RELATED PARTY TRANSACTIONS
 3 Months Ended
Jun. 30, 2019
Disclosure Text Block [Abstract]  
Related Party Transactions

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Nemaura Pharma Limited (“Pharma”), NDM Technologies Limited (“NDM”) and Black and White Health Care Limited (“B&W”) are entities controlled by the Company’s Chief Executive Officer and majority stockholder, Dewan F.H. Chowdhury.

 

In accordance with the SEC Staff Accounting Bulletin 55, these condensed consolidated financial statements are intended to reflect all costs associated with the operations of DDL and TCL. Pharma has a service agreement with DDL, to undertake development, manufacture and regulatory approvals under Pharma’s ISO13485 Accreditation. In lieu of these services, DDL invoices Pharma 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.

The following is a summary of activity between the Company and Pharma and NDM for the three months ended June 30, 2019 and 2018, and the year ended March 31, 2019. These amounts are unsecured, interest free, and payable on demand.

 

 

  

Three Months Ended
June 30, 2019
(unaudited)
($)

 

Three Months Ended
June 30, 2018
(unaudited)
($)

 

Year Ended
March 31, 2019
($)

Balance due to Pharma and NDM at beginning of period   964,679    613,818    613,818 
Amounts invoiced by DDL to Pharma   —      —      (977)
Amounts invoiced by Pharma to DDL, NM and TCL (1)   435,416    521,085    2,312,412 
Amounts repaid by DDL to Pharma   (305,060)   (308,434)   (1,569,496)
Amounts invoiced by B&W to DDL   —      —      2,206 
Amounts repaid by DDL to B&W   —      —      (5,622)
Foreign exchange differences   (22,359)   (68,920)   (84,843)
Forgiveness of payable accounted for as an equity contribution   —      —      (302,819)
Balance due to Pharma and NDM at end of the period   1,072,676    757,549    964,679 

 

(1)These amounts are included primarily in research and development expenses charged to the Company by Pharma.

 

The Company routinely reviews its statement of cash flows presentation of related party transactions for financing or operating classification based on the underlying nature of the item and intended repayment.