Vimta Labs is in the business of contract research and testing for the pharmaceutical industry. The company has received national and international accreditations, been subject to audits by global regulators, and entered into partnerships with market leaders in the past. It reported stable operating profits on steadily growing revenues until the last twelve months – when it reported marginal operating losses (instead of the usual profits before depreciation of 20 to 25cr) on revenues of about 90cr, primarily due to delays in approvals (see below) and increased costs of materials consumed in its operations. The company’s debt load is high relative to recent cash flows and is largely dependent on collection of its receivables to pay it off. It is therefore exposed to high interest rates as well as a depreciating INR in paying its domestic and foreign currency loans respectively. The auditors’ report revealed that the company has, in fact, defaulted in repayment of fe
An Individual Investor's Perspectives On The Indian Financial Markets