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'Reveal bank names where firms park surplus funds'

January 14, 2009

To prevent Satyam-like fraud, country's second largest IT company Infosys has said that companies should be asked to mandatorily disclose names of the banks where surplus funds are parked by them.

"It is a very important disclosure (funds in banks). . . It should be mandated in this country, so that the investors can independently check with the bank andverify whether the money is actually available," said Infosys chief financial officer V Balakrishnan.

Pointing out that Infosys keeps bulk of its surplus funds with public sector banks, he said the company is giving information about money in banksin a schedule to the financial statement and investors can verify it from banks.

Infosys, which earns bulk of its revenues from overseas operations, has kept 67 per cent of its portfolio with state-owned banks.

The bellwether IT company has about Rs 2,000 crore (Rs 20 billion) with the SBI, he said, adding, "We have close to Rs 1,000 crore (Rs 10 billion) with the HDFC institutions and some Rs 300 crore (Rs 3 billion) with HDFC Bank."

The disclosure by Infosys comes in the backdrop of the Satyam fiasco. The founder chairman of the Hyderabad-based company BRamamlinga Raju admitted to fudging of accounts to show inflated cash and bank balances.

Text: PTI

Image:Infosys campus, chief financial officer V Balakrishnan (inset)

Also read: Where to invest in 2009

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