Fortis Healthcare board to discuss quarterly results today - here is all we can expect

作者:Deborah    發表日期:2018-03-01 23:36:03

Viswanath Pilla

Moneycontrol News

The Board of Fortis Healthcare, India's second largest healthcare provider will be meeting today to approve the second and third quarter results amidst increasing scrutiny of the company's finances, and a clamour for clarity on its liabilities.Fortis is yet to report the second and third quarter numbers - the company's Board which met early this month had sought an extension of 15 days citing the statutory auditors have enhanced the scope of audit resulting in a delay.

Reports have emerged that Deloitte - the statutory auditor of Fortis refused to sign Q2 accounts of the company.

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Deloitte earlier told Moneycontrol that it's unable to comment on client-specific matters, as it is "bound by confidentiality obligations".

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Troubles surfaced at Fortis after the company indicated that considerable funds were transferred to third parties, which were later classified as promoter entities. The current outstanding amount towards such entities is Rs 473 crore.

Fortis said the same loans were adequately secured, and the promoters had agreed to repay the loan by the end of June this year.

However, that explanation failed to convince corporate governance experts who were critical of the company's internal controls and Board's lack of oversight.  

Even the role of statutory auditor has come under scanner for not disclosing the reasons why it hasn't signed the Q2 accounts.

What has changed for the company since the last Board meet?

A lot has changed, ever since the disclosure about promoters taking out money.

Most regulatory agencies that includes stock exchanges, SEBI, RoC and ICAI have issued notices and sought information from the company to ascertain if there is any breach of securities, company and accounting laws.

The promoters holding has come down from little over 34 percent to around 3 percent as lenders have invoked the shares pledged by the promoters. Now lenders are the dominant shareholders of the company.

The company announced last week that its company secretary or chief compliance officer has resigned.

Though unrelated to Fortis but could have ramifications for the company - the Supreme Court dismissed petitions of Fortis promoters Malvinder Singh and Shivinder Singh referred as Singh brothers challenging Delhi High Court order that allowed Japanese drug maker Daiichi Sankyo to enforce Rs 3500 crore foreign arbitration award. Subsequently the Delhi High Court in its interim order attached all assets of two holding companies privately held by Singh brothers. The court also sought details of non-encumbered assets owned by the Singhs.

Why is today's Board  meet crucial?

The Board meet is crucial because - the investors, lenders, vendors and even possible strategic buyers are expecting some clarity on the state of finances of Fortis.

After late disclosures about promoters taking out money and company's shoddy internal controls, investors are interested to know what is the extent of liabilities the company is carrying on its books.

It needs to be seen whether today's Board meet will provide the financial numbers of the company or may end up seeking further extension?


轉載請注明:Deborah 2018-03-01 23:36:03 于 香港國際時事通 發表

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