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Fortis Healthcare, Delhi's leading hospital, on Saturday released its audited results for the fourth quarter and 2017-2018 fiscal year, which were largely in line with the unaudited figures announced last week. However, auditor Deloitte Haskins & Sells has raised several alarm signals, including regarding other transactions with related parties.
The Fortis Board of Directors is expected to announce the potential investor between IHH Healthcare and TPG-Manipal shortly. firm offers to acquire a stake in the hospital chain in financial crisis.
Board members met with financial advisers and legal experts on Friday and held a night meeting that ended in the wee hours of Saturday.
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In an exchange filing, Fortis stated that the audited financial results did not have changed from the unaudited figures reported on June 27, 2018. He added that the audited financial statements were released after the completion of the additional review of certain internal processes, which were undertaken at the request of the board of directors. "As expected, there has been no change in the figures presented in the audited financial statements compared to the unaudited earnings reported," the company said in a statement. In the audited financial statements, Fortis recorded a loss of Rs. 9.32 billion for the March 2017-18 quarter due to provisions, business problems and impairments. The loss of the company has widened from Rs 680 million in the same period last year. The business turnover of business was established at 11.05 billion rupees in the fourth quarter, down 4.7%.
Fortis recorded a loss of Rs. 10.09 crore for the whole of the year against a profit of Rs. 4.21 billion in 2016-17. Revenues declined slightly to Rs 45.73 billion.
ALSO READ: IHH, TPIP-backed Manipal Health Enterprises in the last round for Fortis to buy
The company made arrangements of Rs 5.8 billion in the fourth quarter, whose collectability is questionable . This includes 4.94 billion rupees in loans that were granted in the context of systemic failures and a departure from controls.
These transactions were examined by the Regulatory Authority of the Stock Markets of India (Sebi) as well as by the Serious Fraud Investigation Office (SFIO).
Deloitte issued a qualified opinion on the company's financial results, saying that he could not come to a conclusion because of ongoing investigations on his finances. A qualified opinion is a statement issued after a professional auditor has performed an audit suggesting that the information provided is of limited scope.
The auditor also stated that the consolidated figures could be affected by internal and external regulatory investigations. "We are unable to comment on regulatory nonconformities, if any, and any adjustments or disclosures that may be required as a result of other findings on ongoing or future regulatory / internal investigations. as impact, if any, on these consolidated annual results, "said the auditor in the statement.
ALSO READ: Fortis Healthcare's recovery plan in the event of a financial crisis
The Fortis Board of Directors mandated the Luthra & Luthra law firm to investigate allegations Financial irregularities and identified in its report several systemic failures in the way loans were granted to third parties.
Deloitte also said She stated that the company had received notices of claims from several parties (sub judice case before a Delhi District Court) and that she had claimed n & rsquo; Have not signed any party related to the marks Fortis, SRL and The Woman.
In addition to the above, Fortis had also received four notice of claim in May-June this year, totaling approximately Rs 2.5 billion, entities that implied rights to the management of Fortis responded to these opinions, rejecting any liability.
"Since the case is sub judice, the outcome of which is not determinable at this stage, we are unable to comment on the resulting impact" the auditor added.
ALSO READ: The loss of Fortis Healthcare Q4 expands to Rs 9.3 billion, the company's recovery process
Commenting on related-party transactions, l & # 39; The auditor also raised concerns about other related parties whose relationship may not have been disclosed to the company.
Deloitte also expressed his inability to comment on the chances of obtaining a refund from former executive vice president, Malvinder Singh, who was appointed as a strategic initiative, at the end of his "letter of appointment". Fortis, meanwhile, said he was trying to recover Rs 200 million from Singh for breaking the limit of Section 197 of the 2013 Companies Act. This article prescribes the conditions of executive compensation in the event of absence or insufficiency of profits. Fortis President Ravi Rajagopal said in a press release, "Our goal in the future will be to strengthen governance and transparency and restore the health of the company. to evaluate the bids received on July 3, 2018 and will present our recommendation to shareholders in the coming days. "
Deloitte noted that during the fiscal year, the group's activities continued to generate positive cash flow operations Fortis also seeks to raise funds to get through the financial crisis until it finds an investor.It has already secured a credit line of about 1 , 25 billion Rs and seeks to amass 3.4 billion Rs.
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