Don't reappoint Infosys auditor, consultancy firm tells shareholders
09 June 2012
Ahead of the annual general meeting of Infosys today, Institutional Investors Advisory Services (IIAS), an Indian corporate consultancy firm, has advised investors to vote against a resolution seeking the reappointment of its firm's statutory auditor.
The information technology company, which has slipped considerably from its bellwether position over the last couple of years, is seeking shareholders' approval for the reappointment of BSR & Co as statutory auditor.
While IIAS suggests opposing this particular resolution, it is in favour of all the other resolutions up for shareholders' approval, including the adoption of accounts, appointment of directors and on compensation for executives.
In a report dated 5 June, IIAS said the continuation of the auditor for six years and the same partner signing the report for more than three years were events carrying ''moderate risk''.
''Further, as per annual reports, audit partner (Natrajh Ramakrishna) has been the signing partner since FY2007,'' IIAS says in a report carried by Business Standard.
''IIAS recommends that the auditor be rotated every six years and the signing partner every three years. Given that BSR & Co has been the statutory auditor for 14 years and the audit partner has been the signing partner for six years, IIAS recommends voting against the resolution,'' the consultancy firm said.