Mumbai, Feb 9 (IANS) Fortis Healthcare on Friday said its subsidiary Fortis Hospitals will receive back the Rs 473 crore loan it gave to certain companies by the end of the first quarter (Q1) of FY19.
The company response comes after reports pointed out that the loan was given to companies that are a part of its promoter’s group.
“Fortis Hospitals Ltd, (FHsL) a wholly owned subsidiary of Fortis Healthcare Ltd, has deployed funds in secured short-term investments with companies in normal course of treasury operations,” the company said in a statement.
“These entities, as of the quarter ended December 31, 2017, have become part of the promoter group due to a shareholding change in those entities. Subsequently, the same loans have been recognised as related party transactions in compliance with necessary regulatory requirements,” it said.
The company said 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 the end of Q1 of FY18-19. The total value of the loans amounts is approximately Rs 473 crore,” the statement said.
Further, the company denied the allegations that “auditors have refused to sign the accounts for Q2”.
“The results for Q2 could not be tabled before the Board for approval and the same was communicated to the stock exchanges on November 14, 2017,” said the statement.
“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,” it added.
In an unrelated development, the promoters of Fortis Healthcare had on Thursday resigned from the company’s board.
The resignations were intimated through a late night BSE filing which revealed that promoters Malvinder Mohan Singh and Shivinder Mohan Singh had resigned.
The development comes days after the Delhi High Court upheld an international arbitral award of Rs 3,500 crore to Daiichi Sankyo against the former promoters of Ranbaxy Laboratories.