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Last Updated : Jun 12, 2018 12:23 PM IST | Source:

Fortis defers Q4 results by 2 weeks, says it needs time to consider internal investigation report

Fortis' board did not disclose any details of the internal investigation report, but said it had shared the findings of Luthra & Luthra with the statutory auditors

Viswanath Pilla @viswanath_pilla

Moneycontrol News

Fortis Healthcare on Monday deferred the announcement of its results for the March quarter to June 25, citing a need for additional time to consider certain aspects of the internal investigation report comprehensively in its financial accounts.

"The internal investigation conducted by Luthra & Luthra Law Offices, as initiated by the Audit and Risk Management Committee, has been completed and their report was made available on June 8, 2018. The same was duly placed before the Audit and Risk Management Committee and the Board at their meetings held today," the Fortis board said in a statement.

"In light of the above, the completion of the audit and accounts will require additional time to consider the aspects of the report comprehensively in the financial accounts," the board said.

Accordingly, the company's board, at its meeting held today, decided to defer the approval of its quarterly and annual financial results for the period ended March 31.

Fortis' board did not disclose any details of the internal investigation report, but said it had shared the findings of Luthra & Luthra with the statutory auditors.

It also said that the findings are being submitted to Securities Exchange Board of India (SEBI) and Serious Fraud Investigation Officer (SFIO) as well.

Both SEBI and SFIO are investigating Fortis after the company said that promoter directors Malvinder Singh and Shivinder Singh funneled Rs 473 crore out of the company through inter-corporate deposits.

The Singh brothers resigned from the company's board in February. Fortis is now up for sale through a protracted bidding process.

The company's board in March appointed external legal firm Luthra & Luthra to investigate whether there are any breaches in company's internal control procedures in light of the promoters taking out nearly Rs 500 crore.

Deloitte, the statutory auditor of Fortis, had raised several red flags about ongoing investigations, inter-corporate loans and recoverability of certain vendor advances, in the auditor review report accompanying the company's earnings statements for the September and December quarters.

The statutory auditor said it wasn't able to come to a conclusion on the financial statements as it "couldn't get sufficient appropriate evidence".

Deloitte said it hasn't performed an audit, but has reviewed the accounts of the company.

Deloitte earlier refused to sign the company's accounts for the September quarter, as it couldn't get sufficient, appropriate audit evidence from the company.

Fortis also said it has extended the date for submission of bids to June 28. The earlier deadline for submission of bids was on June 14.
First Published on Jun 11, 2018 10:02 pm
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