Infosys whistleblowers are accusing the CEO and CFO of misleading the board as well as shareholders by withholding some figures in order to make the company’s performance appear better than it is, according to a report.
In two letters published by the Economic Times of India, the whistleblowers said last quarter they were told not to report the cost of visas to improve the appearance of profits. This quarter, they said, they were told not to recognize reversals of $50 million in upfront payment in an “FDR contract.”
“As this will reduce profits for the quarter and negative (sic) for stock price, they are putting pressure not to take the charge,” the letter provided to the Economic Times reads. “Critical information is hidden from the auditors and Board. In large contracts like Verizon, Intel, and JVs in Japan, ABN Amro acquisition, revenue recognition matters are forced which are not as per accounting standards.”Read more here.