Narayana Murthy anguished as Infosys blames him for Sikka's resignation

News Network
August 18, 2017

Bengaluru, Aug 18: In the latest development in Vishal Sikka's resignation, Infosys company has directly blamed its promoter founder NR Narayana Murthy for the cause.

An official statement by the company said, "Murthy's continuous assault, including this latest letter, is the primary reason that the CEO, Vishal Sikka, has resigned despite strong board support."

The statement also added that it has come to the attention of the company's board that "a letter authored by Murthy, the Founder of Infosys has been released to various media houses attacking the integrity of the Board and Management of the Company alleging falling corporate governance standards in the Company."

The company's board takes great umbrage to the contents of the letter and has called Murthy's allegations as "factual inaccuracies, already-disproved rumours, and statements extracted out of context from his conversations with Board members."

The company also said that despite trying to engage with Murthy within the boundaries of law and without compromising its independence but these dialogues have not been successful.

The statement alleged, "Murthy has made repeatedly made inappropriate demands which are inconsistent with his stated desire for stronger governance."

The company’s board has also assured its shareholders, employees, customers and communities that “it is committed not to be distracted by this misguided campaign by Murthy and will continue to adhere to the highest international standards of corporate governance as it executes its strategy of profitable growth for the benefit of all Infosys stakeholders”.

The company also said that ‘Murthy’s campaign against the board and the company’ has hindered the company’s efforts to transform itself.

The Board has been engaged in a dialogue with the Founder to resolve his concerns over the course of a year, trying earnestly to find feasible solutions within the boundaries of law and without compromising its independence. These dialogues have unfortunately not been successful.

“The Board declines to speculate about Murthy’s motive for carrying out this campaign, including the latest letter. The Board believes it must set the record straight on the false and misleading charges made by Murthy because his actions and demands are damaging the Company and misrepresent its commitment to good corporate governance,” the company said in a statement.

Since Vishal Sikka was appointed as MD and CEO in August 2014, Infosys has delivered competitive financial performance through profitable revenue growth. Infosys has, under the leadership of Vishal, developed and articulated a strategy to transform itself to meet the rapidly changing needs of the marketplace in the 21st century. The Company was lagging significantly behind industry in growth rates when Vishal took over and now we are in top quartile from a performance perspective, the company said.

Infosys has grown in revenues, from $2.13 billion in Q1FY15 to $2.65 billion this past Q1. This was done while keeping a strong focus on margins, closing this past quarter at 24.1% operating margin, beating some competitors for the first time in many years, and improving against nearly everyone in the industry.

The revenue per employee of the Company has grown for six quarters in a row. Attrition has fallen, from 23.4% in Q1FY15 to 16.9% this past Q1, and high performer attrition is much lower than the overall Company attrition.

The Company grew its $100 million+ clients from 12 in Q1FY15 to 18 this past Q1 and increased its large deal wins from approximately $1.9 billion in FY15 to about $3.5 billion this past year. This has all been done while improving overall utilisation (excluding trainees), to a 15-year high this past quarter, and an all-time high including trainees, while improving our cash reserves, rewarding Infoscions with a new equity plan, and returning Rs 19,000 crore as dividend (including dividend distribution tax) over the last three years. This has all been done while improving standing with clients, to the highest ever in the 12 years with a jump of 22 points in CXO satisfaction.

Extremely Anguished

Meanwhile, Infosys Co-Founder N R Narayana Murthy on Friday said he was extremely anguished by the allegations, tone and tenor of the statements made by the company's board.

In a statement issued to the media post the resignation of Vishal Sikka as MD and CEO of Infosys, Murthy said, "I voluntarily left the Board in 2014 and am not seeking any money, position for my children or power. My concern primarily was the deteriorating standard of corporate governance which I have repeatedly brought to the notice of the Infosys Board," he said.

Murthy said in the statement that it was below his dignity to respond to such baseless insinuations. "However, several shareholders who have read the whistle-blower report have told me that it is hard to believe a report produced by a set of lawyers hired by a set of accused, giving a clean chit to the accused, and the accused refusing to disclose why they got a clean chit!. They say that this is not the way an impartial and objective investigation should be held."

Murthy said he will reply to these allegations in the right manner and in the right forum and at the appropriate time.
 

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News Network
May 3,2024

Mangaluru, May 3: The Mangaluru City Corporation will resort to water rationing from May 5 as the Thumbe vented dam, which supplies drinking water to the city, is facing a shortage in water storage.

Instead of daily supply, water will be supplied on alternate days, the Executive Engineer (Water Supply) at the corporation said in a release.

The release said that water will be supplied to Mangaluru City North on May 5. There will be no water supply to Mangaluru City North on May 6. Instead water will be supplied to Mangaluru City South on May 6. Likewise the supply on alternate days will continue.

The inflow in the Netravathi has stopped, the release said, requesting people to cooperate with the corporation and not waste water for washing vehicles and other purposes.

An engineer at the corporation said that water level at the dam stood at 4.27 m on Wednesday against the full storage level of 6 m. If water is supplied daily to the entire city (Mangaluru City North and Mangaluru City South) the existing storage will last only for 16 days, the engineer said. Hence the decision to supply water on alternate days has been taken to supply water till May-end.

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News Network
April 25,2024

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Bengaluru: The Congress and BJP will lock horns on the electoral battleground again, in less than a year, in Karnataka as the stage is set for voting in the first phase in 14 Lok Sabha seats on Friday.

It's going to be a straight fight between the ruling Congress and the BJP-JD(S) combine unlike the Assembly elections in May last year which witnessed a triangular contest among the three parties.

The state has a total of 28 Lok Sabha constituencies. The second phase of polling in the remaining 14 seats is on May seven.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for the first phase in most of the southern and coastal districts.

