HC seeks re-audit, Satyam merger delayed anew

Satyam Computer Services may have to wait for some more time for getting the Andhra Pradesh High Court’s nod to merge with Tech Mahindra.

The court has sought more clarity on Satyam’s accounts, financials and the scheme of amalgamation, which will mean another round of audit.

The court has been hearing the company’s petition on the merger proposal and as part of the procedure, the official liquidator in Hyderabad has to express his opinion.

Stating that the accounts of the company remained complex, the liquidator has informed the court that he was not in a position to express the opinion.

The suspense accounts figuring in the company’s balance sheets, particularly those of `1,230 crore seem to have remained contentious.

With this, the court has ordered for the appointment of an independent auditor to assess the accounts and submit a report within four weeks. However, the auditor is yet to be named by the court.

Analysts are of the view that the audit process would have significant impact on the entire merger scheme if the outcome is different from what is seen in the books of the company. The Enforcement Directorate has already issued attachment notices to Satyam to the extent of about Rs882 crore in the company’s accounts.