SINGAPORE (THE BUSINESS TIMES) - The external auditor for IHH Healthcare has issued a qualified opinion as ongoing probes relating to the Fortis Healthcare acquisition may have an impact on adjustments to be recorded in IHH's financial statements.

KPMG said that except for the Fortis deal, IHH's latest full-year financial statements give a "true and fair" view of the financial position of the group as at Dec 31, 2019.

There was a similar qualified opinion in IHH's 2018 audited financial statements, said the Kuala Lumpur-based hospital operator.

IHH completed the acquisition of Indian hospital chain Fortis Healthcare and its units on Nov 13, 2018.

Before the deal, an investigation by an independent legal firm for the former Fortis board indicated systematic lapses and/or override of internal controls.

The Fortis group had also initiated enquiries of the management of entities within the group.

There are also investigations by the Securities and Exchange Board of India and the Serious Fraud Investigation Office under India's Corporate Affairs Ministry.

Due to the ongoing inquiries - including the need for any additional investigations by Fortis - Fortis's external auditors are unable to determine if there are any regulatory non-compliances and if any additional adjustments or disclosures may be required as a result of further findings of the investigations.

IHH posted a 15 per cent drop in net profit excluding exceptional items for the fourth quarter last year, as new loans were taken for the Fortis acquisition and for working capital while a unit's euro bank loans and interest were swapped into the appreciating Turkish lira.

IHH shares closed 4.14 per cent higher at $1.76 yesterday.