Fortis board defers approval of Q4, FY18 results to June 25
New Delhi: The board of Fortis Healthcare has decided to defer to June 25 the approval of the company's financial results following the submission of a report by an external law firm appointed to investigate potentially fraudulent related party transactions in the group. The company told stock exchanges it required more time to consider aspects of the report in its financial accounts.
Luthra & Luthra Law Offices, which conducted the internal investigation initiated by Fortis' Audit and Risk Management Committee, submitted their report on June 8, the company told stock exchanges on Monday.
"The report has been shared with the statutory auditors and is being submitted to SEBI and SFIO forthwith," stated the filing.
"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," it added.
Fortis has been facing several regulatory hurdles, including ongoing investigations by the Securities and Exchange Board of India as well as the Serious Fraud Investigations Office in respect of secured short-term investments of RS 473 crore made by a wholly owned subsidiary of the company.
On the back of allegations that its erstwhile promoters siphoned nearly Rs 500 crore from the firm, Fortis in March hired Luthra & Luthra to carry out an investigation.
In April, Luthra & Luthra brought in Grant Thornton to conduct a forensic investigation into the fund diversion allegations.
Meanwhile, Fortis has been looking to induct an investor into the company and initiated a bidding process earlier this month. The company is expected to receive binding offers from Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group, Manipal Health Enterprises backed by TPG Asia, IHH Healthcare and Radiant Life Care backed by KKR on June 14.