are being taken against the company, shares of Infosys have gone through a sharp nosedive by 16%. The plunge was further fueled when the letter that had all the accusations mentioned got accidentally leaked in the local media on Monday.
Infosys is considered one of the biggest success stories of modern-day India. Over the years, the company has turnedout to be the second-most important and one of the largest IT service providers, operating from India.
Infosys has repeatedly made it clear that the senior executives of the company neverreceivedany correspondenceor any recorded voice clips, which has been mentioned in the correspondence. The letter in question has the board company as its recipient. However, the media reports state that the letter has also been sent to the United States Securities and Exchange Commission (SEC). This is because the shares of Infosys trade in the NYSE.
Infosys, which was founded in the year 1981, is often considered as one of the most iconic symbols of modern-day Digital India. Over the decades, it has grown up to be one of the most glamorous poster boys of the technology boom that India has witnessed over recent years. When it was launched, it has just seven engineers along with a mere $250 or £200 as its capital. Since then, it has gradually swollen into a whopping $11.8 billion strong enterprise with a significant presence all over the world and home to thousands of highly talented software professionals and engineers working in various fields of Information Technology.