Vimta Labs Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1.The standalone financial results for the quarter and year ended March 31, 2020 have been reviewed by the Audit Committee and are approved by the Board in its meeting held on June 15, 2020.

2.The standalone financial results have been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder (Ind AS) and other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India (SEBI).

3.The company completed acquisition of Emtac Laboratories Private Limited and it became the wholly owned subsidiary w.e.f March 4, 2020.

4.The management has assessed the identification of reportable segments in accordance with the requirements of Ind AS-108 'Operating Segment' and states that the Company has only one reportable segment namely 'Contract Research and Testing Services'.

5.The Company has elected to exercise the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Assets (Net) and the estimate of Tax Expense for the quarter and year ended March 31, 2020 have been re-measured.

6.Due to the current pandemic situation, several restrictions were imposed by the Government of India including lockdown and restrictions on movement of people and goods. With a view to overcome from these restrictions and continue the operations, the Company has taken several business continuity measures. The Company has not experienced any significant difficulties with respect to, liquidity, financing capital expansion projects, and debtors collections so far. Further, the Company has assessed the financial impact of the Covid-19 situation particularly on the carrying amounts of receivables, inventories, property, plant and equipment, impairment of investments, etc. At the date of approval of these standalone financial results, Company has used internal and external sources of information, including economic forecasts and estimates from market sources, on the basis of which, the Company believes that it will be in a position to recover the carrying amounts of these assets and does not anticipate any material impact due to impairment to these financial and non-financial assets. However, the impact assessment of the pandemic is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions and will, as appropriate, take necessary and possible measures to act on the same.

7.The figures for the quarter ended 31st March 2020 and the quarter ended 31st March 2019 are the balancing figures between audited figures in respect of the full financial year ended 31st March 2020 and 31st March 2019 respectively and the published year to date figures up to the third quarter ended 31st December 2019 and 31st December 2018 respectively.

8.The previous quarter's/year's figures have been regrouped/rearranged wherever necessary to make it comparable with the current quarter/period.