Infosys’ Audit Committee Finds No Wrongdoings In Panaya Deal

Infosys' Audit Committee Finds No Wrongdoings In Panaya Deal

New Delhi: IT major Infosys today said its internal audit committee has found no evidence supporting a whistleblower’s allegations of improprieties related to the Panaya acquisition. In February, Infosys had said it will investigate claims levelled by the whistleblower in an anonymous mail to market regulator Sebi, alleging wrongdoings by the company when in buying Israeli automation technology firm Panaya.

While strongly refuting the allegations, the Bengaluru-based firm had also hired Gibson Dunn and Control Risks (GDCR) to conduct an internal investigation into the charges.

“Gibson Dunn and Control Risks have now completed their detailed and extensive Independent Investigation and as they have described in the attached document, they did not find any evidence whatsoever of wrongdoing,” Infosys said in a statement.

It added that the company has fully cooperated with all requests for information from Sebi regarding the anonymous complaints.

In February 2015, Infosys had announced buying the Israeli automation technology company for $200 million or Rs. 1,250 crore in cash.
GDCR, in its report, said it had found no evidence to support allegations regarding wrongdoing by the company or its directors and employees.

It added that there were no conflicts of interest or kickbacks and the approvals required for the acquisitions were obtained with regard to the Panaya acquisition.

“…thorough due diligence was conducted, the valuations of the target companies done by an outside financial advisor were reasonable, and the purchase prices were within the range of values determined by that advisor,” it said.

Also, it said it had found no evidence that CEO Vishal Sikka had received excessive variable compensation or incurred unreasonable expenses for security, travel and the Palo Alto office.