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Sun Pharmaceutical Industries Ltd today made a press release, today, in order to clarify the ongoing corporate governance issue. Sun Pharma explained that the loan given to a third party that raised the concerns among the authorities were part of the settlement with Atlas Global Trading.
Sun Pharma in its statement said the “consolidated balance sheet, reflected a liability towards obligation of supplies to Atlas Global Trading (“Atlas”) amounting to Rs. 2,238 crores (US$ 345 million). This liability was in respect of Atlas assuming the damages on account of Protonix patent litigation settlement entered by Sun Pharma which was disclosed in Sun Pharma’s Annual Report FY14.”
According to Sun Pharma, the company in order to rectify the damages decided to supply products from the company’s Halol facility, which was later treated with an export ban by USFDA.
Sun Pharma added “the parties to the 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 the Loans & Advances given to Atlas will be settled.”
As per Sun Pharma, the transaction is expected to be completed by the end of the current fiscal year. Sun Pharma also claimed 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 with Suraksha Realty.”
