• Filing Date: 2019-06-14
  • Form Type: 10-K
  • Description: Annual report
v3.19.2
RELATED PARTY TRANSACTIONS
12 Months Ended
Mar. 31, 2019
Disclosure Text Block [Abstract]  
Related Party Transactions

NOTE 7 – RELATED PARTY TRANSACTIONS

 

Nemaura Pharma Limited (Pharma), Black and White Health Care Limited (B&W) and NDM Technologies Limited (NDM) are entities controlled by the Company’s chief executive officer, interim chief financial officer, and majority shareholder, Dewan F.H. Chowdhury.

 

In accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin 55, these financial statements are intended to reflect all costs associated with all operations of Nemaura Medical and its subsidiaries Pharma has a service agreement with DDL, to undertake development, manufacture and regulatory approvals under Pharma’s ISO13485 Accreditation. In lieu of these services, Pharma invoices DDL on a periodic basis for said services. Services are provided at cost plus a service surcharge amounting to less than 10% of the total costs incurred. 

 

Following is a summary of activity between the Company and Pharma, B&W and NDM for the years ended March 31, 2019, 2018 and 2017. These amounts are unsecured, interest free, and payable on demand.

 

             
   

Year Ended

March 31,

2019

($)

 

Year Ended

March 31,

2018

($)

 

Year Ended

March 31,

2017

($)

Balance due to Pharma and NDM at beginning of period     613,818       687,609       494,145  
Amounts received from Pharma     —         145,214       2,480  
Amounts invoiced by Pharma to DDL, NM and TCL (1)     2,312,412       842,739       577,481  
Amounts invoiced by DDL to Pharma     (977 )     —         (15,305 )
Amounts repaid by DDL to Pharma     (1,569,496 )     (1,096,767 )     (249,060 )
Amounts paid by DDL on behalf of Pharma     —         (19,889 )     (42,403 )
Amounts invoiced by B&W to DDL     2,206       —         —    
Amounts repaid by DDL to B&W     (5,622 )     —         —    
Foreign exchange differences     (84,843 )     54,912       (79,729 )
Forgiveness of payable accounted for as equity contribution     (302,819 )     —         —    
Net balance due to Pharma and NDM at end of the period     964,679       613,818       687,609  

 

  (1) These amounts are included primarily in research and development expenses.

 

All related party transactions relate to operating activities in the years ended March 31, 2019, 2018 and 2017.

 

Total costs charged to the Company by Pharma and NDM were $2,312,412, $842,739, and $577,481 for the years ended March 31, 2019, 2018 and 2017, respectively.

 

In the year ended March 31, 2019, consultancy services totalling $2,160 relating to the preparation of tax advice was provided by Diagnostax Limited, a company of which Mr. T. Johnson is a director. Mr. T. Johnson is a non-executive director of the Company.