Sun Pharma slides 4% after Co says forensic audit by Sebi underway

A forensic audit has been ordered by Sebi w.r.t. the financial statements of the company for the financial years ending FY16, FY17, and FY18.

Sun Pharma slipped 4 per cent to Rs 414.6 apiece on the BSE in the early morning trade on Friday after the drug-maker informed the exchanges about a forensic audit being undertaken by markets’ regulator Securities Exchange Board of India (Sebi).
 

“A forensic audit has been ordered by Sebi w.r.t. the financial statements of Sun Pharmaceutical Industries for the financial years ending FY16, FY17, and FY18,” the company said in a filing. CLICK HERE TO READ THE FILING
 

At 10:05 am, the stock was trading 3.88 per cent lower at Rs 415.20 per share, as against a 0.34 per cent rise in the benchmark S&P BSE Sensex. Sun Pharma's related company, SPARC (Sun Pharma Advanced Research Company), too, was trading 2.35 per cent lower at Rs 146.05. 

Earlier, media reports said that the audit was ordered based on allegations made by a whistleblower in a 150-page complaint to Sebi, accusing Sun Pharma of committing corporate governance and tax-related offences and securities market-related violations. The whistleblower had complained of a fund diversion of Rs 42,000 crore and of personal profits being made to the tune of Rs 10,000 crore.
 

In February this year, Sun Pharma had informed stock exchanges that it had received two queries from the regulator related to a 2004 foreign currency convertible bonds (FCCB) issuance and about Sun's business with Aditya Medisales (AML), and it had responded to both of them.