Vanta Bioscience Limited, a Hyderabad-based company, is facing legal challenges as an application has been filed against it under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was submitted to the National Company Law Tribunal (NCLT), Hyderabad Bench, by S Venkata Rao, a former executive of the company.

Details of the Application

S Venkata Rao, who resigned from his position as Whole Time Director & CEO of Vanta Bioscience on January 04, 2021, has alleged that the company defaulted on salary payments and interest, amounting to a total of Rs. 1.18 crore. Based on these claims, Rao is seeking the initiation of a Corporate Insolvency Resolution Process (CIRP) against the company.

Company's Response

Vanta Bioscience has taken a firm stance against these allegations. The company has:

• Denied all allegations and claims made by S Venkata Rao
• Labeled the claims as baseless
• Sent an appropriate reply to the concerned authorities
• Sought legal advice to protect its interests
• Stated that it has not received any other communications from NCLT regarding this matter

Implications and Next Steps

The filing of this application under the Insolvency and Bankruptcy Code could have significant implications for Vanta Bioscience if the NCLT decides to admit the case. However, at this stage, the company appears to be taking proactive steps to address the situation.

Investors and stakeholders of Vanta Bioscience will likely be watching closely as this legal matter unfolds. The outcome of this case could potentially impact the company's financial standing and operations.

As the situation develops, more information may become available regarding the merits of the case and any potential resolutions between Vanta Bioscience and its former executive.

Vanta Bioscience Limited , a full-service preclinical contract research organization, has reported a substantial net loss for the financial year ended March 31, 2025, according to the company's latest financial results approved by its Board of Directors.

Standalone Performance

On a standalone basis, Vanta Bioscience recorded a net loss of Rs 265.95 lakh for FY2025, a stark contrast to the profit of Rs 5.11 lakh reported in the previous fiscal year. The company's revenue from operations saw a significant decline, dropping to Rs 112.74 lakh from Rs 855.79 lakh in the previous year, representing a decrease of about 86.80%.

Consolidated Results

The consolidated financial picture showed an even more pronounced downturn. The company's net loss widened to Rs 477.49 lakh from Rs 231.59 lakh in the previous year. Consolidated revenue also experienced a sharp decline, falling to Rs 196.36 lakh from Rs 972.29 lakh, marking a decrease of approximately 79.80%.

Operational Challenges

Vanta Bioscience faced operational hurdles during the fiscal year, particularly in consolidating its financial results. The company reported delays in receiving accounts from its associate company, which led to a postponement in preparing the consolidated results within the prescribed timelines.

Subsidiary Performance

The consolidated results include the performance of two subsidiaries:

1. Vanta Clinical Research Limited
2. CEBIS India Limited

However, specific details about the individual performance of these subsidiaries were not provided in the financial statement.

Audit Opinion

The statutory auditors, M/s Mathesh & Ramana, provided an unmodified and unqualified opinion on both the standalone and consolidated financial results for FY2025, indicating that the financial statements present a fair view of the company's financial position.

Balance Sheet Highlights

The company's balance sheet as of March 31, 2025, reveals some interesting trends:

Looking Ahead

While the financial results for FY2025 present significant challenges for Vanta Bioscience, the company's ability to maintain its asset base and the unqualified audit opinion suggest that it is navigating through a difficult period. The substantial revenue decline across both standalone and consolidated operations indicates that the company may need to reassess its strategies and market positioning to reverse this trend and return to profitability.