Infosys staff documents under U.S. scrutiny

MUMBAI Sun Apr 22, 2012 6:47pm IST

An employees walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. REUTERS/Vivek Prakash/Files

An employees walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   
A statue of the Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

MUMBAI (Reuters) - Infosys, India's No. 2 software services exporter, is under scrutiny from the U.S. Department of Homeland Security for likely errors in employer eligibility documents of its staff working in the United States, the company said in a statement.

The Department of Homeland Security (DHS) is reviewing the employer eligibility verifications on Form I-9, said Nasdaq-listed Infosys INFY.O in an April 18 filing on the U.S. Securities and Exchange Commission (SEC).

"In connection with this review, we have been advised that the DHS has found errors in a significant percentage of our Forms I-9 that the Department has reviewed," Infosys said in the SEC filing.

If the DHS concludes that the Forms I-9, used to verify the authorisation of employees to work in the U.S., contains errors it is likely to impose fines and penalties, the company said.

In January, Infosys said it was being investigated in Texas over its sponsorship and use of short-term U.S. business visas.

Jack Palmer, a company employee, has reportedly accused Infosys of misusing the B1 visas to send employees from India to the U.S., its largest export market. Infosys has denied the reports.

Infosys said it could not estimate any loss it might incur from "unfavourable outcomes" related to the ongoing investigation and review.

"In the event that any government undertakes any actions which limit any visa program that we utilize, or imposes sanctions, fines or penalties on us or our employees, this could materially and adversely affect our business and results of operations," the company added.

Infosys, which reported its fiscal fourth quarter earnings on April 13, disappointed investors with weaker-than-expected revenue growth outlook for the fiscal year 2013 due to an uncertain global economy.

The news sent its shares plunging more than 12 percent in their biggest fall in nearly three years and wiped off more than $3 billion from the company's market value.

(Reporting by Aditi Shah. Editing by Jane Merriman)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage