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Sun Pharma bucks trend after clarification

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Industries rose 0.48% to Rs 457.50 at 11:09 IST on BSE on bargain hunting after the company issued a clarification to the bourses.

Meanwhile, the was down 161.15 points, or 0.44% to 36,079.85.

On the BSE, 14.58 lakh shares were traded in the counter so far compared with average daily volumes of 15.60 lakh shares in the past two weeks. The stock had hit a high of Rs 464.70 and a low of Rs 455 so far during the day. The stock hit a 52-week high of Rs 678.80 on 6 September 2018. The stock hit a 52-week low of Rs 434.80 on 22 May 2018.

Industries said that over the last one week, there have been some on around a note issued by one of the securities firm and a potential whistleblower complaint against the company.

With reference to allegations that one of the partners of an audit firm of (Valia & Timbadia) was investigated in a stock price rigging case, the company clarified that none of the partners of this audit firm or the firm itself was a party to this investigation. This audit firm audits some of the company's subsidiaries and they have been with the company for a long time. The subsidiaries that this firm audits put together account for approximately 0.6% of the company's consolidated revenues - FY2018.

With reference to a question is being raised about an case which was settled with Sebi regarding the acquisition, the company clarified that it has not been involved in any norm violations relating to the deal. However, there was some minor technical issue relating to a procedural aspect of trading window closure due to intervening holidays. The board meeting for approving the acquisition was held on a Sunday and hence the company's lawyers advised that there is no need to announce a trading window closure since stock markets are anyways closed on Saturday and Sunday.

Sebi later on ruled that the company should have announced a window closure. This case was settled with Sebi with no admission of guilt in accordance with the provisions of applicable laws and matter was closed. It is also important to note that none of the insiders traded in the stock even if the window closure was not announced.

With reference to news reports about Sebi likely to re-open the old case, the company clarified that it has not received any information from Sebi in this regard.

With reference to news reports of a whistleblower complaint filed against Sun Pharma with Sebi, the company clarified that as of now, it has not received any query related to this from Sebi.

With reference to concerns being raised about Sun Pharma's low single digit tax rate, the company clarified that this was the case many years back and now its effective tax rate is in mid-teens. The company has guided many times in the past quarters that its tax rate will gradually inch up in the coming years.

With reference to queries on loans and advances given to non-related parties which have increased significantly in FY2018, the company clarified that these are loans and advances given in the normal course of business at arms-length basis at market interest rates and at market terms and conditions.

On a consolidated basis, Industries reported net loss of Rs 108.84 crore in Q2 September 2018 compared with net profit of Rs 1001.79 crore in Q2 September 2017. Net sales rose 3.89% to Rs 6846.48 crore in Q2 September 2018 over Q2 September 2017.

is the world's fifth largest specialty company and India's top pharmaceutical company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 11:12 IST