Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 24th October 2019, 10:14   #1
BHPian
 
AMG Power's Avatar
 
Join Date: Mar 2017
Location: BLR
Posts: 576
Thanked: 2,353 Times
Default

Infosys starts probe into unethical practices by CEO:

https://www.google.co.in/amp/s/www.i...739-2019-10-22

Wheels within wheels:

SEBI begins probe into insider trading BEFORE whistleblower complaint:

https://www.google.co.in/amp/s/www.l...856287683.html

Full text of whistleblower complaint to the Board of Directors and another one to US SEC:

https://www.google.co.in/amp/s/www.c...569181.htm/amp

Last edited by Samurai : 24th October 2019 at 10:27.
AMG Power is offline   Reply With Quote
Old 24th October 2019, 10:17   #2
Distinguished - BHPian
 
condor's Avatar
 
Join Date: Jun 2006
Location: Speed-brkr City
Posts: 12,496
Thanked: 7,385 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

And in USA too: a class action law-suit

https://economictimes.indiatimes.com...w/71731813.cms
condor is online now   Reply With Quote
Old 24th October 2019, 10:37   #3
Senior - BHPian
 
Join Date: Apr 2008
Location: Dombivli
Posts: 2,948
Thanked: 1,869 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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.
honeybee is offline   Reply With Quote
Old 24th October 2019, 10:48   #4
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: Banglore-Udupi
Posts: 23,928
Thanked: 21,637 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

Quote:
Originally Posted by honeybee View Post
Wonder why there is no reaction from Mr. NRN.
I think he has been advised (correctly) that his silence is more appropriate at this point.
Samurai is offline   Reply With Quote
Old 24th October 2019, 10:53   #5
BHPian
 
Join Date: May 2013
Location: Mumbai
Posts: 869
Thanked: 1,729 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

Does anyone have detailed info on the accusations and the nature of complaints?

Most media articles are very vague.
2000rpm is offline   Reply With Quote
Old 24th October 2019, 14:04   #6
Senior - BHPian
 
alpha1's Avatar
 
Join Date: Apr 2007
Location: P00NA
Posts: 1,866
Thanked: 1,444 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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.
alpha1 is offline   Reply With Quote
Old 24th October 2019, 14:23   #7
BHPian
 
Join Date: Apr 2019
Location: Bangalore
Posts: 144
Thanked: 373 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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
ValarMorghulis is offline   Reply With Quote
Old 24th October 2019, 14:30   #8
BHPian
 
Join Date: May 2013
Location: Mumbai
Posts: 869
Thanked: 1,729 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

Quote:
Originally Posted by ValarMorghulis View Post
Good time to get some Infy shares while they are low
Until the US law suit is done with, no end to how low can it go!
2000rpm is offline   Reply With Quote
Old 24th October 2019, 14:45   #9
BANNED
 
Join Date: Nov 2006
Location: Bengaluru
Posts: 4,067
Thanked: 1,338 Times
Infractions: 0/1 (4)
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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 !

Last edited by srishiva : 24th October 2019 at 14:48.
srishiva is offline   Reply With Quote
Old 24th October 2019, 15:02   #10
BHPian
 
Join Date: Dec 2005
Location: bang
Posts: 291
Thanked: 452 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

Quote:
Originally Posted by ValarMorghulis View Post
Good time to get some Infy shares while they are low
Quote:
Originally Posted by 2000rpm View Post
Until the US law suit is done with, no end to how low can it go!
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 .

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.
srini1785 is online now   Reply With Quote
Old 24th October 2019, 15:04   #11
BHPian
 
Join Date: Mar 2013
Location: Bangalore
Posts: 102
Thanked: 555 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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.

Last edited by Malyaj : 24th October 2019 at 15:17.
Malyaj is offline   Reply With Quote
Old 24th October 2019, 15:12   #12
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: Banglore-Udupi
Posts: 23,928
Thanked: 21,637 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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.
Samurai is offline   Reply With Quote
Old 24th October 2019, 15:27   #13
BHPian
 
Join Date: Jun 2019
Location: Bengaluru
Posts: 191
Thanked: 267 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

Quote:
Originally Posted by Samurai View Post
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.
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.
SideView is online now   Reply With Quote
Old 24th October 2019, 17:32   #14
BHPian
 
civic-sense's Avatar
 
Join Date: Dec 2009
Location: Bangalore
Posts: 872
Thanked: 1,152 Times
Default

Quote:
Originally Posted by Malyaj View Post

The other tid bits about CEO's choice of words ('madrasis', 'diva') are probably true as the whistle blowers claim to have recordings.
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'.
civic-sense is offline   Reply With Quote
Old 24th October 2019, 17:43   #15
Distinguished - BHPian
 
Join Date: Aug 2014
Location: Delhi-NCR
Posts: 2,199
Thanked: 16,537 Times
Default Re: Dejav˙ : Infosys starts probe into unethical practices by CEO

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.

Last edited by V.Narayan : 24th October 2019 at 18:03.
V.Narayan is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Promoter-driven companies unable to cede control to professional managers (e.g. Infosys)? avdhesh15 Shifting gears 131 3rd December 2017 11:04
Is Infosys really moving out of Bangalore? shankar.balan Shifting gears 72 28th January 2011 20:26
WANTED: Oxygen sensor (Lambda probe) for OHC VTEC gbpscars Modifications & Accessories 5 7th July 2009 14:30
KSRTC Volvo accident (Infosys charter) at Nipani TKMCE Commercial Vehicles 34 25th May 2009 16:30


All times are GMT +5.5. The time now is 20:32.

Copyright ę2000 - 2020, Team-BHP.com
Proudly powered by E2E Networks