Wipro makes changes to key positions in Controllership Team after embezzlement of funds

Bangalore - Wipro Limited (NYSE:WIT) announced that it has completed its internal investigation relating to the embezzlement of funds by a Wipro employee that came to light in December 2009. The employee involved was a junior member of the company's controllership team and the acts of embezzlement were first discovered by other employees at the company. Wipro responded promptly by appointing an internal investigation team to investigate the embezzlement under the direct supervision of the company's audit committee.

The company's internal investigation concluded that, while the matter should be taken seriously, the amount embezzled were not material from a financial reporting perspective given the size of the company and the scale of its operations. The internal investigation revealed that the embezzlement involved only one employee who transferred from company's bank accounts to his personal account in several transactions over a period of 3 years from November 2006. The employee who engaged in the embezzlement unfortunately chose to end his life a few weeks after his actions came to light.

Wipro reiterates its commitment to the highest standards of integrity and has put into place additional initiatives to help ensure Wipro's financial controls and financial reporting remain unassailable by anyone within and outside the company. As part of these initiatives, Wipro has also made changes to certain key positions in the controllership team even though they were not involved in the embezzlement. However, their association and actions with the employee who embezzled had created a conflict of interest for them. Wipro continues to review and enhance its internal controls and procedures with the involvement of both internal personnel and external advisors. Wipro has zero-tolerance for any non-compliance with its policies and processes. Wipro takes pride in upholding the highest levels of integrity and corporate governance in its operations.

The Wipro stock closed the day at Rs.676.70, up by Rs.6.55 or 0.98%. The stock hit an intraday high of Rs.687 and low of Rs.664.80.

The total traded quantity was 92561 compared to 2 week average of 93109.

Source : Equity Bulls

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