NEW DELHI: After deferring it multiple times, Fortis Healthcare (FHL) on Wednesday finally released its fourth quarter results for FY 2017-18. The cash-strapped hospital chain, which is up for sale, reported a net loss of Rs 932 crore for the quarter on account of to write off of goodwill, inter-corporate deposits and advances. Last fiscal, Fortis had posted a net loss of Rs 68 crore in the corresponding quarter.
FHL has claimed that the performance was impacted by external headwinds related to the healthcare sector and internal challenges. For the full fiscal, the company posted a net loss of Rs 934.42 crore, up from Rs 479.29 crore in the previous fiscal, while its net debt accumulated at Rs 1,404 crore as on March 31, 2018, up from Rs 1,279 crore a year ago.
However, an external investigation report found that the main highlight in the functioning of the healthcare chain was the “systemic lapses and override of controls” in the loan given to group companies, allegedly owned by its former promoters Malvinder and Shivinder Singh.
Fortis, in its result, said that it has made provisions totalling around Rs 580 crore in Q4FY18 pertaining to loans whose “recoverability is doubtful”. It also said that legal action has been initiated to recover about Rs 500 crore allegedly taken out of the company by Singh brothers.
“The company is in the process of taking suitable legal measures to recover the payments made to him under the Letter of Appointment as also to recover all company assets in the erstwhile Executive Chairman’s possession,” Fortis said.