Fortis Healthcare has said that the company’s wholly-owned subsidiary, Fortis Hospitals Ltd, had deployed funds to the tune of ₹ 473 crore secured short-term investments to group firms of its promoters Malvinder Singh and Shivinder Singh and the loan would be repaid by the end of June 2018.
“These loans are adequately secured and the repayment has since commenced as per the agreed payment schedule. The entire amount is expected to be repaid to the company by end of the first quarter (Q1) of 2018-19. The total value of the loans amounts to approx. ₹ 473 crore,” a company statement issued on Friday stated.
“Categorically denying’’ allegations made in some news reports that auditors had refused to sign the accounts for the Q2 on 2017-18 following the brothers taking out ₹473 crore, the release said that the Q2 results could not be tabled before the Board for approval and the same was communicated to the stock exchanges on November 14, 2017.
“We would also like to highlight that the audit review process for the results of both Q2 and Q3 are in progress. The financial results of the Company for quarter and period ended September 30, 2017 and December 31, 2017 will be presented before the Board of Directors at their meeting scheduled on February 13, 2018,” the release said.
On Thursday evening, the Singh brothers had resigned from the Fortis Healthcare board. “In the light of the recent High Court judgment, upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance. It is intended to free the organization from any encumbrance whatsoever that may be linked to the promoters,” the Singh brothers said in a letter to the Fortis’ Board of Directors.
The Delhi High court last month ruled in favour of Japanese pharmaceutical company Daiichi Sankyo and allowed it to collect ₹ 3,500 crore from the two brothers.