New Delhi, Feb 13: Fortis Healthcare Ltd, India’s second-largest hospital chain, has sought a 15-day extension to declare earnings for the second and third quarter of the current financial year citing statutory auditors’ inability to complete the audit before the stipulated board meeting.
The board of Fortis Healthcare was to consider financial results for July-September and October-December 2017 quarters at its meeting on Tuesday. In a regulatory filing, the company said the meeting of the board of directors for Tuesday will go as scheduled and would consider the resignation of promoters, Malvinder Mohan Singh and Shivinder Mohan Singh from the board.
Bloomberg had last week reported that Fortis could not declare the second quarter earnings within the stipulated 45- day period as its auditor, Deloitte Haskins & Sells LLP, refused to sign off on the results until about Rs500 crore that Singh brothers took out from the company without board approval is accounted for or returned. Called for an explanation by stock exchanges, Fortis had on February 9 stated: “Fortis Hospitals Ltd, a wholly-owned subsidiary of Fortis Healthcare Ltd, has deployed funds in secured short-term investments with companies in the normal course of treasury operations.
“These entities have become part of the promoter group due to a shareholding change in those entities. Subsequently, the same loans have been recognised as related party transactions.”
The loans amounting to Rs473 crore are adequately secured and repayment has since commenced, it added. In the regulatory filing on Tuesday, Fortis said it has paid a fine of Rs 65.98 lakh to stock exchanges for “non-submission of un-audited financial results for the quarter ended September 30, 2017.”