Big setback for Fortis Healthcare; here is what has happened now

Newly-appointed Board of Fortis Healthcare, which is in the process of finding an investor, has again deferred approval of quarterly and annual financial results for the period ended March 31, 2018, saying the issue requires more deliberation.

The Board, which met on June 25 for considering results, reconvened on Tuesday. “This is to inform that the Board of Directors of the company held a meeting on June 25, 2018, for considering the standalone and consolidated annual accounts for 2017-18 along with the financial results for the quarter and period ended March 31, 2018.

“The members of the Board deliberated upon the same and had a detailed discussion with the management, legal advisors and the statutory auditors,” Fortis said in a regulatory filing.

It further said in view of the ongoing discussions on the annual accounts, which requires further deliberation, the Board decided to adjourn the meeting to be reconvened on Tuesday.

Fortis said the Board meeting commenced at 16:00 hours on June 25 and was adjourned at 02:15 hours on June 26.

On June 11, Fortis Board deferred approval of quarterly and annual financial results to June 25 saying more time was needed to consider the aspects of the outcome of an internal investigation on alleged financial irregularities.

On May 30 as well, the Board had deferred approval of the results to June 11 citing ongoing deliberations of the conclusions arising from the internal investigation.

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The healthcare chain, which is in the process of finding a buyer, had appointed a law firm in March to investigate allegations of fund diversion from Fortis by former promoters Singh brothers.

Securities and Exchange Board of India (Sebi) is also investigating the matter related to alleged lapses at Fortis and Religare Enterprises. Apart from Sebi, the Serious Fraud Investigation Office (SFIO) has also initiated a probe into the alleged financial irregularities at the two companies.