NewsEarningsTransgene Biotek Reports Q1 Loss, Appoints New Auditors Amid Ongoing Regulatory ChallengesTransgene Biotek Reports Q1 Loss, Appoints New Auditors Amid Ongoing Regulatory Challenges
Transgene Biotek Limited reported a net loss of Rs 43.37 lakhs in Q1, compared to a profit of Rs 19.94 lakhs in the same period last year. Revenue from operations slightly increased to Rs 4.95 lakhs. The company appointed new Internal and Secretarial Auditors. Regulatory challenges persist, with ongoing proceedings at the Securities Appellate Tribunal and Appellate Tribunal in New Delhi. The company cleared the principal sum owed to BIRAC but faces operational difficulties due to regulatory issues.
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Transgene Biotek Limited , a biotechnology company based in Telangana, India, has reported a significant loss for the first quarter, while also making key appointments and facing ongoing regulatory challenges.
Financial Performance
The company's unaudited financial results for the quarter reveal a net loss of Rs 43.37 lakhs, a stark contrast to the profit of Rs 19.94 lakhs reported in the same period last year. This downturn comes despite a marginal increase in revenue from operations, which rose to Rs 4.95 lakhs from Rs 4.92 lakhs year-over-year.
A closer look at the financial statements shows:
| Particulars | Q1 (Rs in lakhs) | Q1 Previous Year (Rs in lakhs) |
|---|---|---|
| Revenue from Operations | 4.95 | 4.92 |
| Total Expenses | 48.32 | 50.18 |
| Finance Costs | 24.55 | 1.73 |
| Net Profit/(Loss) | (43.37) | 19.94 |
The company's total expenses increased to Rs 48.32 lakhs, with a notable surge in finance costs, which rose to Rs 24.55 lakhs from Rs 1.73 lakhs in the previous year. This significant increase in finance costs appears to be a major factor contributing to the company's loss this quarter.
Corporate Governance and Appointments
In a recent board meeting, Transgene Biotek made several key decisions:
- The board approved the unaudited financial results for Q1.
- An extension for the Annual General Meeting (AGM) date for the previous financial year was granted.
- M/s. Manisha Dubey & Associates were appointed as Internal Auditors for the current financial year.
- M/s. Geeta Serwani & Associates were appointed as Secretarial Auditors for a five-year term, subject to shareholder approval at the AGM.
Regulatory Challenges
Transgene Biotek continues to face significant regulatory hurdles:
- The company is awaiting relief from the Securities Appellate Tribunal (SAT) regarding a petition filed against an adjudication order passed by SEBI. The next SAT hearing is scheduled for September 8.
- Proceedings challenging an Adjudication Order passed by the Enforcement Directorate, Chennai, commenced on July 30 at the Appellate Tribunal in New Delhi.
These ongoing regulatory issues are impacting the company's operations, with management noting that it has been "extremely difficult to manage functioning of the company" due to the lack of relief from SAT.
Outlook
Despite the challenges, Transgene Biotek reported that it has managed to clear the principal sum owed to BIRAC (Biotechnology Industry Research Assistance Council). However, the company's immediate future remains uncertain as it navigates through regulatory proceedings and attempts to improve its financial performance.
Investors and stakeholders will be closely watching the outcomes of the upcoming SAT hearing and the proceedings at the Appellate Tribunal, as these could have significant implications for the company's future operations and financial stability.
Historical Stock Returns for Transgene Biotek
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.91% | -1.68% | +2.24% | +9.33% | -39.88% | +1.99% |
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