[ad_1]
The audited financial statements of Fortis Healthcare have allowed new facts to emerge and shed more light on previously known issues Photo: Pradeep Gaur / Mint
Mumbai: Fortis Healthcare Ltd's audited results are, the last missing piece in its financial results from fiscal year 18. The audited figures do not differ from the unaudited results, but the auditors' report and the revised notes to the accounts reveal new and more troubling
In all, the auditors described the financial statements as seven counts, which is not an easy task.
The main problem Fortis faces is the B2B deposit by its Fortis Hospitals Ltd subsidiary, with an outstanding balance of 445 million crore, which has found its way to companies controlled by the promoter. Because of the ICDs is involved, the auditors stated that the interest income on these INNs (and on an anticipated real estate transaction) of an amount of 44.3 million crore is not in accordance with accounting standards, overstating the interest income to this extent.
More importantly, another suspicious transaction was discovered. Fortis Hospitals has acquired a stake in Fortis Emergency Services Ltd from a developer group company. On the same day, Fortis Hospitals lent money to Fortis Emergency, which used the money to repay loans from another company in the group.
The auditors said that it is possible that the same amount would be returned to reimburse DCIs taken from Fortis hospitals. In other words, use Fortis Hospitals' own funds to pay yourself back.
That's not all. The audit committee approved the equity transaction but not the loans to the subsidiaries. Moreover, equity investments and loans granted were higher than the enterprise value of companies. Another subsidiary, Fortis Healthstaff Ltd, which carried out a similar transaction was named previously.
Fortis had invested in an Overseas Fund and had declared that he was proposing to leave this fund. Now, it turns out that the investment was sold after March 31 with a 10% haircut. The company has forecast a loss of ¥ 55.1 crore on this investment, but the listeners do not know if that will be enough. Although notes indicate that this amount was expected, this was not revealed when the unaudited financial statements were reported.
Earlier, when she declared her unverified results, Fortis had declared that she had declared no contract president Malvinder Singh as strategic initiatives. He had stated that he would try to recover the payments made for this post and recover the property of the company in his possession. Now the amount has been revealed. The recovery for this purpose (and for the excess remuneration paid) amounts to 20 million crore. It is money paid by a company that was already facing financial problems.
The loss suffered during the 2011 fiscal year was 934 crore and the current liabilities of the company exceeded its current badets of 853 crores. However, according to the notes to its financial statements, it generated positive cash flow from operations and earned a credit line of $ 120 million. This is why the financial statements are prepared on a going concern basis.
The audited financial statements have seen new facts emerge and shed more light on problems already known. The company said that provisions for known problems have been made and that others will be made when inquiries end on new issues. This opens the door to more provisions in the coming quarters.
For the moment, all eyes will be on brave Fortis bidders who persevere despite all these questions. The company said it would reveal its recommendation to shareholders in the coming days.
His shares had fallen after his un-audited results were reported but found losses. Investors are still hopeful that the underlying strength of Fortis' hospital operations will overcome concerns about the state and quality of its financial statements. Given these new revelations, this hope may be misplaced.
Source link
