Court orders troubled Zenith to disclose assets by 11 May

Zenith Infotech's days seems to numbered going by the increasing intensity of its legal and financial problems.

Earlier last week (3 May), the Mumbai High Court ruled that there was a mismatch between the valuation of the cloud computing business of Zenith by Ernst and Young and what was submitted to the stock exchanges. It also barred the company from selling any land or building it owns.The company has a 3,500 square feet property in Andheri.

It has also been asked to disclose all its assets including fixed assets to the court by 11 May.The court also directed the company to share its financial numbers for the December quarter and March quarter to Ernst & Young.Auditor and consultancy firm Ernst & Young was appointed by the court to value Zenith Infotech's cloud computing business, which remains its only business.

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[caption id="attachment_301478" align="alignleft" width="380" caption="Screengrab from Zenith Infotech website."][/caption]

The court is hearing a case against the company filed by the holders of its foreign currency bonds after it defaulted on repaying the bond-holders at maturity. Zenith Infotech had defaulted on its $33-million FCCBs due on 21 September last year; it subsequently defaulted on its $50-million FCCBs. The total default is pegged at $83 million.

The next hearing has been set for 11 May. For our earlier Firspost story on Zenith's problems, please click here.

Download the the Mumbai High Court Order on Zenith Infotech case.