Vivimed Lab tumbles after SBI intiates forensic audit

Vivimed Labs fell 6.35% to Rs 14.75 after State Bank of India initiated a forensic audit following the firm's proposal to restructure its debt.

Earlier in June 2021, Vivimed Labs informed exchanges about its credit arrangements with State Bank of India (SBI) / Indian Bank / Bank of Bahrain and Kuwait. Of which, SBI dues have not serviced on time because of constraints owing to non-performance of business due to COVID and the account slipped into non-performing asset (NPA).

Since then Vivimed Labs has submitted proposal for (debt) restructuring/settlement.

Vivimed Labs said it is mandatory for lenders to conduct a forensic audit prior to considering restructuring/settlement proposal.

"We wish to categorically state that Vivimed Labs Ltd, a global company with strong internal controls and an effective audit system, is compliant with all applicable laws and regulations, across jurisdictions", the firm said in a note to exchanges.

Vivimed Labs touched a 52-week low of Rs 14.60 today.

Vivimed Labs has presence in Active Pharmaceutical Ingredients (API), Finished Dosage Formulation (FDF) and Retail Branded Formulation manufacturing.

On consolidate basis, Vivimed Labs reported net loss of Rs 23.68 crore in Q3 December 2021 as against net loss of Rs 49.55 crore in Q3 December 2020. Net sales slumped 79.7% to Rs 56.52 crore in Q3 December 2021 over Q3 December 2020.

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