MedPlus Health Services Limited (formerly known as MedPlus Health Services
Annexure- VIL

Notes to Restated Consolidated Financial Information

(All amounts are it Rs in millions except as others stated)

 

41. Capital and other commitments
(A) Capital Commitments
(As at September 30, 2021 the Group has commitments of Rs.209.13 millions (September 30, 2020: Rs, 28.99 millions March 31, 2021: Rs. 17.90 millions, March 31, 2020: Rs.17.17 millions, March 31, 2019: Rs15.07,
millions) relating to contracts remaining to be executed on capital account.

(B,) Contingent Liabilities

 

 

 

Particulars Asat Asat Aeat eat eat
September 30,2021 September30,2020 March 31, 2021 March 31,2020 March 31, 2019
1) Claims against the Group not acknowledged as debt
Income tax 1178 178 ays 17s 2607
Value added tax 8.26 36459 8.26 36459 275.66,
7004 47637 0.08 “47637 30173

 

 

ii) During the year ended March 31, 2015, Ritemed Pharma Retail Private Limited (merged entity) had received an assessment order forthe assessment year 2012-13 proposing an adjustment of Rs.18.37 millions to the
returned loss. Ritemed Pharma Retail Private Limited (merged entity) had filed an appeal before Commissioner of Income Tax (Appeals) and the Company has received appeal order revising the adjustment to Rs 82
millions and tax adjustment of Rs 2.66 millions. Company has filed an appeal in Inceme-tax Appellate Tribunal, based on its internal assessment and itis confident that the matter will be decided in its favour and
accordingly no adjustment tothe financial statement is required.

 

i) The Payment of Bonus (Amendment) Act, 2015 had been notified in the financial year 2015-16. Among other amendments it has increased, with retrospective effect from April 1, 2014, the scope of coverage by
revising the salary ceiling for eligible employees and also increasing the salary limit capped for the purpose of calculating bonus. Based on the legal advice and the interim stay granted by various high courts on
retrospective application ofthe aforesaid amendment, the Group has not acerued for bonus forthe financial year 2014-15 amounting to Rs. 13.11 millions.

iv) On 28 February 2019, the Hon'ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied in determining the components of salaries and wages on which Provident Fund
(PF) contributions need to be made by establishments. However, considering that there are numerous interpretative issues relating to retrospective application ofthis judgement, the Group has assessed the impact of the
‘matter and concluded that there is no material impact on the financial statements. The Group will evaluate its position and update its provision, if required, on receiving further clarity on the subject.

¥) During the year ended March 31, 2011, Ritemed Pharma Retail Private Limited (merged with Optival Health Solutions Private Limited w.e-. April 01, 2016), subsidiary Company, had entered into the following,
‘transactions with Optival Health Solutions Private Limited:

- Purchase of goods aggregating to Rs.31225 millions for the period May 7, 2010 to March 3, 2011; and
= Purchase of goods and services aggregating to Rs.21.80 millions and sale of goods and services aggregating to Rs.15.15 millions for the period April 1, 2010 to March 3, 2011
‘The above transactions requires prior approval of the Central Government under the provisions of Section 297 of the Companies Act, 1956. The above transactions are part of normal business transactions entered at the

prevailing market prices. On June 10, 2011, Ritemed Pharma Retail Private Limited has applied to the appropriate regulatory authorities for regularization of the above transaction. Management is confident that the
penalties, if any, that may arise on account of such non-compliance will not be material,

vi) During the previous year, the Group has received Assessment order u/s:143(3) of Income tax Act, 1961 dated November 29, 2019 for the assessment year 2017-18 with an addition of Rs 420.37 Millions to the returned
Income and a tax demand of Rs-192.54 millions on such addition. The addition made to retuned Income isthe difference between turnover reported in VAT retums and Sales as per financial statements

[As per the VAT laws of Karnataka, Turnover to be reported in the VAT returns is at maximum retail price (MRP) and whereas financials turnover will beat actual sale value. The above difference is due to reporting of
Turnover in VAT Returns as per Local Laws and does not require addition to Income. Accordingly, the Group filed an appeal with CIT(Appeals)- Bengaluru on December 13, 2019, based on its internal assessment itis
confident that the matter will be decided in its favor and no adjustment to the consolidated financial statement is required

 

‘The company has given corporate guarantee to hanks against the loan taken by subsidiary company - Optival Health Solutions Private Limited of Re.1,850,00 millions (September 30, 2020: Rs. 1,775.00 millions
‘March 31, 2021: Rs, 1,850.00 millions, March 31, 2020: Rs. 1,775.00 Million, March 31, 2019 :Rs 1,050 Million) forthe purpose of funding its working capital requirements.

 

(iti) The Company is subject to legal proceedings and claims including cases related under Drugs and Cosmetics Act 1940, which have arisen in the ordinary course of business. The uncertainties and possible
reimbursements are dependent on the outcome ofthe different legal processes which have been invoked by the claimants or the Company, as the case may be and therefore timing of cash flows cannot be predicted. The
(Company engages reputed professional advisors wherever required to protect its interests and has been advised that it has strong legal positions against such disputes. The Management believes that ithas a reasonable
case in its defense ofthe proceedings and accordingly no further provision is required.

(x) On March 31, 2020, Gangadi Investments Private Limited ("GIPL”) transferred 1,199 equity shares of the Company to Shore Pharma LLC, a non-resident entity ("GIPL Transfer’), for which GIPL filed a form PC-
‘TRS. GIPL received an email from the RBI dated June 2, 020 approving the said transfer and advising the Company to pay alate submission foe of 34,515 for contravention under Regulation 4 (3) of the RBI
notification no. FEMA 395/2018-RB dated October 17, 2019, and to apply for compounding of the contravention. The Company had filed an application for compounding on July 5, 2021, which was returned by RBI due
to certain discrepancies. The Company is inthe process of re-filing the application for compounding with RBI. The Company believe that penalty if any to be levied by RBI will not be material,

42, Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
‘The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with
its customers the Entrepreneurs Memorandum Number as allocated after filling the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at September 30, 2021, September
30, 2020, March 31, 2021,March 31, 2020 and March 31, 2019 has been made in the standalone financial statements based on information received and available with the Group. Further in the view of the Management,
the impact of interest, if any, that may be payable in accordance with the provisions ofthe Act is not expected to be material. The Group has not received any claim for interest from any supplier under the said Act.

 

 

Particulars Asat Asat Asat Asat Aeat
September 30,2021 September 30,2020 March 31, 2021 March 31,2020 March 31, 2019

"The amounts remaining unpaid fo micro and small suppliers as at the end of the period] year

= Principal 319 6.96 231 14.96 425

= Interest 2 : : 2 =

‘The amount of interest paid by the buyer as per the MSMED Act, 2006 2 = . = 2
‘The amounts ofthe payments made to micro and small suppliers beyond the appointed day 2 = . = 2
during each accounting period / year.

‘The amount of interest accrued and remaining unpaid at the end of each accounting period/ year - - - - .

‘The amount of interest due and payable for the period of delay in making payment (which have - - - - -
been paid but beyond the appointed day during the period /year) but without adding the interest
specified under MSMED Act,

‘The amount of further interest remaining due and payable even in the succeeding years, until - # i : .
such date when the interest dues as above are actually paid to the small enterprises for the
‘purposes of disallowances as a deductible expenditure uncler the MSMED Act, 2006

 

‘Note: This information is required to be disclosed under the MEMED Actand has been determined fo Tne extent such parties have Deon Identified on the basis of information available with the Group and has been
relied upon by the auditors,

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