Investigation into the complaints is ongoing and till now no instance of financial impropriety has been found, chief executive and managing director Angan Guha said.
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Guha, in an interaction with ET, said: “Since the investigation is on, I can’t talk too much about it. Once the investigation completes, then we can give you an update. But I can only tell you that we have not found any financial impropriety as of now.”
The two complaints came one after the other, but they were pretty much the same and against the same set of people, Guha said. The company received the complaints in September 2023 and February 2024, alleging improper conduct of certain employees. The investigation has been ongoing for at least 60 days.
Speaking about diversifying the company’s revenue, Guha said it has appointed a new CEO for non-US markets. One of the mandates that has been given to him is bringing at least 25% of the revenue from outside the US. This would happen over the next three years, he said.
“Today only 15 or 13% of our revenue is coming from outside the United States,” Guha said.
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Invacare, one of Birlasoft’s largest clients, had filed for bankruptcy last year. When asked about clients’ solvency amid market uncertainty, Guha said: “That is something that keeps me awake at night. But right now, all my clients are comfortable. There are no issues with any of them as of today, but you never know. I mean, these things you never know because we work with a lot of clients. We work with almost 259 clients, out of which you know 40 clients give us almost 90% of our business.”He added: “But with the uncertainty in the market, with everything that is happening, we don’t know what will happen in future. But for now I can tell you, all my clients are quite healthy.”
Birlasoft is also working with an external agency to keep track of clients’ performance, their financial stability and other parameters. This is for risk mitigation and to ensure that an issue like Invacare can be known in advance and the stakeholders don’t get impacted, he said.