More than 2.88 crore voters are eligible to exercise their franchise in 30,602 polling stations where polling will take place between 7 am to 6 pm.

While the Congress is contesting in all 14 seats, BJP has fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance (NDA) in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections will be held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

In the 2019 Lok Sabha polls, Congress and JD(S), which were in alliance and ruling the state then, had secured just one seat each in these 14 segments. The BJP had won in 11 and ensured the victory of a party supported independent candidate in Mandya.

Having scored a thumping victory in the Assembly elections, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it had held power in the past. 'Its alliance partner JD(S) is fighting to remain politically relevant, after the Assembly poll drubbing,' a political analyst said.

The Old Mysore region is the Vokkaliga heartland and parts of it have been the traditional bastion of the JDS.  However, the current elections are a battle for survival for JDS.

According to Karnataka Chief Electoral Officer Manoj Kumar Meena, 1.4 lakh polling officials will be on duty for the first phase.

Besides them, 5,000 micro-observers, 50,000 civil police personnel, 65 companies of Central Parliamentary Force and State Armed Police force of other States will also be deployed for security.

All the 2,829 polling stations of Bangalore Rural parliamentary constituency will be webcast, Meena said.

'This is as per the request of our returning officers and observers; so we have given more than double the Central parliamentary force for Bangalore Rural constituency. Seven companies of Central paramilitary forces have been inducted at the constituency since April 22,' he told reporters on Wednesday.

In fact, out of the total 30,602 polling stations in the first phase, 19,701 will be webcast, and 1,370 covered via CCTVs, he said.

Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central, and Dakshina Kannada has the least number - nine.

JD(S) leader H D Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket, erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, also from the BJP, and Deputy Chief Minister D K Shivakumar's brother and MP D K Suresh of Congress from Bangalore Rural, are among the prominent candidates in the fray in the first phase.

Also in the fray are BJP MP Tejasvi Surya from Bangalore South against Minister Ramalinga Reddy's daughter Sowmya Reddy of Congress, Union Minister Shobha Karandlaje on BJP ticket from Bangalore North against former IIM Bangalore professor M V Rajeev Gowda of Congress.

The Congress' performance in the elections, especially in the first phase which covers almost all Vokkaliga-dominated districts, is being seen as a big test of sorts for its state unit chief Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term.

Stakes are also high for Chief Minister Siddaramaiah, as victory in particular in his home turf—Mysore and Chamarajanagar—is seen as key for strengthening hands, analysts say.

For the JD(S) and its state chief Kumaraswamy, the task is cut out -- to prove that the regional party is still a force to reckon with, particularly in the Vokkaliga dominated Old Mysuru or South Karnataka region.

Both Shivakumar and Kumaraswamy are Vokkaligas, and are engaged in a fierce turf war to consolidate their clout over the dominant community.

It is also seen as a kind of a 'litmus test' for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha elections.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection for the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes. The BJP and JD(S) seem to be leveraging the 'Modi factor' to the hilt.

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News Network
May 2,2024

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Hassan, May 2: JD(S) MLC Suraj Revanna on Thursday said that the scandal and charges of sexual abuse levelled against his brother and Hassan MP Prajwal Revanna was a "conspiracy to weaken their family politically".

He claimed that he has no information about the whereabouts of Prajwal Revanna, who has been served a notice by the Special Investigation Team over the alleged sex scandal involving him.

He termed the scandal and charges of sexual abuse against his brother and his father and MLA H D Revanna, a former Minister, as a conspiracy to weaken them politically, and expressed confidence about Prajwal's win in the Lok Sabha polls.

H D Revanna is the son of JD(S) patriarch and former PM H D Deve Gowda. Prajwal, grandson of Deve Gowda, was the BJP-JD(S) alliance's candidate from Hassan Lok Sabha segment, which went to the polls on April 26.

"The (sex scandal involving Prajwal Revanna) case has been handed over for investigation (to SIT), whatever has to be proved will get proved there. How can I react to it? I don't have information about Prajwal Revanna," Suraj Revanna told reporters here.

On an FIR being registered against his father H D Revanna too, he said, "Let them put a thousand more (FIRs), what has to be proved will ultimately get proved. People of our taluk and district know what Revanna is. I don't want to react."

"Anyone can do anything out of political malice. If you take Hassan politics, there is no competitor for Revanna. There is no one who has done politics like him. To weaken him, all these conspiracies are being hatched," he added.

Scores of explicit video clips allegedly involving Prajwal Revanna had started making the rounds in Hassan recently. The state government has constituted an SIT to probe the alleged sex scandal involving the MP.

The SIT on Tuesday issued notice to Prajwal Revanna and his father Revanna, who have been booked for alleged sexual harassment at the Holenarsipura police station in Hassan district on April 28, based on a complaint by a woman who worked in their house, directing them to appear for investigation.

Prajwal who reportedly left for Germany on April 27, the very next day of the polls, on Wednesday sought seven days' time to appear before the SIT.

Regarding reports of his meeting with Deputy Chief Minister D K Shivakumar, Suraj said they were mere speculations and that he had met the former in January, and after that no such meeting had taken place.

Asked whether JD(S) leaders and workers seem to be in some sort of confusion following the developments around the alleged sex scandal, the MLC said there is no confusion. "Even yesterday there were meetings held to take stock of the situation after the polls. Hundred percent Prajwal Revanna will win."

"Let anyone charge anything, let's wait and see what comes out of the SIT probe," he added.

Victims under pressure?

Meanwhile, victims in the videos of the alleged sex scandal involving the MP, are reportedly refusing to come before the SIT which is probing the case.

Some of the victims are said to have told the SIT officials that they don't want to talk to them about the case, while a few are not reachable, sources said.

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