INSUBCONTINENT EXCLUSIVE:
On Tuesday's opening trade shares of Sun Pharma recovered in green after company announced restructuring of certain business transactions
that includes merging of its domestic drug distribution company, unwinding of certain loans and replacing one of auditors
The issues in last two months had become discomfort to investors that had dragged Sun Pharma shares to a six year low
The company also "unequivocally" denied that it had lent or stood guarantee for Suraksha Realty, a firm promoted by Sudhir Valia, Director
"Sun Pharma hereby confirms affirmatively that neither any loans nor guarantees have been given to Suraksha Realty
Sun Pharma would like to dispel all falsehoods being spread about its financial dealings", company said
Sun Pharma's clarification came day ET reported on how shares of Sun Pharma were pledged by its promoters to raise money for Suraksha
Sun Pharma said it is transitioning domestic formulation distribution company Aditya Medisales to Sun Pharma's wholly owned subsidiary
This change will be effective from Q1FY20, after receiving all requisite regulatory approvals
Aditya Medisales has been in storm of controversy after reports emerged that a whistleblower note to market regulator SEBI had alleged that
Aditya Medisales had lend money to Suraksha Realty
In a telephonic conversation with ET on Monday, Sudhir Valia had said that Aditya Medisales is a private company, and Suraksha is a private
company and they can do any business that has nothing to do with shareholders
Sun Pharma also said it is unwinding a transaction worth $345mn that had showed up in its books as loans and advances
This liability Sun said was towards obligation of supplies to Atlas Global Trading in respect of Atlas assuming damages on account of
These cGMP non compliances resulted in supply constraints thereby, Sun Pharma was not able to adhere to agreed supply schedule with Atlas
Sun Pharma, in FY18, has funded Atlas towards non-fulfilment of its supply obligations till time such obligations are fulfilled as per
agreement, Sun said in a clarification to exchanges
"The parties to supply contract have now agreed in principle, that Atlas will assign its rights and obligations arising from this contract,
to a wholly owned subsidiary of Sun Pharma
This assignment will ensure that Loans Advances given to Atlas will be settled", according to Ashok Bhuta, Compliance Officer of Sun Pharma
Once this transaction is concluded in consolidated balance sheet, this loan and obligation will cease to exist as it gets squared up
This transaction is expected to be concluded in FY19
Sun Pharma said it is also in process of replacing Valia Timbadia as auditors of its subsidiary companies with SRBC Co LLP
In Tuesday's trade Sun Pharma's shares were trading at Rs 417, up by 5 per cent
