Ii diverse product portfolio 18 a combined firm has a

(ii) Diverse Product Portfolio:
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A combined firm has a diverse, highly complementary portfolio of specialty and generic
products marketed globally. This way, Sun Pharma got access to Ranbaxy’s new product
pipeline including generic versions of many products.
(iii) Tax Benefits
- To Ranbaxy i.e. Amalgamating Company:
By virtue of section 47(vi) of Income-tax Act 1961, transfer of a capital asset by Ranbaxy
(amalgamating company) to Sun Pharma (amalgamated company) was not treated as a
transfer as all the conditions were satisfied:
i)This deal was treated as amalgamation as per section 2(1B) and
ii) Sun Pharma (Amalgamated company) is an Indian Company
Therefore, Ranbaxy was not liable for Capital Gain Tax on the transfer of its assets to Sun
Pharma.
- To Sun Pharma:
Out of Minimum Alternative Tax(MAT) credit of Rs. 8222.7 million which had been written
down by Ranbaxy during the quarter ended 2014, an amount of Rs. 7517 million has been
recognized by the company, on a reassessment by the management at the year-end, based on
the convincing evidence that the combined entity would pay normal income tax during the
specified period and would be able to utilize the MAT credit so recognized
19

References:
1)
Investor presentation 2019
%20February%202019.pdf
2)
Investor presentation 2015
%20Sept%202015%20(USD).pdf
3) Capital Line
4) EBSCO
-
834ae77733a3%40pdc-v-
sessmgr04&bquery=sun+pharmaceuticals&bdata=JmRiPWJ1aCZkYj1id2gmdHlwZT0wJnN
lYXJjaE1vZGU9U3RhbmRhcmQmc2l0ZT1laG9zdC1saXZl
5)
%20Medical%20Products/PMP
%20NEW/PDFs/778886_India_Pharma_2020_Propelling_Access_and_Acceptance_Realisin
g_True_Potential.ashx
6) Sun Pharma Acquires Ranbaxy: Post Merger Blues- ResearchGate;
Postmerger_Blues
7) “Painful integration: Sun Pharma sees profit hit as it sets the record straight at Ranbaxy
units”, F. Business, July 21, 2015. -
pharma-sees-profit-hit-sets-records-right-ranbaxyunits-2353660.htmlaccessed on December
15, 2015
5)
%20Report.pdf
6) Adapted data from Financial public disclosures of Sun Pharma ( )
7) -
03/news/66178641_1_ranbaxylaboratories-sun-pharma-abc-consultantsaccessed
20

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