Entero Healthcare Solutions Limited has disclosed a material event where its wholly-owned subsidiary, Vasavi Medicare Solutions Private Limited, is facing a default in payment of outstanding dues amounting to ₹11.87 crore from a customer, M/s. S M Pharma. The subsidiary has recognized a risk to the recoverability of these dues and has made a full provision in its books. Vasavi is initiating legal proceedings to recover the amount.
Material Disclosure by Entero Healthcare
Entero Healthcare Solutions Limited has informed the stock exchanges about a significant event impacting its subsidiary, Vasavi Medicare Solutions Private Limited. The disclosure pertains to a default in payment of outstanding dues by one of Vasavi’s customers, identified as M/s. S M Pharma, a partnership firm.
Financial Impact and Provisioning
The total amount of outstanding dues that have defaulted amounts to ₹11.87 crore. Following information indicating a risk to the recoverability of these invoices, Vasavi Medicare Solutions has made a provision for the entire outstanding amount in its books of account. Consequently, the maximum impact on the consolidated financial statements of Entero Healthcare Solutions Limited is reported to be ₹11.87 crore.
Legal Action Initiated
In response to the default, Vasavi Medicare Solutions Private Limited is actively pursuing recovery of the outstanding dues. The subsidiary has initiated appropriate legal proceedings against the customer to reclaim the ₹11.87 crore owed. The company assures that these steps are being taken to mitigate the financial impact arising from this event.
Source: BSE
