Fortis Malar Hospitals Limited has announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, revealing a company in transition following the sale of its business operations.

Key Financial Highlights

Business Operations Cease

The company has ceased all business operations following the sale of its business through a slump sale transaction. The Board of Directors is currently evaluating various corporate restructuring options for future course of action.

Financial Position

Despite having no ongoing business operations, Fortis Malar Hospitals maintains it has sufficient cash and cash equivalents to settle obligations and meet financial requirements for the foreseeable future. The company's cash and cash equivalent, along with other bank balances, amount to approximately Rs. 1,868.87 lakhs.

Provision Write-back

A significant development in the company's financials is the provision write-back of Rs. 408.20 lakhs towards carried minimum wages payable, which has been considered as other income. This write-back was pursuant to a notification dated June 11, 2025, issued by the Government of Tamil Nadu regarding the revision of minimum wage rates.

Ongoing Legal Matters

The company is contesting several legal matters, including:

• Medico-legal cases with a claim amount of approximately Rs. 625.92 lakhs
• VAT appeals with a tax demand of approximately Rs. 254.93 lakhs
• GST appeal with a tax demand of approximately Rs. 5.96 lakhs
• Income tax appeal with a tax demand of approximately Rs. 150.61 lakhs

The management currently assesses the financial exposure from these matters as remote.

Open Offer Update

An open offer by IHH Healthcare Berhad, which was previously kept in abeyance, has been recommenced. The offer price has been revised from the original INR 60.10 per equity share to INR 17.60 per equity share. The open offer is expected to be completed by November 26, 2025.

Going Concern Basis

Despite the cessation of business operations, the financial results have been prepared on a going concern basis. The company's management and Board of Directors believe that the current cash position and projected cash flows will enable the company to meet its financial obligations for the foreseeable future.

The Board Meeting to approve these results commenced at 11:10 AM and concluded at 02:25 PM on November 6, 2025.

Fortis Malar Hospitals Limited , a healthcare provider based in Tamil Nadu, has disclosed receiving a show cause notice from the State Tax Officer in Chengalpattu Intelligence Division. The notice, initially for a substantial amount, has been significantly reduced following the company's response.

Details of the Tax Notice

Resolution and Outcome

After Fortis Malar Hospitals submitted its response to the initial notice, the GST Authority revised its stance. The authority has now passed an order demanding a significantly reduced amount of INR 1.14 lakhs, which includes interest and penalties. The show cause notice for the remaining balance amount has been dropped.

Company's Disclosure

In compliance with regulatory requirements, Fortis Malar Hospitals has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the notice on October 31, 2023, at 2:43 PM, as per the LODR filing.

This development highlights the importance of proper tax compliance and the potential for resolution through appropriate responses to regulatory inquiries. While the initial notice amount was substantial, the final demand represents a significant reduction, potentially indicating a satisfactory explanation or resolution of the issues raised by the tax authorities.

Investors and stakeholders of Fortis Malar Hospitals may view this outcome positively, given the substantial reduction in the demanded amount. However, it also serves as a reminder of the ongoing regulatory scrutiny that companies in the healthcare sector may face regarding their tax obligations.