Team-BHP
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Wonder why there is no reaction from Mr. NRN. In case of the former CEO Sikka, he was quite vocal about what he saw as governance lapses. But surprisingly this time there is not a word.
Quote:
Originally Posted by honeybee
(Post 4680367)
Wonder why there is no reaction from Mr. NRN.
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I think he has been advised (correctly) that his silence is more appropriate at this point.
Does anyone have detailed info on the accusations and the nature of complaints?
Most media articles are very vague.
Wow this is ultimate gaming of the system.
First, utilize the firm's books for personal expenses
Second, polish the financial results of the the firm to pocket the fat quarterly bonus.
Third, utilize the insider information about the whistle blown, to spin profits in the derivatives market!
Heck, I shouldn't be surprised - it is this knack that keeps them kicking (at the top) in the corporate dog-eat-dog world.
Note: it is not confirmed that the second and third points are done by the same person.
Well lower to nil margins are pretty common in the industry as well as aggressive pricing. What is unethical and illegal is that the board and shareholders weren't informed.
Complete as many contracts as you wish with low margins, as long as you inform the public.
Good time to get some Infy shares while they are low
Quote:
Originally Posted by ValarMorghulis
(Post 4680572)
Good time to get some Infy shares while they are low
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Until the US law suit is done with, no end to how low can it go!
Not sure what is the CEOs prior background :) How can one not show your expenses ?
Only hope is for the investigation is to complete quickly and decide on the merits of the complaint. Will add more colour if it takes long. The US law suit will be more about lost stock value than the irregularities I guess. They would be OK with the irregularity if it didnt come out in open !
Quote:
Originally Posted by ValarMorghulis
(Post 4680572)
Good time to get some Infy shares while they are low
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Quote:
Originally Posted by 2000rpm
(Post 4680580)
Until the US law suit is done with, no end to how low can it go!
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Me thinks same too. Its a falling knife. I dont know if these actions are as big as satyam scandal. However, faulting a CEO because his company funds his travel, would not constitute a great violation. Tell me one other corporate honcho who travels in his own money. High time infy gets a corp jet and settle this non sense once and for ever.
He is going to get a ear full from Mrs. K M Shah however :D.
One thing i did notice is that the complaint itself is badly written. I would suggest that the next whistle blower gets his/her complaint proof checked.
To me what is interesting is the 'unusual' buildup in put options expiring in September. Clearly there were some banking on this going public much earlier and benefiting from the stock price plunge. The stock did crash, but only early this week after the letter went public and it is not clear how many open positions existed that time.
Senior executives trying to push some personal expenses to company is 'tolerated' as long as the going is good. However, if the other more serious allegations are true, the smaller bits will add spice to the concoction and help create a complete case.
The other tid bits about CEO's choice of words ('madrasis', 'diva') are probably true as the whistle blowers claim to have recordings.
One thing for sure... In all future Infosys meetings involving accountants, no mobiles and electronics will be allowed inside. Expect a metal detector at the door. Hmm, this might happen in all major companies.
Quote:
Originally Posted by Samurai
(Post 4680611)
One thing for sure... In all future Infosys meetings involving accountants, no mobiles and electronics will be allowed inside. Expect a metal detector at the door. Hmm, this might happen in all major companies.
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Maybe Sebi should make it mandatory to have all high level meetings of public companies be recorded so such malpractices are caught.
Investing in shares is a real gamble one never knows what goes behind closed doors.
Quote:
Originally Posted by Malyaj
(Post 4680607)
The other tid bits about CEO's choice of words ('madrasis', 'diva') are probably true as the whistle blowers claim to have recordings.
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He deserves to be kicked out without any delay. He can't use a racial slur on his co-workers and expect to keep his job. Afterall he is the CEO of a company built by a bunch of 'madrasis'.
I hold no candle for Infosys but I would hesitate to jump to any conclusion till we have heard the other side of the story which I suppose will come out only after the investigation. On one hand where there is smoke there is fire but last time on the Panaya acquisition the investigation found no wrong doing despite Shri NRN's determination to prove otherwise. Whenever an accusation comes in anonymously, my experience has been, the safety of anonymity emboldens the accuser. Also on one hand to talk of gross accounting white wash and then bring in the 'madrasis' angle and toss in an allegation of personal expenses all sounds like the accuser is determined to fire all salvoes hoping something will stick. The travel to Bombay must be a part of his contract. It is fairly standard. Also on revenue recognition and determination of expense recognition there can legitimately be two shades of grey and both correct - size, materiality, context all count So unless each allegation is checked one cannot conclude. Before I draw a conclusion or say Nilanjan and Salil are guilty let's first hear the full story.
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