Vivimed Labs Limited Regulatory Compliance Response

Summary of Exchange Communication

Date of Communication: 17 September 2025

Nature of Query: Response to NSE mail dated 30 June 2025 regarding financial results for period/year ended March 31, 2025

The company provided a comprehensive clarification addressing multiple issues raised by the National Stock Exchange of India Ltd.

Company's Clarification on Submission Issues

1. Timely Submission of Financial Results:

  • The company acknowledged delay in submitting financial results within prescribed timeframe
  • Cited technical scanner problems as cause for delay
  • Board meeting concluded at 22:10 PM on 30.05.2025
  • Results were uploaded on 31.05.2025 at 12:13:38 PM
  • Company claims this was within 3 hours from meeting end with approximately 14 minutes delay

2. Format Prescription Compliance:

  • Addressed missing MD/CEO signature in Statement on Impact of audit qualifications
  • Clarified that Mr. Manohar Rao Varalwar, Whole Time Director (KMP) signed the document
  • Reason provided: Managing Director was not present at the meeting
  • Board authorized Mr. Varalwar for signing the Statement

3. XBRL Filing Discrepancies:

  • Company attempted to file Revised XBRL Financial results for FY25
  • Encountered filing errors
  • Sent email to listingfr@nse.co.in on 02.07.2025 seeking resolution
  • No reply received from NSE at time of clarification
  • Company committed to address technical issues (printer and scanner) in future

Financial Results Clarification and Audit Qualifications

The document includes detailed Statement of Impact of Audit Qualifications for both standalone and consolidated financial results, prepared under Regulation 33/52 of SEBI (LODR) (Amendment) Regulations, 2016.

Standalone Financial Impact (Rupees in Millions):

  • Turnover/Total Income: ₹1,077.89 (no adjustment)
  • Total Expenditure: ₹1,392.85
  • Net Profit/(Loss): Reported (₹314.96) vs Adjusted (₹1,967.29)
  • Earnings Per Share: Reported (₹3.80) vs Adjusted (₹10.73)
  • Total Assets: ₹6,389.52 (no adjustment)
  • Net Worth: Reported ₹584.91 vs Adjusted ₹6,379.05

Consolidated Financial Impact (Rupees in Millions):

  • Turnover/Total Income: ₹1,206.40 (no adjustment)
  • Total Expenditure: Reported ₹1,526.01 vs Adjusted ₹2,100.45
  • Net Profit/(Loss): Reported (₹319.61) vs Adjusted (₹894.05)
  • Earnings Per Share: Reported (₹3.85) vs Adjusted (₹10.78)
  • Total Assets: ₹9,208.34
  • Net Worth: Reported (₹351.69) vs Adjusted ₹10,134.47

Audit Qualifications Details

Qualification 1 - Interest Expense Non-Recognition:

  • Company did not recognize interest expense of approximately ₹574.44 million on accrual basis
  • Reason cited: Non-availability of bank confirmations as of March 31, 2025
  • Non-compliance with Indian accounting standards
  • Reported loss understated by ₹574.44 million
  • Ongoing discussions with bankers for settlement, not yet concluded
  • Impact of potential settlement remains unquantified
  • Frequency: 2nd time qualification
  • Management View: Confident of settlement with banks, hence interest not recorded

Qualification 2 - Bank Borrowings Confirmation:

  • Unable to obtain external confirmations for current and non-current bank borrowings totaling ₹3,744.56 million
  • Unable to comment on completeness, accuracy, and existence of these borrowings
  • Loan accounts classified as NPA by banks
  • Balance confirmations from lenders not forthcoming
  • Frequency: 1st time qualification
  • Management View: Engaged in settlement negotiations with bankers

Qualification 3 - Related Party Transactions:

  • Unable to obtain confirmations for related party transactions including investments, receivables, payables, advances, purchases, and sales
  • Balances pertaining to creditors, debtors, other current assets and bank accounts subject to external confirmation
  • Company initiated process but confirmations not yet received
  • Frequency: 2nd time qualification
  • Management View: System of periodical reconciliation in place, requested balance confirmation letters

Qualification 4 - MSME Act Compliance:

  • Company has not identified parties covered under Micro, Small and Medium Enterprises Development Act, 2006
  • Required disclosures under Section 22 of MSMED Act and Section 134 of Companies Act not made
  • Provision for interest on delayed payments not provided
  • Financial impact not ascertainable due to absence of relevant data
  • Frequency: 1st time qualification
  • Management View: Initiated process to obtain MSME certificates confirmations from vendors

Qualification 5 - Impairment Assessment:

  • Investments in subsidiaries and associates amounting to ₹587.83 million not assessed for impairment
  • Indicators for impairment present
  • Impact unable to be derived due to absence of independent valuer reports
  • Frequency: 1st time qualification
  • Management View: Anticipating business opportunities in subsidiaries, impairment provision not required based on projected plans

Regulatory Compliance Reference

The company specifically references compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements through its various submissions and clarifications dated 05.07.2025, 19.07.2025, and 17.09.2025.

Topic Tags: Financial Results Clarification, Audit Qualifications, Regulatory Compliance, NPA Situation, Technical Filing Issues