📊 Report on Vivimed Labs Ltd’s Financial and Audit Challenges
🏢 Company Overview
🔹 Name: Vivimed Labs Ltd
🔹 Stock Symbol: NSE – VIVIMEDLAB | BSE – 532660
🔹 Industry: Pharmaceuticals & Specialty Chemicals
🔹 Headquarters: Hyderabad, India
📉 Audit Qualifications & Financial Impact
📌 Loan Defaults:
✔️ Company defaulted on loan repayments to banks and financial institutions, totaling ₹3,762.80 million.
✔️ Accounts classified as Non-Performing Assets (NPA) by State Bank of India (SBI) & EXIM Bank.
✔️ Settlement reached with EXIM Bank, negotiations ongoing with SBI.
📌 Plant & Machinery Impairment:
✔️ Company impaired assets worth ₹892.80 million due to obsolescence.
✔️ External valuer verified impairment.
📌 Inventory Write-Down:
✔️ Inventory worth ₹809.3 million written off due to expired and unusable stock post-COVID.
📌 Unverified Related Party Transactions:
✔️ No confirmations obtained from related parties for investments, receivables, and payables.
📌 Capital Work-in-Progress (CWIP) Issues:
✔️ ₹206.65 million capitalized without clear verification.
📌 Statutory Dues Default:
✔️ ₹135.52 million in outstanding statutory dues, causing financial strain.
📌 Forensic Audit by SBI:
✔️ SBI has initiated a forensic audit, with final results pending.
📈 Stock Market Impact
📌 Potential Effects on Share Market:
✅ Negative Market Sentiment: Investors may react negatively to financial instability & loan defaults.
✅ Stock Volatility: Price fluctuations expected due to audit concerns and loan settlement negotiations.
✅ Regulatory Oversight: SEBI may scrutinize financial disclosures & compliance measures.
✅ Long-Term Viability Concerns: Continued losses and asset impairments could raise doubts on future growth.
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
